More on the Compound Interest Paradox, and why Corporations are Obsessed About Growth

I found a great article:

"Is This the Beginning of a Worldwide Depression?"
by Paul Rye,

http://www.opednews.com/maxwrite/diarypage.php?did=5751

The coming economic crisis is "due to the nature of our monetary and banking system and Government’s relation with it", and is completely foreseeable.

I wrote that because of the Compound Interest Paradox, the money supply is gradually being replaced by debt - IOW the money in circulation is owed to the banks. He says that only 3% is NOT owed. 97% of the money in circulation is OWED TO BANKS. Think about it. How many middle class people do you know have more assets than debt?

"The crux of the problem is that mathematically, credit-based money is lent into existence at interest by a fractional reserve banking system that does not create the money needed to pay the interest. All debts cannot be repaid, because not enough money is lent into existence to repay both the principal and interest. Therefore, the interest must come from the existing pool of money. No matter what the quality of the participants, there must be losers."

He touches on something I'd wanted to blog about - how the Paradox drives corporations to be obsessed about growth.

"The pressure on the losers to pay their debts makes the economy unnaturally competitive and growth-oriented, leading to excessive exploitation of natural and human resources. And, the only way to avoid an excessive number of losers is to keep increasing the total amount of debt, continually pumping more money (credit) into the system. Therefore, monetary inflation is necessary and endless.

If you do not want to be a debt slave for the rest of your life, if you do not want to see generations of people in the U.S. and the third world be debt slaves for the rest of their lives, if you do not want to see the human and natural resources of this planet squandered simply to pay interest on loans that are not even necessary to create a workable monetary system, then you need to learn about how the existing system works, who perpetuates it, and how the whole system could be re-thought and re-designed.

The article is excellent and well worth reading.

I think the word is spreading on the lies of the monetary system.