"Deficit to be financed with loans, bilateral arrangements"

This story uses language that will confuse the average reader. Let me explain, if we spend more than we have or can earn, then we are in “deficit.” I expect to spend 100 euros today but I only have 89 euros. I have a deficit of 20 euros. I now have two choices, either I cut spending to 80 euros or borrow the missing 20 euros.

Countries however are not citizens; they are special and have special powers.

All western countries are currently spending more than they have. They fill the gap (the deficit) by creating money out of nothing. The British and Americans have creating trillions of pounds and dollars over the past few years.

In Britain and America the central banks create the money (they do this by typing 1,000.000,000,000,000,000 on their computer keyboards) and then they lend this money to private banks at interest rates between 0% and 0.5%. These private banks then lend this same money to the government at interest rates of between 5% - 10%. This is exactly how western banks steal from the public.

Serbia should copy the West, except it should cut out the thieving bankers. The National Bank of Serbia could create as many dinars as needed to pay for the deficit and it could give this to the Serbian government at 0% interest (it cost nothing to create therefore why should there be a charge?) The Serbian government to meet all its dinar expenses without going into debt and without paying a fee to bankers.

Loans to balance the deficit?
Isn't that like 'robbing Peter to pay Paul'?
How did Greece end up in the mess that it did? Exactly, by borrowing to pay off debts.
It's a fool's game.

Michael,
Your math is excellent! Perhaps you should become the next finance minister of Serbia.
(print dinars, 8 November 2013 15:32)

I don't think you actually understand how money is created in the first place.When you go into a bank to borrow £10,000 for a new car, if approved, the bank manager does not lend you someone else's money. You are not taking Little Old Granny Smith's life savings. All that happens is that the bank manager simply types into his computer, on your account, an entry for £10,000, and at the same time sets up a loan account for -£10,000. They balance (at first) but it is merely an accountancy entry. It is just 0s and 1s on a computer. It is bank credit. But is spends just like a stack of £50 notes.
This is how new money enters existence. It is merely created out of thin air. The kicker is that the **interest** you will need to pay to the banksters has NOT been created. Therefore,there is NEVER enough money circulating in the economy to pay all current debts and interest. It is the very definition of a Ponzi scheme.

However,Michael is talking about "interest free" money which makes sense.It can replace existing bonds by injecting liquidity into the economy without increasing the money supply.

Let me explain, if we spend more than we have or can earn, then we are in “deficit.” I expect to spend 100 euros today but I only have 89 euros. I have a deficit of 20 euros. I now have two choices, either I cut spending to 80 euros or borrow the missing 20 euros.
Michael Thomas

Michael,
Your math is excellent! Perhaps you should become the next finance minister of Serbia.

Let me explain, if we spend more than we have or can earn, then we are in “deficit.” I expect to spend 100 euros today but I only have 89 euros. I have a deficit of 20 euros. I now have two choices, either I cut spending to 80 euros or borrow the missing 20 euros.
Michael Thomas

Michael,
Your math is excellent! Perhaps you should become the next finance minister of Serbia.

Loans to balance the deficit?
Isn't that like 'robbing Peter to pay Paul'?
How did Greece end up in the mess that it did? Exactly, by borrowing to pay off debts.
It's a fool's game.

This story uses language that will confuse the average reader. Let me explain, if we spend more than we have or can earn, then we are in “deficit.” I expect to spend 100 euros today but I only have 89 euros. I have a deficit of 20 euros. I now have two choices, either I cut spending to 80 euros or borrow the missing 20 euros.

Countries however are not citizens; they are special and have special powers.

All western countries are currently spending more than they have. They fill the gap (the deficit) by creating money out of nothing. The British and Americans have creating trillions of pounds and dollars over the past few years.

In Britain and America the central banks create the money (they do this by typing 1,000.000,000,000,000,000 on their computer keyboards) and then they lend this money to private banks at interest rates between 0% and 0.5%. These private banks then lend this same money to the government at interest rates of between 5% - 10%. This is exactly how western banks steal from the public.

Serbia should copy the West, except it should cut out the thieving bankers. The National Bank of Serbia could create as many dinars as needed to pay for the deficit and it could give this to the Serbian government at 0% interest (it cost nothing to create therefore why should there be a charge?) The Serbian government to meet all its dinar expenses without going into debt and without paying a fee to bankers.

Michael,
Your math is excellent! Perhaps you should become the next finance minister of Serbia.
(print dinars, 8 November 2013 15:32)

I don't think you actually understand how money is created in the first place.When you go into a bank to borrow £10,000 for a new car, if approved, the bank manager does not lend you someone else's money. You are not taking Little Old Granny Smith's life savings. All that happens is that the bank manager simply types into his computer, on your account, an entry for £10,000, and at the same time sets up a loan account for -£10,000. They balance (at first) but it is merely an accountancy entry. It is just 0s and 1s on a computer. It is bank credit. But is spends just like a stack of £50 notes.
This is how new money enters existence. It is merely created out of thin air. The kicker is that the **interest** you will need to pay to the banksters has NOT been created. Therefore,there is NEVER enough money circulating in the economy to pay all current debts and interest. It is the very definition of a Ponzi scheme.

However,Michael is talking about "interest free" money which makes sense.It can replace existing bonds by injecting liquidity into the economy without increasing the money supply.