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SW Iowa | Mr Burns
Not to be a pest, but, are you advocating that a bank place the principal payments it receives on a loan back into the computerfairyland from where it originally came? And only use the interest rec'd as new money to use to make a new fractional loan?
I l;ike your explanation of fractional banking and $1.00 deposit costing him $0.015% in interest he pays to the depositer, and then, allows the banker to make a $10.00 loan at 5.0% int. using the key stroke to generate the other $9.00 from the fairyland. And I too wonder about that fairyland, although, I have over the years paid many principal payments, and I would hope they went back to the fairyland, but really, have no way of controlling that. I understand the interest payments are income for the bank, and are probably used to fractionally loan additional monies from the fairyland, after the bosses take out their Cadillac payments.
Thank you
But don't forget before it all ends badly for US, there is still all that prime realestate and national treasures and parks the federal gov owns...They have real value. And especially, we have the baddest police force in the world, so no one is going to take us very far.
Edited by Itchy 2/28/2015 11:44
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Loans make deposits II
