- If you think usury adds your wealth. Think Again
- The ideal way of getting wealth in a fiat monetary system is by producing necessary product, adding real value to raw produce. not through interests (from deposits or lending)
- Your money is no longer backed by gold reserve. It only represents the amount of product absorbable in the system, including gold.
- It is said that banks control the amount of money in the system through interest rates, to control inflation and foster economic cycle. But this is not without any loopholes.
- For the money lender, it multiplies money with no risks of loosing any (with no work / products produced) . also without any consent made on the industries the money is lended to.
- For the borrower (who are mostly business owners), it's a chance to continue production even without provable demand, or forseen value in the product.
- This makes the rich reluctant to invest their money through cooperation. Creates growth in industries of unrealistic values. Makes the gullibles, including the rich who lended their money, wanting (instead of needing) to consume more. And the cycle continues.
- In turn, interests would only add unnecessary debts obligation in the system. and eventually reduces the true value of the overall economy (i.e. the products value represented by money). How?
- The money you spent to buy a product partly contributes to pay the interest charged on lendings, borrowed from banks by the producer to sustain production.
- To pay it, producer accumulates all the costs incured, and strategize on unit pricing that is enough to cover the costs, targeted profit, debt + interest, and anticipate future inflation.
- Thus the increment on the already high marked-up price represents no real improvement whatsoever to the product. Hence, the no real added-value.
- In turn, society will be reluctant to consume inferior products at high price, as companies eventually figured ways to influence perception of value through marketing.
- Marketing may not be cheap. Company pays billions to get awareness, some openly tricking viewers into believing that a product is valuable.
- Add that to the interests the company must pay and the cost of buying (if the customer use CC to pay). Re-think on the true value of the product.
- Plus, imagine the amount of interest obligation of the overall companies involved, from the extraction of raw materials, manufacturing..
- ...promotion, distribution, all the way to retail companies. They have to pay the interests. But somehow consumers bear them all, through price.
- /thus, you could imagine how valueless the price you pay for a product due to the interest obligations charged along the system.
However, you could also imagine the opposite, when all interest obligation is taken out of the system....
- ....how it will eventually restore the values of product, and the consecutive effects on the society as both producers and consumers will be free of any additional burden that contributes none to direct improvements.
- Any lendings with expected addition in return should also automatically bear the loss in a form of risk with previously agreed portion/percentage of profit/loss, similar to that of investment / cooperatives.
- Somehow the best investment / business cooperation will be of any products related to necessities, as it will be of sustainable demand.
- In longer terms, only products of real values will survive, as price will be reduced to its sensible value, and no value will be added on insensible needs. Any increase of value will represent immediate increase of quality.
- Thus such non-usurious society will see perfect valuation of products, of which the value of money is represented. Hence "wealth" will be at its maximum power of exchangability.
Therefore, wealth are actually the necessary products available and consumable, by whatever amount of money we have. Continue reading on the understanding of money to get a glimpse of why.
God Knows Best. Wallahu a'lam
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