The rich get progressively richer at the expense of the poor, not just because of "Wall Street greed," but because of the inexorable mathematics of our private banking system.
This hidden tribute to the banks will come as a surprise to most people, who think that if they pay their credit card bills on time and don't take out loans, they aren't paying interest. This, says Dr. Kennedy, is not true.
Tradesmen, suppliers, wholesalers and retailers all along the chain of production rely on credit to pay their bills. They must pay for labor and materials before they have a product to sell, and before the end-buyer pays for the product 90 days later. Each supplier in the chain adds interest to its production costs, which are passed on to the ultimate consumer.
[...]
In 2011, the US federal government paid $454 billion in interest on the federal debt - nearly one-third the total $1.1 trillion ($1,100 billion) paid in personal income taxes that year. If the government had been borrowing directly from the Federal Reserve - which has the power to create credit on its books and now rebates its profits directly to the government - personal income taxes could have been cut by a third.
Borrowing from its own central bank interest-free might allow a government to eliminate its national debt altogether. In Money and Sustainability: The Missing Link, Bernard Lietaer and Christian Asperger, et al., cite the example of France. The treasury borrowed interest-free from the nationalized Banque de France from 1946 to 1973. The law then changed to forbid this practice, requiring the treasury to borrow instead from the private sector. The authors include a chart showing what would have happened if the French government had continued to borrow interest-free, versus what did happen. Rather than dropping from 21 percent to 8.6 percent of GDP, the debt shot up from 21 percent to 78 percent of GDP.
[...]
Globally, 40 percent of banks are publicly owned, and they are concentrated in countries that also escaped the 2008 banking crisis. These are the BRIC countries - Brazil, Russia, India, and China - which are home to 40 percent of the global population. The BRICs grew economically by 92 percent in the last decade, while Western economies were floundering.
[...]
The only US state to own its own depository bank today is North Dakota. North Dakota is also the only state to have escaped the 2008 banking crisis, sporting a sizable budget surplus every year since then. It has the lowest unemployment rate in the country, the lowest foreclosure rate, and the lowest default rate on credit card debt.
Truthout
This hidden tribute to the banks will come as a surprise to most people, who think that if they pay their credit card bills on time and don't take out loans, they aren't paying interest. This, says Dr. Kennedy, is not true.
Tradesmen, suppliers, wholesalers and retailers all along the chain of production rely on credit to pay their bills. They must pay for labor and materials before they have a product to sell, and before the end-buyer pays for the product 90 days later. Each supplier in the chain adds interest to its production costs, which are passed on to the ultimate consumer.
[...]
In 2011, the US federal government paid $454 billion in interest on the federal debt - nearly one-third the total $1.1 trillion ($1,100 billion) paid in personal income taxes that year. If the government had been borrowing directly from the Federal Reserve - which has the power to create credit on its books and now rebates its profits directly to the government - personal income taxes could have been cut by a third.
Borrowing from its own central bank interest-free might allow a government to eliminate its national debt altogether. In Money and Sustainability: The Missing Link, Bernard Lietaer and Christian Asperger, et al., cite the example of France. The treasury borrowed interest-free from the nationalized Banque de France from 1946 to 1973. The law then changed to forbid this practice, requiring the treasury to borrow instead from the private sector. The authors include a chart showing what would have happened if the French government had continued to borrow interest-free, versus what did happen. Rather than dropping from 21 percent to 8.6 percent of GDP, the debt shot up from 21 percent to 78 percent of GDP.
[...]
Globally, 40 percent of banks are publicly owned, and they are concentrated in countries that also escaped the 2008 banking crisis. These are the BRIC countries - Brazil, Russia, India, and China - which are home to 40 percent of the global population. The BRICs grew economically by 92 percent in the last decade, while Western economies were floundering.
[...]
The only US state to own its own depository bank today is North Dakota. North Dakota is also the only state to have escaped the 2008 banking crisis, sporting a sizable budget surplus every year since then. It has the lowest unemployment rate in the country, the lowest foreclosure rate, and the lowest default rate on credit card debt.
Truthout
...but hey, do what you want...you will anyway.
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