The money is being held by savers. Banks do not lend out savings. Every bank loan is the creation of new bank credit, new money, along with new repayment debt. Saving reduces the amount of "earnable" money that is being spent into the economy, where debtors can earn it to repay their bank loans.
Prudent bankers "micro-manage" their local economy's use of financial credit. Most bankers are innocently unaware of the negative sum and declining sum arithmetic of the macro-money system as a whole. They just do their own job, and assume the system "works".
But the system doesn't work. It can't work. It routinely crashes and fails.
Money buys the world. Debt means you "owe" your piece of the world to the creditors. Creditors wielding weaponized dollars (or euros) that are simply conjured into existence by bankers, claim ownership of indebted nations. As they are doing to Greece right now. But the Greeks are resisting. Three cheers for the cradle of democracy!
The money issuance and primary allocation system is the macroeconomic command and control system that governs the real economy. Whoever controls the money system is the effective government. The money system is separate from -- and only arbitrarily linked to -- the real economy that produces all the real economic wealth. Money rules the economy, activates the real economy and assigns ownership of real wealth. The economy doesn't rule money; the economy doesn't produce money and determine who owns the money.
If you want to understand the money system -- if you want to see how the banksters are still beating the sh*t out of humanity in Round 14 of this epic battle -- then ignore the real economy head fake, and pay attention to the arithmetic of money body slam.
Banks exercise a "monopoly" on the issuance of spendable, investible, earnable, savable "money". "Monopoly" means there is no alternate source of money. The bank-debt money system is a closed system. You cannot get more money "out" of the system than the amount of money you put "into" the system. Banks systematically add more negative numbers of debt into the system, than they add positive numbers of money to pay the debt. It is a negative sum accounting equation.
Banks issue money (positive numbers) in the amount of loan principal, and in the amount of the discounted price banks pay to purchase new issues of government bonds. In the same process, banks charge debt (negative numbers) in the amount of principal plus interest; and in the amount of the full face value of the bonds.
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