What is loan ? ATS 2013
Shorts

15 years ago loans were calculated to the savings.
They are actually savings, but they are non-saved savings, they are future savings.
When you take a loan, big or small, you do the saving job after you have taken and spent it.

In the old days countries and governments saved for the recessions and stimulus packages, when the times were good. The traditional system have two big advantages. You are not dependent on interest rates, and you get profits from the savings you have done. Third advantage, which is currently getting more and more importance is the availability question. With old system you are not dependent on creditors and the amounts of available money, you can afford to finance the stimulus packages, and run the state with savings.

During the big recession of 90's countries run out of money and savings. They had to take loans, so that they could pay deficits and stimulus packages.

After the recession, countries didn't return to the old saving system. They continued to spend all of the tax money immediately. Taxes are the most important source of income to the countries.

Saddest in the current loan based system is the responsibility question. When a country takes loans, the payback times are very long. The payback responsibility goes to the next generation. 

So. It is possible to say, that after we are dead, the next generation inherits loans and responsibilities instead of wealth and better life from us.

Creativeness in use

If the people, who run the country are irresponsible by their nature, the lack of responsibility makes it very easy for them to take oversized loans, push the responsibilities to next generations, and spend the money to all kinds of nonsense. 

After the fake money was re-invented, by bold, not necessarily very bright people, the politics took their creativeness to use. It was amazing to look, how they invented all kinds of stupid things, where they wasted the fake money. Since the money was free from payback responsibility, it was very to use and spread it without giving a single thought to the effect.

Monkey Business is my business What was it like in late 90's. When Deadlock and Walk Corp were holding the power, and world economy doubled it's value in two and half years ? Don't know. But you were the man in charge ? Yes it was true then. But the whole history was re-written afterwards. The whole history ? Deadlock Corp was written away from history. Cannot talk about your involvement with politics, medias and sports. Yes, they were totally different persons, who made things happen. Well what was it like in Walk Corp ? I do not know. I wrote the Walk Corp's companies instructions how to make growth to world economies. And that's all ? And that's all. But that's not all ? Of course not. Current power keepers have been trying to do the same for over ten years. Without any success. ? In the autumn 2011, Eu's power keepers wrote an official announcement after two days meeting and media event. In the announcement they said, that for now on they will concentrate on creating growth to the world's economies. And with these bold words, current power keepers resolved all the problems in the world. Come to think of it, I think that the biggest difference for current times was, that you were not asked to stupid things. Like now. Like now.

Wasting the legacy

In Europe, where countries owned lots of businesses, most of the businesses were sold at the end of 90's. The money was spent very quickly. The Europeans acted like the End of the World is coming, and the current generation is the last living European generation. Nothing was left to the next generations.

Payback

The loans which are taken, including fake money, must be paid back just like other loans. In principle the payback money must come from the economical growth.

If the required loan payback exceeds the growth, the living standards of the people goes down. The taxes and other fees takes so much from their salaries, that the net comes and purchasing power goes. Currently it is already known, that the next generation will not have as much money to spend, as the current generation has. The next generation must pay the debts the current generation has taken. Therefore they have to settle for smaller homes, buy cheaper food, stay at home on holidays and so on. 

There are no magic tricks or shortcuts, with what this could be avoided. 

Addition 2011

"Shit. Boy. He gave you something and helped you from trouble. Remember that you never asked anything from him. ( although you begged and cried help from him just few minutes ago ) You better go and kick him to the balls." This seemed to be the way current power keeper generation was raised. When they were young. 

After someone from Movie Medias / Current Power Keepers started wonder how can it be possible that I ever got my funds, I gave few thoughts to the current power keeper generation. Finally answered, that "I have a hunch, that people were slightly different in the past. More honest and decent."

Our bold headed power keeper / movie media continued to play bold with me. So I made research. It shows clearly the results from the period of the current power keepers. By the numbers the current power keepers are the second worst in the history. When the situation, from which they started their reign is taken to notice, they are the worst ever. You can check the results from the "Playing Bright" page.

Fake Money

In the past the usage of fake money has been the worst possible way to handle loan and deficit problems. No one has ever succeeded with fake money. Hitler for example got his power because Germans pushed fake money to the markets. The whole economy collapsed because of the fake money.

In general the amount of available money is related to economical growth. You can increase the amount of available money with the sum of economical growth. It is fully automatic system. No one controls it, and hardly anyone even knows, that there is an existing relationship between economical growth and the amount of available money.

Fake money is money, which is pushed to the markets without corresponding growth. EU and U.S. have both used and pushed lots of fake money to the markets. Cash for voters is one example from the way, the governments and central banks have pushed fake money to the markets. 

In the cash for voters the government and central bank make an imaginary deposit to the voters bank account. It is imaginary, because the money which they are giving to the voters does not exist. They are not making any transactions from existing bank accounts or budget funds. The money is added to the central bank's balance sheet.

In theory and calculations, the fake money is one form of the loan. In fake money, the lender and the creditor are the same. The payback is done with inflation. In Germany the payback started after 4-8 years use. The hyper inflation came and comes with a small delay.  

The worst thing in fake money is, that you cannot control the payback time. You do not know when the payback time comes. After you can clearly see that the payback time has come, there is nothing you can do to prevent it.

From the past we know, that after the payback ( inflation ) starts, the debt must be paid almost immediately. Delays in payments are not accepted, you cannot negotiate longer payback times for the fake money based loans. 

The immediate payback leads to internal misery and chaos, which gives all kinds of Holocaust-Hitlers a very good opportunity to get power to themselves.

In theory it is possible to gather the fake money away from the markets with taxes, but in practice the loans and amounts are usually too big. People will resist the controlled payback very heavily. In United States the amount of recently spilled fake money is at least trillion dollars, and EU numbers are in the same classroom. [ year 2010 ]

For long term creditors the usage of the fake money is very difficult thing, too. When the payback starts, you are in danger to lose all the money you have lent to the country. To the state, to the companies, to the organizations and to the citizens. And that's not all, you lose all the money which was bind to the collapsing currency, and lent to other countries.

Very dangerous thing . . . the fake money.