Read more at http://www.nakedcapitalism.com/2012/07/links-72412.html#v6VTxgzZYdICmywg.99
This is lending 100% real money in possession of the lender, at least
as real as money gets in a debt money system. This is not fractional
reserve lending where money is created by a bank to make a loan. The
lender may have sole ownership of the money loaned, may share honest
ownership with investors or maybe has possession as a ponzi scheme.
In any case, real money is being made lending real 100% money that
exists as a thing prior to loan and continues to exist after the loan is
repaid. Only the possession of the the real money for exclusive use
changes during the life cycle of the loan.
If this guy is happy to make some money lending “real” money then why
can’t we have a real money token system instead of debt money at the
macro money finance level?
Loans (debt) are simply an application of what money is in a real
money system not the reason for the existence of money and what money is
in a debt money system.
China might be the first nation to go to a real money system. They
get there through a continuing trend that increases the reserve lending
ratio until it is 100% reducing debt money to zero. Where is China now?
20% reserve ratio for the People’s bank? What country has a higher
reserve ratio? Their trend? Where are we? For all intents and purposes
are we at 0% reserve? Our trend is away from even a resemblence of a
real money system with any facade called real base money. Real money
that is not debt money.
The only real money we have left is small change.
What will be the world’s next reserve currency system? 100% real
money for the whole world? Who will do it first for the world to
follow?
Who are the clever ones?
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