Interest - 52 Curses of Interest - legal generation of illegal money
September 07, 2016
Interest is MONEY earned by MONEY. Money as you know is that means of exchange that is printed by the Chief financial institution of a country. But interest has taken the power to print money in the economy illegally. Thus Interest is the legal way of generating illegal money. Since money is a means of exchange and ideally cannot earn money. So the money earned by interest becomes fictitious money, money that does not exist. Thus amount of money generated by way of interest inflates the quantity of money in the economy.
Now this money taken on interest is lend further on higher interest by middlemen, i.e.banks and other lending institutions. The money generated by higher interest further inflates the quanitity of money.
The person taking money on interest, if he/she is an industrialist, makes a product and adds the interest amount to the product thus increasing the cost of the product. Interest creates inflationary trend.
When a person buys that product, he/she pays for the interest part also. Now this customer could be you or me. So that interest amount that you get from your bank could most probably be paid by you. That money which you could have spend on some productive activity, is taken from you and after certain period of time paid back to you. Interest deprives you the use of your own hard earned money.
The borrower is always worried about paying Interest because that is the part of money he does not have. Interest increases stress.
The borrower concentrates more on paying back the money. Interest affects productivity adversely.
The borrower puts in everything to pay back the money. Interest adversely affects the borrowers family life.
The focus of the borrower shifts from how to make quality products to how to make money fast. Interest gives rise to malpractices like adulteration etc.
When borrower resorts to malpractices it brings faulty products, hazardous products, even poisonous products. This can cause sickness, injury or death to innocent people who use them. Interest kills the innocent.
When borrower is not able to meet payment requirement, he may resort to cheating. Interest can impoverish innocent members of the society.
If the borrower is caught doing malpractices or cheating, he is punished. So interest can land one in prison.
When people come to know the borrower has borrowed money and has having trouble paying it, they will keep themselves away from the borrower. Interest can make you lonely.
In modern times the borrower seeing other people takes loan or loans beyond his / her capacity to pay it off, just for some pleasure that last for some moments, or to show off or to buy something luxurious and end up paying all their earnings to the lender all their life. Interest blinds, make people blind to facts of life.
The borrower in an effort to pay off the money may loose physical well-being. He may fall sick or even may meet with an accident. Interest causes physical injury.
The borrower may over stress himself and loose his mental stability. He may either end up as a psychotic patient or end up in mental asylum. Interest destroys the mind.
The borrower may even end up committing suicide. Interest can take your life.
The middleman are people who take money from one and lend it to the other, i.e. banks. Banks take money from one in the form of deposits and lend to other in the form of loan. Due to the quantum of transactions the banks are the most formidable middleman that slaughter the entire economy not once but many times, with the sword of interest. Interest clobbers up the economy.
All through the history governments of each and every country have let their economy slaughtered by Interest especially by the acts and omissions of middleman. Interest causes recession in economy.
Even the middlemen are not spared, they get crushed and destroyed under the weight of interest and have to be brought back to life by government aid (from your taxes and mine) or merged or declared bankrupt. Interest does not spare anybody.
The middleman earns their money as the difference of interest they collect from the loan takers and the interest they pay to their depositors, the principle amount has to be returned completely. That seems little but comes to huge amount considering they pay depositor approximately 10% and take 50% to even 100% from loan takers on different pretexts. Interest torments borrowers.
So the Air conditioner, the decor etc. you see in your bank is with your money. Seeing that grandeur people put more money. Interest shows off to wrongly, attract people fraudulently and create false trust.
But the walls of the organizations of these middlemen are very fragile. Even a small rumor of instability can pull down their entire organization. As can be seen in the history of banking sector. Interest dilutes stability.
The middle men have the support of the media due to your money that you have deposited in the bank and other lending institutions and gets the lending ability that too again with your money only to convince you that interest is good for you. Interest deceives people.
The middle men have the support of the government, due to their ability to invest in projects with your money that you deposit with them. The government supports them. Interest disorients people.
The middlemen attract people by giving incentives and induces people to take loans directly or through gimmicks like credit cards , pulling people in to the swamp of interest. Interest creates greed of living beyond ones means.
The middlemen appoint sales executives to sell loans, drag people into interest, give them loans three to ten times or even more of the amount their salary or income, ensuring that they never come out of the loan all their life and the middleman keep on earning interest from them. Interest enslaves people.
The middlemen have converted loan into a product and are selling them to everybody with unique features, it is only after one buys the product that one realizes that they have to pay for it all their lives or atleast for a long time. Bitter interest comes in sweet coated loans.
The middlemen advertise it as a necessity to fulfill needs of life, a convenient way to purchase what would be impossible for you to pay for today with your current income, which you could have easily lived without. But you end up taking the loan and paying for that misconceived necessity many times over. Interest creates artificial wants.
The middlemen endorse it as a stepping stone for success in life, but once you take it the repayment of the loan would keep popping up hurdles in your path of success, making you end up as a loser. Interest binds you.
The lender by virtue of his ability to lend money tend to take pride in his money. Interest makes people proud.
Due to his earnings in interest the lender does not do any work, physical or mental. Interest tends to make people lazy.
Because of inactivity the lender is prone to many kinds of illness. Interest makes people sick.
When a borrower is unable to pay, the lender can take harsh steps to get back his money. Interest makes people insensitive.
By agreeing to give money on interest the lender assures himself of that money which does exist and that which he has not made any effort to earn. Interest disillusions people.
The lender might take the help of anti social elements for recovery, which will backfire on himself, as one is destined to reap what one sows. Interest makes people forget moral values.
The lender is always worried about his money as it is a source of his income and also because the borrower will have to earn much more than he has borrowed to pay regular installments. Interest makes life miserable for all.
The lender does everything possible to get the borrower borrow money from him, once he borrows the money the lender does everything to make him pay for it for as long as possible. It is very easy to get into interest but very, very difficult to get out of it.
Lenders lend to get stable interest for long period of time they do not approve of profit sharing ventures like investors. This leads to tying up financial resources to few prominent industries. Interest leads to stagnation of economy.
In an economy when people become lenders instead of doing business or service there would be less production of goods and rendering services. This gives rise to increase in demand, increase in imports and fall in value of currency. Interest makes economy dependent.
Lenders will always lend to old borrowers who have paid back money and interest on time. This prevents new prospective entrepreneurs from getting much needed capital, thus slowing down growth of industries and business. Interest pinches the growth of economy.
Lenders offer less interest rates to old borrowers and the elite which necessitates others either to not get the money or to get money for high interest rates, making their product or service more expensive in the competitive market. This decreases sale and thus ability to pay back the money, or even keep the organisation running. Interest kills businesses in an economy.
Lenders offer money to rich people and established organisations making them richer. Interest concentrates wealth generation into the hands of few people in an economy.
Interest causes people to accumulate money for lending to earn interest, making them sacrifice the use of various products and services. Interest turns people into misers.
In an effort to accumulate money when people forgo purchase of products and services, sales fall which eventually lead to closure of companies, services and even industries. Interest crushes economies.
Finally a time will come when people would have accumulated money but would have nobody to lend to as all business and service sector would be wiped out. There will nothing available to buy as nobody will be making anything. Everything will be imported. There will be no value for that accumulated money. Interest nullifies the existence of economy.
Money is not a commodity it is means of exchange. By accumulating money as a commodity to earn interest the economy is deprived of its means of exchange, hence products will remain with the producer and money will remain with the lender or prospective lender. Interest rots the economy.
Money in the form of cash is like blood in the body, it has to be kept flowing for the economy to function normally. But when money is accumulated to earn interest it becomes like formation of cholesterol in the blood vessels. If you do not remove it in time it will kill you. Interest kills the economy.
To put it in simple words, if you have a Rs. 500/- and you go to a shop and buy a dress for your daughter, you will get the dress and the shopkeeper will get the Rs. 500/- note. The value of the note remains the same. Now let us consider the shopkeeper takes his family to a restaurant, they eat the food and the shopkeeper pays the same Rs.. 500/- to the owner of the restaurant. Now the owner of the restaurant pays his vegetable vendor with the same Rs. 500/- note. Now notice you got a dress, the shopkeeper ate the food and the restaurant owner got vegetables, all for the same Rs. 500/- note. And the value of the note still remains the same and it is still circulating. It will still purchase many things for many people. But if you accumulate the same note to earn interest then all these people will be deprived of their wants and the money will also be taken out of circulation, thus depriving many others. Interest deprives people of what is rightfully theirs.
Giving money on interest, due to its earnings, becomes a compulsive habit like smoking or drugs and makes it impossible for the lender to give it up. Interest is addictive.
Taking money on interest, due to its easy availability, also becomes a compulsive habit making it impossible for the borrower to give up. Interest is addictive here too.
Seeing people earn money, other also become interested in becoming lenders by accumulating money and giving it on interest. Interest is contagious.
Observing people buy things beyond their earning capacity, others also become borrowers, and begin to take money on interest. Interest is contagious here too.
So you can see interest is a curse. It affects not only the ones taking it or giving it, but also the people around them, those related to them, those who come in contact with them, those who deal in them, those who benefit from them, those who are hurt by them, those who use products and services provided by them those who keep a record of interest for them, all these and more are in one way or the other affected by the curse of interest. Now that would include everyone in the economy, even you and me. We all are living cursed lives without even knowing about it.
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