Let me give you an example. The media and adults will fret over the ticking time bomb that is the national debt. Very few have ever asked the question, “How can we be in debt if we create our money? And, who are we in debt to? The government that can responsibly create its own money should never be in debt.”
As a young person, you are taught from early childhood that you must have a college education to be successful. For most, it’s not a question of whether you’re going to college, it is assumed. Just this year, total student loans reached over 1.5 trillion dollars with the average student loan balance being over $34,000. (Forbes Student Loan Statistics)
Welcome to the 21st century version of indentured servitude. You can’t write student loans off in bankruptcy, but you can work for “qualified employers” to receive student loan forgiveness. Usually for 10 years, and the government decides what is qualified.
At 18 years old, you did what you were told to do by going to college. It cost too much, so you borrowed money because you were told that you could pay it off later, and many of you will have to work for 10 years at a qualified employer to be forgiven. You are going to pay this back one way or another!
You can default on a home loan, and you lose your home. Default on a car, and you lose your car. Default on a student loan, and you lose you! Deep in your soul, you know something is wrong!
Money is the lifeblood of an economy, and there are very few that understand money. Whoever has the power to control the supply of money has complete control of a country.
Common sense moment: If your government is trillions in debt, then they can’t be the ones controlling the supply of money. Political fights are nothing more than a sideshow.
The supply of money now is controlled by those that loan us money and charge interest on the money that they loan. Think of the things we buy that we commonly use debt to purchase: house, car, land, business, and college tuition.
When interest rates are low, people tend to buy more houses, cars, land, etc. This drives the price up. When interest rates are high, people tend to buy fewer houses, cars, land, etc. The result is lower prices. Having the power to lower or raise interest rates would possibly give you the power to control the prices of housing, cars, land, and businesses.
Common Sense Moment: If you default on these loans, the person that loaned you the money gets your house, car, land, or business. You’ll notice that I left off student loans in those two scenarios because you are the collateral on a student loan.
Too often we assume that how it is now is how it’s always been without asking questions. We’ve heard it said that the borrower is slave to the lender. Our economy is built on the ability to borrow money for houses, cars, businesses, and education. What should be your next question?