Posted 8 months ago on Feb. 1, 2021, 5:13 p.m. EST by agkaiser
from Fredericksburg, TX
This content is user submitted and not an official statement
In a 21st century community, people save money in banks. Banks loan money to businessmen. Businessmen hire people to make products. They also buy produce from the self employed and other businesses. Then they sell products back to people at a profit and some grow very rich. As you see, I'm talking about the theoretical real economy, not the FIRE Sector extraction machine seen on Wall St.
If the bank doesn't have enough savings deposits to cover a loan, the check is issued and a debit is entered on books. Most days checks from other banks are deposited and the books balance. If not an overnight loan from the FED will top up the required reserves. In the morning the FED is paid back and the debit entered on the books.
If the people can't afford to buy the products they've produced, make house payments etc. their savings and property are forfeit to the bank and/or the businessmen.
A thousand years ago feudal lords collected rents from people like farmers and taxes, fees, rents etc from tradesmen and self employed producers. Much of the rent was paid with produce. The lord sells produce to the people and grows rich. If the tenants can't afford to buy the things they need and pay their due, their personal property and/or lives are forfeit. They and their children may be forced into bondage.
We're so much better off today. We only lose our homes and livelihoods when the banks foreclose. Homeless people suffer from exposure, malnutrition and want of medicine and many things needed to live a normal life. Their lifespans are considerably shorter than average. Whose fault is that?
Those who can afford to rent from the new owners - private equity like Blackstone - will be the lucky ones, for as long as they can keep it up. Isn't capitalism a glorious cultural advance?
Video link https://youtu.be/JnCgCfcAZWY