Banking System: The Brief Analysis Essay

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This is a fictional story that comes perilously near to the reality about the basic foundations of modern society. The aim of placing this story on the internet was to use it as an educational instrument. Many individuals have translated this story into various languages and then posted them on the internet which has been very obliging to readers. The primary objective of this story is to demonstrate reality’s simple math and the existing banking system, which is one hundred plus nothing.

The current financial system does not result in one hundred and five, and charging interest on something generated out of thin air makes repayment impossible. In reality, banks as important intermediaries between money and people. For example, the payment system aids the economy in exchanging services and goods for money. As a result, people who create money or the banks are granted a lot of authority. Larry Hannigan wrote this story in 1971, and the main character, Fabian, is a fictional character (Bossu et al., 2020). In addition, money is also not a commodity: it is merely a method of debit and credit accounting. For example, every monetary transaction made by a business organization should have a minimum of one credit and debit recorded in the accounting ledger of the organization in opposite but equal amounts. Since banks produce credit, it is a fallacy to believe that depositing money in banks creates credit. Furthermore, a bank loan increases the amount of money in society.

The people versus the banks are an issue that has raged for ages and will have to be resolved eventually. Every day, the linguistic fight between these banks and the people draws closer. As a result, this narrative teaches that people should not give the bank anything that might be used to divert attention away from the main issue by creating distractions and divisions (EPDF, 2022). The actual problem is that one hundred and five does not equal one hundred and zero. Furthermore, until the creation, supply, and circulation of money are corrected, none of the problems that individuals experience can be rectified. Everything else will be easier once the money issues are resolved.

References

Bossu, W., Itatani, M., Margulls, C., Rossi, A., Weenink, H., & Yoshinaga, A. (2020). Legal aspects of Central Bank digital currency: Central Bank and monetary law considerations. SSRN Electronic Journal. Web.

EPDF. (2022). .

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