Short Term Trading Member Forum

[Qone0]

JLS,

5) What process is followed in order to create new money as wealth grows -- so that a few don’t become very wealthy at the expense of everyone else becoming very poor? Clearly, new money must be created in order for the wealth of everyone to increase. To not do so invites revolution. So now we have a situation where the money supply must increase as population increases and as wealth increases. Each cause, by itself, is exponential.

This is happening with the debit/credit based system we have now. The interest charged on the debt by the private banking system is concentrating wealth.

These are the latest numbers I could find for the US.

Here's an eye-opening observation from The Economic Policy Institute regarding the distribution of wealth in the United States:


America's 112 million families had combined wealth of $50.3 trillion in 2004. When those families are ranked by the size of their wealth, however, the top 1% alone held $16.8 trillion in wealth, more than a third of the United States' total wealth and more than the $15.3 trillion held by 90% of U.S. families. The top 1% had average wealth of $15 million per family in contrast to the $22,800 average wealth of the least wealthy 50% of families or the $313,500 in wealth for families ranked between 50% and 90%.

http://bowman.typepad.com/cubowman/2006/05/distribution_of.html