However the problem is even worse. Not only does the scenario above play out, but subsequently, the loans are often then sold by the bank to third parties, who package them together into loan-backed-securities and derivative financial instruments, that they then sell to other third parties.
At each stage, there is more and more leverage and multipliers built into the fragile, and likely fraudulent, system.
None of this unethical activity is necessary for an economy to function.
An economy could simply be based upon Truth and Reality, and play a straight game in the presence of God and the universe of witnesses.
Forward to 2.12 Perpetual Designed Scarcity
Back to 2.10 The Banks Multiply the Fake Money, Turning It Into More Fake Money
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