A preference for the old ways

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Dear Editor

The formulation of the credit system in Samoa with the loan first and pay later with interest to the banks adopted from the Western way of doing business is a very corrupt system. They(banks) create money(credit) out of nothing, loan it to you or your government, you sign the promissory note with terms and conditions using one’s real assets like land as collateralized assets for these loans.

These loans are sold by banks to other (banking institutions) overnight and profit from it over and over again.

They(banks)use leverage to amass fortunes from taking 1 tala and make 9 tala out of it.

That’s fractional reserve banking. That’s why the ADB,IMF,WB and soon AIIB love to loan out their ‘fiat’ currency to under develop countries because they know their investors will get their returns no matter what. No wonder why Albert Einstein said, “The best thing that man ever invented was the principle of compounding interest. It works like clockwork. It’s a friend if you save and it’s a foe when you borrow.

“It never stops if you’re asleep or vacationing, it keeps on accumulating interest over time, “Time is money.” according to Benjamin Franklin.

I prefer our cash economy before where we pay cash for everything as you go and if we run out of money, we stop spending. You don’t have to submit your freedom to these banking institutions by living on credits. But this “growth”system of consumerism perpetrated by corporate greed fueled by “keeping up with the Jones’s” mentality will be the demise of our own existence. I would prefer going back in time and live off the land and forget about the rat race of chasing the all mighty dollar at the expense of the quality of life and time well spent with families.

Samoa is now experiencing those problems that come with being a consumer driven economy that is not equitable with the standard of living of most people. The scales of justice in Samoa are way off financially and economically. The rich are getting richer while the poor are getting poorer. There will be social problems that will arise from this disproportionate of inequality.

If Samoa is in great shape according to the ADB report, then why is it that according to IMF previous report warning that Samoa is in the range of approaching 65%of GDP. Which means if they don’t watch their spending, they might experience a default. Is that the reason why the govt. is streamlining their spending now with their latest budget cut?

Whatever propaganda the ADB is using to drum up support for its misnomer lending practice is unequivocally unacceptable. Theft of customary land through giving the Sa’o sole proprietary rights of the land without the consultation of suli’s of the aiga is unconstitutional.

 

Leituala RB

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