The phrase presently un-payable within this post always refers to the interest charged on all the dollars borrowed from the Bank of Canada that circulate within the Canadian economy at any one time.
[Note: All dollars circulating within the Canadian economy originate from the Bank of Canada. Someone may have borrowed money from a Chartered Bank, Credit Union, etc. but all that money originally came from the Bank of Canada and eventually must be returned to the Bank of Canada. Look at any Canadian note and you will find on it the words, Bank of Canada.]
The interest on all the dollars is always presently un-payable considering the number of dollars that are in circulation. As the interest charge is a charge over and above the amount of all these borrowed dollars, there is never enough dollars within the economy to cover these charges. The only dollars circulating within the economy is the principle, never the money to pay the interest, therefore, there is always only enough money to pay the principle. And that principle can never be completely paid off. If that would occur there would be zero dollars in circulation and the economy would be dead. The economy of our society must have dollars in circulation in order for commerce and trade to occur. Therefore, as the existing dollars are returned to the bank via mortgage and loan payments, more dollars must be borrowed so that the economy keeps functioning.
How then are these presently un-payable charges paid? For these interest charges to be paid, more money must be borrowed into circulation. As these new dollars enter our economy some of them are used to pay the interest charges on previously borrowed money. And with the new dollars comes a new presently un-payable charge – the interest on this new money for once again the money to pay these charges does not yet exist within our economy.
Consider this. When a government, corporation or individual borrows money they enter an agreement to pay two debts. The first is the principle or the full amount of the loan and the second is the interest charged on that loan.
Let’s consider a loan made by Corporation “A” in the amount of $10,000. If the interest charged on this loan is five percent (5%) per year and the loan is for one year, Corporation “A” has two debts to pay. The first is the repayment of the original $10,000 and the second is the 5% interest that amounts of $500. Now in order to “earn” the money necessary to pay these two debts Corporation “A” may spend the entire $10.000 manufacturing a widget. Let’s say that Corporation “A” was able to manufacture one thousand (1,000) widgets and now offered each widget for sale at $20.00. Once the 1,000 widgets were sold Corporation “A” would be able to repay both debts (principle and interest) and realize a profit of $9,500. Most would agree that if Corporation “A” could continually repeat this process it would be a successful business. They would also say that it has and would continue to contribute to the economy.
But let’s look at the money used to purchase these widgets. Each of the $20.000 used to purchase the 1,000 widgets are borrowed dollars. Notice that $500 of the $20,000 was borrowed just to cover the cost of the interest charged on the original $10,000 loan. But now the presently un-payable interest charges has risen from $500 to $1,000.
Now, within this math is hidden the insidiousness of the Private Debt Money System. Notice that the presently un-payable interest of the original loan is paid only by borrowing more money. This is the trap of the Private Debt Money System. The borrower agrees to pay the loan and the interest charges with Bank of Canada notes. These debts can be paid with nothing else. So for the presently un-payable debt to be paid more Bank of Canada notes must be borrowed. And, as more dollars are borrowed, the interest charges increace.
[Note: For a clear understanding as to how money is created out of nothing by the Bank of Canada visit:
http://members.shaw.ca/theultimatescam/pdms.htm]
http://members.shaw.ca/theultimatescam/pdms.htm]
The Private Debt Money System creates an endless un-payable debt that continuously increases. We are caught on a treadmill that seems impossible to stop and impossible to get off. But it’s not impossible. The correction is for the Canadian population to mandate their Government to take back control of the creation of our money; that the Government once they have taken control of our money they institute a true Public Credit Money System. This in the only correction available to us. Without this correction we are doomed to a continually increasing Un-payable debt.
[Note: For a clear understanding of how this correction would work visit:
http://members.shaw.ca/
http://members.shaw.ca/
http://members.shaw.ca/
Any Suggestions? Who wants to get involved?
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david.ealing@gmail.com
