Chapter 8 - A Room With Some More Unhappy People

Example: Private Banking Corporations: Interest Only Paid.

There are ten people and myself in a room and you are one of the ten. You represent the people of the nation and I am a bank. I lend each of you $100 at ten percent interest. I have lent out $1000.

This time, I will make it a little more realistic. I only require you to pay the interest. I require $10 from each of you. This means that in the second year you only have on average $90 each with which to trade. You still owe me $100 each. This is still an unworkable system. The second year you will have $80 each. The tenth year you will have no dollars with which to trade, but you owe me one hundred dollars each.

My Definition of Usury:
Usury is the practice of lending money and expecting a greater amount in return such that unpayable debts occur.

With this full definition of usury, you can see that this system is full-blown usury. You will only be able to continue trading with each other if you borrow more money from the issuing authority. We need a new area of study: "The Mathematics of Usury". 'People for Mathematically Perfected Economy™' have something to say about this, but typical of mathematicians, it is difficult to comprehend. You can find it at: ( with a pretty graph.

People for Mathematically Perfected Economy™

Key statements from their website include: [81]

"Any purported economy subject to interest ultimately terminates itself under insoluble debt." [82]


"a circulation comprised never of more than remaining principal, shall deflate itself from the subjects' possession by a wholly unjustified process in which debtors pay principal and interest out of the vital circulation." [82]


"The sum of debt inherently and irreversibly increases at an ever escalating rate of said ever greater portions of periodic interest on an ever greater sum of debt, until the subject system fails under a terminal sum of debt." [82]


"All along the way to this inevitable failure moreover, ever more of the circulation is inherently dedicated to servicing the ever greater sum of debt." [82]


"Perpetually devaluing the effective value of the currency in procuring production; making production itself ever more costly and impossible; and making it impossible for the obfuscated currency to fulfill the promises of debtors to actual creditors who give up property for the obfuscated tokens." [82]

What can be seen here is that, in the event of a financial collapse, those that gain from the system, as well as those who suffered under the system, will both suffer severely. It is to the advantage of the creditor class that the system does not collapse. In other chapters, I demonstrate a system that will work, and still leave the banks and the affluent to do well.