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Most, if not all, people in the mainstream & alternative media are clueless about how money is really created. For starters, money is NOT a debt, money simply pays a debt. If you don’t owe money, how can the money in your possession possibly be a debt?

Moreover, if all money is loaned into existence, how can you even apply factional reserve lending on ZERO deposit? Logically, the money simply did not exist, not even a fraction existed in anyone’s bank account prior to the purported loan, so how can anyone rationally justify the fallacy of fractional reserve lending that pretends to create a lot of money out of a fraction of a deposit?

It is what it is, folks. All money, records, evidences & likewise represents the value of our production we give up to each other is any debt, sale, trade or transaction. In truth, it is the purported borrower (obligor) who creates the principal when a bank pretends to loan money in private debt.

Banks are nothing but mere publishers of money, publishing further representations of the money that we create before publication, therefore publishing no more than the sum of principal, intervening on the only true debt between the buyer & seller, pretending to loan the value of that debt. Both the purported borrower (buyer) & the true creditor giving up property (seller) are giving up the only lawful consideration of value. The bank however neither risks nor gives up consideration of value from its otherwise prior legitimate possession. The bank’s a thief, in other words, stealing the money we create, or the value of our production we give up to each other, by simply pretending to loan us the principal from the get-go.

Government debt however is just laundering the principal & interest we formerly pay out of circulation in private debt, subsequently back into the monetary circulation again in government expenditure, so if you think government debt creates ‘new money’ or taxation funds government expenditure you would be wrong.

The reason why the government debt is perpetually reflating the circulation is that we are paying principal + interest out of the overall circulation, which only ever comprised of some remaining principal at most. In this light, we don’t even have what these fools in today’s economics call inflation, well, not in regard to the idea that suggests an inflated or over inflated money supply causes price inflation.

If anyone was to assume interest paid on purported loans returns to the monetary circulation in paid interest on deposits, you would be incorrect. The interest received on deposits, which includes all bank spending, only amounts to a fraction of 1% or less than one percent of the principal & interest we formerly pay out of circulation to banks, so to suggest the majority of interest paid on purported loans returns any other way than a further terminal escalation of falsified debt is coming from a world or wilful blind ignorance.

It is no secret the added cost of interest is the primary cause of price inflation, you would be fool not to see you’re servicing other people’s purported loans just spending money, & yet at the same time by however much interest we pay above the sum of principal is likewise perpetually deflating (circulatory deflation) the monetary circulation. This is the reason why the overall sum of falsified debt is mathematically impossible to pay down & the very reason why your money is worth less & less.

It is thought by many circles that irrationally believe the fallacy of fractional reserve lending is the reason why they tell you to save money is that they can create more money from deposits. On the contrary, they tell you to save money to artificially sustain the deflation, otherwise caused by paying a further sum of principal again in unwarranted interest above the sum of principal purportedly borrowed, paid out of circulation on purported loans. In other words, money in bank deposits is not deflating the money supply. Opposed to spending that money, servicing someone else’s purported loan, which is otherwise deflating that money supply, only to come back as an ever greater escalation of government debt.

How anyone could attribute these terminal cycles of deflation & reflation to “economic growth” is beyond stupidity, it’s insanity.


David Ardron.
Advocate/mentor, Co-founder, Co-director – Mathematically Perfected Economy™ (au)

(Published: July 24, 2021)