Is all money really debt?

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Woodman's picture
Woodman
Status: Diamond Member (Offline)
Joined: Sep 26 2008
Posts: 1028
Is all money really debt?

A thought just came to me, probably thinking too hard late at night, but...

If all money is loaned into existence, is all money really a loan to someone else?  Or is it not sometimes?  When I put my money in the bank, I'm really loaning it to the bank at a meager rate and the bank in turn loans it out again (10 times more) to others at a higher rate.  But what if the money stays under my mattress?  Is it then not debt someone else can use, and that tends to collapse the system?

Should the total value of all assets = the total value of all debt?

pleaseremoveme's picture
pleaseremoveme
Status: Silver Member (Offline)
Joined: Jan 24 2009
Posts: 115
Re: Is all money really debt?

Whatever banking system there is, it has to bring money in circulation somehow. For example: in a full reserve gold standard, banks would only be allowed to bring money in circulation by bying gold (at a fixed goldprice). In modern money systems, however, money is mainly brought into circulation by loaning it to banks or governments (supposedly to most credit worthy instances of any economy): we have a debt standard. Therefore there must actually always be more debt than money.

RubberRims's picture
RubberRims
Status: Silver Member (Offline)
Joined: Nov 22 2008
Posts: 145
Re: Is all money really debt?
Woodman wrote:

A thought just came to me, probably thinking too hard late at night, but...

If all money is loaned into existence, is all money really a loan to someone else?  Or is it not sometimes?  When I put my money in the bank, I'm really loaning it to the bank at a meager rate and the bank in turn loans it out again (10 times more) to others at a higher rate.  But what if the money stays under my mattress?  Is it then not debt someone else can use, and that tends to collapse the system?

Should the total value of all assets = the total value of all debt?

From another perspective, Currency tells us it has a value to buy goods and services. It would not find itself being worth anything if we did not play the game. Truthfully we know the paper the money is printed on is worthless. Yet what gives Gold more value? As a metal it has more substance than paper, but still unless it used it has little value. It just  works as a tool within our system of control.

Now formulate how we have to distribute wealth. You are absolutely right all money is debt, passed around from person to person, servicing our daily requirements. The cleaver system is a fraudulent system where money never actually leaves the system. Credit cards and electronic point of sale systems have made the game easier to control. The banking system has just proved the asset bubble we create in our bank accounts perpetuates your reality. After all what is your reality, put in simple terms, providing for your family at the basic level or acquiring a Bugatti Veyron?

You work out the logic, you may find one has substance the other is pointless within the real scheme of things. It's fair to say we all live in are own worlds, until we can define our true reality.   

The articals below, do they give perspective?  

Naira has lost 20% of its value against the dollar in recent months. You think Gold will save them?

http://news.bbc.co.uk/1/hi/world/africa/7885273.stm

Politicaly there is an agenda to push this global crissis.

http://news.bbc.co.uk/1/hi/business/7886334.stm

RR 

 

jerryl's picture
jerryl
Status: Member (Offline)
Joined: Feb 18 2009
Posts: 4
Re: Is all money really debt?

Read the following link from bottom to top.  It was set up that way for ease in adding to it.  Very informative!

http://moneyaswealth.blogspot.com/

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