Re-pay non-existent something is a strange concept. And it’s one that challenges conventional understanding of loans, debt, and money. When you take out a loan under today’s global banking system, it feels very paradoxical. How can you re-pay something that doesn’t exist as physical money at the outset?

Credit Creation vs. Actual Money

Most “money” in circulation today is not physical cash, it’s [digital] credit. When you take out a loan, the bank doesn’t give you tangible money, it creates “money.” Simply put, they juggle figures on a computer screen that allows you to access funds.

Long gone are the days of lending you something “real” in the traditional sense (i.e., a sum of cash from the safe).

Repayment Mechanism

When you re-pay a loan, you’re paying back “credit” created by the bank. This means technically, you’re re-paying the bank with more “credit.”

And it’s regardless of whether you earn this money through hard yakka, or “credit” you create through future transactions.

The repayment doesn’t necessarily mean you’re returning something tangible that was “loaned” to you. Instead, you’re honoring the agreement by providing the bank with the funds you’ve earned (your sweat-equity).

These hard-earned funds allow the bank to extinguish the “loan” balance. So the re-payment isn’t a return of physical money. It’s a transfer of another form of [re-]payment for the credit they originally create for your use.

The Bank’s Perspective

From the bank’s perspective, the “loan” is a financial product. When you sign a loan agreement, you agree to re-pay something that doesn’t exist. The contract states you’re agreeing to pay back the amount of credit extended to you, plus interest, over time.

The bank doesn’t need the actual money (cash) back. They just need to make sure their books balance. Meanwhile they create more credit for other borrowers.

As long as the repayment is made, the bank is satisfied because you’ve completed the contract. And they continue to generate more loans and profits from interest payments.

Debt and the Concept of Money

“Money” is ultimately a social contract. This “money” derives its value from mutual agreement that it can be used to settle debts and trade for goods and services. It doesn’t matter whether or not it’s tangible (like gold or silver). The system works because society collectively agrees to give “money” value.

And you’re participating in this social and financial system with the “money” you use to re-pay a non-existent something. It may not directly correspond to the “money” the bank creates when you agree to the “loan”. But it functions in the same system, representing “value” that settles “debt”.

Inflation and Debt

Modern debt-based economies rely on the idea that money will continue to flow, grow, and expand.

When loans are repaid with interest, banks profit from the principal amount and also the interest payments. [Interest = money the bank charges for “lending” you something they created, that costs them nothing!]

This system adds more “money” into circulation. Inflation, the general rise in prices over time, is also tied to this process. As more money is created the value of the money drops.

So, the banks win, and we all lose. Because we have to work harder to buy the same things we have been buying before, because they now cost more [because of inflation]. So people need to “borrow” more “money” to live. Meanwhile the banks make increasingly higher profits from “money” they create to “lend.” And they demand that we re-pay a non-existent something.

The “Re-pay non-existent something” Paradox

How can you re-pay non-existent something that doesn’t exist in the first place?

It’s a critique of the current financial system that’s built on perpetual debt. Where money is created through loans, and the expectation is that the debt will be repaid with more debt or credit.

The system relies on the idea of continual economic growth. But it’s one big fat lie. Because borrowers re-pay loans by earning money (or borrowing more money) in the future. This ensures that profits grow for the banks.

However, if everyone stops borrowing or fails to repay their “loans”, the system could collapse. Because there wouldn’t be enough new credit to cover existing debts.

You sign your name to a contract, and you have legal obligations. The contract stands regardless of the source of the money. So when you repay a loan, you’re honoring a promise to the bank. You’re not returning a tangible thing.

Why Re-Pay Non-Existent Something?

The global banking and financial system relies on the idea that money is an abstract concept. Numbers on a computer screen, that can be easily manipulated. Our forefathers were smarter than this. Trading with tangible commodities like silver and gold that couldn’t be manipulated.

People are waking up to the deceptive global banking system. Hence the excitement around digital currencies allowing people to opt out of a central banking system controlled by the elite.

Next time you make a mortgage payment, remember that you’re really re-paying the “credit”. You’re re-paying the promise of money that the bank creates for you at the outset of the loan. Re-pay a non-existent something…

It’s a process that depends on trust, legal agreements, and the continuous flow of credit throughout the economy. This system works as long as borrowers continue to repay their debts and economic growth keeps moving forward.

If everyone stops borrowing or fail to repay their loans, the system could collapse. We can all go back to trading eggs for vegetables.

And we could remove crooked banksters who take money for nothing, while destroying so many families around the world… Just a thought… What do you reckon?