Interest: n. a percentage of money added or subtracted from a money quantity(s)
Paying interest and variable interest rates have long been used as a tool to attempt to control the money supply which is distributed in society.
Ask one to pay a higher interest rate and the profit potentially becomes higher but the controlling factor is that many more humans can no longer afford the high interest rates and in reality profits can also decrease from too high interest rates.
Variable interest rates are attempts at assessing the risk involved in lending money and those who are potentially the riskier investment pay higher interest rates.
Loan sharks are notorious for charging high interest rates to humans in desperate need of money and it is a highly usurious practice which still persists to some degree in society.
Historically adequate interest rates on bank savings accounts encouraged thriftiness and responsible money management in human lives because the rates exceeded the losses in the value of money due to inflation. This is no longer the case today and thrifty saving of money is discouraged with unjust returns of interest on savings accounts.
The result is that humans are discouraged to save money for future emergencies and retirement and not only are their lives in increasing financial crisis mode but the government is also acting irresponsibly with the money supply and printing much counterfeit money which winds up in the pockets of big banks who are increasingly using the counterfeit cheap money to engage in risky short duration investments in an attempt to make huge short duration profits which they can no longer get from the general economy and ordinary citizens.
Today’s big banks are in a very unstable financial circumstance and also unstable is the federal government’s terrible money management policies which are more and more disrespected worldwide. Foreign governments are increasingly searching for alternatives to the relatively worthless, unstable, and untrustworthy US dollar supply.
A just money supply for a nation or world is one without inflation so that the value of the money does not decrease in value with time. In the real world unfortunately zero inflation or deflation is not realistically possible. A temporary return to financial sanity would be to establish a savings account where the return on money invested or saved would be identical to the yearly inflation and adjusted on a yearly basis too. If inflation was higher one year then the return on savings would match the increased inflation rate thus making for a net return of no loss on the value of the money invested. You don’t need to make profit from a savings account but it should be a safe haven from loss in the value of money so that a dollar saved will have the same value 1 or 100 years later.
That is what a just monetary system should strive for, to not steal any money from humans who save their money in an institution which need not be a bank but could be a national or international savings depository where money does not lose value with time. That is true national and international justice for all thrifty money savers.
There are deflationary periods also and during those times the money saved would be deflated in value by the deflation rate so the net value of the saved money would still be the same. Constant value for money saved whether in inflationary or deflationary times is the answer to a just money supply nationally and internationally!!!!!!
FOR PRIVATE BANKS TO BECOME JUST FINANCIAL INSTITUTIONS AGAIN THEY MUST GUARANTEE A RETURN ON SAVINGS ACCOUNTS EQUAL TO THE ANNUAL INFLATION RATE ON A YEARLY BASIS AND MUST DECREASE THE SAVINGS ACCOUNT VALUE BY THE ANNUAL DEFLATION RATE WHEN FINANCIAL TIMES ARE IN RECESSIONS!!!!!!
Private banks must guarantee this or the federal government will nationalize the banks and create their own just savings account returns for the citizens of the nation!!!!!!
Of course we are living in an international world and the international banks will have to set up savings accounts in each nation where the savings accounts rise as much as the inflation rate and there should be losses in the savings accounts from deflationary causes in each nation. That is the way to have a truly just international monetary system which does not steal money from each citizen of the country for the benefit of the wealthy or big money interests only.
The thrifty financially responsible citizens of the world will be rewarded for their responsible behavior and the profligate spenders and ripoff artists will be punished instead of rewarded the way that they are today in many countries.
I ask you. Do you want a world filled with honest thrifty financially responsible prospering citizens or a world filled with financially dependent irresponsible profligate citizen slaves who will inevitably bankrupt a nation and even cause a tyrannical political takeover to restore order out of financial and behavioral chaos?
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