... you contribute to inflation.
When you sign for a loan, the bank creates money-- yes, CREATES -- to cover your loan amount, adding to the pool of currency and contributing to inflation.
Through Fractional Reserve Banking a bank can theoretically take $10 million dollars and turn it into $90 million in this 'commercial' monopoly money. This fact coupled with the fact that our government BORROWS from the Federal Reserve, at interest, proves that all money is debt money.
All debt is expected to be paid back -- plus interest.
Through Fractional Reserve Banking a bank can theoretically take $10 million dollars and turn it into $90 million in this 'commercial' monopoly money. This fact coupled with the fact that our government BORROWS from the Federal Reserve, at interest, proves that all money is debt money.
All debt is expected to be paid back -- plus interest.
If there is $X in 'circulation' we collectively owe back $X + (X*interest rate) -- but with only $X in circulation we can never pay it back.
More money must be borrowed from the Fed to cover interest... . and so the cycle continues.
The inability to pay off debts amounts to indentured servitude -- just a kinder term for Slavery.
Learn more about Fractional Reserve Banking at: http://en.wikipedia.org/wiki/Fractional-reserve_banking
More money must be borrowed from the Fed to cover interest... . and so the cycle continues.
The inability to pay off debts amounts to indentured servitude -- just a kinder term for Slavery.
Learn more about Fractional Reserve Banking at: http://en.wikipedia.org/wiki/Fractional-reserve_banking
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