Money and the story that never gets told26 Nov 2022 06:42
Five productive men and a banker are on an otherwise deserted island ....He has provided $1000 of mney at 8% ....
Oliver's (the Bnaker) money circulated on the island. Made simpler by money, trade doubled. Everyone is happy and the banker is greeted with respect and gratitude.
Nevertheless, Tom, the prospector, looks worried. His products are still underground. He has only a few dollars left. How can he reimburse the banker his soon to be expired loan?
After wrestling with his own problem, Tom decided to look at it from the standpoint of the whole community.
“Can the population of the island taken as a whole” he mused, “meet its obligations? Oliver issued a total of $1000. He's asking $1080 in return. But even if we were to bring him every dollar bill on the island, we would still be $80 short. Nobody issued the extra $80. We turn out products, not dollar bills. Oliver can therefore take over the entire island, since we, together as a group, cannot pay back both money and interests.
If those who can afford to pay back do so, without care for the others, some will fail right away and some will survive. But their turn will come and the banker will seize everything. Better to unite now and settle this matter as a group.
Tom had no problem convincing the others that they had been taken in by Oliver. A meeting with Oliver was decided upon.
10. The benevolent banker
Oliver guessed what was on their minds, but he put on his best front. Frank, impulsive as ever, stated their case:
"How can we bring back to you $1080 when there is only $1000 on the entire island?”
“That's because of the interest, my friends. Did your production not increase?"
“Yes, but the money hasn't. And it is money you're asking for, not our products. You are the only one who can make money. But you made only $1000, and yet you ask $1080. This is not possible!”
“Now listen, my friends. For the greater good of the community, bankers always adapt themselves to the conditions of the times. I will require that you pay only the interest, only $80. You will hold on to the capital.”
“Are you going to cancel the $200 each one of us owes you?”
“Oh no! I'm sorry, but a banker never cancels a debt. You still owe me all the money you borrowed. But, each year, you will redeem only the interest. I won't pressure you into paying back the capital. Maybe some of you won't be able to repay even the interest because of the money changing hands among you. But you can organize yourselves into a nation and set up a system of contributions called taxes. Those who have more money will pay higher taxes. The others will pay less. As long as you bring me, collectively, the total amount owed as interests, I shall be satisfied and your nation will thrive.”
The five of them left, somewhat pacified, but still thoughtful.
There is more, easy reading...should be in every course
https://www.michaeljournal.org/articles/social-credit/item/the-money-myth-exploded
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