Byron Dale 6 Part Interview - The National Debt is not the Problem, But Private Debt is
Contact:
Byron Dale
7007 Lynmar lane
Edina Minnesota 55435
(952)925-6009
E-Mail: mtalks23@msn.com
Byron Dale is one of America’s leading monetary thinkers, researchers and Political Activists for money reform. As a young progressive minded rancher Byron began to wonder just why, when every thing is produced as wealth assets; everyone always has to go to the bank to get the funds needed to run a successful operation. Especially farmers and ranchers who are at the base of most all the wealth production in America?
Where and how does the banking system get the money that they loan to everyone?
In search for the answer to that question, Byron wrote to the United States Department of the Treasury and asked them some questions. What is money? Where does money come from? How is money created?
Russell L. Munk, Assistant General Counsel, answered those questions stating:
“The actual creation of money always involves the extension of credit by private commercial banks.”
How do the private commercial banks create the money? They simply make book entries for their loan customers saying you have a deposit of X dollars with us. These book entries are based on your promise to pay, mortgaging your future productivity. Under this system each generation is guaranteed greater debt than the previous generation, unless or until legislative changes are made.
“You may want to know whether the bank is the one getting the benefit of the new money, since the bank owns the new money while the customer has merely borrowed the money. The bank does indeed get the benefit of the new money.” -Russell L. Munk
Byron wrote back to Mr. Munk and asked:
“If money is only created by an extension of credit, where does the money come from to pay the interest on the borrowed money?”
Mr. Munk answered stating:
“Money for paying interest on borrowed money comes from the same source as other money comes from.”
In other words, for the money to exist it must be borrowed and to repay the loan plus interest, more money must be borrowed. Time and interest makes the debt grow, but it does not make the money supply grow.
This explains why we have a money supply less than $1.5 trillion and a debt load of over $37 Trillion.
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