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How new wealth and exporting U.S. currency could have caused a recession

Started by christo4_99, November 12, 2008, 03:15:13 AM

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christo4_99

financial prosperity on a large scale is not possible because when a bank loans money it expects a return with interest on the "investment" of that money...if the funds are then transferred overseas or kept in private banks or shoe boxes or uninstitutionalized places(where the central bank does not get the return) then the central bank sees that as breech of credit.the farther away the money gets from the source the longer it takes it to return.kind of like a drug dealer getting his supply from one source then when he is out of product going to another dealer with the money and getting more drugs to sell or just getting all the drugs he can sell and keeping the money in a shoe box.the only way to control this is to control the supply of money because all the original money has the same faces on it so it comes from the same source.there is too much new wealth (unacquainted loans or people who made their own banks so to speak).so for the recession to end the central bank wants it's money back and then some.the open market destroyed itself because the country(u.s)  which received the loans exported  the cash and kept the cash plus their own accrued interest also.the more people that figure out how to make money from money the weaker the system becomes because less and less money actually makes it back to the central bank.the newly wealthy screwed the central bank and now they are screwing us back.to the central bank a loan that returns early(principle) and a bad loan are the same thing in that they both create a loss of projected interest.All you people exporting labor and hiding your money in your mattress put it back in the banking system so they will see the little guy as a low risk once more.