The Money Deception - What Banks & Governments Don't Want You to Know

by Thomas Herold

Without a governments interference, a healthy economy has persistent deflation.

The United States has become a country of consumers instead of producers and therefore destroys wealth instead of creating it. By borrowing to finance consumption, instead of saving to fund production, the US digs itself into an economic black hole - more profound than any other nations ever in history.

Borrowing to produce is the way a developing country becomes rich. Borrowing to consume is the way a rich country becomes poor.

It is essential to understand that banks do not want you to pay back your loan. They are making a profit from the interest on the loan, not the repayment of the loan. If a loan is paid off, the bank has to find another borrower. One of the reasons banks prefer to loan to the government is that they do not expect those loans ever to be paid back.

Money is created at the moment it is borrowed. It is the act of borrowing which

causes it to spring into existence. And the action of paying off the debt causes it to vanish.

Governments borrow money from Banks. Banks are private institutions of rich people that make sure that governments are not allowed to print or establish money on their own. For the government to borrow the money, the banks charge interest. The interest has to be paid back by the end of the year on top of the loan. The bank, of course, is not interested that the loan gets paid back as otherwise, the interest payments vanish. As the banks create the loan out of thin air, they make a fortune on the interest payments!