debt in our financial system?

Posted on July 5, 2011 by admin

In our fractional reserve banking system, money that is in circulation is created by banks through the loan process.

When a person gets a loan from a bank, the bank creates new money to give to the person. The money supply (the total amount of money in circulation) expands by the loan amount. Banks can create money based on the fractional reserve ration that the private Federal Reserve banking corporation sets.

Since money is created as loans from banks and since that loan has to be paid back with interest, it means that as the money supply expands, so does debt. Debt expansion as money expands is simply an inevitable part of the system.

Paying off of debt is deflationary in our fractional reserve banking system. The less debt there is, the less money there is. Cutting of debt means cutting of existing money that is in circulation.

The reason why everyone seems to be in debt to banks at once is because money is debt and is created as debt through the loan process.

So whats the solution to the debt problem?

Technorati Tags: amount of money, banking corporation, banks, circulation, debt problem, federal reserve, fractional reserve banking, fractional reserve banking system, loan process, loans, money supply, new money

How can i go to a college i really want by not getting myself and my parents in major debt from loans???!?

Posted on July 2, 2011 by admin

Ok so im 19, i dropped out of high school and have my ged so im guessing i cant really get a scholarship or anything. my dad makes from 80-100k a year and my mom works at a retail store so im positive i couldnt get any financial aid either..they tried for my sister..i will be starting southwest tennessee community college in the fall but i really want to go to a university..i just dont want to have to take out loans or have my parents do it…the schools i want to go arent that expensive 3-7k a semester and some are pretty expensive..i know u might think since my dad makes so much money he should b able to pay out of the pocket..not true..hes already in debt and theres lots of bills so anyways i just really want to enjoy the college life despite dropping out of high school and having a pretty lame experience i want to change that around in college! so any solutions?

Technorati Tags: 7k, dad, dropping out of high school, financial aid, ged, hes, loans, mom, much money, parents, retail store, scholarship, southwest tennessee community, tennessee community college

How can i go to a college i really want by not getting myself and my parents in major debt from loans???!?

Posted on June 30, 2011 by admin

Technorati Tags: 7k, dad, dropping out of high school, financial aid, ged, hes, loans, mom, much money, parents, retail store, scholarship, southwest tennessee community, tennessee community college

If you are trying to get rid of debt, what would be the best solution for you?

Posted on July 20, 2010 by admin

If you are trying to get rid of debt, what would be the best solution for you?

What would you do?
Use the money to focus on Getting rid of liability or start focusing on building an asset that will generate income so that you can pay off your loans and liabilities?

Which will be your priority and why?

Technorati Tags: best solution, liabilities, loans, money, priority

Can I get a realistic answer for getting out of debt?

Posted on June 9, 2010 by admin

I have read and listened to numerous "get of debt" solutions. Are these books for real? The rolling affect of once a credit card is paid off put that payment on the next credit card and so forth? We currently have a ,000 personal loan that is 21% interest. Our payment is 6 a month but they take out 8 every month in insurance and interest. How are we supposed to get out of this loan if our payment is always taken out from underneath us? We are a one income family. I am also wanting to find some income but haven’t had success in finding a NO SCAM stay at home job. Even the ones that were posted to my question a couple of days ago seem shady to me. So….please we are needing some relief before we go under financially with four kids! Help! Any other money saving/earning suggestions? Thanks soooo much!
Just for the record…..we don’t use the credit cards any more…cut those babies up long ago. We are trying really hard to make the payments on all loans/cards. We pay extra when we can. We also don’t want our credit hit again due to the fact we want to move soon. Credit score will drop with each hit. So, refi is out of the question. Credit counseling is a no go as well….damaging to credit in the end. We haven’t had a late pay in 14 months but want to get ahead, ya know? We only have ,000 debt (I say only because that is below the ave of most people) however, it’s above our means.

Technorati Tags: babies, couple of days, credit card, credit cards, credit counseling, credit score, home job, income family, insurance, loans, money, personal loan, quot, stay at home

Money Debt Solutions

What to do if you have too much debt and not enough money – money and debt solutions

Tag Archives: loans

debt in our financial system?

How can i go to a college i really want by not getting myself and my parents in major debt from loans???!?

How can i go to a college i really want by not getting myself and my parents in major debt from loans???!?

If you are trying to get rid of debt, what would be the best solution for you?

Can I get a realistic answer for getting out of debt?