The Nature of Interest

There is a prevalence of thought nowadays that interest is simply 'rent' on money. It is accepted as if it is of no consequence when it is used. Lets re-examine this notion.

When we purchase an item on credit that has interest attached to it, we are saying the item is worth $100 dollars now - but will be worth $110 after the loan is paid back. The $10 being the 'rent' owed for use of the money. Let's say the item is an ounce of gold. The gold is only worth $100. But because interest is charged beyond its worth, it automatically creates $10 more in gold. But gold can not be magically created like this in reality. It must be mined, or labored for. How can we allow somebody to exact worth that otherwise wouldn't be possible? We are expected to furnish a premium on each and every item bought with credit in the form of interest. The interest though, is not a charge for the use of money since it is magically created. It is simply a scheme to acquire a permanent revenue stream to a thief by means of fraud.

This magically created money adds money to existing money stock. Inflation can be the only outcome. The only means of stopping inflation is to prohibit interest. Blasphemy you say? Not really. Those that exact interest commit fraud in a more insidious way too. How? Well they incrementally steal our real money, gold and silver, as in the graph on the bottom of this page. Then in order to keep the fraud going, they must create a substitute artificial money - known as fiat. This gives them elasticity to maintain their permanent revenue stream beyond the limits of a finite money supply such as gold and silver. We accept the inflation because we need loans. We accept interest because we have been convinced the interest is a charge for 'renting' the money. We accept fiat money because authorities say its money. But its money created through fraud and therefore can only have a decaying effect on any economy who uses it.

Next, what is the alternative?