If I have 10 euros and lend them to somebody with a 10% interest, then the economy will have 10+10+1 = 21 euros, while the real money are only 10. In result, when the debtor goes bankrupt, the economy will say that 21 euros are lost, while they will be only 10, all out of my pocket. Hence, the lying nature of this system and crisis.
Some may argue about the interpretation of the money multiplicator economic term that we have been recently discussing with my wife. However the story of Bernard Madoff is a confirmation that I have never expected in such a clear way.
I would also like to state that the pure form of banking, as a form of redistribution of assets from people who have them to people who need them should be preserved as the single most influential driver of development (besides human creativity). Only so can we continue to operate with a wealth multiplicator.
It is only the manipulators who should be kept out of the money business. Otherwise the money multiplicator will continue to be a grief multiplicator.
No comments:
Post a Comment