Interest Is a Deception

The previous post showed how inflation is based on a system of supremacy, where an elite group of people are allowed significantly greater rights than the majority, in the form of money earned.  As long as there is inflation, we can be certain, the spirit of supremacy is alive and thriving.

This post dives a bit deeper, into how money is created and destroyed over time.  

People, individuals and groups, in contract with banks, create money, whenever a loan of some kind is issued.

People, individuals and groups, in contract with banks, destroy money, whenever a loan of some kind is paid back.  

There are zero reserves in the money system, because all money comes from loans.  All loans minus all deposits equals zero.

Bankers earn salaries by charging interest on a portion of the loans repaid.

The interesting thing about that, is the money to pay the loans plus interest was not created.  Only the money to pay the loans was created.

As a result, some people will always fail to pay their loans plus interest.

When people allow bankers to take their property, as a result of failing to pay their loans, they have been deceived.

This post attempts to illustrate a simplified banking system, without interest, in the following points.

Start at $0 in 3 family economy.

Banker, builder, and farmer operate in 30 year business cycles.

Builder makes 3 homes in 30 years.

Then banker loans $1 million to farmer immediately.  Banker loans $1 million to banker immediately.

Then there’s $2 million in circulation.

Farmer pays $1 million to builder immediately.  Banker pays $1 million to builder immediately.

Builder pays $1 million to farmer in 30 years.  Builder pays $1 million to banker in 30 years.

Farmer pays $1 million to banker in 30 years.  Banker pays $1 million to banker in 30 years.

There is once again $0.

Then there has become a 6 family economy.  The process repeats, with a few changes.

Builders maintain 3 houses, and build 3 more in 30 years.

Bankers loan $2 million to farmers immediately.  Bankers loan $2 million to bankers immediately.

Then there is $4 million in circulation.

Farmers pay $2 million to builders immediately.  Bankers pay $2 million to builders immediately.

Builders pay $2 million to farmers in 30 years.  Builders pay $2 million to bankers in 30 years.

Farmers pay $2 million to bankers in 30 years.  Bankers pay $2 million to bankers in 30 years.

There is once again $0.

The process repeats, with slight changes each time to accommodate growth through generations, until the families reach optimal size and perfection.  

In this simplification:

Builders start the economy, do not get loans but pay bankers for their service, and it takes them 30 years to complete each generation of homes.

Bankers do not charge interest, and loan money to themselves.  

I often feel like the magic feather gag, from the 1941 cartoon film Dumbo, is an appropriate allegory for money.

Dumbo didn’t really need the magic feather to fly, it just gave him confidence.

Does Man need the God of money to control the organization of industry?  Or can Man rise to be the master of his and her domains?

With such short life spans, it seems Man will still need money for the time being, until they can become master of their domains.  This is why I laid out the above simplification, to try to help in the interim, with a more just accounting.