The biggest EVIL about interest is that it cannot be paid. Therefore it is COMPOUNDED.

Let me give you an example of the difference of COMPOUND INTEREST and SIMPLE INTEREST.

$1  loaned out at the time of the birth of Christ at 3%, compound interest, would be a debt of: $19,342,814,713,834,066,795,298,816.

At 6% interest it would be: $2,075,564,540,495,770,000,659,356,622,933,159,968,008,080,198,784.

At SIMPLE INTEREST the interest would be $59 and $118 respectively.

Let's say, you borrow $1,000 at 15%. At the end of the year the banker wants back $1,000 plus $150, for interest. However, the $150 for interest doesn't exist. The banker only created $1,000, but he wants back more than he loaned you. This is the flaw in our monetary system and this is why it will not work.

So here is what happens. You pay your principal of $1,000, which leaves you the interest debt of $150. Because there is no money with which to pay it, you start your second year borrowing a new $1,000. Now you owe $1,150. And, at 15%, by the end of the second year you owe $1,322.50. You again pay your principal, but you now owe $322.50. This is COMPOUNDING INTEREST. But, your friendly banker will continue to loan you money as long as you have unmortgaged collateral, that is, a factory, a farm, a house, etc. etc.

But this increased borrowing and paying interest has now become a part of your business. And, in order for you to continue, you must pass this extra cost on to the consumer. So you raise the price of your merchandise, AND LO AND BEHOLD! INFLATION IS BORN!!

But now, because you have increased the price of your merchandise, your workers need more money if they are to buy the goods they have helped to produce. Of course, this is only the beginning of the problem. As your debt and interest increases year by year, you are forced to keep raising prices. By this time your workers are convinced that you are the one creating inflation. So they have to respond by demanding a yearly increase in wages. This has created enmity between business and labour, each blaming the other for the cause of INFLATION.

However, the banker, is the prime mover in creating inflation because he has put a cost on the use of money (namely interest).

It was this interest which forced you to increase the price of your merchandise. The Labour increase in wages was secondary. And the continuing increase in your debt and interest is continuing to create inflation..