This blog is about my favourite leisure activities and some thoughts in general.

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Friday, February 22, 2013

Volkswagen and the system of interest

The Volkswagen AG just pronounced record profits after taxation of 22 billion Euros. I suppose they will not park that money in an account, but will reinvest it. Assumed they use 2 bn Euros to modernize their company and the other 20 to acquire German bonds for better than average conditions of 5 % interest annually and a contract period of 10 years. This means Volkswagen receives for 10 years every year 1 bn Euros of interest without having done anything from the state of Germany. Now where gets Germany the money from ? They could raise taxes and fees or cut government spending. This means they take money from us and give it to Volkswagen, who accumulate obscene wealth - shifting of money from bottom to top of gigantic proportions. While John Doe might be happy with the 2 % interest his bank gives him for his meager savings he does not realize he pays a lot more of interest to fill the pockets of already rich people and this is the reason, why the system of interest has to be abolished. Perhaps this example is a bit crude and not quite flawless, but i think it hits the mark. On YouTube people like Bernd Senf, Andreas Popp or Rico Albrecht have a series of interesting videos on the subject and for those , whose intellectual horizon goes beyond watching football or Germany´s Next Topmodel they are recommended.

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