No, I am not very fond of loans. They are the biggest scam in this country and the very reason why our economy is the way it is right now. If you are an accounting graduate you difinitely know how it work. Did you ever questioned on how a corporation and personal saving/checking account different?
Let me elaborate: A corporation will never agree that for every debit there has to be a corresponding credit for the book to balance. In personal account it does. Assests of the corporation equals liability/DDA plus net worth.
How exactly corporation/banks loans money? The answer is very simple, THEY DO NOT LOAN YOU ANYTHING. They monetize your signature from the piece of paper you signed. If you ask them for that original piece of paper, they can never give it back to you because they sold it.
If you borrow 100K from a bank, do they subtract it from any part of their accounting? NO, they kept on adding and adding and adding. They never subtract anything. Why? Because it is a scam. This country is made by the bankers, and only for the bankers.
In real life, if Joe Smoe borrow $50 from you and you have a $100, your ending total will be $50. However in banking, if Joe Smoe borrowed $50 their assets will raise $50. What kind of accounting is that exactly. I wish my personal account raise everytime I spend any money from it.
This is how our government kept telling the people that this is how much we owe in national debt. The people don't owe anything, The government owe those billions of dollars they are talking about.
Fall is Here
7 months ago