LadyJasmine said:
It is irrational.
If government have been so corrupt and ineffective in managing money that was borrowed with interest.
How well will government spending money when they can borrow money endlessly.
Usually when governments spend a lot of money they spend more money he he.
Why doesn't the government just print money ? If governments need 100 billion can they just make it out of thin air to buy votes? |
What has the government to do with it? You don't understand, money is created by the banks for debts. The government isn't involved. And mostly the banks create money by giving out loans to each other. So bank A wants a credit over 1 billion from bank B, so bank B creates the money in the books and it is noted in the account of bank A. Afterwards bank B asks for a loan over 1 billion from bank A, so the money is created by bank A and noted in the account of bank B.
They cannot create money completely without borders, but the boundaries are very weak. The banks make winnings with the interest-rates, so they are interested in creating more financial products that they can ask interests for. That lead to the financial crisis.
