Re: How I Learned to Stop Worrying About Fractional Reserve …
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"Banks generate a massive pressure on people to produce, consume, work harder, fight wars, i.e. increase their human velocity, via increasing money velocity by putting people in debt (a reason we love vacations to non-banking-dominated destinations). Debt is the ultimate empire builder, and banks are the engine. "
I kind of half agree with that. I pointed out above that debt is a useful (and the only large scale practical) way for a sector of society to voluntarily defer some consumption for later.
The problem as you pointed out is interest, and specifically usurous interest. The second evil is centralisation of money creation, which applies to a centralising banking system or to a centralised minnig system.
If money creation is decentralised, and further, interest rates are a geneuine free market clearance between borrowers and savers at any positive or negative interest rate I don’t see debt as a bad thing. Its required to build a civilisation of any significant complexity and longevity. Now you may feel that the sentence above is some kind of utopia but I think economic forces are going to push us in this direction anyway. Certainly the internet provides for decentralisation of money creation, as it provides a vehicle for managing trust.
The issue of trust in an economy is a technological thing. Initially we had no suitable tech to enumerate trust relationships so we had to use gold or whatever. Then later on things moved on, property rights became better established and for the most part paper money worked passably well. Then we grew a banking system, FICO scores, credit rating agencies etc. These latter have all failed dismally, and the reason for that is centralisation of the trust machinery, and its subsequent corruption as a result.
The only possible future banking system that will serve us properly in future must decentralise money creation, be unconstrained by the 0% bound, and provide peer-peer trust networks. I do think all the above can be achieved by comunities using the internet.
By way of an initial examlpe, a fledgling move in this direction, see the BarterCard System.