A short video about how interest-bearing debt creates an environment of artificial scarcity. Support me on Patreon: www.patreon.com/jimi Make a one-time donation: paypal.me/JimiSol
This is what we need as human, not some fked up pro words and sentences that confuse people, just simply pictures and how things related to each other, then the complicated stuffs can no longer be diffcult when you fully understand the whole big pictures. Thank you so much.
People often ask, “So, how has this interest-based debt-money system been able to continue for such a long time?” The answer is, “by the continual expansion of the aggregate amounts of debt in BOTH the private sector and the public sector.” When private borrows are no long able to take on additional debt, the government steps in as the “borrower of last resort” to keep the money supply pumped up sufficiently to prevent a major depression. That’s why we’ve seen the continuous expansion of debts of national governments, debts that are lately skyrocketing. The interest must be paid either by inflating the money supply with pseudo-money that is improperly issued, or by making credit scarce and expensive allowing the banks to bankrupt borrowers and take their property, causing small businesses to close, workers to lose their jobs and income, and a waste of resources.
Wrong ! The error from the start in that system is it assumes perpetual growth possible or ethically desirable ( It is not). Planet earth is a finite system, perpetual growth expectations leads to unsustainable economies an natural ecosystem destruction. The richest industries/oligarchs are tapping resources faster that then can be renewed. Some take years to renew (ocean fishes) , others centuries (forests) and yet others take million years (fossil fuel). When an economic system does not work for the world and its people (such as the one USa is running), hegemony and the power in the hand of the few can blind the analysis. The following are a big clue that something is wrong : 1) If other countries were to do the same as the USa, declare their money a world currency reserve and print as much as they wanted to "finance" their debt and keep their bankers rich from usury lending they'd be running the same ponzi scheme / fraud as the US. But they can't because the USa model is unhealthy, it is stealing value from the world thereby getting other countries to pay for its debts ! 2) Each cycle of USa financial boom and bust makes bankers richer and common people poorer widening the wealth gap and making the problem worse. But there's no other solution right ? False ! there is. In the late 19th century usury lending was banned. That did not go far enough, interest lending at any rate should also and must be banned. Nobody should be a parasite making money from "having" money already especially like in the case of bankers that got that money free from the Fed which they (by no coincidence) are the private majority share holders of ! This is more than conflict of interest, it is plain fraud and thuggish thievery under the false appearance of legitimate government dependent institution (USa govt has no power over the FED except replacing its president). But they aren't stealing anything right since they are the source of money ? False ! money is nothing, it's paper, what matters is real value such as work, services, goods, land, resources. Not banana republic Fed fiat dollar money. Printing money dilutes and therefore steals real value. Ok, then ban interest lending but isn't that going to eliminate cash liquidity in the economy, freezing it in place ? Yes if you don't do anything else. The solution is to completely change the rules of how new money bills are created. It must be de-centralized and not favor a small group of colluding idle financial self serving parasites (and those they need to maintain their power grab like the government itself). Say entity A has a product or service to offer and entity B needs it. In the current system B would need to borrow money from a bank to pay A. Instead, money should be created on the spot and given to B which is now in debt to the system but without any private banks earning interest. For this system to work B must be held liable for its debt. Currently banks would take that risk of lending to B in return for interest but that system is unfair because banks get their money free (or at extremely low interest rate from the FED). Furthermore B must be somehow held accountable for debt with a time cost for paying it back earlier rather than later. Wait isn't that what interest on debt is ? Yes, but the ethics and health of the whole system depends on who profits from that debt. It must NOT be private interests colluding with money creation which is the current system. It must be the whole population. Therefore the central bank must be an integral part of government and bankers must be public employees paid a fixed salary and not a commission or interest on transaction. No, this is not a socialist or communist system. The real problem is that loan acceptance by the state central bank to an entity B must not benefit private interests. Once private interests get involved they mess up the system and allow for money to make money of itself generating wealth gaps and bubbles/bust and economic cycles. Wait, wouldn't that fail since someone rich could decide to lend money to their friend's industry that the state would refuse to because of the risk being judged too high ? Shouldn't there be a market for financing with some banks being more aggressive lending at high risk for higher interest rewards ? That should be regulated. Basically the banking industry must be heavily regulated. But that is not all, Some loan should be refused not on the basis that the loaner may not be able to make enough money to pay back, but because his project may be unethical and going against a sustainable, healthy ecosystem and world. Is it even possible to implement such a system ? no, but going in that direction is a start certainly dismantling the current parasitic banking system causing the boom/bust cycle is a no brainer.
Hey Jimi, nice video. You describe what is called "The compound interest paradox". It is easy to get mistaken, but this paradox does not really exist. I have created a video, many years ago, showing why there is no paradox. Search UA-cam for: "The compound interest paradox mistake"
AlQuran Al-Baqarah 2:275 (U.M.) ٱلَّذِينَ يَأْكُلُونَ ٱلرِّبَوٰا۟ لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ ٱلَّذِى يَتَخَبَّطُهُ ٱلشَّيْطَٰنُ مِنَ ٱلْمَسِّۚ ذَٰلِكَ بِأَنَّهُمْ قَالُوٓا۟ إِنَّمَا ٱلْبَيْعُ مِثْلُ ٱلرِّبَوٰا۟ۗ وَأَحَلَّ ٱللَّهُ ٱلْبَيْعَ وَحَرَّمَ ٱلرِّبَوٰا۟ۚ فَمَن جَآءَهُۥ مَوْعِظَةٌ مِّن رَّبِّهِۦ فَٱنتَهَىٰ فَلَهُۥ مَا سَلَفَ وَأَمْرُهُۥٓ إِلَى ٱللَّهِۖ وَمَنْ عَادَ فَأُو۟لَٰٓئِكَ أَصْحَٰبُ ٱلنَّارِۖ هُمْ فِيهَا خَٰلِدُونَ Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, "Trade is [just] like interest." But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns [to dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein.
Money itself is an illusion in banks. Earned by Interest is grown, What's paid is just very few. Let's say 1000 workers, & Let's say they get 10$ And society is millions, If to give 10$ to each And to take +1$ back, Society gets 10'000'000$ Workers only get 10'000$ (And tho let's say 20'000$ With the social payment.) But they all need to return 11'000'000, they only have 10'010'000$ all collectively. So the bank is stealing 1'000'000$ anyway. By Loosing only 10'000$ to the workers. The Bank profit/robbery being 990000$. That's just stealing, those bankers are useless to the society and they must be imprisoned those who do interest.
Man I wish I found this channel sooner. Thank you for your great videos.
This is what we need as human, not some fked up pro words and sentences that confuse people, just simply pictures and how things related to each other, then the complicated stuffs can no longer be diffcult when you fully understand the whole big pictures. Thank you so much.
People often ask, “So, how has this interest-based debt-money system been able to continue for such a long time?” The answer is, “by the continual expansion of the aggregate amounts of debt in BOTH the private sector and the public sector.” When private borrows are no long able to take on additional debt, the government steps in as the “borrower of last resort” to keep the money supply pumped up sufficiently to prevent a major depression. That’s why we’ve seen the continuous expansion of debts of national governments, debts that are lately skyrocketing. The interest must be paid either by inflating the money supply with pseudo-money that is improperly issued, or by making credit scarce and expensive allowing the banks to bankrupt borrowers and take their property, causing small businesses to close, workers to lose their jobs and income, and a waste of resources.
Scarcity is what drives our economy.
Wrong ! The error from the start in that system is it assumes perpetual growth possible or ethically desirable ( It is not). Planet earth is a finite system, perpetual growth expectations leads to unsustainable economies an natural ecosystem destruction. The richest industries/oligarchs are tapping resources faster that then can be renewed. Some take years to renew (ocean fishes) , others centuries (forests) and yet others take million years (fossil fuel). When an economic system does not work for the world and its people (such as the one USa is running), hegemony and the power in the hand of the few can blind the analysis. The following are a big clue that something is wrong : 1) If other countries were to do the same as the USa, declare their money a world currency reserve and print as much as they wanted to "finance" their debt and keep their bankers rich from usury lending they'd be running the same ponzi scheme / fraud as the US. But they can't because the USa model is unhealthy, it is stealing value from the world thereby getting other countries to pay for its debts ! 2) Each cycle of USa financial boom and bust makes bankers richer and common people poorer widening the wealth gap and making the problem worse.
But there's no other solution right ? False ! there is. In the late 19th century usury lending was banned. That did not go far enough, interest lending at any rate should also and must be banned. Nobody should be a parasite making money from "having" money already especially like in the case of bankers that got that money free from the Fed which they (by no coincidence) are the private majority share holders of ! This is more than conflict of interest, it is plain fraud and thuggish thievery under the false appearance of legitimate government dependent institution (USa govt has no power over the FED except replacing its president). But they aren't stealing anything right since they are the source of money ? False ! money is nothing, it's paper, what matters is real value such as work, services, goods, land, resources. Not banana republic Fed fiat dollar money. Printing money dilutes and therefore steals real value. Ok, then ban interest lending but isn't that going to eliminate cash liquidity in the economy, freezing it in place ? Yes if you don't do anything else. The solution is to completely change the rules of how new money bills are created. It must be de-centralized and not favor a small group of colluding idle financial self serving parasites (and those they need to maintain their power grab like the government itself). Say entity A has a product or service to offer and entity B needs it. In the current system B would need to borrow money from a bank to pay A. Instead, money should be created on the spot and given to B which is now in debt to the system but without any private banks earning interest. For this system to work B must be held liable for its debt. Currently banks would take that risk of lending to B in return for interest but that system is unfair because banks get their money free (or at extremely low interest rate from the FED). Furthermore B must be somehow held accountable for debt with a time cost for paying it back earlier rather than later. Wait isn't that what interest on debt is ? Yes, but the ethics and health of the whole system depends on who profits from that debt. It must NOT be private interests colluding with money creation which is the current system. It must be the whole population. Therefore the central bank must be an integral part of government and bankers must be public employees paid a fixed salary and not a commission or interest on transaction. No, this is not a socialist or communist system. The real problem is that loan acceptance by the state central bank to an entity B must not benefit private interests. Once private interests get involved they mess up the system and allow for money to make money of itself generating wealth gaps and bubbles/bust and economic cycles. Wait, wouldn't that fail since someone rich could decide to lend money to their friend's industry that the state would refuse to because of the risk being judged too high ? Shouldn't there be a market for financing with some banks being more aggressive lending at high risk for higher interest rewards ? That should be regulated. Basically the banking industry must be heavily regulated.
But that is not all, Some loan should be refused not on the basis that the loaner may not be able to make enough money to pay back, but because his project may be unethical and going against a sustainable, healthy ecosystem and world. Is it even possible to implement such a system ? no, but going in that direction is a start certainly dismantling the current parasitic banking system causing the boom/bust cycle is a no brainer.
So is the solution that money is leant without interest? What would our economy and planet look like if this were the case?
this why i wonder where the extra stuff to pay for interest obligations come from.
Hey Jimi, nice video.
You describe what is called "The compound interest paradox".
It is easy to get mistaken, but this paradox does not really exist.
I have created a video, many years ago, showing why there is no paradox.
Search UA-cam for: "The compound interest paradox mistake"
There is no paradox because banks aren't the only way to make money.
you got it. This is the way it is. It will grow forver and die. Ending in war or dystopian-technicrat-communism.
In the words of Rick Sanchez, You see, they work for each other.
AlQuran Al-Baqarah 2:275 (U.M.)
ٱلَّذِينَ يَأْكُلُونَ ٱلرِّبَوٰا۟ لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ ٱلَّذِى يَتَخَبَّطُهُ ٱلشَّيْطَٰنُ مِنَ ٱلْمَسِّۚ ذَٰلِكَ بِأَنَّهُمْ قَالُوٓا۟ إِنَّمَا ٱلْبَيْعُ مِثْلُ ٱلرِّبَوٰا۟ۗ وَأَحَلَّ ٱللَّهُ ٱلْبَيْعَ وَحَرَّمَ ٱلرِّبَوٰا۟ۚ فَمَن جَآءَهُۥ مَوْعِظَةٌ مِّن رَّبِّهِۦ فَٱنتَهَىٰ فَلَهُۥ مَا سَلَفَ وَأَمْرُهُۥٓ إِلَى ٱللَّهِۖ وَمَنْ عَادَ فَأُو۟لَٰٓئِكَ أَصْحَٰبُ ٱلنَّارِۖ هُمْ فِيهَا خَٰلِدُونَ
Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, "Trade is [just] like interest." But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns [to dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein.
Word "Allah" means "The God" in Arabic.
Sorry, but you made it to easy. Make a more complex one without paying back, as this usually never happens.
Except that bank is not isolated. Bank pays workers, pays owners, and so on, so money return to the system
Money itself is an illusion in banks.
Earned by Interest is grown,
What's paid is just very few.
Let's say 1000 workers,
& Let's say they get 10$
And society is millions,
If to give 10$ to each
And to take +1$ back,
Society gets 10'000'000$
Workers only get 10'000$
(And tho let's say 20'000$
With the social payment.)
But they all need to return
11'000'000, they only have
10'010'000$ all collectively.
So the bank is stealing 1'000'000$ anyway.
By Loosing only 10'000$ to the workers.
The Bank profit/robbery being 990000$.
That's just stealing, those bankers are useless to the society and they must be imprisoned those who do interest.