Big Brown $100 Bill

Big Brown $100 Bill

If you are following this blog, and I sure hope you are, I wrote about the 'new' currency being introduced.  

I have attached the links below, for your reading pleasure.  If the link does not work, please copy/paste to the address bar. 

          New Note on Top

$5 Canadian Note

http://onlythebrave10.blogspot.ca/2014/01/5-canadian-note.html?m=0

Purple $10 Canadian Note

http://goodread10.blogspot.ca/2014/01/new-purple-10-canadian-note.html?m=0

$20 Canadian Currency

http://goodread10.blogspot.ca/2014/01/20-canadian-currency.html?m=0

Today, I will write about the $100 dollar Canadian note, since it was the first time I was able to get in my hands an 'old' and 'new' version of the bank note, at the same time.  I have taken pictures of the front/back of the note.  

The Canadian $100 note is currently the highest valued and least circulated of the five banknotes. 

The 5 notes are:

$5,

$10,

$20,

$50, &

$100. 

The current version of the $100 note was introduced into circulation in November 2011. 

          New Note on Top

This note is made of a durable polymer instead of the traditional paper notes.  

The note is brown in colour. 

The front design:

The front of the bank note features former Prime Minister, Sir Robert Borden

The back design:

The back of the bank note shows the discovery of 'insulin'.

The main reason for the 'new' currency is the security feature of having two transparent windows; which make the notes difficult to forge.  

Of the two windows, the first extends from the top to the bottom of the note and has holographic image.  The other window is in the shape of a maple leaf. 

Have you seen this 'new' currency yet?

Thank you for reading, 

Ben

Interest on Loan

Interest on Loan

Previously in this blog, I wrote about how money is created, the blog is titled 'Creation of Money', please look for it.  Today, I'd like to elaborate on this topic by writing about 'interest'. 

Just a quick re-cap; in our current financial system, money is created by debt, by the banks.  The money which was created, did not exist before, every time the bank makes a loan, they create money.  

These loans must be returned/repaid to the banks, plus, the interest.

The 'interest', which is charged at the creation of money, is a problem, since money is created from 'nothing', which would mean, more money will need to be earned by the borrower, to pay the interest.  

But, a 'big' but here, mathematically it is impossible to pay the loan back, plus interest, as  there is not enough money to go around to pay the 'interest' on all the loans outstanding.  

Can you see this?

Did I explain this concept properly?

Most borrowers, can manage to pay back their loans in total; which would be the loan amount, plus the interest.  However, not all borrowers will be able to pay off the loan and interest.  

In order for most borrowers to be able to pay back the loans from the bank, some will eventually seek 'bankruptcy protection', since there is not enough money to pay for the 'interest'.  

Once 'Bankruptcy' is in the picture, the banks will get back most of all of the assets of the borrowers.   

This really is how money is created, it is loaned out to existence.   

Thank you for returning back to this blog,

Ben