Dr Liz Elliott, Mullumbimby
The Sydney Morning Herald‘s headline yesterday was ‘Oz Banks make $71 million profit a day!’ This is profit taken from younger people’s efforts and redistributed to the rent seekers in the top 10 per cent of the population.
Private banks create credit out of thin air but not the interest monies, up to three times the original loaned amount.
Thus there is never enough money for productive people who must compete to play beggar-thy-neighbour and gouge-the-environment to reap back the interest bill.
This is the maths of private banking, it is thus inevitable that they end up with most of the nation’s wealth.
Moreover, private banks choose to fund speculators and housing bubbles rather than small business.
We need public credit creation, responsible to real production, and interest monies returned to the people as environment protection, health, schools, research and affordable housing.
It is eminently do-able. Otherwise Australia will join the sad conga line of collapsing countries ‘in debt’ to private banksters.