Page 205 - THE PATH
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The borrowed money had to be returned with 12%
interest, which would mean $1,000 loan plus 12 %
interest, which is $1,120 at the end of the year.
From the above figures, it follows that the bank’s profit
from its operations is $40. Basically, this is how banks
work. So banks exist to perform these basic functions that
help social relations in the sphere of economy in the world.
What is the situation now, in 2015?
For $1,000 savings, the bank gives 0% to 1% interest per
annum, and invests this same deposit, getting on the
average 8% or more interest per annum.
At first sight, this looks normal and logical. These are
private banks and they are entitled to their own policy. In a
market society, banks can do what they want, it is their
business.
However, it is not quite like that. Banks today are
significant segment of the social relations in the world.
Liberal policy allows banks to violate many major areas of
the private and business life worldwide, in some parts they
even penetrate people’s social life. Money contains
invested human labour.
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