Wednesday, Jul 16, 2008
How debt-based, commercially issued money has ruined the USA
financialsense.com: The Sacking of America
Parasitoidism is the relationship between a host and parasite where the host is ultimately killed by the parasite. This is what is happening to the US. Once the most powerful and productive economy in the world, the US, indebted by bankers and government spending beyond its ability to repay, is headed towards sovereign bankruptcy.
Posted by the spaniard @ 09:10 PM (448 views) Add Comment
6 Comments
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1. jonb said...
Another conspiracy theorist article by an Anti Jewish / Christian Fundamentalist / Muslim Fundamentalist.
There is some truth in what they say, but fractional reserve banking per se is not the problem. It is lending to people who can't pay the money back that is the problem.
If you lend someone a sensible amount of money to buy a sensibly priced house, there is nothing wrong with that.
You have a builder who wants paying immediately, you have an occupant who wants to pay over the period he gets the benefit of living in the house, and you have an investor who wants to set aside money for the future, maybe for retirement, or to buy something in the future. The bank/building society helps all these people get what they want.
It's when you lend to someone who's only hope of repayment is to borrow a bigger amount of money from someone else on an increased valuation that you start to get problems, and that is what has been happening over the past few years.
2. nooneo said...
Agreed Jonb.
Capitalism is the means for our economies / communities to thrive, using it as a vehicle to make "easy" money is going to lead us on a downward spiral. Remember that communism should never , ever, stop us from sharing, we simply have to, there's just too many of us. Capitallism has to be a means for us to survive, not screw the chap/country around the corner, to our own ends.
"It's when you lend to someone who's only hope of repayment is to borrow a bigger amount of money from someone else on an increased valuation that you start to get problems, and that is what has been happening over the past few years."
spot on.simple and to the point.
3. A Solovine said...
An excellent article. Thank you.
It's not clear to me that the comments of either jonb or nooneo are substantively at odds with the piece except that there is nothing in it to suggest a conspiracy, a projection that says more about jonb than it does about Mr. Schoon.
4. planning4acrash said...
Fractional reserve banking is completely the problem. With sound money, a 3% rise in GDP would mean that your wage, your pension, the money in your wallet is worth 3x more, and it is a self reinforcing because the rise in general wealth creates yet further GDP rise. This is true socialism. With fractional reserve banking, GDP can rise 3% whilst the money supply goes up 5 to 15%. At the moment, we have M3 growth at around 20%. This means that people see a real drop in wealth of about 17%. This is wholly down to fractional reserve banking. You two new world order scum had better get yourselves educated and realise that you are being ripped off too.
Thanks Spaniard. Welcome to the front line of the infowar.
5. quiet guy said...
"You two new world order scum"
P4C, If you cannot contribute without crude insults, please be silent.
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