In the present financial system, you have to have money to participate in the economy. However, when the system of money production is scrutinised and seen clearly an odd paradox is revealed. While the system demands that we have money, it seems to be designed to remove money from our pockets and frustrate our efforts to fulfill that requirement and live our lives with financial dignity. Let's have a close look.
We know that the vast majority of our nation's money is produced by the private banks as interest-bearing debt-money when they make loans to their unsuspecting clients. On the day of the loan the debt owed to the banks is equal to the amount borrowed. However, the banks have added an extra debt, interest, that increases the amount owed on a daily basis.
Here it is important to understand that the principal of the loan is also the money of the nation. This is the money that the system demands we must have to participate in the economy. Yet, it all must be repaid, so more borrowing must continually occur to ensure the nation has money to operate.
Incredibly, interest accounts for more debt piling up than there is money available to pay it. The nation's money consists of loan principal, but the private banking system demands principal plus interest. Therefore our money is continually being soaked up by the private banks, taking it out of circulation and keeping society in a constant state of financial frustration. There's no doubt that the financial system is imcompatible with financial dignity for all.
It need not be this way, things could be completely different. Tell everyone you know about Positive Money. Change money, change the world.