Forum Post: Usury - Ribit - Riba is the root cause - Otherwise nothing will work

1. Money Creation is the problem.

Federal Reserve and Banks create money. It is lent to big corporations to make even more money. It causes inflation, robbing the poor. It is used by wall street to speculate on other people's assets. Indiscriminate creation of money is the real problem through the banking system / government / federal reserve nexus.

2. Cannot be Fixed unless legislated against

You can change politicians, vote for and fund different ones like Ron Paul who oppose the way things are, but that is a temporary fix. People are greedy, and anyone who comes to power and at the helm of large corporations in wall street, will ultimately succumb to the lure of easy money. This will never be done voluntarily, and cannot continuously be enforced by street protests. The only answer is to legislate against it and make it part of the constitution.

3. What should such a legislation look like

Irrespective of what you think about the working of the banks, the fact is that according to current legal and accounting rules, what they do is not illegal. The only way you can stop it is by making laws and rules, which stand in the way of these processes through which money is created.

4. Sound Money is only one aspect

The first step is to mandate gold and silver and other commodity money aka sound money. But that is only a first step. The second, even more important aspect is the ability to lend it based upon fractional reserve. Even if you have a gold dollar, your current laws do not prohibit a bank from multiplying that gold by lending it multiple times. So fixing M1 (cash) by converting it to gold is only the first step. The second step is to curb M2 and M3 inflation (receivables of different forms), and this can only be done if you

a) Prohibit usury / interest based lending b) Prohibit the sale of non-existing things

Both of these basic issues have been identified by wise men and sages across the ages, who in secular terms also, advised people to adopt certain universal laws, which subsequently became infamous by their classification into the broad bucket of religion. Abraham, Moses, Jesus and Muhammad all of them prohibited this practice, which is even today forbidden in Christian, Judaic and Muslim law. The Arabs call these two practice "Riba" and "Gharar". It is only by following the example of Jesus and overthrowing the tables of the "money lenders" can this matter be conclusively resolved.

Otherwise, these protests and this movement will not achieve any lasting benefit.