Re: “Our Land: Collateral for the National Debt”
Not sure if it helps but I always try to think of labour as equivalent to money rather than creating it.
If labour is an equivalent to money, they why can’t we pay our debts to the banking system with our labour?
The other thing that helps square the circle regarding interest payment is to remember that banks are part of the economy rather than seperate from it.
Since banks control 100% of the money supply wouldn’t it be more accurate to say that the banking system is not really part of the economy but rather a master over it? Banks do not manufacture anything that is made of any known chemcial substances.
A simplistic way of looking at it would be to say that someone borrowing money to purchase something then owes a part of their labour to the creator of the item purchased and a part to the bank (the interest).
I’m sorry but this statement isn’t true. If one borrows at interest what one owes is the principle plus the interest. The banking system will not accept anything else in payment, except through forecloser, where your time and labor do not count for anything, only the bankers equity counts for anything when he purchased a mortage on your property with his promise to pay which he never has to pay.
They can then work off this debt to both parties through their labour.
This is simply not true. They will not accept labor as payment. This is more false propoganda that has been fed to you.
So once you include the bank in the economy and flow of money/goods at no point does principle + interest need to be created in order to satisfy all parties.
Have you been reading G. Edward Griffon?
Lets go through how this really works.
I’ll be the bank.
lets just say this is the only loan in exisistance.
I loan you $1 at 10% simple interest.
Now pay me back $1.10 with only $1 dollar in circulation.
You have to remember that when the principle part of the loan is paid back it gets extuiguished from ciculation.
The only way you can service your loan is for someone else to go into debt where you can capture some of their borrowed money to pay off your loan.
problem arises of course once you remove economic growth when increasing amounts of labour are then required to pay off loans.
If labor created the money nessecary to pay off the loans why would anyone in their right mind ever borrow in the first place?