Comment by PureTrust

Entered on: 3/23/2016 12:54:45 PM

The largest mistake anyone makes about banks is that they loan money. All bank loans are creations of new money.

Back when the nation was younger and population was on the rise, Government foresaw a potential problem, that there wouldn't be enough gold and silver to back paper dollars. The result would be retarded growth of the nation as a whole.

Enter the Federal Reserve People (before it was established) with a method for allowing the growth. The idea was to use the debt money system so that new debt money could be created when necessary, based on the credit of the people. The Fed and the plan was set in place, with one exception. Here's what that exception was and is.

Originally, when people applied for and received loans (new money was created; the loans weren't/aren't really loans), the idea was to repay the money to the people in a lump sum at the end of the term of the loan. The money would filter through society. Things would grow exponentially in the nation. After all, the creations of new money were effected when the "borrower" placed his signature on the promissory note. So, the borrower was really the creator of the new funds.

But the banks never followed through. They never repaid the money to the people at the end of the term of the loan. Rather, they kept the money, and have been using it to finance all kinds of things around the world that the people would never have approved of, and don't approve of now.

When the banking industry overstepped the logical use of the money, in became a Ponzi system. And this banking Ponzi is collapsing The banks are thinking about returning some of the money to the people, just to forestall the Ponzi collapse. Of course, many of the people who made the loans all along, have passe from this life, and will never be able to enjoy the return of their funds. And the banks wouldn't be giving any back at all if they thought that they had some other way to forestall collapse.