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Banks not doing us any favours

Published 04/09/2015

"At present, banks create money out of thin air and then lend it, charging interest on this money that they never had in the first place." (Amanda Vickers of Positive Money).

Martin Wolf, chief economics editor of the Financial Times, reiterating what other leading economists have stated over the decades, said much the same in an article; the Fed is right to turn on the tap.

Therefore, if private banks are creating money out of thin air, why then do they need to charge interest on this loaned money?

The answer is they don't, but in so doing they create ever-increasing debt which can never be paid back.

Time for a change of monetary system, maybe?

LOUIS SHAWCROSS

Hillsborough, Co Down

Belfast Telegraph

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