I would like to discuss how our monetary system affects our lives, including our way of thinking, or worldview. First I would like to point out how today's monetary system works (this is all explained at
http://en.wikisource.org/wiki/Modern_Money_Mechanics):
1) Central banks all over the world create money out of nothing (contradicting the idea that nothing can come from nothing) and loan to us all via governments, with interests.
2) Banks loan a fraction (this is called fractional reserve banking) of deposited money to the public, usually 90% of deposited money, by which every deposit can create 90% of its value as new money out of nothing, loaned to clients with interests.
From which we can draw some conclusions:
1) Each year, enough money must be created out of nothing to allow for all outstanding interests to be paid, since all available money amounts only to the principal of an outstanding debt, corresponding to the loan by which it was created.
2) All money---along with its interests---is owed to the central banks that created it, no matter how far its current owner is in the debt chain.
3) Debt hence money supply must grow at least by the rate of its interests, or the system will malfunction and eventually collapse---if that rate is, for example, 1% a year, then debt or money supply must double each 70 years.
4) For money to retain its value, produced value must grow at the same pace by which the money supply grows, even if natural or social resources cannot afford such a growth pace.
5) Our demand for economic growth---as well as our uncritically positive notion of it---comes from the nature of our (debt-based) monetary system.
Any comments?