The Shocking Truth -- The Financial Industry is Debt & Taxes Because 97% of the money in America is created by banks, someone must pay interest on nearly every dollar in the circulation. This interest redistributes money from the bottom 90% of the population to the very top 10%. The bottom 90% of the US pays more interest to banks that they ever receive from them, which results in a redistribution of income from the bottom 90% of the population to the top 10%. Collectively we pay 500 Million Dollars every day in interest on personal loans alone , not including mortgages, and a total of 2 trillion Dollars a year in interest on all our debts. The entire money supply is effectively ‘on loan’ from the banks. This means that interest must be paid on most of the money in the economy. This interest transfers income and wealth from the bottom 90% of the population to the very top 10%. By allowing our money to be created by banks as debt, we have created a system that guarantees that inequality will get worse. Money created by banks pushes up house prices. But it’s the wealthiest who benefit most from these rising prices. For those on lower incomes, or younger people who haven’t bought their first house, rising house prices push up the cost of living, leaving them with less disposable income and a lower standard of living. So rising house prices, fueled by money created by banks, makes the gap between the richest and the rest of us even bigger. A similar thing happens in the stock market. Money created by banks can fuel stock market bubbles, but because the wealthiest 5% of households own 40% of the assets in the financial markets, this benefits the very richest, and has limited benefit for everybody else. The gap gets even bigger. It is a transfer of money from the real economy to the banks Businesses are also in a similar situation. The 'real' (non-financial), productive economy needs money to function, but because all money is created as debt, that sector also has to pay interest to the banks in order to function. This means that the real-economy businesses - shops, offices, factories etc -- end up subsidizing the banking sector. The instability that the system causes means that temporary and low-paid jobs are insecure . When banks cause a financial crisis it leads to unemployment. It tends to be low-paid and temporary contract workers who are the first to get made redundant first, so that instability in the economy has a bigger effect on those on low incomes with insecure jobs. And when house prices are pushed up by banks creating money, those on low incomes suffer the most. People on low incomes often can't get a mortgage big enough to buy a house, so they don't benefit from the rise in house prices. Meanwhile, those who can get access to mortgages can buy multiple houses for buy-to-let and benefit from artificial inflation in house prices. Younger people also lose out, as the cost of buying their first house swallows an ever larger amount of their income, while older and retired people who own houses benefit. This all increases inequality across different income groups and between the young and old. Centrally issued money optimizes inequality, monopoly, cronyism, stagnation and systemic instability. Everyone who wants to reduce wealth and income inequality with more regulations and taxes is missing the key dynamic: central banks' monopoly on creating and issuing money widens wealth inequality, as those with access to newly issued money can always outbid the rest of us to buy the engines of wealth creation. History informs us that rising wealth and income inequality generate social disorder. If We Don't Change The Way Money Is Created, Social Disorder Is Inevitable
The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more
No comments:
Post a Comment