The poor ones

Hey my friend,
I hope you are well! I wanna tell you a story: Imagine, there are only two people and one bank on this earth. One of those two people is you.

I'll call you Maria and the second person Matt. You need money, as well as Matt. So both of you have to go to the bank and ask them for money. The bank is happy, because you are their first customers. The bank gives both of you 100$.

Then the bank director says: "My darling, I gave you 100$. For that, give us 102$ back in one year from now. That's, how our business model works and it's called interest."

You think that's okay, 2$ a year isn't that much....

Matt does the same.

YOU MADE A BIG MISTAKE RIGHT NOW!
Let me explain you why.

First of all, the money is not yours, it's dept. The bank owns the money. (That's why each dollar bill says "This note is legal tender for all debts public and private".)

Second, there are now a total of $ 200 in the economic cycle. But overall, you'll have to give the bank $ 204 back in a year. You see? It's impossible to pay the money back...

If you are a good business woman, maybe you will have those 102$ after a year. But at the same time, Matt only has 98$, and he can not pay the money + interest back. Matt has to borrow money again. His debts are getting bigger.

Very simple.
And that's how our financial system works. Every single country on this earth is in debt. HIGHLY in debt. Now you know why. Compound interest still exacerbates this effect dramatically. (I'll write more about this topic in my next post).

Have a nice day my friend and enjoy life :-)
The Simpleman!

In this blog, I will explain how the financial system affects the world. Every war in the last 200 years, every financial crash, and much more is due to our monetary system. Follow me and let's make our own monetary system, in which everyone has the same chances. I come from Austria, so please: Forgive me for my grammatical mistakes :-)