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 HOW BANKERS MAKE MORE MONEY THAN PRODUCERS AND CONSUMERS 

Bankers are the most rich people around, of course am talking about the people who own the bank not those who work there.

Bankers use borrowed money to lend out and tie up the borrowers collateral. 

Bankers are masters of shifting risk to the borrowers. If a borrower fails to pay, they lose all the collateral to the bankers. The bank ties up enough collateral to make sure they make enough money.

If the borrower is successful in paying back the banker, the banker still makes money because of the interest. 

Everyone works for money but the banker looks at money as an employee who works for him. This employee does not complain about working conditions, it does not rest nor ask for a raise.

Bankers use the money you deposit in the bank and they lend it out to others for interest. They charge you for keeping your money in their bank but they don't really keep that money they lend it out and make money off your money.

IMAGINE THIS

A world with two people. Bob and Carl. Bob has k1000 and that represents all the money in their world.

Now Carl needs k500 so he borrows it from Bob at 10%. Carl agrees to pay a total of k550 (principal and interest).

Sometime later, Carl pays back k500 of the k550. Bob now has his k1000 back and his awaiting his remaining k50 in interest.

But the k1000 represents all the money in their world. Where will Carl get the remaining k50?

So Carl can do one of two things:

He can work for Bob in place of paying him the k50 or he can borrow the money from Bob to pay him back.

The point of the story above is that as long as someone charges interest, this created money does not really exist; therefore at some point someone will have to work for it or keep borrowing money until they work for it.

Banks create new money with interest. Someone has to borrow more money or work to pay this off.

Every time you charge interest as a money lender you 'create new money' that did not exist before and someone has to pay it off by either borrowing more money or by working for it. This is the reality of the world. 

Imagine being in the money lending business 

- You take little risk and shifts it to others

- Makes more money with less work than most other businesses 

- Always gets paid first

- Lends out the money and shifts the risks to the borrowers

THREE THINGS BANKERS DO

Bankers have to do three things. They cannot skip any of these steps because that could negatively affect their business. The steps are:

- Use leverage ( other people's money. The money people deposit in the bank is used to create more money for the bank)

- Find borrowers. Without borrowers they can't make money. 

- Do relatively safe loans secured by assets. Bankers are always about safety they are not in the business of taking risks.

When Einstein said, "Those who understand interest earn it, those who don't pay it" he was talking about a banker.

THE THREE TEAMS IN THE MONEY WORLD

There are three teams in the money world namely;

1. Consumers

2. Producers

3. Bankers

We are all consumers at some point but we are not all producers. Producers are people who create something then sell it at a profit. Bankers on the other hand finance both the consumer and the producer. The other name for the producer is the investor.

The producer/investor goes to the banker and gets a loan to start a business, the banker then gives the investor money and charges him an interest. The producer then creates a product and sells it to the consumer but what about that interest he was charged by the banker? 

The producer does not worry about the banker’s interest because he makes sure that the consumer pays for the interest by increasing the price of the goods.

The consumer then comes to the banker and gets a loan to buy the products of the producer/investor. Since the consumer uses the money for consumption instead of investing it for a profit, the consumer will either have to borrow more money from the banker to pay the producer or he will have to spend his life working for the producer and the banker.

The banker believes that every money is his worker so he makes his money work for him, the producer has workers but workers have issues they complain about a raise, sometimes they are sick but the banker makes money work for him. Money never complains nor asks for a raise.

The banker has an advantage among the three because he makes the rules and makes sure he is paid first before the consumer and producer can enjoy their profits.

Which team would you like to be in? Let's discuss below, kindly comment.