This is How Our Money System Really Works

A banker from New York took a vacation to a remote South Pacific island. When he got there he noticed that they didn’t use money, but traded with each other for the things they needed. When he got back to New York, he decided to start a bank on that island so he put his affairs in order, and went back to do so.

He called a meeting of the local residents and told them about using money. He explained how much simpler it would be than using their barter system. They agree and he lends each person a certain amount of money based on their assets and needs.  He opens a bank and they begin using money instead of bartering.

A few years later, the local people have a meeting and decide they don’t want to use money anymore, they want to go back to bartering. So they take all the money that the banker gave them and return it to the bank and tell the banker that they don’t want to use his money anymore. The banker says okay, thank you for returning the money, but you still owe me a considerable amount of money in interest. But they say we gave you all the money you gave us, we don’t have any more money, we returned it all to you, every penny. But the banker shows them the contracts they signed and says you owe me the interest and if you can’t pay me then you will have to give me your houses, your lands, and your farms. So because the people didn’t have the money to pay the interest, they lost their houses, their lands, and their farms.

Now the banker owned most of the property on the island and the people were forced into poverty. Most of those who lost their homes and farms were now working for the banker for much less than they made before. In fact they barely made enough to feed their families while the banker lived in luxury in a nice big house that he built for himself. The people didn’t know what to do and thought that they would have to live this way forever.

But wait…..there is actually a happy ending to this story.

The island people had a meeting to see what they could do about their predicament. They decided to send a delegation to see the banker. Six men went to see the banker, they threw him over a cliff into the ocean and left him there for the sharks to eat. Then they burned down his bank and his house. Then they had a big party and told all the island people that they could now all go back to their own homes and farms. And they promised each other that they would never allow another banker to ever visit their island again. And they all lived happily ever after and decided to give their island a new name.  They named it “America, the Land of the Free.  “