August 13, 2010
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The Banker’s Secret
There must be a Borrower...
Banks create the “Money” they lend by simply writing an Accounting Entry
Into the Account of the Borrower...
Every Loan “Creates” a Deposit and the repayment of that Loan “Eliminates” that Deposit...
This is how Banks “Create” money and “Destroy” money...
The Government has absolutely nothing to do with it...
If there were fewer Borrowers... There would be less Government...
The problem is and always has been and always will be... too many Borrowers
And not enough Savers...
Thus too much Government...
So now you know!...
Comments (4)
No one saves anymore. I remember lining up at school on fridays and buying stamps for a quarter. And when you filled a book, you got a savings bond.
Thank you, you have hit the nail on the head here! There evidently isn't as much fear in borrowing as there used to be. Buyers are more worried about getting the loan than they are in how they will pay it back. And lenders don't care who they lend to. Amazing.
Goes back to "neither a borrower nor a lender be." If I can't pay for it up front, I don't buy it. Delayed gratification and decerning need from want... no one can tell the difference any more.
@jacksoncroons -
@DistantShipSmoke -
@murisopsis -
And who is the Biggest Borrower of US all?... the Greatest Banker of them all... with the profound ability to both "create" money while at the same time "destroying" it!...
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