WHAT REALY IS MONEY
Most money is not created by the National Mint but is created by your local bank. When you apply for a loan the bank needs to have a 10% reserve and then they can loan you the rest of the principal. For example, if you apply for a $100,000 dollar loan, then the bank needs $10,000.00 in reserve, and they can then write you a check for the whole 100 grand. This is what is called monetizing the debt. The bank creates 90 thousand dollars by creating dollars out of your debt. Money is debt.
That’s why the bank building is the nicest in town, because they just loaned you 90 thousand dollars that they created out of thin air. So if your 100 thousand loan was a 30 year mortgage at 6%, you will pay back the bank $216,000.00 on their investment of $10,000.00 over 30 years.
The major problem with this system is that the bank created 90 thousand dollars, but did not create 206 thousand. This means that there is not enough money in the economy to pay them back! This, in a nut shell, is the problem with the banking system failure. We have created a system of debt where the debt is far more than the available currency to pay it back. Estimates are that the government alone owes 43 trillion dollars in debt and long term commitments like bureaucratic pension payments, but there is only 7 trillion dollars in currency available in the economy. The Obama administration’s answer is to create trillions in new debt, absolutely the wrong thing to do.
When the administration realizes their error the only solution is to print large, and I mean large, sums of money to cover the debt. When you print that much money, a slow economy can’t digest it fast enough, so we have hyper inflation. It has already started (been to the grocery store or gas station lately), the value of the dollar is declining and hard assets like gold and silver are rising. The best hard asset you can have in times like these is a home. Hard assets maintain their value against a solid or an inflated dollar. In fact, you could make the case that inflation is your friend in times of hyper inflation.
Now is a great time to invest in EVERGREEN COLORADO REAL ESTATE and CONIFER COLORADO REAL ESTATE. Interest rates are at an all time low and we can help you finance your purchase or refinance you EVERGREEN COLORADO HOME LOAN. Please, call us today at 303-674-0148, Email us at markenglishrealestate@msn.com , or visit us on the web at www.evergreencoloradoliving.com . We are the one stop shop for all your Real Estate needs; from Real Estate, to Commercial, to Financing, to Construction – WE WILL SAVE YOU TIME AND MONEY.
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