Consequences of debt money

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Thomas Hedin's picture
Thomas Hedin
Status: Platinum Member (Offline)
Joined: Jan 28 2009
Posts: 815
Consequences of debt money

Written by Byron Dale.

http://www.wealthmoney.org/forums/topic/31

 

I woke up this morning thinking about all the articles that have been written about money. However, I don’t recall ever reading an article about the consequences of an all debt based money system.

Let’s really start thinking about all the consequences of a 100 percent debt based money system like we now have. A few years back I was talking with a banker from California. During the conversation he made this statement. ”It seems like nobody can handle money I have to loan to the farmers to farm. Then I have to loan money to the wholesales so that they buy the farmers production. Next, I have to loan to the retailers so that buy from the wholesaler. Then I have loan to the consumers so that they can buy from the retailers.

I asked him, do you know why that is? He stated that he didn’t have clue. I told them the reason for that is that the banks create all the money we use as interest bearing loans and there is no money for any one to use until till some one borrows the money from a bank. Then after they borrow money from a bank someone else has to borrow some more money or the borrower can’t even repay his loan.

Just think, none of us can even eat without somebody having to borrow money. None of us can:
• Drink anything till someone borrows from and pays interest to a bank.
• Have cloths to wear unless some one borrows money from and pays interest to a bank.
• Live in a house unless some one borrows from and pays interest to a bank.
• Sleep in a bed unless someone borrows from and pays interest to a bank.
• Drive a car unless someone borrows from and pays interest to a bank.
• Have money in a checking account till someone borrows from and pays interest to a bank.
• Have any Federal Reserve notes in our pockets till someone borrows from and pays interest to a bank.
• Have coins in our pockets till someone borrows from and pays interest to a bank.
• Earn a profit unless someone else borrows from and pays interest to a bank.
• Pay taxes till someone borrows from and pays interest to a bank.
• Save money till someone borrows money from and pays interest to a bank.
• Pay interest on the money borrow from the bank unless someone borrows from and pays interest to a bank.

Congress can’t;
• Fight a war till someone borrows from and pays interest to a bank.
• Bail out the banks till someone borrows from and pays interest to a bank.
• Bail out business till someone borrows from and pays interest to a bank.
• Fund any social programs till someone borrows from and pays interest to a bank.
• Sell bonds to anyone but banks till someone borrows from and pays interest to a bank.

Most people have never thought about all this but it is true.

These facts are hidden when federal, state and local governments borrow long term then spend that money into circulation. This government borrowed money when spent moves into circulation so that many people can use it without borrowing them selves. That however, does not change the fact that all that money was borrowed in the first place.

It is abundantly clear why we are trillions of dollars in debt. With no way out unless we change how money is put into circulation.

This has clearly made all of slaves to the monetary system. The banking system can cause any kind of a bubble it want to any time it wants to by making it real easy to borrow to add money to that bubble.

The banking system can cause a recession any time it wants to by simply making it hard to get loans.

Byron Dale

dshields's picture
dshields
Status: Platinum Member (Offline)
Joined: Oct 24 2009
Posts: 599
good point

The entire borrow money to get money gig is a good point - fractional reserve.  If the amount of money is capped by tying it to something like the gold or corn flakes or you name it, and interest rates are low then it seems to work.  I am not sure how another system would work.  Where we went wrong was going off the gold system.  That was Nixon and the beginning of a spending spree of unbelievable proportions.  Now we are going to pay the price.

Broadspectrum's picture
Broadspectrum
Status: Bronze Member (Offline)
Joined: Mar 14 2009
Posts: 88
How Do You Get 8 = Pieces with Just 3 Cuts of a Knife?

The human aspect required for figuring out the answer to this question is not intelligence. What is required is the ability of thinking outside of a person's normal frame work.  Because once the person discovers the answer, it's realized just how simple it is.  And that is what the answer to the question posed by Thomas's post.  It's actually simple.  But a person must allow oneself to step outside of their normal domestication.

Here's what it is...Spend the money into existence at ZERO INTEREST.  This should not be confused with "gifting" money into existence.  This means remove the lending process which has been embedded into our Federal laws for 5 generations now (it's almost ancient history) We must dissolve those human made laws that created the relationship between the central bank, The Fed and the Government.  Get rid of the middle man, the central banks and go back to what is actually in the Constitution in regards to COINING the money for the nation.  There's no need for a government to borrow.  That's a man made idea and it is a disaster for the human species. 

We must not forget to address the idea of fractional reserve banking too. 

Broadspectrum

Stan Robertson's picture
Stan Robertson
Status: Platinum Member (Offline)
Joined: Oct 7 2008
Posts: 651
How to end debt money?
Broadspectrum wrote:

The human aspect required for figuring out the answer to this question is not intelligence. What is required is the ability of thinking outside of a person's normal frame work.  Because once the person discovers the answer, it's realized just how simple it is.  And that is what the answer to the question posed by Thomas's post.  It's actually simple.  But a person must allow oneself to step outside of their normal domestication.

Here's what it is...Spend the money into existence at ZERO INTEREST.  This should not be confused with "gifting" money into existence.  This means remove the lending process which has been embedded into our Federal laws for 5 generations now (it's almost ancient history) We must dissolve those human made laws that created the relationship between the central bank, The Fed and the Government.  Get rid of the middle man, the central banks and go back to what is actually in the Constitution in regards to COINING the money for the nation.  There's no need for a government to borrow.  That's a man made idea and it is a disaster for the human species. 

We must not forget to address the idea of fractional reserve banking too.

If money is reqired to be coined with zero interest then the only way fractional reserve banking could take place would be for the banks to lend at zero interest.  Otherwise they would be putting thin air money into circulation.

Changing from our debt based money system to one in which governments coined the money without a preceding currency collapse might be a problem. Perhaps the change might be accomplished over a period of time in which bank capitalization requirements were steadily raised to the point that they couldn't lend money that they didn't possess.

 

 

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