Even Steven (Paul Hein)

Paul Hein on the abomination of modern money:

As the economy predictably crumbles, bankruptcies and business closings will increase, and businesses and individuals will find themselves in financial straits, with little hope of economic salvation. Many families are in danger of losing their homes, and there seems little, short of a miracle, that can be done about it.

It seems to me that this isn’t necessary, presuming logic and truth play any role in our financial system--which may be debatable.

Why do we read daily of businesses failing, or on the brink of failure? Why do we see ad after ad on TV for firms offering financial assistance and guidance for individuals faced with economic disaster? Because people and companies are neck-high in debt, which they can no longer expect to repay. And to whom are they indebted? Generally, to banks, but ultimately, all debt is to banks, since banks are the sole source of our “money,” which is created for borrowers with the stroke of a pen, and requires the borrower to repay more than was borrowed. Since banks are the only source of money, the situation is analogous to returning to the only well in town more water than was taken from it, year after year. That’s obviously impossible in the case of a well, but it works--at least for a while--with banking, because money, unlike water, is intangible, and banks can create it in unlimited amounts, to enable borrowers to return more than they borrowed, with the money loaned to pay interest provided--at interest! You can see that the situation, once embarked upon, is bound to end in catastrophe.

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