Printing money just to pay off the debt would lead to hyper-inflation. Ideally, a country shouldn't expand its money supply any greater than what it produces.
Here's an example:
COUNTRY A produces 10 loaves of bread a year and sells them for $10 each. Their economy is $100 a year. If the next year they produce 20 loaves, they should expand their economy to $200 to keep bread at $10/loaf. If they don't, then the price of bread will drop to $5/loaf because that $100 would buy 20 loaves. If they were to expand the economy to $400 for those same 20 loaves, then the price of bread would be $20 each. So it is important to tie the money supply to the volume of goods and services produced by a nation to prevent inflation.
Here's how the bankers are screwing the country:
If I decided it was too much of a bear to carry a bunch of gold coins around, someone would come up with a solution. The solution is that a banker offers to hold my gold coins and instead gives me paper certifying that I have gold in reserve held by that banker. I can then use that paper to buy stuff and the merchant can take that paper to the banker for gold. Seems ok, so far.
Suddenly, the banker realizes that he can lend out these slips of paper to people needing loans and not have any actual gold to back up the paper. The people in debt from these loans now owe him more money than borrowed because of interest. Now the banker loans out more money by assuring people that he has so much money from loans that will eventually mature. The reality is that the loans are nothing more than slips of paper and most of that paper isn't backed up by actual gold.
So now everyone in society is running around with worthless pieces of paper thinking they are worth something because people once deposited items of value (gold) in the bank. Everybody is technically broke or in debt to the banker and the banker is the only one with anything of value (gold). Eventually, he will own people's land when they can't pay back the loan. They bought the land with fake money, but with real collateral to back it up.
Your paycheck represents the value of the goods and services you produced. Be careful when exchanging it for worthless slips of paper. If you do, convert that paper to something of real value because you don't want to be holding onto a lot of worthless paper when society's faith in that worthless paper grinds to a halt.
Re: Illuminati
Member #: 40846
Registered: 9/19/2005
Posted:
1493
Name:
Duane Vick
Name:
Duane Vick
Company:
Self-Employed
Occupation:
Installer
Location:
Phoenix AZ
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