DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - outstanding interview w/ mike maloney on banking, money and taxes!

**pKgGpUlF** · 10-27-2011, 12:42 AM

Bigjohn, you're $100 bill story is a nice story, but a story is all it is.

What happens when the hotel proprietor, Butcher, pig raiser, supplier of feed/fuel and the prostitue all take a portion of the "money" they receive and pay it to the bank as principle on their loans?

I'll tell you what happens, the $100 bill gets used up and disappears back into the thin air from whence it came.

The problem is that the $100 bill itself came into being via debt and is owed back plus interest. The only way a system like that works is if there is an increase in borrowing as time goes on, sufficient enough to maintain the growth in the "money" supply in order to make up for old loans being paid off.

Your analogy would be more fitting of a gold standard monetary system that uses full reserve banking. Which is a far cry from what we have today.
...but I still keep hearing that "$100 bill" analogy from people to supposedly explain our economy.

Wrong, my second example proves that it is possible to pay a 110 coin debt with 100 coins. Just substitute dollars for coins, it works the same way.

Paying is an action a verb. Money is a thing a noun.

You want to claim that paying has to equal money.

10-27-2011, 12:42 AM	#5
pKgGpUlF Join Date Oct 2005 Posts 547 Senior Member	Bigjohn, you're $100 bill story is a nice story, but a story is all it is. What happens when the hotel proprietor, Butcher, pig raiser, supplier of feed/fuel and the prostitue all take a portion of the "money" they receive and pay it to the bank as principle on their loans? I'll tell you what happens, the $100 bill gets used up and disappears back into the thin air from whence it came. The problem is that the $100 bill itself came into being via debt and is owed back plus interest. The only way a system like that works is if there is an increase in borrowing as time goes on, sufficient enough to maintain the growth in the "money" supply in order to make up for old loans being paid off. Your analogy would be more fitting of a gold standard monetary system that uses full reserve banking. Which is a far cry from what we have today. ...but I still keep hearing that "$100 bill" analogy from people to supposedly explain our economy. Wrong, my second example proves that it is possible to pay a 110 coin debt with 100 coins. Just substitute dollars for coins, it works the same way. Paying is an action a verb. Money is a thing a noun. You want to claim that paying has to equal money.
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