??? It may be excellent except for a number things.
1) The "funding pool" of production is not barrels of apples, rotting for days, months, and years, as a surplus of production might be.
2) There is no "funding pool" as a cause of increased production. Surpluses are the result of increased production, not the cause.
3) The cause of increased production is increased efficiency from specialization and favorable condititions.
4) The "funding pool" in an advanced economy is trust.
5) Banks are agents for the owners of financial wealth, they do not dilute the owners with "thin air", criminals and government do.
ent fromy MetroPCS 4G LTE Android device-------- Original message --------From: "Nina Ortega ortegan@yahoo.com [lpsf-discuss]" <lpsf-discuss@yahoogroups.com> Date: 12/4/2015 8:05 AM (GMT-08:00) To: lpsf-discuss@yahoogroups.com Subject: Re: [lpsf-discuss] How Money Disappears In A Fractional-Reserve Money System | Zero Hedge
John,
You are a really smart guy, so I am finding it hard to believe that you don't realize that banks create money out of thin air. They do. It's a fact. Can I recommend some reading on this? It's important.
This was not always the case. It gradually occurred over time as we and other countries' central banks started replacing gold and silver certificates with mere slips of paper backed by nothing and then got worse when fractional reserve banking was invested. It is fraud on an immense scale.
Nina
Banks create money out of trust, not "thin air".
It might look like "thin air" to people who don't know now what trust is, but trust is not "thin air".
Government money is often printed out of counterfeit trust, obviously because there there is no trust except for violence and corruption.
Banks do NOT create money out of thin air or trust. Banks create money by making loans. When the borrower pays back the loan, the money is uncreated. Credit expansion is inflationary ONLY if;
1 the additional money is used to bid up the prices of goods or services already produced, instead of producing new goods or services or