The Federal Reserve and Debt
Michael Hudson • September 17, 2022
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Well, the question is, why do people go into debt? And there are two kinds of credit. And this goes all the way back to the church theologians in the 14th century. Ancient societies didn’t have any different word for interest and usury. All that was developed to overcome the church’s banning of interest for a 1,000 years, certainly among the clergy. And then the European takeoff began. And after the Crusades it was obvious that some kind of credit was necessary to finance foreign trade. And some people benefited from credit, so the church said, all right, if you’re making a loan, the debtor gains from it, then it’s interest, then its mutual gain. And usury is when the borrower doesn’t really receive a gain but has to pay the interest out of income that they earned elsewhere.
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So what is our current scenario?
Taxes are theft. And, they are usury to the extent we don’t benefit from them.