ThE PROBLEM

With Interest

Helping people understand banking and money

THE MESSAGE

If the financial system was fair, your life would be completely different. At the moment, the fruit of most peoples’ efforts largely goes to fill the purses of bankers and multi-national corporations, and to the government tax office. How big is “largely” you ask? The answer, probably, is in excess of half.

The mechanisms by which powerful institutions are sapping your wealth are not hard to understand. If you devote one hour to The Basics you will get the gist of things and be able to take some protective action in your life. If you want to go further, invest three hours reading The Details. And if you want to see who else is speaking on these matters, go to Others for a curated selection of useful reading.

Once we as a society know what the problem is, what it really is, not what politicians or racists or fraudsters in suits want us to think it is, then we can start to change things. We either win this battle, or we and our societies all die slowly.

THE BASICS

1

WHAT IS Money creation?

You and I would go to prison for manufacturing money out of nothing but banks are given the full protection of the law in doing exactly that. Here’s a brief history of how this system developed over several centuries

2

WHAT IS THE PROBLEM WITH INTEREST?

Shows how the charging of interest on debt drives wealth inequality, environmental destruction, monopolisation of economic activity, and forces society into perpetual economic growth

3

HOW IS POWER BEING USED TO PREVENT CHANGE?

Learn how vested interests use corruption of the political process, sharp business practice, colonialism and violence against those who try to resist them

THE DETAILS

TheorETICAL Weaknesses

Go here to see a critical examination of the theoretical ideas which are typically used to justify the charging of interest, and a discussion of how those views developed through history. Some practical examples are given of the negative impact of interest-based finance on the society and environment (continue >>).

Money Creation

In this section there are two essays. The first gives the history and development of the money creation process in Europe from the 17th Century onwards. The second discusses the political context of money creation with particular reference to the creation of the Federal Reserve in America (coming soon).

Alternatives

A detailed proposal for transitioning away from a fractional reserve banking system based upon fiat money and interest-based finance, to a 100% reserve system of banking based upon commodity money and equity-based finance. A description is given of a new institutional framework to support the transition (coming soon).

OTHER WRITERS

A curated group of writers arguing for financial justice

BY THE AUTHOR

Buy The Problem With Interest here

Buy Islamic Banking and Finance here

See the author’s archive here