Friday, 13 January 2012

Monetray system to understand the corruption

Know the Monetray system to understand the corruption.. Root cause lies in the monetary system
Must go through this..

Three basic things first..

1) Money does not created by the Government
2) Money creation power is privatized long back before the country got independence.
3) Money created By profit oriented private organisations called banks through loans.

It is the monetary system that is the root cause which prompts people to do corruption.

understand two things carefully.


1) Every currency note that comes into circulation only through loans.
2) We are taking money (principal) from the bank as loan and promising to pay back with extra interest (principal + interest).

When every currency note that comes in to circulation as debt(only Principal), where is the money in circulation to pay the extra interest? Because in practice banks never created interest money. It never existed physically. We only have the principal amount in circulation. We do not have any money available to pay the interest.

This is the root cause for all problems. If you understand this logic, it is very easy to understand the reason behind the sufferings of people.

In the current monetary system, at any given point of time, there is no money available in circulation to clear all the debts. So someone should be bankrupted unless he get some more loans from the banks to clear the previous debt. That means banks should create more money through loans in order to cover the interest so that people do not get bankrupt. It increases the money supply as well as debt in exponential manner.

The truth is the amount of debt a country had, that much money is in circulation for that country. When we clear all the debts including the government debts, we don’t have a single rupee in circulation. The Debt will increase exponentially as the money is created exponentially through Fractional Banking system

If we don't change the monetary system we talk about all these ill effects of monetary system even after 100 years.

No comments:

Post a Comment