Basic Income Club

The fundamental error at the present monetary system

At the present monetary system, money is created only by creation of a debt. For the debt interests have to be paid (interest debt money).
When money is just created as interest debt money that has the effect of the monopoly game! At the end, a small group will own everything (the financial elite).

Why this is so:
Company (person, State) A gets a loan of 100.- at 5% interest
Company B gets a loan of 100.- at 5% interest
Company C gets a loan of 100.- at 5% interest
But the money for the interests doesn't exist, the interests just can be paid by getting a new loan or money comes from other debtors who need to get a loan or go broke.
After a year company A has 105.-, company B 105.- and company C 90.-
The companies A and B can pay their interests, company C goes bankrupt because it cannot pay the interests anymore (the bank becomes owner of the company).
Gradually all indebted companies will go bankrupt and will be taken over by the banks or closed.
The big banks take over the small banks, so that at the end, a few major banks will own everything (the big banks of the financial elite).

The economy has a linear growth by a few percent per year if at all.
But the debt must grow exponentially (the effect of compound interest) so that the system does not collapse.
That means at the beginning the economic growth can keep up with the growth of the debts and everything seems to be ok.
But then the point is reached where it cannot keep up anymore, more and more debt needs to be created. But sooner or later the limit of the creditworthiness is reached and all indebted companies (States, persons) go broke!

What means linear and exponential:
linear = blue line, exponentially = red line;

The company
• The company shall not have debts.
• The company can also be owned by its entrepreneurs, management and employees and not by investors.
It is not needed for the company that it has to pay dividends forever just because investors have given capital once.

The State
That a government is paying interests is also a fundamental error. No issue of government bonds anymore where interests have to be paid and no debt anymore at private banks;
Existing debts can be reduced by a debt cut, restructured to interest-free debt or repaid by capital tax proceeds.
Governments should have balanced budgets.

All political parties and Governments which don't want to fix the fundamental error at the monetary system or don't even know that there is an error help the financial elite at the systematic total enslavement of mankind.