The Money Trap

[jafar]

Every country is in debt.  Imagine if someone suddenly decided we are all One, erase the debt.

Imagine a "Debt Holiday" where all debts are written-off and clean spreadsheets. Then the wealthy elite suddenly became humanitarian and shared their wealth among the masses.

Realizing the errors of their ways.

Everyone with a bank account is a creditor / lender, including those with Checking and Saving account.

When you go to the ATM of a bank and see the account currency balance on the screen.
That is the amount of money that the bank owe you!
You are the creditor / lender of the bank.

Does the bank have all the money that they owe to all of their customer?
Of course not!
The evidence can be seen by reading the bank's financial statement.
Compare the amount of Cash registered under asset and amount of deposit registered under liabilities.

Thus 'medium' (paper, gold/silver, bird's feather) doesn't matter.
Currency / Money is created through debt.
Regardless of the medium used.
With the exception of blockchain based crypto currency.

Moving on...
A 'debt holiday' means that Bank's customer a.k.a Bank's creditor need to also forgive the debt that the bank owe to them. Thus both the banks and it's customer are creditors.. both are 'bankers'.

Can you forgive the amount that you 'have' on your bank's account?
If yes, then it will also be easy for the bank to forgive the debt of it's debtors.

In reality, this never happened.
When something wrong happened in the economy or banking system, everyone will withdraw money from their bank account in a rush. They're asking their debtor (the banks) to pay up their debt NOW!
Mass protest or even mass riot usually happened when the debtors (the banks) cannot pay up their debt.

And the situation will then forced the government to handle the situation as banks are collapsing.
By issuing more money.... through also government debt..

A debt holiday will makes and requires everyone to be humanitarian.