Underneath all the gibberish meant to confuse people about how money and the economy work we find a simple system that is easy to understand.The basic component of a healthy economy is a healthy money supply. When the money supply is set out of valance either by inflating it or deflating it the economy deteriorates. This simple concept is the key to economics and forms the foundation to more specific explanations. In the current system the pomp that inflate or deflate the money supply are the banks. By giving credit banks inflate the money supply and people by paying their loans deflate the money supply. If the balance is not kept by the banks by pumping new credit money into the economy the regular practice of paying loans takes billions of dollars away from the hands of businesses and and puts them back in the banks where only the interest is kept as profit and the rest is destroyed (subtracted from the computer account of the person/company paying with the check), thus deflating the money supply.
Bankers are well aware of the way the economy work and they are fully aware that they are the pomp that inflate or deflate the money supply. They know that if they stop lending money the money supply will deflate, causing trade to become more difficult as time passes by and more people make more payments on their loans. Bankers know that if they deflate the money supply more people will not be able to make payment on their loans simply because the mathematics don't add up for every body when less money is circulating.
So why would bankers be stupid enough to create a situation in which by math people won't be able to pay off their loans? The reason is to make more money, for power, and because they are told to do so to follow an agenda. Bankers make more money when people don't pay they loans than otherwise. When people take a loan a collateral is most of the time promised. When millions of mortgages are defaulted, that men as millions of expensive pieces of real state that bankers get for free because the money they lent was fractional lent meaning that it was big banged into existence.
So what are the bail outs for? Well they are neither for your benefit nor mine, nor the people's nor the country's. The bankers are not going to start lending money right away after they get the 700 billions. Meaning that the money supply will continue to shrink and thus the economy will continue to deteriorate. But with the difference that the bankers can remain in business and the power to inflate and deflate the money supply - which determines the state of the economy, remains in the hands of the bankers even when a depression is whipping out every other business except for them.
And by the way, the bail out money is a loan that the people is taking from the Federal Reserve to keep the banks in business so that they survive the depression. Because they(banks) could not just create money out of thin air to keep their business running. They have to attach some value to the money for it to mean something. And that value is the wealth that we are going to generate by working during the coming years and which the government is going to collect thru taxes and give it to the bankers to repay the loan which the people took(forced to take) to keep THEM in business.
Bankers are well aware of the way the economy work and they are fully aware that they are the pomp that inflate or deflate the money supply. They know that if they stop lending money the money supply will deflate, causing trade to become more difficult as time passes by and more people make more payments on their loans. Bankers know that if they deflate the money supply more people will not be able to make payment on their loans simply because the mathematics don't add up for every body when less money is circulating.
So why would bankers be stupid enough to create a situation in which by math people won't be able to pay off their loans? The reason is to make more money, for power, and because they are told to do so to follow an agenda. Bankers make more money when people don't pay they loans than otherwise. When people take a loan a collateral is most of the time promised. When millions of mortgages are defaulted, that men as millions of expensive pieces of real state that bankers get for free because the money they lent was fractional lent meaning that it was big banged into existence.
So what are the bail outs for? Well they are neither for your benefit nor mine, nor the people's nor the country's. The bankers are not going to start lending money right away after they get the 700 billions. Meaning that the money supply will continue to shrink and thus the economy will continue to deteriorate. But with the difference that the bankers can remain in business and the power to inflate and deflate the money supply - which determines the state of the economy, remains in the hands of the bankers even when a depression is whipping out every other business except for them.
And by the way, the bail out money is a loan that the people is taking from the Federal Reserve to keep the banks in business so that they survive the depression. Because they(banks) could not just create money out of thin air to keep their business running. They have to attach some value to the money for it to mean something. And that value is the wealth that we are going to generate by working during the coming years and which the government is going to collect thru taxes and give it to the bankers to repay the loan which the people took(forced to take) to keep THEM in business.
