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Thread: Question on Banks

  1. #1 Question on Banks 
    The Doctor Quantime's Avatar
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    If the world bank lends the governments of the world say 100 trillion. Then charges 10 trillion interest, where did this 100 trillion come from? There is not enough gold/silver precious metals in the world to back it up. And oil is much more worthless than gold. Even if you discovered more of either, the value of that gold would drop as there is more of it.

    So where did they find this money, and when the governments don't pay up where does the next set of money that they lend come from? Another 100 trillion?

    Is it printed with less worth? Is that what inflation is? Doesn't that mean what you earn is now less? So if you put in a lot of work last year and bought things, then sold them at the same price you bought them still brand new, you would not have enough money to buy them back surely?

    Isn't that a bit dodgy? I mean it means that with time that more and more people won't be able to afford more basic needs like food as they increase in price from last year but still get more or less the same pay, which is now worth less and they have more debt... and have to work even harder to make up for that loss AND have to pay the debt they got to pay for it because that debt needs even more work and effort now to pay off?

    Wouldn't that slave governments? Wouldn't that slave the world? Wouldn't that slave people into working the rest of their lives paying off debt?

    Oh my god. Its a weapon of mass destruction.


    Last edited by Quantime; January 5th, 2013 at 09:57 PM.
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  3. #2  
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    Its a weapon of mass destruction.
    Well, they didn't quite destroy the whole of the world's economies by their folly a few years ago. Not to mention the folly of too many governments a few years earlier letting them go their own way unrestrained by any sensible regulation.

    The power of handling and creating credit is just like other forms of power. We don't let trains and trucks drive as fast as they like wherever and whenever and in whatever condition they like, we have rules and regulations that keep everyone as safe as possible from rickety, badly maintained equipment and reckless or careless driving. Banks and other financial institutions should be subject to the same kinds of rules and regulations that will keep the rest of society safe from the kind of damage we know they can do - twice in a mere 100 years.

    And their role, of facilitating, creating and transferring funds is not much different to the services offered by the transport industries - getting people and goods to where people who want or need them are, from the places where they start out. Money and credit similarly just helps governments, businesses and households get stuff done.


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  4. #3  
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    Historically, the usual rule is "the money borrowed by governments is never paid back (at its initial value)".

    This can be reached by three means (or a combination):
    1. Inflation : the debt is paid back but the money has lost an important part of its value.
    2. roll over : the debt and interest are paid by mean of more debts (this is the actual situation in many western countries).
    3. coercion : the governement declares it won't pay back, or confiscs private property, or sets confiscatory taxe rates.
    So, unless solution (2) will last for ever (and probably, for most countries, it cannot), sooner or later, solutions (1) and (3) will be applied. In both cases, people who owns the debt (savers) will support most of the shock but also workers and pensioners.

    Another point : It is common to read that "future generations will have to pay for our debt". It is true, but to who will they pay ? To future generations, of course.
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  5. #4  
    Forum Radioactive Isotope cosmictraveler's Avatar
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    Governments can print as much currency as they want, of course that will eventually lead to inflation and even hyperinflation , which is devestating to any economy trying to dig itself out of debt. That is why I keep on saying that that the government should not be printing more currency because it will only lead to worse problems down the road.

    Spending must be stopped to insure that there's enough money to cover what we need to have not what we want to have.

    Taxes cannpt be raised because the government will only spend more money on stuff they can't afford or do not need, like pay raises for themselves while everyone else is asked to not ask for raises.
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  6. #5  
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    i guess everything u guys cited above is correct but the essence of the situation is to my knowledge a lot more basic . if u try to escape the complexity of today s economical world well find that things are quite simple he who has the power will not give it off and would like to keep it for himself and his future generations and that has not changed since the dawn of time the methods have just become tremendously more intelligent and deceptive. So we start using dept blablabla all in all to finally take control of normal people and robbing them of the simple truth that money and all its dilemma are a simple illusion .
    If i have the strength i can go to ur house beat the shit out of u and fuck ur sister but then ill have to face the justice of ur future generations but if i lend u money and deceive u into poverty ull be hungry and ur sis will be so than ill fuck her and my children will fuck hers ... and ill always be the good friend in ur eyes its as simple as that.
    "we humans have evolved a lot but even the most powerful and intelligent groups among us did not evolve beyond emotional concepts like love and greed these things are beyong control that is why we are still the same society as we were a million years ago" That is why i can conclude that s the global economy with all its tools are nothing more that an aspect for eternal feudalism !
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  7. #6  
    Forum Radioactive Isotope cosmictraveler's Avatar
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    So are you one of "them" or one of "us"? We already know who "they" are for the most part but many people can join "them" at any given time.

    You can destroy others lives, of course, but eventually what goes around comes around. Perhaps not in your lifetime but in your grandchildren lifetime or somewhere down the road. So in time everyone will suffer , to a certain extent, the repercussions of your deeds.
    When the power of love overcomes the love of power the world will know peace.
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  8. #7  
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    im a simple underdog from lebanon that works 2 jobs at a time because his parents didnt have enough money to send him to a decent college when he had the hunger for knowledge . Know u do the math and tell me am I one of 'u' or one of 'them' Dominus.
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  9. #8  
    Forum Radioactive Isotope cosmictraveler's Avatar
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    Change starts from within. If you don't like what you see happening then don't take part in it and just do what you can to try and bring peace into your own life. Without yourself being at peace within, you'll never find peace outside. There are online college courses for free, why not take some of them if you really want to learn more or just ask questions about anything you need to understand I'm sure others here will help you.
    When the power of love overcomes the love of power the world will know peace.
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