IF $60,000 IS BORROWED - $255,931.20 MUST BE PAID BACK
When a citizen goes to a Banker to borrow $60,000 to purchase a home or a farm, the Bank clerk has the borrower agree to pay back the loan plus interest. At 14% interest for 30 years, the Borrower must agree to pay $710.92 per month for a total of $255,931 .20. The clerk then requires the citizen to assign to the Banker the right of ownership of the property if the Borrower does not make the required payments. The Bank clerk then gives the Borrower a $60,000 check or a $60,000 deposit slip crediting the Borrower's checking account with $60,000. The Borrower then writes checks to the builder, subcontractors, etc., who in turn write checks. $60,000 of new “checkbook” money is thereby added to “money in circulation.”
However, and this is the fatal flaw in a usury system, the only new money created and put into circulation is the amount of the loan, $60,000. The money to pay the interest is NOT created, and therefore was NOT added to “money in circulation.”
Even so, this Borrower (and those who follow him in ownership of the property) must earn and TAKE OUT OF CIRCULATION $255,931, almost $200,000 MORE than he put IN CIRCULATION when he borrowed the original $60,000! (By the way, it is this interest which cheats all families out of nicer homes. It is not that they can't afford them; it is because the Bankers' usury forces them to pay for FOUR homes to get ONE!)
Every new loan puts the same process in operation. Each borrower adds a small sum to the total money supply when he borrows, but the payments on the loan (because of interest) then deduct a much LARGER sum from the total money supply.
There is therefore no way all debtors can pay off the money-lenders. As they pay the principal and interest, the money in circulation disappears. All they can do is struggle against each other, borrowing more and more from the money-lenders each generation. The money-lenders (Bankers), who produce nothing of value slowly, then more rapidly, gain a death grip on the land, building, and the present and future earnings of the whole working population. Proverbs 22:7 has come to pass in America. The borrowers have become the servants of the lenders. No wonder God Almighty forbids interest on loans.
Footnotes
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Data generated with https://www.calculator.net/loan-calculator.html and chart designed using https://www.csvplot.com/ ↩
🇳🇪🇽🇹#619188 Small Loans Do The Same Thing🇵🇷🇪🇻🇮🇴🇺🇸#618250 THE INTEREST AMOUNT IS NEVER CREATEDBillions for Bankers & Debts for the People
- by Pastor Sheldon Emry🇮🇳🇩🇪🇽#622479