Why the Private Global Banking Edifice Is Not Sustainable Derivatives, the rocket science of finance, are so complex that few people understand them. But the fundamental flaw in the banking scheme is something much simpler and more comprehensible: the unsustainable nature of a monetary system in which most money is created as a debt to private banks. Paying a perpetually compounding rent to the banking sector may work mathematically, but it is not sustainable in the real world. Workers, resources and customers all reach their natural limits; but interest continues to grow, in an imaginary world of numbers divorced from the realities of the producing economy. Consider these arresting facts: Roughly one-third of everything we buy goes to interest. 8 The interest goes to private banks which create money as a debt— a debt for which more is always owed back than was advanced in the original loan. At the height of the financial bubble, over 40 percent of U.S. corporate profits went to the financial industry— up from 7 percent in 1980.9 Between $ 21 trillion and $ 32 trillion are now hidden in offshore tax havens – between one-third and one-half of the global GDP – and a majority of these dollars emanate from Wall Street. 10 Brown, Ellen (2013-11-07). The Public Bank Solution: From Austerity to Prosperity (Kindle Locations 242-252). Third Millennium Press. Kindle Edition.
Posted on: Sun, 07 Sep 2014 19:56:54 +0000
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