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<p>[QUOTE="InfleXion, post: 1105769, member: 29012"]The US Mint prints physical money, but the Federal Reserve is who adds zeroes to the bankroll that we the tax payers have to pay back with interest; interest on money that never existed in the first place. Most of the money in existence is only in cyberspace, and there's enough of it to buy everything in the world 10 times over (and that's a dated statistic). All that couldn't have come from existing money if it is a true representation of goods and services. In fact, without debt there would be no money. An analogy I read once has always stuck with me. Imagine a financial system with a bank and only 2 people in the equation. Each of these 2 people takes a loan out of 100 dollars, so 200 dollars enters the market. Since each person owes interest one must lose money in order for the other to repay their debt, and so ensues the vicious cycle. </p><p><br /></p><p>This video illustrates it better than I can, although I wouldn't go as far as to say that this is the 'absolute truth'. I'm sure someone could drill a few holes in it, but on the whole it makes sense to me.</p><p><a href="http://video.google.com/videoplay?docid=-2550156453790090544#" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://video.google.com/videoplay?docid=-2550156453790090544#" rel="nofollow">http://video.google.com/videoplay?docid=-2550156453790090544#</a>[/QUOTE]</p><p><br /></p>
[QUOTE="InfleXion, post: 1105769, member: 29012"]The US Mint prints physical money, but the Federal Reserve is who adds zeroes to the bankroll that we the tax payers have to pay back with interest; interest on money that never existed in the first place. Most of the money in existence is only in cyberspace, and there's enough of it to buy everything in the world 10 times over (and that's a dated statistic). All that couldn't have come from existing money if it is a true representation of goods and services. In fact, without debt there would be no money. An analogy I read once has always stuck with me. Imagine a financial system with a bank and only 2 people in the equation. Each of these 2 people takes a loan out of 100 dollars, so 200 dollars enters the market. Since each person owes interest one must lose money in order for the other to repay their debt, and so ensues the vicious cycle. This video illustrates it better than I can, although I wouldn't go as far as to say that this is the 'absolute truth'. I'm sure someone could drill a few holes in it, but on the whole it makes sense to me. [URL]http://video.google.com/videoplay?docid=-2550156453790090544#[/URL][/QUOTE]
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