DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Where has all the money in the world gone?

**Nemerov** · 06-11-2012, 07:41 PM

BigJohn--you might want to check out this simple little story

http://whatreallyhappened.com/WRHART...11thmarble.php

What Palani is referring to is that the bankers never create the money that is paid to them as interest. They only 'create' the principal. The amount of money in circulation is the unrepaid principal. The money owed as debt is the unrepaid principal plus the interest, Total debt therefore exceeds the money supply by the amount of interest owed. That excess is 'unpayable debt'. It cannot shrink. It can only grow. The system therefore prescribes and predicts its own doom. The only question is when that doom will be apparent to everyone. Get a leg up and be one of the early comprehenders of this 'slippery' bit of logic. The bankers know this, and they are trying to put the collapse of the whole system off for just a little while longer.

Hatha

WRONG, WRONG, WRONG ARRRGGGHHH!!!

You just don't get it, do you.

There is no need to create any money besides the money for the loan.

When the banker spends the interest where does it go?

People can and do use false explanations that don't model how the repayment process works in our banking system.

For instance it is impossible to pay off a 100 dollar loan at 10 percent interest with only one payment and only 100 dollars in the system

but it is quite easy to structure the loan repayment into 11 payments of 10 dollars each with the banker spending his 1 dollar interest after each payment.

06-11-2012, 07:41 PM	#20
Nemerov Join Date Oct 2005 Posts 456 Senior Member	BigJohn--you might want to check out this simple little story http://whatreallyhappened.com/WRHART...11thmarble.php What Palani is referring to is that the bankers never create the money that is paid to them as interest. They only 'create' the principal. The amount of money in circulation is the unrepaid principal. The money owed as debt is the unrepaid principal plus the interest, Total debt therefore exceeds the money supply by the amount of interest owed. That excess is 'unpayable debt'. It cannot shrink. It can only grow. The system therefore prescribes and predicts its own doom. The only question is when that doom will be apparent to everyone. Get a leg up and be one of the early comprehenders of this 'slippery' bit of logic. The bankers know this, and they are trying to put the collapse of the whole system off for just a little while longer. Hatha WRONG, WRONG, WRONG ARRRGGGHHH!!! You just don't get it, do you. There is no need to create any money besides the money for the loan. When the banker spends the interest where does it go? People can and do use false explanations that don't model how the repayment process works in our banking system. For instance it is impossible to pay off a 100 dollar loan at 10 percent interest with only one payment and only 100 dollars in the system but it is quite easy to structure the loan repayment into 11 payments of 10 dollars each with the banker spending his 1 dollar interest after each payment.
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