| John Burns - 2/24/2015 06:52
1. Where fractional reserve lending is allowed, it is a very lucrative industry for banks and lending institutions.
And, when the bankers get into trouble, rather than being held accountable for their decisions, since they own the politicians, we simply give them whatever money they need to keep playing the Monopoly game.
2. Governments are always prone to spend more money than they are willing or able to tax the constituents.
And the banking system is all too willing and able to create the money from nothing for the government to spend more, with a mere promise that the cost will be borne by future taxpayers.
So, we have a system where the politicians get what they want, and the bankers get what they want. And, like playing Monopoly, as long as the game doesn't get too unbalanced, it is fun - for everyone playing. At some point, however, it becomes apparent that there is no point in playing any longer. |
Next economic question. WHY is debt so prevalent throughout the world today?
