An interesting thing I read a while ago was this.
If I was wanting to set up a Gold mine, I would need a lot of money to do it.
So. I would go to a bank and borrow it. They have a Ton of Gold as collateral for this money. So they borrow against this ton of Gold and lend me the money to set up the mine.
But, they still have a ton of solid Gold sitting there in their bank vault, doing nothing.
And because |I intend to mine solid Gold,I then borrow solid Gold from them (The Ton of solid Gold they have) and then I will pay it back at a 10% intrest.
ie, I pay back 1.1 Tons of solid Gold later on.
Then I take take the Ton of solid Gold I have borrowed and borrow against it to get more ca$h. Giving them the Ton of Gold as collateral.

So yah see what I have done? I have just borrowed the same Ton of Gold TWICE!



I intend to pay back the first Ton as ca$h, and the second Ton as solid Gold....+ intrest.