DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Let's talk about the fractitional reserve banking system

**RussellPG** · 01-05-2012, 02:15 PM

You say my answer is wrong. I am often wrong and need to be corrected. Your answer does not show 'where' my answer is wrong. Your statements do not negate my statements. You say the bank spends the interest back into the economy but if all the principle in the system is destroyed then there is no money to pay the interest. We are fighting a battle against everyone else to keep solvent and someone must loose. If someone is loosing then we are all loosing by being bound in such a system.

So where, specifically am I wrong? I wish to have a clearer understanding of this system.

I'm sorry, I just scanned your response and assumed you were making the standard claim that the money for the interest had to come from a source outside of the original loan.

The money to pay the interest for any given loan does come from the loan amount itself.

And you are correct that if all the loans were paid there would be no money.

But if all the loans were paid there would be no need to pay interest as there would be none owed.

01-05-2012, 02:15 PM	#31
RussellPG Join Date Oct 2005 Posts 473 Senior Member	You say my answer is wrong. I am often wrong and need to be corrected. Your answer does not show 'where' my answer is wrong. Your statements do not negate my statements. You say the bank spends the interest back into the economy but if all the principle in the system is destroyed then there is no money to pay the interest. We are fighting a battle against everyone else to keep solvent and someone must loose. If someone is loosing then we are all loosing by being bound in such a system. So where, specifically am I wrong? I wish to have a clearer understanding of this system. I'm sorry, I just scanned your response and assumed you were making the standard claim that the money for the interest had to come from a source outside of the original loan. The money to pay the interest for any given loan does come from the loan amount itself. And you are correct that if all the loans were paid there would be no money. But if all the loans were paid there would be no need to pay interest as there would be none owed.
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