Basic Income Club

Debt money system for the benefit of the rich

Let us assume that there is a wealth tax that has to be paid from those who have no assets, and given to those who possess wealth. Crazy? We have been living with it! We call it money system. (Originally posted by Albrecht)
The present money system, the interest debt money system, has been created by the rich for the benefit of the rich only.
They don't care about the people they just care how they can exploit us as much as possible!
The real situation is even worse: If money is just created as debt it has the effect of the monopoly game, at the end a small group owns everything!

But this money system is bad for all:
When do we understand that 8 out of 10 people in their lives are paying more and more interest (through consumption, paying taxes and own debt) than they are ever able to earn. One out of ten goes out of this game +/- zero and only one or one out of ten belongs to the interest winners.
Since we are trying to compensate for this error in the money system with economic growth (a mad track) we are now destroying our environment. This makes the interest-taker also a loser, because what are exorbitant interest rates when we destroy our planet, among other things as an interest-induced consequence.

But we do not need this interest money, it is just there so that third parties earn from our work without doing anything.

Interest money system explained

Debt money for interest:
Debt money is created whenever a debt is created by the banks, for the debt interest is charged.
For all money existing there is also that high amount in debt existing.
If all debt would be repaid no money would exist anymore.
But there is one problem: the interest!
The total debt repayment and interest payment demand is higher then all the money existing.
So to pay the interest payment demand further debt needs to be created.
The economy is forced to grow at all cost causing disastrous damage to environment and resources of the earth.
This economy growth cannot continue forever because the earth is limited.

How the money is issued:
The banks create money by credit and debit to bank accounts, the double-entry bookkeeping makes that possible.
The electronic money now is about 97% of all the money.
The remaining few percent are banknotes and coins issued by central banks considered as the real money.
Even central banks are mostly private for-profit companies.
A money issueing organization must not be a private for-profit company for the benefit of a few company owners!

Why is the interest money system so bad:
• all the prices include interest of about 30% to 40% of the price!
• the money moves from almost all to the rich until collapse.
• the debt is growing faster and faster.
• enormous power of the super-rich who finally own almost all the money and almost everything else.
• because of to much money existing the financial economy gets apart from the real economy (financial casino).
• the system forces economy growth with disastrous damage to environment and resources of the earth.
• the system has to collapse by hyperinflation, in the past this happened every 50 to 80 years, the lower the interest rates the longer it takes. No or negative interest can postpone the collapse but not prevent because the debt mountain continues to grow.

Growth of debt and the wealth at an exponential rate
This means the growth is at the beginning slow, getting faster and faster, and it is very fast at the proposed end.
So the debt is growing faster and faster and so is the wealth of the super-rich.
Because of the electronic money now the figures can be very large, first time in history.

The Joseph's cent:
If Joseph would have put 1 cent (0.01) to a savings account with an interest rate of 5% p.a. at the birth of Jesus:
At the year 2011 there would be the following amount on the account:
40,895,962,098,293,600,000,000,000,000,000,000,000,000
1 Billion invested at 5% p.a. is after:
15 years: doubled
23 years: tribled
48 years: 10 times
62 years: the yearly interests exceed the Billion
95 years: 100 times
142 years: 1000 times
176 years: all the gold on earth
425 years: 1 Billion times (1,000,000,000,000,000,000)

Governmental debt
Governments choose a very expensive method of deficit financing influenced by the bankers lobby to force governments into more and more debts: Public bonds and loans from private banks.
At this financing method governments even have to pay interests for nothing.
The problem: When the Government pays real interests (interest rate above the inflation rate) it accelerates the money move from almost all to the rich!
So a Government MUST NOT pay real interest!
At many Governments new debt is just needed because of interest payments, caused by the wrong way of public financing.
The government cannot repay its debt with tax income from the people: The money would be taken out of the economy what would lead to a decline of the economy. So mostly the hidden tax is used: Inflation!

Other debt
The money move to the beneficiaries of interest payments, the rich, is also caused by the four times as high debt of economy and households.
Also high rents caused by real estate bubbles drain out the people until nothing is left anymore (rent is also mainly a form of interest).

Do we really have to drive a 4 billion-year-old eco-system within a few decades into hell just to create economic growth, just needed for paying off debts?
For money that was generated by the banks out of nowhere?
Products that early break down, so that more growth can be created, more can be consumed and more debt can be created?

Conclusion
The interest debt-money system is an illegal ponzi scheme and snowball system (all the time further debt needs to be created that the system can continue) for the benefit of a few elite super-rich on the cost of all other people.
The interest debt-money system is the biggest fraud in history.

The fundamental error at the present monetary system