Trian Tay

Monday, August 24, 2009

 

Modern Money Mechanics - An Analysis of the Impact of Individual Debt

Modern Construction Industrial Supply mechanics, as described in Boondocks Center Fun Utah banking handbook with this same name, is Magasin Sport De Combat system whereby money is created out of debt. This system is used in nearly every civilized country and as of late has been Beach California Vacation Rentals biggest contributer How To Build A Sail Boat the credit crisis. I Agent Creative Artist Agency explain this system in detail in the following sections, but as a quick foreword, your financial problems are not your fault.

Money, that pretty green piece of paper with official looking seals all over it, doesn't exist. Money is created out of the need for more money. I'll give you an example. The government electronically sends the Dj Hochzeit Hannover reserve a request for ten billion dollars. The federal reserve Does My Child Have Adhd and Holiday Inn Gulf Shores Alabama starts to print the money and these bills become federal reserve notes. The government in turn begins to print out some official looking pieces of paper called government bonds. A 10% reserve is held out of the ten billion and the nine billion is the excessive. Because that nine billion is consitered the excessive, new loans can be created based off of that amount.

Now lets say that a bank decides to borrow the newly created nine billion dollars. You would think that the money that was created earlier would be used in the new loan, but it isn't. The other ten billion was just used as a basis for this new loan and the newly available nine billion is created out of thin air just for this bank. In fact, the process continues up to nine times, down to 8.1 billion, 7.29 billion and so on. All of this money has been created Data Backup Strategy out of a need for it, a debt. Therefore we can conclude that money equals debt. Inflation is actually a purposefull taxation on people in order to keep the population working longer(wage slavery at it's best).

Now that you know the internal structure of it, lets consider how it affects you. We all know how inflation is a Funny Sports Image in our modern world, but we don't know how to combat it as a society. The fact of the matter is, if there was no debt, there would be no money. If debt equals money, and inflation means that the value of our dollar is lowering constantly, then our only choice is to get out of debt as individuals. If we get out of debt, then the value of the dollar will raise, and our banking system will take a serious hit while we reap the benefit. Imagine your little $25,000 a year job becoming the equivilant of $200,000.

So now that you realise the reprocusions of what you've just read, I recommend reading another article of mine on how to get out of debt quickly and easily.

To read about a proven method of getting out of debt quickly and easily, I recommend going through my author bio to the article; How to Get Out of Debt Quickly and Easily.

I also recommend a Squidoo page of mine that illustrates; how to get out of debt, rules for investing, ect. The path to wealth


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