If We Don’t Change the Way Money Is Created and Distributed, We Change Nothing
Charles Hugh Smith, Wednesday, December 23, 2015
Three different perspectives of the wealth pyramid illustrate how our money system generates wealth inequality as the only possible output of the system:
The system of central banks, private banks and fractional reserve lending is global. The net result is that globally, the vast majority of wealth is owned and controlled by those at the very apex of the wealth/power pyramid: the top 8% own 85% of global wealth.
In the U.S., the wealth-income pyramid can be represented by an inverted pyramid: the bulk of wealth and income are in the hands of the top 5%. The bottom 80% own an essentially trivial percentage of the national wealth.
This pyramid illustrates how the money creation and distribution pyramid works:
There are a number of proposed alternatives to this the rich can only get richer and the rest of us can only get poorer system. The only real solution in my view is create and distribute money at the base of the pyramid, to those generating useful goods and services in the community economy, rather than to those in the top of the pyramid. This money isn’t borrowed into existence, so there is no interest to be skimmed by its creation.