How banks create money out of thin air

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AND loaned out at interest! AND the depositor can still ask for his/her money back!

Let’s not get sidetracked. There’s actually more to the world’s problems than just Donald Trump and Turkey’s RT Erdoğan.

This is clip is from a NZ source – but the same situation exists the world over:

http://tvnz.co.nz/seven-sharp/paying-interest-loan-never-existed-video-5336329

The ending is a bit weak – so you only need to watch the first few minutes.

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7 thoughts on “How banks create money out of thin air

  1. The money with which to pay the interest does not even exist, the central banks only “print” principal and not interest. In other words; there is more debt than money, starting with the source of that money.

    Do you need more food than last year to survive this coming year?

    • Yes, but unfortunately people have to work to earn the money to pay the interest on the non-existent money they are obliged to borrow. Likewise, they have to pay tax so their government can pay the interest and make the payments on the non-existent money they are also obliged to borrow. For sure, there is more debt than money. Not sure about the food situation. So far we’re getting by.

    • You’d better believe it! I took a look at your new blog. It’s a good idea. I’m sure you’ll enjoy working on it – and you’ll find a wealth of material to keep you busy 😉

      • Thanks Alan! I really appreciate your feedback, and I agree, there is so much material to write about!

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