Friday, January 30, 2009

Where dat $$$

American Scofflaw

It never existed.

The problem with a debt-based economic system, found in the Federal Reserve and its cousins around the world, is that the moment it goes into creation, more money is owed than actually exists. The more money which is created (out of thin air) in response to loans, the more money which does not exist is owed.
Simply put, if there is 1,000,000 in circulation, then 1,050,000 is owed to the Federal Reserve. a recession is when nobody can come up with that extra $50,000, but then again, it never existed in the first place.

As long as an ever larger pool of borrowers can be found to create more new money to pay the interest on the older loans, the system will grow, but eventually you run out of new borrowers, which isd what has happened now. and, in their desperation to keep things going, the bankers encouraged everyone to do their finances on credit rather than on cash. Stores borrow the money to stock their shelves, shippers borrow the money to fuel their cargo ships, all of it running up the tally of money owed to the banks; money that does not and never did actually exist.

So, all a recession is is the banks demanding that interest money and nobody being able to find it... because it never existed.

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