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Originally posted by bacci0909
Actually... in a way, it did just disappear. Our monetary system is based on fractional and fiat currency. That means it's backed by either a small portion of it's amount, or it's backed by nothing at all. This recession/depression has been largely based on the housing bubble, banks making risky loans to people who ended up not being able to pay, and then selling those bad assets, or debts, to other financial institutions or what have you. Keep in mind, the money that the banks use to make loans for those houses, and the money the financial institutions use to buy the bad debts from the banks were created out of thin air. Created with the stroke of a pen. They are nothing more than a statement on a balance sheet. For instance, If the Fed sets the reserve ratio for the banks at 9 to 1, that means when you deposit $100 into your bank account, they are able to then loan out $900 based on your $100. The $900 was never really there, it was created out of thin air. It's an invisible credit, assumed that it will be liquidated at some point when the loanee pays it back. So all these transactions and purchases and sell offs are carried out on paper, or electronically, not with actual dollar bills. Again, they are based on the assumption that one day, who ever is at the bottom of them, will use their real paper dollar bills to pay it. The problem is when it turns out they can't pay them. Then everything goes wrong, because the banks had created all this money that they didn't have, and now it's becoming apparent that they will never have it.
If you already knew most of this, I apologize. I'm just trying to illustrate the point that when you have a monetary system such as ours, money can and does "just disappear", because for the most part, it was never really there in the first place.
If you want to know everything there is to know about the practice of modern banking, the history of who and what got banking to this point, as well as the history of how banking has influenced nearly every event since it's inception, definitely read G. Edward Griffin's book, The Creature from Jekyll Island. Only book you'll ever need as far as I'm concerned
Originally posted by fooks
wish it was me.
but.. but.. i'd give most of it away!
to anyone who asked me for some!
if i was buffet or gates, i would give everyone on the planet $1.00.
and call it a day.
Originally posted by Partygirl
But using a big pool of money for a focused, limited purpose could acquire quite a bit.