The harmful effects of creating money as debt
Channel: Peninsula New Economy Transition
Date: 2015-10-12

What are the design problems with the economic system? First, virtually all money is created as debt, and private banks have a virtual monopoly on money creation. The profit motive drives private banks create too much money in good times and not enough in bad times. There is always more money to be repaid at interest than we have in circulation. The scarcity is built into the system, and it is a mathematical certainty that much of the debt will never be repaid. This fundamental flaw also accounts for environmental destruction, as landowners or trustees monetize natural resources. Previously, we have relied on "continual growth" to keep the system going—but now, we are running into the limits of a finite planet.