When banks lend money, they do not usually lend any cash, they simply create out of nothing the money they lend, at absolutely no cost for them. They need not print any paper money, they only write figures in bank accounts, which circulate in the form of checks, and these bookkeeping figures are just as good as cash. There are two kinds of money(OK 3, I'll be a nice guy and say Gold but no one has ever paid me by this means yet): cash or legal tender (paper money and coins), and bookkeeping money (figures written on checks or bank accounts). This bookkeeping money, created out of thin air by the banks, constitutes, I think, over 95% of all the money of our country; cash constitutes less than 5%.
I want to be sarcastic here not to you but to the air and yet i want to take my hat off to you because i feel most who have the knowledge to contribute can't because they are lost in world that lacks an ABC method of transferring information so a child could comprehend.
To fight comprehension is part of paper service is it not? |
