Zerks
Registered
I was talking about the "selling" of money to finance ( borrow ) for products and services that are usually bigger than the household budget.
All of these ways to exchange currency are cost prohibitive and slow compared certain crypto tokens or currency. I am older than most here and will happily use crypto to pay and receive funds when the value of crypto has stabilized. The beauty of crypto once it is fully adopted is that it will be peer to peer with no third party ( banks ) to skim off the top on every transaction. About cash... What cash does is provide percieved real value for the real value of whatever is being purchased, rented, or sold and without a 3rd party involved. Said another way... a private transaction.
The debt based monetary system we live with now is nothing more than an antiquated Ponzi scheme that worked ok when money was backed by a commodity such as gold. Once money is lended out the money supply has to expand or their will not be enough money to repay a debt because of the interest charges that don't yet exist until the money supply is increased. As an American watching the 31 trillion dollar debt that doesn't include future obligations one thing is clear and that is the debt will never be repaid. How would America repay its debt now if every bond holder were to cash out? What about all the future liabilities that are coming in the way of foreign aid, Social Security, Medicare and Medicaid just to name a few. The state of California has over 400 programs that pass out money for all manner of things.
About loans... When you sign loan docs that document with your signature becomes a promissory note that the bank holds onto as an asset... and goes to the plus side of the banks own ledger. Add to that the fractional reserve banking practice and the same dollar can be lent out 9 times... in other words the banks money expands like popcorn being cooked at the movie theatre. Yes, banks have overhead cost, yes the have debtors that did not pay off a loan and default. Smaller banks still fail on occasion. and... We know the big banks are to big to fail, right ? lol !
The tax payer will get the bill for it if they do fail sooner or later.
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