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Switch to Forum Live View A way to end the current debt.....
3 years ago  ::  Jul 18, 2015 - 7:41PM #1
Posts: 537
So Money and its creation:-

Here is how it how it works:-

around 3% of money is minted and printed, and therefore in paper or coin.

The rest of money is electronic and created by banks, from nothing, when a bank makes a loan. (there is also central bank account money- but only banks use it- and only banks get it, each time they Q.E)

Interesting point, the money of a loan when paid- is destroyed- created from nothing and on the final payment it goes back to nothing, just the interest is kept by the bank.

So for example if a bank loans 1,000,000,000.00 or one billion to a country or individual, the bank then charges an interest lets say 1% interest.

The total loan or debt is 1,010,000,000.00. When this loan is paid back one billion is destroyed, and 10 million kept by the bank.

Interesting point that all the bank actually has to loose from a 1 billion loan is, in this example anyway 10 million.

As such surely many debts can be written off and simply the interest payments kept- that way the banks do not actually lose any money and all debtors like greece would have their debts slashed.

Well wait, they could have had their debt slashed this way, except Angela Merkel, actaully paid off all the Greek debt to banks and put the loan onto the German people.

Those once Private loans have now all been destroyed by the banks, and they have kept the interest. leaving a debt that can´t be destroyed on Greece and Germany.

Interesting that Germany basically sent money to be burnt- well not the interest but anyway.

So basically the banks only loose the interest if a group Defaults. So why not wipe out many of the debts and simply keep the interest payments?

Those in debt, get more managable debts and the banks still get their money back.  

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