The FREE PRESS

I‘ve been wittering on about INTEREST for what now seems like several months. After discussing this issue with Scott and some other luminaries (see podcast in previous post), I had cause to write a comment or two which I now place below. May you find it … interesting.

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None of the solutions put out by any of the establishment think tanks, Govts, bankers etc will make any difference, NOR are they intended to. Their knowingly ill informed suggestions have little merit as they won’t talk about the elephant in the living room. Definitely an excellent example of the blind leading the blind.

The issue, the root cause of this intended and pre-planned mess, the mechanism without which this debacle could never have arisen is . . .

. . . usury.

Specifically, we are held captive by a TYPE of money that ensures, through the way the system is designed, that ever more finance is driven into ever fewer hands. It has always been thus.

98% of ALL money used in the west is created as interest bearing debt by the private banks, regulated (lol) by the Central Banking Cartel. Less than 3% is issued as debt free, non-interest bearing cash. This means that were you to take a snaphot of the money supply in the economy, you would see for example, $100 trillion in money, but $110 trillion in money owed to the banks. The additionla $10 trillion in this example is the interest accruing on the $98 trillion issued by the banks as interest bearing debt.

So how does the economy resolve this imbalance?

Simple. Everyone, everything, every business is continually induced to take out further loans (at interest of course) so that the new money created by this process will be made available in the economy so that it can be used to pay some of the $10 trillion the banks are owed in interest charges.

End result?

A perpetual increase in the amount of money in the economy, perpetual un-repayable debt, perpetual corruption of markets as businesses seek, by hook or by crook, to out-do the other guy.

Think of it as a feedback loop. The market collapse last week was the PA blowing up.

A solution?

Create the INTEREST due on the loan at the same time that the loan is issued.

The way in which Interest works (or doesn’t, in actuality) is at the root of the problem. It is poor systems engineering. Our current system is maintained by appalling mechanics.

Say a bank lends out £1000 at 10% (to keep our figures simple). The bank creates the £1000 out of thin air and thereby swells the money supply by £1000. But it now has a legally enforceable right to receive £1100. The problem is this:

The £100 in interest has NOT BEEN CREATED AT THE POINT OF THE LOAN.

Where is the £100 to be found by the borrower? It can only be found by other people taking out loans that swell the money supply with our borrower aiming to get some of that so he can find the £100 interest.

The flaw at the heart of the banking system is therefore this:

Banks are always owed an amount of money (capital + interest) THAT IS GREATER THAN THE ACTUAL AMOUNT OF MONEY THAT EXISTS.

The only way to deal with this, is for the system to continually issue ever more interest bearing loans so that the liquidity is in the market to enable current loans and interest to be paid.

Think of it as a feedback loop in an audio circuit. What we have just had is a loud BANG as the circuit couldn’t hold the feedback anymore.

EXAMPLE OF HOW HONEST INTEREST WOULD WORK

When a man is loaned £1000 at 10%, the bank creates both the £1000 and the £100 interest ie £1100 total. It pays itself £100, giving the £1000 to the borrower. The bank will in due course spend that £100 into the economy meaning that the interest amount exists for the borrower to obtain it. The system does not have to keep generating new loans to generate the £100. The system is in balance. The banks are now owed an amount equal to or less than the total amount of money in the system.

So no feedback. No pointless loans. No aberrations and complications in the system.

The type of money we use, interest bearing credit, is designed to transfer all wealth into ever fewer hands. Until we change it, we change nothing. No Govt measure will have the slightest effect unless this systemic design fault is rectified.

Deuteronomy 23:19 Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury.

Leviticus 25:36-37 Take thou no usury of him, or increase; but fear thy God; that thy brother may live with thee. Thou shalt not give him thy money upon usury, nor lend him thy victuals for increase.

When the Babylonian civilization collapsed, three percent of the people owned all the wealth. When old Persia went down to destruction two percent of the people owned all the wealth. When ancient Greece went down to ruin one-half of one percent of the people owned all the wealth. When the Roman empire fell by the wayside, two thousand people owned the wealth of the civilized world…It is said at this time less than two percent (2%) of the people control ninety percent of the wealth of America. — Lincoln Money Martyred

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