The Great land robbery

Witten by Del on 04/04/2013

free speech

Over the years we have witnessed many economical booms and busts. My question is do these just happen by accident? or are these the work of someone and if so, what are their purpose?

Well to full understand we need to understand what they actually are, a boom is where the amount of money in circulation goes up, which increases the borrowing power of the people. Which then entails people to take out bigger loans to maybe increase their business, take on more staff; as now the buying power from their clients have increased. People also get themselves mortgages, or even invest in secondary property.

A bust is the complete opposite where the money in circulation gets reduced. The bank's lending power shrinks, less people have money to spend, so the company's profits go down which entails the redundancies of workers and the defaults on debts by those workers.

Now people may say that this is just the natural flow of economics, but is it? Who decides how much money is in circulation? Well my other post To understand the deficit is to understand the lie explains where the money comes from. So let's for this example say that this is not just an natural financial phenomena but happens in a controlled manner by an elitist group, WHY?

We will use the housing market as an attempt to answer this; when you enter the bank to get a mortgage you are not borrowing the money from the bank, the bank is actually creating the money. So technically that money never existed until you signed the mortgage papers. We now have a mortgage agreement that states after you pay back the money the bank has just created plus the interest you own the property.
So while in the boom period there are many people going through this process and taking out mortgages, to which the bank has literally typed in virtual digits in to a computer. Now comes the bust where thousands of people lose their jobs and can no longer keep up payments on their house which after a period of begging and pleading the bank now owns the house and the land that it is on.

So to see it from the point of a private company creating money out of thin air then ending up with land, houses and other assets seems somewhat untoward in my personal opinion.

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