Comment: If you want to have an effect of banks, pay off bank loans.

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If you want to have an effect of banks, pay off bank loans.

Repayment of a loan is the opposite of borrowing in the first place.

When you borrow from a bank, they create a checking account balance for you out of thin air and loan it to you. This increased the money supply because checking account balances are part of the money supply.

You feed the banks when you let them earn interest from you.

When you pay back a bank loan, you write a check to the bank and this cancels the note you signed when you originally borrowed, but it also eliminates your checking account balance. Since your checking account balance is part of the money supply, eliminating that balance by repayment of a bank loan also reduces the money supply. The money goes back into the netherworld from whence it was originally created.

When you borrowed and spent the money originally, that contributed to economic activity and helped to drive up prices (drive down the value of money). When you repay the loan, the opposite happens; you contribute to economic contraction and to driving down prices. So repayment of bank loans bring the nation that much closer to financial collapse and the destruction of the fractional reserve banking system. Slower economic conditions deprives the federal government of some of their tax revenue and puts pressure on them to borrow. More government borrowing brings us closer to eventual collapse of the federal government into bankruptcy, and hopefully its dissolution.

"Bend over and grab your ankles" should be etched in stone at the entrance to every government building and every government office.