Bankers Rule the World Because of Interest a stunning 35% - 40% of everything we buy goes to interest which goes to bankers, financiers, and bondholders, explaining how wealth is systematically transferred from Main Street to Wall Street... most people think they pay no interest if they pay credit card bills on time... everyone along the chain of production relies on credit to pay labor and materials, and adds the interest to the cost to the consumer... interest charges have been growing exponentially, ranging from 12% - 77%... in 2006 they composed 40% of US business profits, five times the 7% in 1980... we have exponential bank profit growth with income non growth... 1% of the population owned 42% of the wealth in 2010... the bottom 80% pay the interest charges to the top 10%... compound interest grows exponentially... credit card interest charges are compounded daily... merchants pay 2% to 3% for card use which they pass on to consumers... debit card transaction fees average 44¢ while the bank cost is 4¢... we need to take ownership of the banks away from the elite 1% and give it back to the state and the public... like infrastructure, banks should support the economy with interest fees limited to 2% and transaction fees limited to the actual bank cost... borrowing from their own publicly-owned banks, governments would pay no interest... compare that to the $454 billion in interest on the federal debt in 2011, 1/3 the personal income taxes that year... a government would be able to pay off its national debt... spendthrift government is not the answer to the national debt... compound interest explains it all... state and local governments would eliminate their interest and debt as well... California had a debt of $158 billion at the end of 2010... $70 billion, 44%, was interest... instead of slashing services, selling off public assets, and laying off employees, government could be adding services and repairing its decaying infrastructure... North Dakota owns its own depository bank, escaped the 2008 banking crisis, has a sizable budget surplus every year, has the lowest unemployment rate in the country, the lowest foreclosure rate, and the lowest default rate on credit card debt... 40% of banks globally are publicly owned and are in countries that escaped the 2008 banking crisis... the BRICS countries, Brazil, Russia, India, China and Saudia Arabia, home to 40% of the global population, and grew economically by 92% in the last decade... the Bank of North Dakota underwrites the bond issues of municipal governments, saving them Wall Street underwriter fees and the risk of interest rate swaps required as underwriter insurance. Philadelphia lost $500 million on interest swaps... what can be done about these lost revenues... do as Iceland did... default, form its own bank... public banking is an obvious solution... interest can be kept low... taxes can be cut... services can be increased... market stability can be created... banking and credit can become public utilities, feeding the economy rather than feeding off it... Ellen Brown, attorney and president of the Public Banking Institute, shows how a private cartel has usurped the power to create money and how the people can get it back. WebofDebt,EllenBrown, and PublicBankingInstitute.org.
Posted on: Sun, 23 Mar 2014 00:17:48 +0000
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