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No Rate Increase Again
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John Burns
Posted 9/21/2016 22:00 (#5542062 - in reply to #5541786)
Subject: RE: Yup



Pittsburg, Kansas

Banks would still be very much around and needed. But their roles and fee structure would definitely change in a sound money environment.

I can't say that I completely know the way it would work. But what I would envision is much less borrowing because of less need to borrow but when borrowing made economic sense the interest rates would be much higher and bank fees would necessarily be much higher. While that sounds very scary for an industry that has become accustomed to borrowing a large portion of the money it needs to operate on, it has not always been that way. I started out farming on my own at 19 and never borrowed any bank money till I got a divorce seven years later and had to buy my x wife out. Been in debt ever since. Operated entirely on savings after trading labor for some machinery use for a few years with my dad.

The current situation is more like the "company store" in Tennesse Ernie Ford's song "sixteen tons". Only instead of owing our soul to the company store, most modern middle class and lower class people owe their soul to the finance industry. There is a reason for that. Our financial system is based on debt and to have any money there has to be lots of debt. It is that simple. No debt equals no money in our system.

It need not be that way.

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