# The essence of the bank interest

Topic of interest on loans as a mechanism usurious colonization of the world, of great interest to our readers. Who controls the printing press, creating money out of thin air, in time, become the real property owner, the natural resources and ultimately the country's sovereignty.

The essence of the bank interest. Image: ungu.org / Citizens' Union of Ukraine

Designed to appeal to the example, how much time using credit-percent of public debt to the bank would be equal to gross domestic product (GDP). Or, in other words, how many years a banker, giving the public money at interest, will become the owner of all that society produces.

To simplify the calculation and understanding will take the following inputs and limitations:

• As a society we take 2 subjects who exchange goods they produced.
• Produced for the year goods completely consumed subjects for the same year.
• Quantity of goods produced and consumed the same from year to year.
• Banker, for exchange, gives each subject loan of 500 units, for example, hryvnia. Accordingly, the money supply in such a society will be: 500h2 = 1000 USD.
• At the end of each year, summarizing the relationship: Subjects body must pay the loan (of 500 UAH. Each) and% for the use of the amount of credit and debt.
• Debt to the bank collects a cumulative basis.
• Consider the results at an annual rate for the loan in the amount of 1%, 3% and 7%.

(Reference: 3.5-4% — the rate at which we receive loans from the IMF, 7.5% — NBU discount rate)

All of our data are presented in a simple table Excel:

Increase in debt producers bankers. Image: ungu.org / Citizens' Union of Ukraine

It is the duty of every subject the bank for the year is defined as: body +% credit on the loan — the amount of the loan subject + bank debt for the previous year.

Total debt to the bank for the year is the sum of debts of each subject for the year.

The table shows that the rate of the loan is equal to 1% per annum, to the community banker equal to the GDP, the 70-year activity of the company.

At a rate of 3% per year — a 24-year:

At a rate of 7% per annum — for the 11th year:

Ie through the appropriate number of years of producing nothing standing banker can buy or take over all debts that society will produce this year.

In life it is: money never have enough for the realization of all goods produced in the society. And the lack of money is growing from year to year. After a while, one of the subjects could not or sell their products, or pay the banker, ie bankrupt. With a large number of subjects of the bankruptcy of one or even several looks quite natural: well, worked badly and went bankrupt. Maybe so. But, with an interest-credit system, no matter how well the subjects worked, they will always be doomed! And all that they have created, becomes the property of the banker. That shows all the irregularity, the whole anti-humane of the system! It's like the old game, "Who faster sit on a chair." Remember? When playing the music of running around the chairs. A chair is always 1 less than the players. The music stops, and the players must have time to take the vacant chair. Who did not — out of the game! Only in life this is not as fun as the game!

As you can see from the table: increase the debt banker is really exponentially. Step progression (as in the case of exponentially more accurate to say "ratio of the progression") variable and decreases with the value of 2 + GS 100 to 1 GS + 100 (where n — the annual interest rate on the loan.) For example, for an annual rate on the loan at 7% ratio of the progression will vary with the number of 2.07 to 1.07, but never falls below the value of 1.07.

As we know from the course of the school mathematics, with exponentially increasing debt banker follows an exponential curve. Excel tools can show how this exponential looks graphically:

Increase in debt producers bankers. Image: ungu.org / Citizens' Union of Ukraine

Here is an excerpt from the book by Margaret Kennedy "Money without interest and inflation", which is characterized by an exponential growth in nature and economy:

"For the (exponential) growth curve … at first very small, and then, however, has been steadily increasing, and finally turns into an almost vertical quantitative growth. In the physical world, such growth usually occurs where there is illness or death. For example, the cancer develops in the scenario of exponential growth. First, growth is slow. From a single cell develop two, with 4, 8, 16, 32, 64, 128, 256, 512, etc., that is, the growth rate is constantly accelerating, and when the disease is finally revealed, it's already at a stage growth when retard its development is often not possible.

The exponential growth usually ends in death "guest" and the organism from which it depends. Therefore, such a variety of growth misunderstanding leads to confusion about the function of money, leading to serious consequences. By charging interest and compound interest financial condition doubles at regular intervals, ie, they have an exponential growth dynamics, which explains why, in the past at regular intervals to be a problem with the circulation of money, why they are there now.

In fact, the interest on the loans — is a cancer in our social structure. "

For those interested in alternatives percent-credit system of the economy, I can recommend the book Margaret Kennedy "Money without interest and inflation" and work Silvio Gesell "Natural Economic Order."

Analyzing our table, it can be noted that the duty of society to the bankers:

• Directly proportional to the interest rate;
• Directly proportional to the money supply, to borrow;
• does not depend on the number of subjects with the same money supply.

The main conclusion that can be drawn from the analysis of our table: if the economic relationships between people entering "His Majesty Percent", regardless of its size, even the most miserable, always come a time when taking on something with interest, will give the giver a percentage of all that. It is only a matter of time.

If we consider the situation from the point of view of bankers, the banker to lend profitably or at the highest possible percentage or a large amount. As large a percentage is not always advantageous to demand: it is desirable that the "victim" as much as possible not realize that she was in a web of debt. Therefore the banker is to spin a "client" on how to greater rigor amount. What happens in life.

The whole world should bankers. Image: ungu.org / Citizens' Union of Ukraine

And to the "client" there is no suggestion to refuse to pay debts, the 6th U.S. fleet ranged the oceans, and the cost of the army did not decline despite the trillions of public debts.

As for Ukraine, then, of course, credit and interest system itself is a pump that pumps the wealth gradually from the production in the banking sector. But in the most global level, this is happening to credit the government. When the name of the people and under the guarantee (in the form of higher utility costs, raising the retirement age, etc.) are taken loans worth tens of billions of dollars.

Way out of this situation is seen in 3 areas:

1. To change the law on the National Bank on the one that will allow for the control of society and social responsibility sovereign, ie regardless of outside influence, producing issue national currency (print or retire currency).

2. Society should have real control over the receipt and expenditure of the budget. Budget money — is money the entire society and every member of society has the right to know how and what to spend money overall.

3. Refuse to credit the interest of the economy. You can benefit from the experience of the banking system of Muslim countries, and it is better to introduce a system of "spoiling" of money on the theory of Gesell.

Alexander Medvinskii, Citizens' Union of Ukraine