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Old 12-02-2018, 06:47 PM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,849
Parasites create money because they can't create wealth

I had to break it up.
"As we understand it, when a depositor makes a deposit he is, in essence, lending money to the bank. But what does the money represent? If the deposit is earned money, it represents something of equal value produced by the depositor’s labors. "
"For example, the deposit could represent a coffee table. In this regard, there are only a few things to do with a surplus coffee table. You could store it for your own future use. You could trade it with a neighbor for something of equal value.

In each of these instances, there is no increase in capital. The coffee table remains a coffee table. Nothing more. Nothing less. Alternatively, you could sell the coffee table for money. If you then stuff the money in your mattress, you have the equivalent of one coffee table. Again, there’s been no increase in capital.

But suppose you deposit the money at your bank and leave it there at interest. You would’ve loaned the bank your surplus labor in the value of a coffee table. And the interest paid represents the beginning of an increase in capital.

Now consider that after your deposit, an enterprising carpenter, who is without tools and materials, borrows your deposits from the bank to buy a table saw, doweling jigs, and red oak lumber. These tools and materials represent your coffee table.

But with these tools and materials, the carpenter gets to work and makes three coffee tables. One he keeps for himself. The other two he sells. With the earnings of one of the coffee tables he repays the bank the money he borrowed to buy the tools and materials. After that, he still has the proceeds of the third coffee table, which is profit."
"Then, instead of spending this profit, he saves it. He deposits it in the bank at interest. Now the bank has the capital of two coffee tables. "
"Through this process wealth has been produced and accumulated. And more wealth can be produced and accumulated in this manner, provided the labor is not lost."

"remember, the value in money is in what it represents. Every dollar of actual money should be derived from a dollar’s worth of wealth that has been produced. "
"Through policies of state sponsored wealth destruction, wealth is extracted from those who created it and then set on fire with systematic efficiency.

This is accomplished through fake money, deficit spending, and central bank manipulation of credit markets. The results are an unending assortment of gross distortions, misallocation, debt pileups and losses. Moreover, the average wage earner – those who work hard, save money, and pay their way in life – don’t stand an honest man’s chance."
"You see, within the system of fake money, big deficits, and central bank intervention, money is continually debased, That is, the relationship to the wealth that money represents is degraded. The money’s buying power is impaired. The labor that earned the money is diminished. The time it took to accumulate it is stolen."
Well, what else do you expect a parasite to do?

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15 drastic effects.
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