I will answer in the context that will blow your mind less but open your eyes more.
- Banks can create money out of thin air. The process is termed loosely as ‘fractional reserve’ system. Suppose you deposit $ 100 in your bank. Now fractional reserve is about 10 times in most banks. This simply means that banks can loan out $1000 based on your $100!. Thus when a bank gives you a loan of say $10,000, it is created out of thin air!.
- Watch the full series by Mike to have better understanding.
- It is just a check or promise to pay. Your property is the guarantee for the loan. You loan is hypothecated against you property or car or whatever you put as security.
- You are promising to pay the said amount in ‘x’ number of years!
- Your property is of bank till those years you don’t pay your debt!
- Most important bank doesn’t pay anything out of their pocket!
- This is all what happened in 2008 world economic crisis (sub prime crisis).
- World debt is at all time high.
- This debt based growth cannot be sustained for very long. May be for next 10–15 years.It can be mathematically proven that the growth required for sustenance of this debt based system. We need a combined world growth 2.3% compounded YOY to sustain current system. This cannot be managed for next few decades.To have this kind of growth we need to double world consumption every 31 years or so (72/2.3), which is just not sustainable. [pullquote]A common law and governments for all nation with an hierarchical system will end most of the conflicts based on economic back ground. My proposal is to have weighted voting system for each country based on their economic and military conditions.[/pullquote]
- Our growth today is debt based. For more growth we need more debt! Countries are borrowing money even to pay interest on their debt by world bank and IMF!
- Only feasible solution to this , in my opinion is to have ‘One world order’ and ‘one world currency’. A common law and governments for all nation with an hierarchical system will end most of the conflicts based on economic back ground. My proposal is to have weighted voting system for each country based on their economic and military conditions. Similar to UN of today but then all the governments would have weighted voting rights in every matter rather than G 5 or G 20. We could also have ‘world parliament’ with centralized controls.More drafts and discussion will be needed to ensure every one’s welfare, but I don’t think that this kind of ‘New world order’ can be stopped for long. A serious economic collapse or a major conflict among bigger nations (Like third world war) can be a plausible trigger. UN was born after second world war. NWO shall come with imminent third world war and economic collapse. I guess till 2026 we shall embrace NWO.