November 25, 2009
Organisations that feed off poverty by lending with ridiculous rates are coming under a bit of a spotlight of protest in the UK. As they should. Anyone who loans money to another person is entering a business transaction. If the APR is over 15% per annum, and the borrower has to pay more than 15% of their income in loan repayments, it is bound to fail. With APRs as high as hundreds of percent per annum, and incomes being uncertain, it does not take much fancy maths to see that it is a trap that the poor will never see the end of.
However, the same could be said of credit cards, sub-prime mortgages in general and much business debt. It simply has a future of not being repaid.
What does that mean? It means suffering, stress and the undoing of the potential of real lives for the sake of enriching a person or organisation that is essentially criminal in their intent. To profit from the suffering of others.
A new economic model is required. The current one may have suited a smaller world but the majority of humanity is being used by a small rich minority in an intergenerational scam that enslaves the lives of the many.
One solution is revolution. Economic revolution.