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Tv9 Gujarat - Reserve Bank removes various charges of Banking whereas Private Banks continue them
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The Real Cause of Our Economic Problems
Many people wonder "How do banks create money". Entire money supply is debt. It is the principal we borrowed. But banks demand that it is paid with interest. It is not possible for every borrower to be employed at levels that enables them to earn principal + interest. Because the interest portion is not created yet. It is only created with more borrowing. The inflation created by money creation of banks punishes savers and forces more people to borrow. New money is used to pay old debt. When ...Read more »
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Debt Based Monetary System is the Problem
When we borrow, banks create new money. They do not lend existing money. In fact, all bank accounts are just a promise to pay you dollars. They do not really have the dollars. Fractional reserve banking makes this possible.This new money makes the economy feel good. This is how they put the entire population to sleep. When there is more and more money (or the illusion of it since it is just borrowed money), people spend more and inflate prices and salaries. People are happy to have a job and ...Read more »
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Bank Losses Mounting
Banks are not out of the woods yet. Peak losses ahead. FDIC is broke: http://www.tradingstocks.net/html/fdic_insurance.html FDIC is levying extra fees to the member banks to pay for the failures. These extra fees will push marginally healthy banks to the edge and more may fail. That results in even more fees! And the dominos start falling. Is your bank safe? http://www.tradingstocks.net/html/is_your_bank_safe.html Banks have been lending to the wrong borrower for decades. Business lending ...Read more »
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Excessive Banker Pay is Under Scrutiny Again
Believe it or not, the government does not have that much influence on the economy. It is the private sector, especially the wall street and the bankers who run the show. It is not a coincidence that they were the ones bailed out with tax payer money across the world while the rest of us are going bankrupt.Around the globe, law makers are proposing changes to the free markets to curb excessive pay. Decades ago in the United States, an executive pay was about 30 times the average worker ...Read more »
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How to Fix Inflation and Deflation
Inflation is the end result of borrowing. When we borrow, banks create money out of thin air (due to Fractional Reserve Banking). This money inflates the money supply and prices along with it: http://www.tradingstocks.net/html/banks_create_money.html However, as the total debt expands, the interest burden on the economy increases. Thus, if the debt does not expand productive capacity, people cannot get raise. When entire money supply is borrowed, it has principal + interest to pay. ...Read more »