3 ms·
Imagine this scenario: Once upon a time the total money in a country was $1. Then the guy with the $1 put it in the bank. The bank lent the money to another gu
by jules 15y ago
Imagine this scenario:
Once upon a time the total money in a country was $1. Then the guy with the $1 put it in the bank. The bank lent the money to another guy, and that guy then owed $1.10 to the bank after interest. That guy happened to be a car dealer, and the bank owner bought a $0.10 car from him for the interest he earned. Everyone is happy.
Now imagine this scenario:
Once upon a time the total money in a country was $1. Then the guy with the $1 put it in the bank. The bank lent the money to another guy, and that guy then owed $1.10 to the bank after interest. That guy happened to be a car dealer, and some other guy bought a car from him for $0.10. That guy got the money by lending it from the bank. After a couple of years of this stuff, through interest, the total money owed to the bank was $2. So the interest these people have to pay in total is $0.20 that year. There is no way that all money can ever be paid back to the bank, unless the bank owner spends a lot of money. If the bank owner spends say $0.10/year, the total money owed to the bank is bound to increase. Everyone is now a debt slave to the bank. People are going to have to default on their debts, there is no other possibility, because there simply isn't enough money in the world to pay back the bank.
Is it possible that we are in scenario #2?