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Money Creation & Interest: Is there enough money to pay off all the interest? (Part 2)

Screenshot 2017-02-23 12.16.19

This is the second part of our article dealing with the argument that bank lending must lead to escalating debt because banks don't create the money needed to pay the interest on the debt. Part 1 explained how the wrong conclusions have been drawn from the oft-repeated ‘banker on a desert island’ analogy. We showed that it is mathematically (and therefore logically) possible for both the principal and interest of a loan to be repaid.

MarijkeAt this moment I'm lost and having a big headache, because I thougt that I started to understand the system. But now I am lost.My only hope is that Draghi as the biggest moneymaker and illusionist ever wil be dismissed, why he never should have been placed in the position of ECB as former GoldmanSac...

2 weeks ago

Roger Glyndwr LewisThe mechanism for the accelerated growth of indebtedness and corresponding monetary assets – a veritable infernal machine – is described in full detail in “The Money Syndrome” by Helmut Creutz.http://www.themoneysyndrome...The following graph is taken from the book “The Money Syndrome“. ...

3 weeks ago

Bob WelhamAn old PM blog from 2012 that attempts to illustrate the pernicious nature of our commercially issued, debt-based money system, using the maligned "desert island economy" thought experiment. There is no mention of the "is there enough money to pay all the interest" red herring. The real danger is sh...

3 weeks ago
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Rollo10"To fix this problem, the Government should give the Bank new tools," - Wrong!Their ponzi scheme is broken, beyond repair, we need a new Sovereign system, one that relies on all nations and their own Sovereign currencies, no more Rothschild usury.We can rebuild our Social Infrastructure with interes...

last month
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Our names in the paper

andrew tyrie

What an exciting few weeks for the Positive Money campaign! Rounding off this morning with this full-page splash in the local newspaper of the Chair of the influential Treasury Select Committee of MPs. Here’s our crowd-funded advert in the Chichester Observer last week:

James MurrayLucian and PJM,You must be right that hitching the PM wagon to the Global Warming Star is doomed to weaken its message.It is quite correct that the extra cash that is made available to the Government by means of Sovereign Money Creation can be spent on reducing carbon and thereby attract the Green e...

last month

PJMI agree absolutely, Lucian, and I've tried for years to persuade PM's people to ignore the catastrophic man-made global warming nonsense and simply focus on monetary reform....

last month

Lucian AerisWhy make monetary reform about the pursuit of a 'low-carbon' economy? The supposed threat of carbon dioxide is espoused by a politically sponsored organisation, of which the political sponsor just happens to gain immense international authority as a result of its conclusions....

last month
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