reply to post by rockets red glare
There's a problem with the thinking "If one man can do it, anyone can." While true of many things, and life in general, it is not true of banking
and finance in the money system we have today. Since so much of our lives revolve around the nature of money, the understanding how money works is an
important issue to us all.
As the interest-bearing loan system works today, the number of people who will default on their loans or have their homes foreclosed on can be
deterministically predicted with a mathematical formula. So how on earth can all of the people in this system expect to do what is required of them
when it is mathematically impossible? It's DETERMINED that x-percent will fail on their loans, no matter how dependable, honest, or hard working
they may be:
P / (P + I) will fulfill the contract of a loan.
I / (P + I) will be foreclosed on.
Your reliability or trustworthiness might give you a better chance over someone else, but the amazing thing is that even if we were all perfect, it
wouldn't matter. The predicted number of people operating in this closed money system will fail.
This is a problem. Why do we keep allowing this type of system to exist?
Is it because we don't understand enough about economics to create a better one?
While ignorance may be bliss, it certainly doesn't help the reality of things. What we need to do is find out for ourselves what options we have
when considering instituting a money system.
Historically, money in the United States has worked under two categorically different systems:
1) The government created money, and spent it into the economy. From there it circulated around forever.
2) Banks created money, then “loaned” it to the government, demanding interest on it. Since they didn't create the interest money to pay all
the debts back, the only way the system could be kept from collapsing was to loan out more money when people didn't have enough to pay the bank
Clearly, a system is flawed when what is expected cannot be achieved.
YOU are expected to pay back your loans with interest, but the interest money was never created. While you might be able to get money from someone
else and pay the bank back, that other person is screwed.
The screwed person could just as easily been YOU.
Imagine a game of musical chairs. 10 chairs, 11 people. The banker says “I will make it safe for all. I'll loan out a chair so there is enough
for everyone to sit in. But later, I was 2 chairs back.”
When it comes time to pay the banker back, now there are only 9 chairs for 11 people, with the bank owning 2.
Repeat this cycle a few more times and it's easy to see how the bank will end up with all the chairs, and the people will have no place to sit.