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Old 10-16-2011, 04:25 AM   #13
avitalporatova

Join Date
Oct 2005
Posts
375
Senior Member
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Ok. You go into a bank to take out a loan. You sign a note promising to pay and they push a pile of FRNs to you in the form of bank credit which you use to aquire goods or services you wouldn't otherwise been able to get.
What you've promised to repay in exchange is the same FRNs you got, plus rent for their use. {not necessarily the same physical FRNs, but just FRNs in general whether they be electronic or physical}
...and the "you" I am using is in third party and could include anyone, not just you, because I know you'd never do such a thing as sign a promisory note for FRNs yourself.
Actually the failure of the system is that, while you can borrow money for the principle into existence, you have to depend on someone else to produce the interest that you are going to repay.

Since this is beyond your control then you may as well default on the loan the next day. The mechanics are not there to let you repay WITH INTEREST.
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