David Hall, Ocean Shores
All money these days is loaned into existence. A simple equation ‘Loan made = Loan repaid’ is do-able. But interest is charged, making the equation ‘Loan made = Loan repaid + Interest’, which is not do-able.
The interest is never created; it has to be paid out of the loan. Thus the loan itself is not repayable. To keep the scam going, more loans are made so the interest can be paid. But the non-do-ability doesn’t go away. We, including governments and councils, just go deeper into debt.
Who gets the interest? The 0.1 per cent of super rich humans who own the banks and run governments and corporations at our expense.
In 1912, the original Australian Commonwealth Bank created genuine money, against bitter opposition, by charging only 0.5 per cent interest – the era of the Lucky Country. Thus Australians did not go further into debt to the Bank of England during WW1. And in peace time Australians benefited from, and were grateful to, this genuine money system.
You can read about Governor Dennison Miller and the colourful King O’Malley in The Story of the Commonwealth Bank by D.J. Amos or The Money Trick by Colin Barclay-Smith.
Politicians can understand this issue, as they did 100 years ago. It’s already been done, it can be done again.