Alternative monetary systems

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Alternative Monetary Systems
Introduction
In most economies/ countries, approximately three percent of the money comes from governmental mints that produce coins and notes. The rest of the cash comes from private banks; it is created using digital technologies from nowhere. Specifically, the banks do not have their money but create it from loans extended to the customers as well as governments. The banks prolong the credit by the increasing borrowing current account of the client. In other words, the banks extend credit through creating money. As the banks continue to increase the amount borrowed and not increasing the interest on the loans the world experience more debt than its money. This situation creates a scenario where there must be an ever increasing lending to pay off the debts as well as additional interests while at the same time sustaining money circulation. It means that there is a continuous rise in the economic activities. Contrary as the debts become paid off, the supply of money shrinks; this translates to defaults, bankruptcies, foreclosures, depression, unemployment that eventually result in extremism and crime.
The sort of monetary system describe above shows that however much the individuals continue to pay off their debts, collectively the world’s population remains to be in debt forever, and the people continue to pay bank interests forever. Therefore, this kind of monetary system creates increasing inequality …