Monday, October 18, 2010

Nose Is Always Blocked Blog

The financial crisis explained to the children

Suppose I have a bag of candy in his pocket (the 'real' of the economy), and I want to have as much as possible because, by definition, are "selfish."

Then I, who are subject "A", "soon" the amount of currency corresponding to the market value of my bag of candy to the subject "B", because I promise this is the principal, and the payment of a quantity of money as interest on the loan.

Therefore I (subject "A"), with the rest of my candy, and "over", with a sheet of paper on which is written "promise" that the debtor (subject "B"), in the future I will return the value that I paid plus interest.

Because I'm very selfish and I want to earn "more," then divided up my credit (which is the value of all the candy that the debtor will be "forced" to obtain and resell on the market in order to repay his debt to me), in ten bonds of equal value, and "resell" market which, in turn, gives me back "immediately" the amount of money that I lent to the subject "B", corresponding to the market value of the bag of candy that I had to 'start.

Therefore I (subject "A"), without waiting for the deadline agreed with the subject "B", I get a chance to "pay" the market value of the 'one bag of candy in my pocket "again"!

It 'clear that in this situation di continua "creazione" di valore "promesso" dai debitori, le banche centrali di emissione dovranno stampare sempre più "moneta" da "pompare" nel sistema (ossia "fotografie" che rappresentano il valore attribuito al sacchetto di caramelle che avevo all' inizio incrementato da tutto il valore "promesso" dai debitori, i quali "si suppone" creeranno nuove "caramelle" che, nel momento in cui saranno vendute e comprate, contribuiranno alla crescita del PIL- ossia il Prodotto Interno Lordo).

La creazione continua di nuova "moneta" da parte delle banche centrali, è necessaria per alimentare questo "meccanismo"; ossia per permettere a "tutti" gli operatori del mercato di continuare a comprare e vendere sia il my bag of sweets as well as "other" bags of candy that you must "invent" the funds needed to pay the interest on loan and agreed.

E 'in this way that the capitalist system has been developed to date, and intends to continue to grow in the future!

In the "game" we all benefit as well, to me, subject "A" (which remains an incredibly selfish person), not be able to 'place' the last piece of paper (the 'last bond), because 's my last creditor will doubt that I will have enough candy to ensure the repayment of borrowed money that I'm asking, but just "that" money is me required to pay, in my turn, all the money that I have provided in order to "create" the value I "lent" to my debtors, and that "hopefully" I will return at maturity with interest.

Therefore, "that" point to the next schedule of "my" debts, I will not have the amount of money sufficient to pay them, and all the castle of "confidence" that supports the financial markets "that" collapse point, until they fail to understand "new" what the "true" value of the bags of candy that "actually" exist in the market.

(Antonio Azzaretto interesting talk on the forum propitiate)

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