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originally posted by: links234
Meanwhile, Hedge funds tell Puerto Rico: lay off teachers and close schools to pay us back.
It should be noted that the island paid $400 million plus on it's debts but specifically didn't pay the $58 million debt because that debt is owned by the people of Puerto Rico. The government alluded that this was because 'they were less likely to sue.'
Puerto Rico, more afraid of the banks than of their own population.
originally posted by: Reallyfolks
a reply to: Aloysius the Gaul
Let's walk through a hypothetical example to show how the act of bank lending creates new money. Say that person A has $100 dollars in cash and decides to deposit this money into a bank. The bank has a reserve ratio of 10%, and so it must keep $10 in reserves but can loan out the other $90. Let's say the bank makes a $90 loan to person B.
Time to stop and recap what just happened. Person A originally had $100 cash and consequently $100 worth of purchasing power. When person A deposits this money into a bank, they still have $100 in purchasing power.
originally posted by: Aloysius the Gaul
The Bank, and the customers, are relying on most people to leave their $100 IN THE BANK - where they are NOT spending it so do NOT have $100 purchasing power.
The ability to on-loan that $90 relies upon a bunch of people foregoing their ability to buy stuff by leaving their money in the bank.
originally posted by: jrod
a reply to: Reallyfolks
Not for all of us. I'm good with the trade and barter system.
Many US States are close to default from what I understand...
originally posted by: xuenchen
This could be a plot to "force" a Statehood vote.
Look at all the Democrat votes just sitting there wasting away !!
A perfect crisis.
51 gets it done.edit on Aug-04-2015 by xuenchen because: [_-o-_]77