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RE: The Mathematics of Fractional Reserve Banking

in #mathematics8 years ago

It's a way to expect yourself or future generations to pay for things now. So long as the bill is passed down (with some interest, late payments, & fees tacked on) then it grows and grows. It makes people a little uneasy, because we (or some) think America is different. We hear stories about Greece, Venezuela, Weimar Republic Germany, and think those are small countries, they aren't the United States. They had (or are having in the case of Venezuela) a financial crisis, but that can't happen here because of how strong our economy is. I certainly don't hope for financial problems for us (or any other country you might be living in) but I would remain cautious. Maybe it will happen in 10 years or maybe 500 years, but a system that is trying to be controlled by the Fed (or other centralized powers) is prone to failure just like everything else.

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