jueves, 3 de abril de 2014

Fraction Reserve Money

      The film Fraction Reserve Money was a reflection of how is the money in the planet distributed. In few words the film said that there is a big inflation in whole world. So the question is; how people could end inflation?

      This is a question that will be very difficult to answer because now it is a necessity in order to loan money from the bank. The bank needs to have a reserve of money so that everybody could borrow some and then they have to pay with interests. Those interests make the bank richer so the products that costs 5 cents, now cost 1 dollar and 75 cents. It is not duplicated the price it is extremely multiplied, out of lines, meaning that the inflation will grow more and more.

       In the other hand the bank is a way of debt. Every time someone borrow money form the bank is a debt. If you take 1000 dollar for a house in the bank you have a debt but apart you have another debt of the interest it means, if you had to pay 1000 dollar to the bank, now you will have to pay 1500 dollars. This is a business that no even the government could interfere, this is only in charge of the major bank. They are the only people that could decide if they need to create more money or not.

       For me this is kind unnecessary the fact of creating money. I think they should create a system that the distribution of money should be equally organized so it will not be necessary to ask money for the bank so then the inflation will be over. There is something in my head that I can not believe how is it possible that before there were 2 trillion dollars in the bank and now there are 16 trillion. Or the fact that the bank have 10 billion of dollar but they have to keep at least 10 of them.

     

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