Money As Debt (3 of 5)

@ward185 I think maybe they are saying it is destroying principal by creating so much new money that it de-values the money already in existence also know as inflation.

when they say if everyone paid out of debt there would be no more money,where does the money for the payment go.I can see that the ballence on a fictual amount of money is reduced until it no longer exists,but when I pay my mortage payment,I physcally pay money.I deposit cash and write them a check for the payment.How does the cash cease to exist after the loan is paid.I seem to understand everything else but this principal,so any help would be appreciated. thanks

It never existed in the first place. Your boss took out a loan to pay you, in which his bank's computer just sent some numbers to your bank's computer, and then you wrote down some numbers on a piece of paper and sent it to your mortage company.

Its just revolving promises to pay, hoping not to catch up with each other, more or less.

Your exactly right.Thanks for the explanation.

this video is cute so adorable all the cute pictures & cartoons- makes economy so simple

Ive started reading your Web of Debt, while also studying the YouTube documentary, Money as Debt. A question though just occurred to me. If the government borrows money from the banks, what exactly did the bank bailout mean? If the govt. is in debt to the banks, shouldnt the loan it gave the banks be a payment of debt?
Sorry for my ignorance. Im just trying to wrap me head around this topic for the first time.

It means it's all a friggin racket.

It means it a bunch of really rich people passing money around in a circle. That's all it ever been. The financial institutions did what they did because they always knew more money was going to be generated by their pupets in government.

It's reverse socialism. Now the tax payers owe the banks more money, which means we'll be taxed higher in the future for our fantom money.

I really don't get why they say that more and more physical resources have to be exploited in order to keep up with exponential inflation. Yes there is more money in the system, but each dollar is worth less so I don't see the reason why physical resources would have to match it...

Lets say I borrow 10000$, and I pay it back. After that, the created money will still be in existence, but the debt won't. So that means its new money that exists without a corresponding debt???

dont forget interest- interest is the other quarter & the federal reserve is the other half of fractional reserve loans