Sunday, April 06, 2008

Banks, usury and slavery

In the UK, GDP is said to trend long-term to an increase of around 2.5% per year, hence also the Monetary Policy Committee's figure for inflation target-setting.

Since 1963, the M4 money supply has grown by an average of slightly under 13.5% per year. So that would be about 11% p.a. relative to GDP.

This means that bank lending, as a proportion of GDP, doubles every 7 years.

How long can this continue? How long before we are completely robbed and enslaved? Or am I asking a fool's question?


matt said...

You're clearly asking a fool's question :D. We should just be thankful that the bankers don't start using our heads in their polo matches.


Hi Matt - it's good to know oneself, even if it takes someone else to break the bad news. But mathematically, this couldn't go on forever, could it? And what happened before? How fast have the banks risen?

Semaj Mahgih said...

So glad you used the word 'usury' because that gives it its historical perspective.

Alice Cook said...

Great blog. Just added a link on my blog:


Semaj Mahgih said...

1933 seems as good a year as any for the FRB start date, Sackers.

Michael said...

If you are alarmed by the state of the economy, strength of the dollar and ballooning national and individual debt, then you are not alone. Help us try to restore the Thrift ethic to the American political and economic discourse. More than just being stingy, Thrift is the wise use of material resources, encompassing self-sufficiency, stewardship, and sustainability. Come to our conference-Confronting the Debt Culture- in Washington D.C. on May 12th and 13th to meet important individuals from the pro-thrift community. A major focus of the conference will be to address the problems posed by payday loans and other predatory lending options- truly modern paragons of the biblical definition of usury. We will also be exploring alternative, pro-thrift options, usually provided by various credit unions. Speakers include Chris Peterson, usury expert from the University of Utah S.J. Quinney College of Law; Ken Eiden, CEO of Prospera Credit Union (Appleton, WI); Dr. John M. Templeton, Jr. and many more. Learn more at To sign up, email