It's kind of surprising that the Compound Interest Paradox is not taught in schools. I don't think it's even taught in college level economics courses. I read a few economics books, and it was never mentioned in any of them.
Wouldn't it be nice if the Bible had a "Book of the Banker", where it explained the evils of fractional reserve banking and the Compound Interest Paradox.
The founders of Christianity and Islam knew that fractional reserve banking was wrong. They knew from Croesus' example centuries earlier. That's the reason strict Christianity and Islam have a ban on loaning out money at interest. Fractional reserve banking is wrong because it allows the banker to steal the wealth of the rest of society.
Actually, fractional reserve banking itself is not evil. It is the conspiracy between banks and government that is evil. Without a coercive government, fractional reserve banking is an honest business.
I read a very interesting conspiracy theory. There actually *WAS* a "Book of the Banker" or equivalent in early versions of the Bible. The text was deleted. The prohibition on banking was still present. Removing the explanation made it easy to overturn this ban.
Also, that's the reason bankers were predominantly Jewish. The rules of Judaism are 6000 years old, predating Croesus' banking adventures. There's no ban on fractional reserve banking built into Judaism.
However, it is not necessary to ban fractional reserve banking. It is government that needs to be banned.
Sunday, September 9, 2007
The Book of the Banker
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1 comment:
Fractional Reserve Banking is based on lies, no other business would be allowed to sell goods they do not own or posses...it would be fraud.
Some anarchists say government without state, and property is theft.
I think they define the state as everything regulatory and otherwise which controls and takes the wealth of the individuals and society.
Government without state is where some generally accepted rules are applied not top down, but by the people themselves and they turn to a leader for arbitration and judgment. The leader makes sure no corruption sets in and the people abide by their self-chosen rules and way of life. For instance in a free market, someone is selling faulty good before they escape with the money. So some regulation is necessary, inspectors making sure the market is not corrupted.
I think primitive societies like the Celts were 'anarchist' with the absence of a centralized state power to regulate them, until the Romans and other States invaded.
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