Money as Debt

[shruggedatlas]

The quick answer to this debt is very simple.

Let's say Bob owes Peter 10$, John $5, Wilbur 15$.
Let's say Peter owes Bob 4$, John 7$, Wilbur 12$.
Let's say John owes Bob 8$, Peter 12$, Wilbur 3$
Let's say Wilbur owes Bob 11$, Peter 2$, John 2$

The total debt held by all parties together is $91, so interest is being paid on the total 91$.

So what if these four sat at a table and did son creative debt repayment.

Since Bob owes Peter 10$ but Peter owes Bob 4$, then Bob owes Peter only 6$. If you extend this throughout the four, taking from one side, giving to the other, you will have a final total "real" debt of only 26$ as far as I could acertain from my spreadsheet.

Now you know why banks are not "interested" in doing this simple sit down. They would never suggest this too their governments because they prefer to collect interest on 91$ instead of 26$. lol

That is an interesting illustration, but isn't the end result that a bunch of these people will just end up exchanging interest payments, and the only payments that are not reciprocated are on $26?  So it really does not matter if the debts are cancelled out when they are owed to each other, except to reduce paperwork and transaction costs.

[prometei]

The film might not be totally correct but one thing is for sure, usury has no justification, and comments like "but how are banks gonna make their living" are absurd, they are not interested in making a living they are interested in making a maximum profit and ultimately keeping control in their hands, money is just the means, the goal is control, total control.

Private banks don't want to control you (well, maybe the world bank and the IMF do, but that's different).  Private banks just want to make money like everyone else, and just like everyone else, it's competition that keeps their profits in check.

I forgot to mention, banks are also means.



?1. Is there any sober economist that's reading this thread? i was wondering what kind of changes will happen in the world if the national debts (to private banks) will be canceled, the issue of and regulating/controlling the money supply will go back to the government ( with real human beings), anything having to do usury will be left behind......?


?2. Are there a lot of countries in the world where a newborn is automatically entitled to land, land that he/she will be able to grow food on?

[HopeForHumanity]

What the government does is take that something, pay the interest with something (income *cough* tax). This is basical saying, "I'm going to take some IOU money, buy some tanks, and use the money from the people to pay off the debt". Welcome to taxation without representation.

Aren't you forgetting that the government is us?  If you think it isn't, then that's a good reason to start a revolution, but it's got nothing to do with the monetary system.

That was a very brave statement in this modern world. The monetary system has everything to do with it. What makes you think it doesn't? Your reply was very disconnected with the point I was trying to make. Your emphasis on the government is us only applies in a world of history. You stated in your recent posts that a private bank did in fact control part of the currency, so stop contradicting your self.

[Feynman]

Yeah, central banks are evil.

Buy silver and gold, that is their mortal enemy.

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