Usury – The Problem with Interest

Usury – The Problem with Interest

When taking out a loan, the banks only provide the principal, never the interest. What’s the problem with that? Well, let’s say you want to buy a house. You go to the bank and get a loan, say €200k. The simple truth is, after thirty years you will have paid back €500k...
Fractional Reserve Lending

Fractional Reserve Lending

This term is used to describe how banks give out more money than they actually have as real physical assets to back up any claim on that money. In more prudent times the fractional reserve percentage was around 10%. This means that banks only had 10% of the money they...
The Flow Of Money

The Flow Of Money

The people and their businesses engage in commerce with each other and pay taxes to the nation state. The nation state in turn may give grants to businesses, and act as employer to a certain segment of the population (public sector) and also pays welfare remittances...
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