contributing to the debt based society?

Hi, as some people may or may not know, most of the money supply nowadays is issued by private banks rather than the government. This happens mainly via loans etc whereby the banks are allowed create and lend out up to 10 times the amount of money they actually have as assets.

From what I understand, when they lend out say £100 at 10% interest, they create that £100 which adds to the money supply, but not the £10 interest to repay the loan, so the system keeps needing people to borrow to keep it going, but each subsequent loan simply adds to the problem.

So, am I right in assuming that everytime I apply for a new credit card, or go overdrawn....even if it's on an interest free offer, I am merely contributing to this scam? The way I see it, if I owe the bank money, it counts as an asset for me, which allows them to lend out another 10x that amount.

On the other hand, by actually depositing money in their bank, although it counts as a liability on their books, it also provides funds for them to invest, often in ways which merely cause more problems and uncertainty such as with currency trading, options, derivatives etc.

So what's the solution? Should I never apply for another credit card again? And even when I am in the plus, where is a safe place to put my money which doesn't help these people but allows me to use the money in a cashless manner? For better or for worse, cashless is the way to go, but it just needs proper regulation, such as being backed by something real, and being issued by the governments.

Thanks for reading

While I don't have a complete solution for this problem that saves a money based society I do know that the answer to your question would forever end the poverty of mankind, since we have the technology and the resources to build a utopia, and only a debt based concetrational economy prevents us from doing so.

My guess is we need a stable currency system backed by something of value. Maybe money should be backed by people? That way instead of being seen as debtors each individual could rightly be seen as a wealth generation mechanism? The need for a new economy is undeniable, capitalism only works when an economy is rising itself from poverty, but who needs an economic system that crashes like a burning airliner whenever people get wealthy and content and demand goes down? It makes no bloody sense.

Thanks for the thought provoking reply.

One interview I recall from an audio series discussing money markets etc, spoke about one closed community whereby, in order to increase money supply, what the "central bank" would do is that the community would meet up together at their town hall, discuss an improvement needed for the good of the community, e.g. a new road, a new clinic etc, and if all were in favour, the bank would then issue money for loaning to the planning/building company, and the money would then enter circulation by being spent on the citizens wages, the materials etc. The point here is that it is not being made by a private bank for Mr x to buy the latest car to compete with his neighbor, or being created for company to invest in chopping down the rain forest.

I think for now, I will keep the overdrafts and credit cards I have, not apply for any interest free options (i just graduated from university, and here in the UK there are many such options for us), and instead pay back what I owe for now, and then look into opening an account with a bank with an ethical policy whereby they have relatively strict rules on how they lend their money. Been doing my research on this already and it does seem viable.