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[quoteYou're not far off IMO

Describing it as a "con" is slightly harsh, as it's precisely the fact that credit is available to the general populus that fuels capitalism and thus empowers even the lowliest of men to rise through the fiscal ranks and better himself

The decimal banking system, which effectively requires banks to retain only 10% of deposits whilst they re-lend the other 90% back to the market has a few stark implications:

1) That the total level of money in the economy is at any time greater than the underlying "real wealth" base, up to a factor of 10 times

2) The fact that the monetary base will be greater than the underlying wealth by a factor of significantly more than 2 means that there is more chance than not that the cash in your hand is actually debt rather than true wealth

3) The fact that the decimal constraint on the credit system will NECESSARILY lead to economic "boom and bust" whilst capitalism functions properly - although this "boom and bust" is little more than the correction of the debt levels to sustainable amounts so the capitalist "lend and grow" cycle can commence once more

An interesting corrollary to the above is that this makes business, house buying, or indeed any form of participation in a capitalist economy as a game of "pass the parcel".... someone is going to get ******ed when the music stops, but who will it be?

The true genius lies in the interest/inflation portion of the credit mechanism, however. By charging interest on debt (and effectively therefore interest on the money you hold in your pocket), you are consistently REQUIRED to continue to participate in the system. You need the wage to keep up, lest you become scum at the bottom.

Plus, it incentivises the perpetual lending which drives the cycles.

The system also allows for a fine sub-system of those with the control of the wealth/money to profit further... leveraged private equity transactions, an array of financial instruments, trading organisations etc

So is it all evil?

Well it depends who you are. The trick is to become a "have" and not a "have not", and then the world is your wealth oyster. Remember - the system not only ALLOWS anyone to borrow and grow, but actively incentivises it.

Plus, there's the point that the greatest benefit of floating your economy on a cyclical base of debt (rather than being constrained by your real wealth) allows the funding of genuine economic growth and technological development

So look at it this way - if you think you're getting ******ed by "the man", you're not. You just don't have the ******ing minerals to take the bull by the horns and better yourself. Stop crying like a little bitch and get to it.


90:10 bank ratios, right?

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90:10 bank ratios, right?

Forget the nitty gritty. He is describing an inflation economy and giving some pretty decent advice. And being fairly honest about it. And taking the risk of being flamed for telling it the way it is.

Keep in touch with this guy.

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