Money from the air! Debt pyramid

 

 

We destroy the usual stereotypes about money

 

 

Most of us believe that banks lend the money that investors have entrusted to them. It is easy to imagine, but it is not true.

 

Nowadays, money is literally created out of thin air, like someone’s debts. New money occurs every time someone takes a loan from a bank.

 

In fact, banks create money that gives credit. They are taken not from the income of a bank, not from depositors' money, but from a promise signed by the debtor to return them. The signature in the promissory note obliges the debtor to return the money + interest, otherwise he will lose the house, the car, i.e. what is the key. This is the obligation of the debtor to the bank.

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