While brand brand new cash is produced by financial obligation within our present system, only a few financial obligation produces brand new cash.

While brand brand new cash is produced by financial obligation within our present system, only a few financial obligation produces brand new cash.

Many people and business entities make loans of current cash to one another, and that increases financial obligation without increasing the money supply. And also this takes place when banks downer off loans to your market that is secondary they are generally bundled and resold as investment instruments. They are two factors why today there is certainly over 3 x just as much financial obligation as there is certainly cash within the supply – producing unnecessary scarcity to spend straight straight straight back most of the financial obligation. Continue reading “While brand brand new cash is produced by financial obligation within our present system, only a few financial obligation produces brand new cash.”