Posts Tagged ‘how money works’


The Skinny on the Fat Cat

   Posted by: Britt    in On Wealth Seminars

Not too sure yet how the following all fits into the (f)Law of Attraction, but here it goes anyway …

How Money Works

Here’s the really short version of how money works. Let’s work with a really small, inconsequential number. Say, the creation of $100.00. The first $100.00 to be circulated.

In cahoots, the bank and the government create $100.oo. So there is, in all the world, $100 in circulation.

The bank then lends this money to you, me, the consumer in need.

In return for this loan, the bank charges interest. Here, things get interesting. Because in all of the world, there is only $100 and you’ve borrowed it. So now, you will ultimately need to pay the bank back %128.34 (5% compounded over 5 years). However, the last $28.34 doesn’t even exist.

And in actuality, banks lend out 10 times the amount they have on hand (called fractional reserves). Which means that this $100 gets loaned out 10 times, and generates $283.40 in  interest payments (non of this money actually exists).

In other words, $100 is created and is loaned out ten times, and generates $283.40 in interest AFTER the initial principle is paid back.

But where in the hell does the debt come from? If the money simply doesn’t exist, i.e. if the government and banks haven’t signed it into existence, then how can we the citizenry pay back this debt?

This is a system designed to perpetually keep its citizenry (its slaves) in debt.

If there were really the ability for us to become instant millionaires at the think of a thought, don’t you think that the powers that be would have suppressed the movement yet?

Why do you suppose the multi-billion dollar self-help industry continues to be unregulated? Why do the Ray Arthur James’s continue unimpeded until the inconvenience of a death or three comes in the way?

Because every time we spend money hand over fist, because every time we are convinced to max our credit cards for just this one last course that will make you a millionaire, we are contributing to the outlandish profits the banks make each year.

In a way, the Jack Canfield’s of the world are on to something. Money is a fiction. But it’s not as wonderland-like as they present it. And they go uninterrupted because we are spending multi-billions of dollars every year on pursing that elusive truth that will one day allow the universe to cater to our ego-ic needs.

And the fat cat is laughing, all the way to the bank (which, by the way, owns the government).

If you are genuinely interested in how money works, take the time to watch this YouTube video. The video below is the first of 12. It’s dry, and explosively informative.

Or read “The Web of Debt” or “The Central Bank Concept: The Never-ending Debt.”

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