Nil Desperandum by Gray
We are being kept alive by a system that's killing us. If this situation is acceptable; fine, but many others wish to know why this is happening and how to deal with it. The following is a generalised explanation of the problem and some suggestions on a resolution.
The term 'debt-system' has a less than propitious ring to it so we've called it Capitalism and in some nations it's Communism; however, they are financially synonymous; their method of creating money is the same.
The true significance of the debt-system is that we as a global population are left with a problem that results in a whole network of other problems adversely affecting the culture of our entire world civilisation.
The first ever asset offered to the Bank of England, secured the first monetary liability loan over 320 years ago. The asset's value was converted to money-as-debt and lent to the asset's owner. The borrower immediately became liable not only for the loan's return but for extra funds to offset associated costs and interest. This required that profit had to be made putting the borrower in the predicament of being liable to lose the asset to the bank. Since all our money is converted into existence from asset value, all profit that we make is some other borrower's liability.
That very first borrower under this system, forged the very first link of an unstoppable chain-reaction of debt obligation into perpetuity and the asset's value then became less than the sum to be repaid. This downward spiral was continual, resulting in the enormous scarcity of financial access to goods and services felt by the majority of our global population.
The extension of this downward spiral and resulting chain-reaction is not just linear but an outspread multi-dimensional network where every link is shackled to debt. The linear part is asset-value, loan, profit and repayment rules that require a further magnitude that needs growth and expansion in vain attempts to bridge the ever expanding scarcity of finance requiring an ever expanding economy.
A disastrous debt-cycle is caused by repayment moneys being continually removed from circulation plus the devaluing of asset and the money unit. Because profit is unable to match the sum of the initial loan there can never be enough money in the domestic market-place to purchase local produce, hence the dire struggle to gain and then to protect export markets for the products of our local industry.
Our present system of bringing money into existence causes social and environmental problems. Our solution is its replacement with a socially and environmentally friendly system of financial credit instead of debt. A method of having government pay for all its expenditure by creating money instead of bonds and treasury notes which it offers to the reserve bank as security against borrowing money as debt would be a good start. Why bring money into existence as debt unless we all want to ride the debt-cycle into oblivion.