The banks and government want us to be in debt. Our economy is a debt based economy. What I mean by that is this: Our GDP (all the money in circulation) is £1.6 Trillion.
Out of that money, less than 1% is minted by the government. The other 99%+ is literally invented out of thin air every time someone takes out a loan, mortgage, uses their credit card etc etc. It isn't borrowed from someone, it isn't sat in account somewhere. It's invented.
In fact banks have the right to invent out of thin air £9 new pounds for every £1 they have in their account. But then as soon as those £9 new pounds have been deposited in an account, they can make £9 more for each of those £9. Actually that's not strictly true, I think the 10% deposit rule was abolished in the 80s, i don't think they have that 10% limit anymore.
Anyway... Now if you take out a loan you have to pay interest on it right, well if all the money in the country has been created out of loans and on all those loans you have to pay interest, where does the money come from to pay the interest... you guessed it, even more loans to pump money into the economy to stimulate growth! They need us to take out loans, 'consumer confidence' that the government harks on about the whole time just means taking out credit.
It's a vicious cycle and won't be resolved until the economists move away from a debt based economy. In fact if the banks called in all of their loans, there would be no money left.
Er.. anyway i'll stop ranting now... i've generalised a bit... but just think it's quite interesting
