Unpayable Interest: The Illusion of a Solvent Economy Loan Payoff Simulator AKA Ravel Unravelled
Before we begin, let’s ask a few simple questions.
📌 Is the economy solvent?
📌 Where does money come from?
📌 Can all debts be paid off, or is there something fundamentally wrong with the system?
Most people assume that if you borrow money and work hard, you can pay it back. But have you ever stopped to ask: Where does the money to pay the interest come from?
If every dollar in circulation was originally borrowed into existence, then all money is debt. But if every loan must be repaid with interest, and no new money is created to cover that interest, then it follows that:
🔹 The total debt will always be greater than the total money supply.
🔹 Somebody must always be in debt.
🔹 It is mathematically impossible for everyone to be debt-free.
This means that the entire financial system is a musical chairs game, where debtors compete to stay afloat—until they can’t.
💡 What we are about to prove is that under this system, debt is not just common—it is an absolute necessity.
Even if Bob is perfectly responsible, he will still go broke. And the reason for that is baked into the math itself.
👉 Let’s use a simple loan to demonstrate this fundamental flaw. If the banking system is truly fair and solvent, Bob should be able to pay off his debt.
🚀 Let’s begin.
Alright , we're going to be borrowing from
, we have a problem. The terms of this scenario are that you can only pay off your loan with this loan. Don't just sit there, let's double down! I checked for you, and your credit is still good 😁
. are willing to give you another loan. So what do we do? Go back to your life of ignorance and bliss, or double down and pay off this loan?
Select Your Bank:
Aggregate Summary:
Total Principal:
0
Total Interest:
0
Total Obligation to repay:
0
Total Circulation (no bank spending):
0
Obligation vs Circulation:
0
-- With Bank Spending* --
There is a body of research suggesting that banks spend interest income in ways that affect the money supply, claiming that this will keep the economy solvent. This section attempts to account for that spending by assuming that all interest income is immediately re-injected into the economy 🤣. For our purposes here, to satisfy those idiots, we will make the ludricous assumption that all interest income is spent directly and immediately back into the economy, thereby increasing the money supply available to borrowers immediately satisfy the economists arguing "stock and flow" eliminates the shortfall.
Bank spending all interest directly and immediately:
0
Total Circulation:
0
Obligation vs Circulation:
0
Loan
Loan Amount:
Interest Rate (% per year):
Term (years):
Loan Repayment Schedule
Month
Amount Owing ($)
Amount Paid ($)
0
Too late, you now know the truth and you cannot run from it.