Today many, including economists and financial experts are talking about the end of the existing financial system due to a simple mathematical law: Compound interest follows the existing monetary system an exponentially growing curve (= off 1 is 2, 4, 8, 16, etc. – as opposed to linear growth from = 1, 2, 3, 4, etc.), and unlimited growth exponentially is mathematically impossible. Any system with exponentially growing system is an ultimately self-destructive, the end is predictable. In nature, quality growth prevails: Humans, animals and plants grow quantitatively until they have reached their optimal size, then they only grow more qualitatively. Exponentially growth occurs naturally only in connection with illness and death, eg the disease like cancer behaves exponentially (from one cancer cell, 2, 4, 8, etc.). The interest from the mechanism resulted in permanent growth of the forced economy is in irresolvable conflict with the mathematical impossibility, with the known consequences of such an unbearable social imbalance and life-threatening environmental degradation.
This situation sounds hopeless (if interested to learn about truly shocking backgrounds, see Chris Martenson’s “The Crash Course Money”). Margrit Kennedy, however, offers in her book “Interest and Inflation Free Money” 1996 , a positive outlook, because it shows not only the problem but also offers a possible solution for me (as an economic layman) understandable, reasonable, sensible and feasible acts. Margrit Kennedy, was born in 1939 in Germany and has been working many years as an architect, town planner and ecologist in Germany, Nigeria, Scotland and the USA. Since her ecological projects have often been dismissed as uneconomical, she became aware that an environmental measure had to be measured with the money-creating power of money in the capital market. She began to compare the growth patterns in nature and in the monetary system and the causes of the pathological compulsion to understand economic growth, and the function of the monetary system and the dangers of an economic or ecological collapse. Margrit Kennedy assumes that very few people understand exactly how money works and how it affects their lives directly or indirectly. She holds four misunderstandings for the main obstacle to understanding the design flaw in the present monetary system: (more…)