Money As Debt - A Look at the Reality of Our Economics System
There are many common misconception with the average person about money today.
Where does it come form? How is it made? The belief that money is only paper and coins printed off in the mint is entirely untrue.
Almost of all the money we hear about today.
The trillions of dollars that are unheard of or even imaginable, and never seen, are all creations of the banks.
Most notably the Federal Reserve and World Bank.
In fact 95 to 97 percent of all of this money is not in the paper form.
However there are two major things that need to covered before can see the full picture of the where this money comes from and why it is needed.
First of all, all this money is imaginary , it's actually the debt you owe to the banks that creates this money.
You may have questioned in the past where all this money comes from and that's right it's imaginary .
It's not real .
But how do the banks get away with this you might ask? And how do banks make this imaginary money out of debt ? Well it happens like this, let's say a brand new bank has just opened on your block and it has 1,000 dollars in it's reserves.
But what people don't know is that the bank only needs a small percentage of real money for debt money, so lets say we need $1 real dollar for every $10 debt dollars, that means instead of $10,000 dollars.
So when the first customer comes in asking for the loan for 10,000 dollars the bank is automatically making $9,000.
An every time after this when another loan is made the bank makes 9/10 of what it made off the loan before.
So the bank instead of making 9,000 dollars from the next loan makes 9/10 of $9,000 dollars and then 9/10 of $8100 dollars and so on until with the $1000 dollars originally in the bank the bank can make $90,000 dollars.
And if the bank doesn't have enough money for a new loan it can send for more money from the central bank, or Federal Reserve.
Which prints off more federal reserve notes and sends it back to the bank.
This is where the trillions of dollars you hear about in our economy comes from.
And it doesn't have to be 9/10 either the amount of the actual money in the bank vaults could actually be much lower.
However we are leaving out the one last key element which totals the equation.
Interest; when the bank makes a loan it always charges interest.
This means that the person who's already in debt with the bank has to pay more money back to the bank than the bank initially loaned out to them.
SO this means one thing, and that is the bank is not only making a profit off of you, but the bank is making sure that our society is permanently in debt.
We can never pay off all the debt because there is more money owed than money out there.
This also means that without loans that create debt there would be no money.
That's right, if we paid off all the debt our society would collapse.
And without the signature we sign for the loan there would be no money.
Our Society is caught in a perpetual spiral of debt, and the bank owns this society and our government.
We are slaves to money never able to break free.
This is why people need to know about this to create the necessary changes in our government to end this spiral of debt.
And there are several things that may make this possible.
However that will be continued for another time.
To find out more check out my blog and find out more ways to end our slavery to money.
Where does it come form? How is it made? The belief that money is only paper and coins printed off in the mint is entirely untrue.
Almost of all the money we hear about today.
The trillions of dollars that are unheard of or even imaginable, and never seen, are all creations of the banks.
Most notably the Federal Reserve and World Bank.
In fact 95 to 97 percent of all of this money is not in the paper form.
However there are two major things that need to covered before can see the full picture of the where this money comes from and why it is needed.
First of all, all this money is imaginary , it's actually the debt you owe to the banks that creates this money.
You may have questioned in the past where all this money comes from and that's right it's imaginary .
It's not real .
But how do the banks get away with this you might ask? And how do banks make this imaginary money out of debt ? Well it happens like this, let's say a brand new bank has just opened on your block and it has 1,000 dollars in it's reserves.
But what people don't know is that the bank only needs a small percentage of real money for debt money, so lets say we need $1 real dollar for every $10 debt dollars, that means instead of $10,000 dollars.
So when the first customer comes in asking for the loan for 10,000 dollars the bank is automatically making $9,000.
An every time after this when another loan is made the bank makes 9/10 of what it made off the loan before.
So the bank instead of making 9,000 dollars from the next loan makes 9/10 of $9,000 dollars and then 9/10 of $8100 dollars and so on until with the $1000 dollars originally in the bank the bank can make $90,000 dollars.
And if the bank doesn't have enough money for a new loan it can send for more money from the central bank, or Federal Reserve.
Which prints off more federal reserve notes and sends it back to the bank.
This is where the trillions of dollars you hear about in our economy comes from.
And it doesn't have to be 9/10 either the amount of the actual money in the bank vaults could actually be much lower.
However we are leaving out the one last key element which totals the equation.
Interest; when the bank makes a loan it always charges interest.
This means that the person who's already in debt with the bank has to pay more money back to the bank than the bank initially loaned out to them.
SO this means one thing, and that is the bank is not only making a profit off of you, but the bank is making sure that our society is permanently in debt.
We can never pay off all the debt because there is more money owed than money out there.
This also means that without loans that create debt there would be no money.
That's right, if we paid off all the debt our society would collapse.
And without the signature we sign for the loan there would be no money.
Our Society is caught in a perpetual spiral of debt, and the bank owns this society and our government.
We are slaves to money never able to break free.
This is why people need to know about this to create the necessary changes in our government to end this spiral of debt.
And there are several things that may make this possible.
However that will be continued for another time.
To find out more check out my blog and find out more ways to end our slavery to money.
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