Thursday, August 14, 2008

If everyone stopped borrowing today, the economy would gradually collapse because the money supply would contract as past loans and interest were paid off

Is interest-free lending inevitable?

from comments - Wow. It's amazing to see this subject pop up in a mainstream environment. As a former investment banker and trader I can only affirm what Richard is saying. The banking system is on the verge of total collapse not just due to a complete binge in the creation of new credit by banks but in the way the system is actually structured. Did you know that there has been an Early Day Motion in Parliament calling for public interest free money for the last 6 years? "we will have to start putting money into circulation in an entirely different, interest-free way if a serious depression is to be averted." RD "Do you really think banks will allow anybody to deprive them of that right? " JPF (interview) sorry it's a bit late (days) but it's still news to HPC ie valid article

Posted by malct @ 08:26 PM (1462 views)
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10 thoughts on “If everyone stopped borrowing today, the economy would gradually collapse because the money supply would contract as past loans and interest were paid off

  • Usury overthrows trade, decays merchandise, undoes tillage,
    destroys craftsmen, defaces chivalries, beats down nobility,
    brings dearth and famine, and causes destruction and confusion.
    Thomas Wilson 1569

    http://historyofusury.blog.co.uk/

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  • Stop the Cash Crumble to Equalize the Credit Crunch

    The Forum for Stable Currencies has provided room for debates between Parliamentarians and concerned citizens regarding our financial system since 1998. With input from the Christian Council for Monetary Justice, Local Exchange Trading Systems and many likeminded groups internationally, we have covered the full spectrum of monetary, financial and economic causes that are historic and systemic.

    We have also covered the effects that range from “bank victims” and overindebtedness to bankruptcies and suicides. We have attended meetings of the “Monetary Policy Committee” and the “Economic Affairs Committee” at the House of Lords and the Treasury Select Committee at the House of Commons.

    http://www.gopetition.co.uk/petitions/stop-the-cash-crumble-to-equalize-the-credit-crunch.html

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  • Good find, malct.

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  • thanks shippy – people should know this is going on in the background methinks

    NEWS RELEASE

    Public Credit Petition has been viewed over 1000 Times

    Since publishing Stop the Cash Crumble to Equalize the Credit Crunch on May 31st, 2008, it has been viewed over 1000 times which has resulted in 76 signatures. Austin Mitchell MP will take the petition further as soon as 100 signatures are reached. New support has been received as follows:

    Prem Sikka, professor of accounting at the University of Essex in Colchester, is writing regularly for the Guardian online and has signed as no. 28. He has flagged the petition on the website of the Association for Accountancy and Business Affairs in a number of places. He has also asked to write an 8000-word for the Journal of Accountancy Business and the Public Interest.

    Peter Etherden who has posted Henry Swabey’s History of Usury on the web contributes to texts explaining the background and why the petition matters in the tradition of UK history of law making. The first chapters can be found on the Forum blog.

    John-Paul Flintoff has signed as no. 66 and his two related articles for Times Online are cited as part of the description text: Ban compound interest to save the planet and Is interest-free lending inevitable?

    The hosting company GoPetition lists the petition among their featured ones in the UK thus providing special exposure.

    At the House of Commons the Procedure Committee produced a report on Public Petitions and Early Day Motions in May 2007. The Government’s response was published on 26 July 2007. A Written Ministerial Statement was published on 22 July 2008 and its forward looking way is most encouraging.

    It is hoped that this new on-line tool will not only be effective as a pilot in raising awareness but actually achieve the desired aim, especially if not only the public but also institutions wake up.

    Should you feel like forwarding this, I would of course be delighted. And tell your friends that they can also sign anonymously. IP addresses are more unique than names! J

    Yours gratefully in advance,

    Sabine

    Money Supply or Public Credit Petition, Parliamentary Scrutiny via the Treasury Select Committee

    Green Credit for Green Purposes, Our submission to the Committee’s Inquiry into the Stern Report

    In the Spirit of the Forum for Stable Currencies, blog

    Forum for Stable Currencies, current website and archive

    21a Goldhurst Terrace

    London NW6 3HB

    T: +44 207 328 3701

    M: 07968 039 141

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  • ‘Surprisingly, very few economists are interested in the way that money gets into circulation and the effect that has on the way the economy operates. Some years ago I spoke to a professor at a university in the north of England who was interested in the topic but he told me it had proved a professional dead-end and he was moving to another area.’

    that’s just depressing – how can anyone who calls themselves an economist not be interested in that! It’s critical. harrumph.

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  • we all need some sunshine

    is anyone still awake?

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  • AAAAArrgggghhhhhhhhhhh Noooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo

    Somebody told me that this is a common misunderstanding. In fact all the debts in the world could be paid off with £1 as long as that pound circulates more quickly than the build up in interest. (That means the velocity of money and thereby gdp is important to the ability to repay debts – think about it.)

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  • Sabine K Mcneill says:

    What weird logic: If everyone stopped borrowing today, the economy would gradually collapse because the money supply would contract as past loans and interest were paid off.

    First of all, there are huge differences between banks, governments, companies and individuals borrowing and their respective conditions – besides the penalties for not paying the necessary interest in time.

    Secondly, the money supply is inflating due to credit and contracting thanks to the ‘credit crunch’.

    Thirdly, past loans and interest will never be paid off – at least not national debts. That’s how the existence of nation states, national governments and national currencies are abused…

    And finally: do you remember that money was supposed to have been invented as a medium of exchange rather than a product to buy, sell and make money out of?

    Economists are only there to protect central and other bankers and their desire to control people and resources, poor guys…

    However, as malct is pointing out: there is an alternative! Click on http://tinyurl.com/666rwd and see how we can get them who are supposedly working for us, to look into our concerns!

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  • Sabine K Mcneill says:

    Yes, Bosco, Richard Douthwaite is the thinker behind FEASTA and the interview with him is behind the second article by John-Paul Flintoff.

    THANKS!

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