In his book Money: Whence It Came, Where It Went, the famous economist John Kenneth Galbraith wrote "The process by which money is created is so simple, the mind is repelled." Indeed, it is very difficult to grasp at first. However, once money creation is seen and understood clearly the private banks' position becomes indefensible. Let's look at the process from another angle.
People understand that when they borrow money from a friend or a relative, they are borrowing that person's hard-earned money so of course they feel a genuine obligation to repay the loan. Unfortunately, people think the situation is identical when they borrow from a bank. But it's not.
The bank credits the borrower's account with brand new money by tapping a keyboard and changing the number in their account. This new money is not someone else's hard-earned money, it's unearned money produced with virtually no effort. However, the borrower's only source of money to repay this loan is to go out and earn it. And interest charges add insult to injury with the banks demanding even more than they printed. This is an extraordinarily unequal relationship. We are all aware of the time and effort society expends in paying off loans from banks. Imagine if the borrower was aware of the process, would they agree to enter into this debt servitude? Probably not.
In other words, the banks continue to operate because people just don't know. The banks have fostered their image as intermediaries between savers and borrowers but it simply doesn't stand up to scrutiny. In this age of information and the internet it is easy for money reformers to point out the truth about banking and the Positive Money website is one of the best resources to recommend. Ask your friends to visit the site and watch the videos. Let's work together to bring an end to debt servitude.
Change money, change the world!