Every economy is planned.
This traditionally has been the function of government.
Relinquishing this role under the slogan of “free markets”
leaves it in the hands of banks.
Yet the planning privilege of credit creation and allocation turns out to be even more centralized than that of elected public officials.
And to make matters worse,
the financial time frame is short-term hit-and-run,
ending up as asset stripping.
By seeking their own gains,
the banks tend to destroy the economy.
The surplus ends up being consumed by interest and other financial charges,
leaving no revenue for new capital investment or basic social spending.
This is why relinquishing policy control to a creditor class rarely has gone together with economic growth and rising living standards.
The tendency for debts to grow faster than the population’s ability to pay has been a basic constant throughout all recorded history.
Debts mount up exponentially, absorbing the surplus
and reducing much of the population to the equivalent of debt peonage.
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