As a financial adviser I talk to a lot of clients who have never had any real financial education. A course in schools that goes over how interest works, how HPs and credit cards operate and the basics of running a bank account, mortgages, kiwisaver and insurance would be of huge benefit to people starting off life as adults. Particularly with easy credit and unscrupulous payday lenders I feel teaching our youth to avoid financial landmines is important.
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Facebook TwitterIf only we could teach parents and grandparents many who indeed have missed such teaching in life, perhaps introduce a “Borrowers License” that forces people to prove they understand some basics before a lender can lend.
The average man/woman on the street will say the government creates our money and this is true. So if the government makes our money and it doesn’t cost $100 to make a $100 note and it doesn’t cost $1 to make a $1 coin who collects the difference. The answer is the government and this profit is called “Seigniorage”
So if the government makes money and collects Seigniorage why does it need to borrow what it makes AND pay an interest rate on what it makes.??
Notes and Coins only represent 5-7% of money in circulation and the rest is digital money, who makes digital money? The banks through the “Fractional Reserve Lending rules make it. Yes, Banks have the power to make money. Every time a Banks issues a Mortgage/Loan new Money is created out of nothing “Thin AIR” Money the bank didn’t have and only just created as the loan was approved. Unlike Credit Unions that lend out other customer deposits.
It is absurd for a bank to Foreclose and reposes a REAL asset just because
you didn’t repay money they created
We need to get the public to understand this.