Clive Rosher [from New Internationalist June 2009]

In ‘Naked Emperors’ (Put people first, NI 421) you rightly say ‘Most Money today is created not by government but by banks’. This fact, along with the realization that it is the biggest and most damaging swindle in the world, needs to be understood by everyone. Banks are guilty of the two (unfortunately legalized) crimes of forgery and usury. They benefit, as you say, from being able to lend an amount of money to many people, in effect creating money for themselves, and also by charging interest (usury) on lending money which it has cost them nothing to create. Truly, modern banking is daylight robbery. It is also responsible for the appalling level of debt, both domestic and Third World, as the method of introducing new money into the economy by lending at interest ensures that there is more debt in existence than money.

This exploitative system is not only had for people: it is equally harmful to the environment. With now nearly all money being lent, the requirement to pay interest necessitates the continual creation of yet more money, leading to a doubling of the money supply every few years. The exponential growth in the money supply creates the effective demand for exponential economic growth, with similarly increasing usage of natural resources including fossil fuels, leading to catastrophic climate change. It is unlikely that climate change can be arrested unless pointless economic growth can be stopped; and that in turn depends on ending the present dishonest disastrous debt-based money system, and replacing it with a straightforward system wherein new money is only created when necessary by government to pay for services rendered for the common good.

A massive campaign is needed to effect this change, involving trade unions, political parties, churches, and indeed people in all walks of life.

Clive Rosher Coventry, England