Our monetary system

[JG4_Helofly]

Hi,

Since this is the off topic section, I thought that it might be interesting to discuss something which is not well known, but which has big consequences in our world.
So I would like to discuss the monetary system we currently have. That's something everyone of us deals with every day, but not many people really know how it works.

The most important aspect of it is the money creation. So the question how money is created. Most people think, that money is created by the central bank which prints the banknotes. Well, that's no exactly true. In fact, money is created by commercial banks. They create money by lending a certain amount of money to somebody. The money they lend did not existed before. This sounds strange, but it's reallity. This way, any bank can create money from thin air and they make a profit with the interest people have to pay. If the debt is repayed after some time, the money disappears again (not the interest of course).
I know, that's not very precise and really just a summary, but generally speaking it's how it works.

Now, what consequences does this have? Know that we know that money is only created by taking a credit in a bank X, it becomes clear that every cent which exists is also a debt on the other side. Every Euro, Dollar, CHF, ... you have on your bank account or in your wallet is a debt for someone else. Simply because someone had to borrow this money to give it to you, or someone borrowed it and gave it to the guy who gave it to you etc.
Interesting I would say
This also means that it's not possible to repay a debt in such a system. Because if you want to eliminate a debt, money must be eliminated too. Money = debt. If someone has 1 billion debt, someone else has a 1 billion entitlement to it. If you simply "repay" the debt by taking money from the money you put aside, then the debt has not been eliminated. It has just been transferd to another place.

But What about the interest? Well, since money is only created by borrowing, the interest must also be borrowed. And it continuesly grows for that reason.

So what is the big problem with all that? When money = debt, then some people will have very much money and some people will have the debt. And the guys with the debt have to pay the interest. The more money there is in the system, the more interest you must pay.
This would not be a problem if the money would be spread evenly, but that's not the case. I read a statistic which indicated that about 10% of the richest people owns more money combined than the bottom 90%. So who must pay for the money of the rich?...

Please note that this is not a conspirative theorie, but the basics of our monetary system.
I am very interested in it and I would like to know if some people have ever heard about it and what you have to say.