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  ·  2 years ago  ·  

Its not. A basic ponzi scheme is old investors getting paid by new investors.

When you're extended credit the other party incurs a risk. The interest is basically that risk. The reason why people extend credit is to make a profit. It's economic incentive which motives people to take the risk, and that is nothing like a scheme or a fraud or ponzi.

Bank fraud and the fraud of international banking doesn't extend to all banking services.


Posted from https://blurtlatam.com

  ·  2 years ago  ·  

well that´s not totally wrong but half way ;)

First I talked over there in my comment about the social security system in Germany that is a real ponzi because like you mentioned it above there are incoming payments that were hand over to the old pensioners imediately, so if they have more delay or no incomming payments from the new workers there will be a colapse of the system, I do expect that since the begining of the 90´s it still don´t happend because they prolong it with asking the cmopanies to yearly pay a few days earlier the social-security-part now we have to pay it for the coming salary (September) for the employees at the first working day of August so one month earlier !!!

If one compay had such payment terms (hence a payment one month in advance before the counterpart has delivered his work/part) they would be fined for that and also maybe get sued at court.

Now regarding to the credit task with the banks, a loan or credit is like you said correctly a risk (for both parties) not only for the bank.
The bank doesn´t have own money they used to deposit or show 1% of the credit amount to the central banks or another entity who lends them the money.
Than with that deposit they get 99% fresh money from the central bank so no own money in the game for the banks.
But those greedy freaks ask the counterpart who gets the loan from them for security in form of a registration of a land title if there is some property he owns, or in form of wage seizure, so there is zero risk for the bank, they write it of if not payed back and realize the collateral.
Their loss is just window dressing in the balance sheets.

But to bring it to the point: a credit as such isn´t a real ponzi that´s correct,
but the business what banks are doing in total is a ponzi because if nobody brings in fresh capital to the accounts, they can´t show without own risk to blow up the needed own deposit against the lenders institution (Central bank, privat bank), and when all peeps whom the bank owed money in their accounts ask for the return of their wealth they were bancrupt in the same second.
That´s when banks do freeze payments in cash at the counters or ATM´s, they ow you money and don´t give it to you because on their balance sheet this isn´t on the right side as liabillities it´s always mentioned on the side of equity.

Normally the client who is having an account for his employment income with the bank is the lender to the bank, he must be entitled to get interest ;)
But the banks managed to make you believe that you have to accept that it now is their money and they give it back when they want to not when you like to have it, and even worse they will ask you for the reason why you like to withraw your money its that stupid !
I´m running around in that business for more than 4 decades now, so believe me any interest-oriented system will fail sooner or later, history shows this very well.

  ·  2 years ago  ·  

https://www.aba.com/about-us/our-story/aba-history/1782-1799

1782: The First American Bank
Congress charters the Bank of North America—the first financial institution chartered by the United States and the first real bank in the young republic. A de facto central bank whose shares were held by the public, the Bank of North America raised money to support the ongoing war against Britain. Philadelphia financier Robert Morris, who had given millions of his personal wealth to support the war, was the bank’s first superintendent.
1784: Hamilton and the Bank of New York
Future Treasury Secretary Alexander Hamilton founds the Bank of New York, the oldest continuously operating bank in the United States—operating today as BNY Mellon. The Bank of New York and the Bank of Massachusetts, founded the same year, are the first two state banks; the latter, through mergers, becomes part of what is today Bank of America.

1785: The Almighty Dollar
The Continental Congress adopts the dollar as the United States’ official unit of currency.

Don't hold your breath.

https://blogs.iadb.org/ideas-matter/en/what-brazil-can-teach-about-fighting-inflation/


Posted from https://blurtlatam.com

  ·  2 years ago  ·  

thanks for the links ;)

  ·  2 years ago  ·  

Look up non profit financial organization.


Posted from https://blurtlatam.com