[38529977thrw]

The class that prints money and operates fractional reserve banks (in partnership with your local government) extracts a cut from everyone that touches or must use ("legal tender") their money. It's a function of interest rates and the fractional reserve multiple (k). Interest is paid on fictional moneys (accounting fiction) that is canceled but k-1/k fraction of the interest paid on the fictional money goes into the banker pockets. So implicitly (rk-r)/(rk+k) of the economy denominated by that money is exploitation of actual work done to make interest payments on non-existent monies. It's a great scam and it's nicely setup since all direct parties involved (depositors and borrowers) are made whole. But that portion of interest on magic money that bankers pocket was the product of actual work. It's a great racket. No wonder they fight world wars over who gets to print the magic money.

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p.s. some basic math for the down voters. the most basic model with loans issued and serviced in one cycle.

D = total deposits

k = fractional reserve multiple. (iirc ~23 in US?)

r = interest rate. we'll keep things simple, and assume bank interest rate is same for depositor (rd) and borrower (rb) but usually rb > rd.

B = total loans issued = k * D

I = total interest earned = B * r

L = total liability of banker to depositors = D * (r + 1)

I' = total interest liability of banker to depositors = D * r

F = Fictional money created on loan issuance and destroyed on loan conclusion = D * ( k - 1).

X = Exploited wealth from public at large where interest paid for fictional money is wealth extracted structurally by the banking institution. X = I - I' = F * r

It's a nice chunk of money*. So X is wealth extracted from the society that must use a debt instrument that is created by fractional reserve banking. It is structural and "owner" and "worker" alike, anyone who has to make non-fictional interest payments, is affected.

* B = "United States Total Loans was reported at 12,228.056 USD bn in Oct 2023" /G

from Google "Depending on the terms of your loan, you may expect to pay as much as 50% of the mortgage in interest. The point at which you begin paying more principal than interest is known as the tipping point. This period of your loan depends on your interest rate and your loan term"

50%. k-1/k of that is wealth extracted from society. @k=23, 22/23 ~ 95%. Chew on that. The X factor.

So whether you are Elon Musk borrowing billions or Joe Schmoe borrowing for a car or a student for a loan, the overwhelming portion of the interest you pay is wealth extracted by a mechanism that were it not enforced by law, it would be blatant fraud.