Fixing money

Yesterday, my brotha’ from anotha’ planet BitBurn posted a link to “Money as Debt“, an informational film on the origins of fractional reserve banking.  I had watched that video a while ago, and while I knew instinctively that the banking system was a fraud, that film fleshed out my suspicions and probably introduced me to the hobby of conspiracy theories.  If you haven’t seen it, I highly recommend it and the content is quite accessible to just about anyone with a functioning brain.

I watched it again last night, and it stirred up the same old questions in my head: If the money system is so fundamentally broken, how do we go about fixing it ?  The heart of the problem with modern banking consists of two “leaps of faith”: fractional reserve, which is the practice of lending out much more money than is actually in the vault, and interest paid on loans. 

One for you, nine for me

If I have ten dollars, there is no way for me to lend you $90, I just don’t have it to lend out, but that’s what banks do and the government has given them that magic ability.  Banks are legally entrusted to conjure money out of thin air.  If that doesn’t sound alarm bells in your head, I kindly invite you to jump off a bridge.

The less obvious issue is interest.  If I loan out $100 with 10% interest, you have to repay me $110 to satisfy the terms of our agreement.  Where does that extra $10 come from ?  Did you work 10% more to earn it ?  Did you sell 10% more stuff ?  It doesn’t matter how you got the extra $10, what matters is the person who gave you that $10, and the person who gave them $10, and so on…  With that simple interest charge, we’ve created an endless ripple in the money supply – or as I like saying, a “financial tear in the space-time continuum”.  To get $100 now, you have to pay $110 later, right ?  As the lender, I didn’t do any real work to create that $10, we just made it up in our heads.  We created a debt for which there is no real collateral; money for nothing!  A debt that can never be truly repaid, because there is no valuable asset to balance it.  This is how inflation creeps in.

Happiness in Slavery

From a holistic perspective, interest and fractional reserve are the same damned thing: lending money that isn’t there, and collecting more money than you had to lend in the first place; it’s making money off of money.  Banks are in the business of mass-producing these empty debts, billions every day, and we consumers encourage them to do it.

So how do we wrestle the power away from these professional, government-endorsed scam artists ?  How can we replace this broken, profiteering system with something equitable, sustainable and democratic ?  That’s the golden question.  Every penny borrowed from the banks is an instrument of our own financial slavery, and they have grown so immensely powerful they dominate our governments and exert massive influence over our daily lives.  Why do you think taxation is so pervasive ?  We pay taxes on taxes!  The government takes roughly half of our income, and shoves it directly into the coffers of the Rockefeller and JP Morgan dynasties.  They can only do this because we are so deeply in debt.  They own us!  Nothing short of a mass revolt will change that.  Every house sold, every car driven off the dealership, it all feeds into their power.


What if, starting on July 1st, everyone stopped paying interest ?  I’m serious!  If you borrowed $10,000 from the bank, give them back $10,000 and not a penny more.  If everyone did this, the banks would lose their power over us.  What are they going to do, sue us all ?  Have us thrown in jail ?  No, that’s been ruled illegal and unconstitutional in all countries except Greece, China and the UAE.  So then what ?  The only power banks wield is the power we give them.  Much like governments, they are supposed to work for us, not the other way around.

Just think of all the cascading effects that would result from the destruction of for-profit banking: crime rates would drop significantly, freedoms would be increased, stress levels would drop and thus productivity would increase, and maybe – just maybe – the typical work week could drop to 30 hours instead of 40, because we currently pay 30% interest on our national debt.  There are approximately 33 million people living in Canada today.

How many people does it take to make it a difference ?

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