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It’s the Interest, Stupid! Why Bankers Rule the World

By Ellen Brown
Global Research, November 08, 2012
A stunning 35% to 40% of everything we buy goes to interest. This interest goes to bankers, financiers, and bondholders, who take a 35% to 40% cut of our GDP

Tradesmen, suppliers, wholesalers and retailers all along the chain of production rely on credit to pay their bills. They must pay for labor and materials before they have a product to sell and before the end buyer pays for the product 90 days later.

Each supplier in the chain adds interest to its production costs, which are passed on to the ultimate consumer (WE THE PEOPLE). Dr. Kennedy cites interest charges ranging from 12% for garbage collection, to 38% for drinking water to, 77% for rent in public housing in her native Germany."

Can this be changed? What can we the people do? Is this usury?

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Her numbers are BS

Her basic point that interest can be charged at each level of production and the end user pays it is questionable, though plausible.

However, her interest rate numbers are just pulled out of her ass.

Each business, governemnt, and individual has a different interest rate. Apple Computer does not borrow any money because it does not need to. It earns interest from its excess cash. Would that be a negative interest rate to the consumer, then?

In Argentina, it is difficult to get a mortgage on real estate. Most people pay cash or very large down payments. If people pay cash, then they don't pay interest to a banker.

Her numbers are just made up. Plus, companies that have high debt and that have to compete with companies with low debt change the overall equation, too.

Sounds like a dumb argument.

Now, if she were to talk about taxes being paid at each level of production, then she would have a point.

Interesting Article on Interest.

1+0%=1. Wah, an option, that is fair & easy. Thanks & +1.

Of course its usury, and it

Of course its usury, and it has been changed before...but just like the example of France in the article...the bankers always get the law changed to end interest free banking. This is what Lincoln and Kennedy both did with greenbacks...a non interest bearing currency printed by the government....look how that worked out for them. The bankers will never let it happen until the whole system collapses...

That applies to the governments

but it doesn't necessarily have to apply to the people. The crowd-funding sites have gotten enough laws changed in their favor that it's now possible to save and lend to each other at the exclusion of the banks.

When that process expands to include small businesses and even medium ones, the profits of same will soar. Picture those 35-40% losses staying in the hands of small businesses that are in price competition, and it's easy to see how this 'new breed' of business models will out survive the old ones.

At that point, individual wealth (of those who produce) will increase dramatically. To see how this happens, just compare peoples' discretionary spending to their total income. If discretionary is 10% of total, then an overall interest savings of 10% would effectively double their perceived wealth. Now expand that to a savings of 40% and they will both live better AND perceive more wealth.

To bring this back to the government side, look at what this effect would have on government services. Crime would drop, charity would soar, interest would vanish, unemployment would plummet into the negatives, savings would skyrocket, money would lose some of its importance, quality would replace quantity. Lots of things would reverse. In that brave new world, wouldn't government spending be critiqued more and have less justification?

I fully believe that all this can and will happen without the consent of the banks. The faster it gets started, the faster it becomes the norm. We just have to get it started before the crash changes the landscape.

Only correct on one thing

That is that interest is a big problem that we don't even need.

Her solutions are extremely misguided and would lead us right back into enslavement.

There are much better ways.