The Source of Systemic Violence: How Our Money System Holds the World Hostage
IN FOCUS, 16 Jun 2025
Koenraad Priels – TRANSCEND Media Service
Introduction
If you look at the world news today, you will see a succession of crises: wars, poverty, ecological disasters, growing inequality and a political climate that is increasingly adrift. It is tempting to think that these problems are unrelated, or that they are the result of “bad policy”, “corruption” or “power-hungry leaders”. But what if the true cause lies deeper? What if the system itself, on which our economy and society run, is the engine of this destructive dynamic?
In this article, I will take you to the core of the problem: the architecture of our financial system. I show how the current money system – based on interest and debt – not only perpetuates poverty and inequality, but also drives ecological destruction and even wars. It is an analysis that is not only critical, but also hopeful: because if we understand the system, we can also change it.
The Invisible Machine: How Money Forces Growth
Our money system operates on a simple principle: money is put into circulation by banks that provide loans, and interest is levied on those loans. This means that, at any given time, the total debt burden in society is always greater than the amount of money that actually exists. After all, if you borrow €100 at 5% interest, you have to pay back €105 after a year – but that extra €5 is not there, unless someone else also borrows.
This creates a mathematical growth compulsion: the economy must continue to grow in order to be able to pay the interest on all outstanding debts. Stagnation means bankruptcies, unemployment and social unrest. Growth is therefore not a choice, but a system imperative.
The consequences: poverty, war and ecocide
This compulsion to grow has devastating consequences:
- Poverty and Inequality: Every year, more than €15,000 billion in interest is paid worldwide – money that mainly flows from poor to rich. Countries in the Global South often spend more on interest payments than on education or health care. This is not a coincidence, but the result of a “wealth pump” that structurally extracts wealth from the majority.
- Ecological Destruction: To meet the interest burden, countries and companies must produce, consume and deplete more and more. This leads to deforestation, loss of biodiversity, climate change and the crossing of planetary boundaries.
- War and Violence: When natural resources become scarce and debt unsustainable, states increasingly resort to violence to gain access to raw materials, markets or financial breathing space. As General Smedley Butler said, “War is a racket” – but it is the system that feeds the racket.
Systemic violence: the invisible perpetrator
What is happening here is a form of systemic violence: damage that does not stem from individual evil, but from the logic of the system itself. People are not killed directly, but they are structurally robbed of their livelihood, health and future prospects. British physician and researcher Michael Marmot called this “social murder”: when policy choices – or the absence thereof – lead to massive, preventable deaths.
The real scandal is that this dynamic is hardly discussed in politics, media or even academia. The true workings of the money system often remain hidden, even from economists. This is no coincidence: the system protects itself through opaque regulation, institutional inertia and a lack of public debate.
The “Devil” in the System
It is tempting to point the finger at the culprit: politicians, bankers, multinationals, or even certain countries such as the US, who use their military power to protect the system. But if you look deeper, you will see that they too are trapped in a logic that forces them to behave destructively. The problem is not (only) the human being, but the machine he is in.
My research, recognized by the United Nations and international scientific journals, shows that as long as the interest and debt-driven money system remains intact, all attempts at sustainability, peace and justice will eventually fail. The system inevitably produces winners and losers, growth and exhaustion, peace and war.
Can it be done differently? Yes!
Fortunately, it is not impossible to change the system. There are alternatives, such as interest-free, cooperative credit systems (e.g. mutual credit), which create money without pressure to grow and without structural wealth transfer. Instead of a “wealth pump” that keeps the poor poor and makes the rich richer, we can opt for a circular money system that focuses on well-being and ecological restoration.
Concrete projects such as Belfius 2.1 and Free-B show that it is possible to experiment with such alternatives at the local and national level. The key is political courage, public awareness, and institutional innovation.
Call to Action
It is time to lift the veil of systemic violence and open the debate about the foundations of our money system. Peace, justice and sustainability are not utopias, but only become possible if we dare to identify and tackle the source of the problem.
To politicians, academics, activists and citizens:
- Demand transparency about the functioning of the money system.
- Support research and experimentation with interest-free, circular money systems.
- Push for reform of international financial institutions that maintain the current system.
- Educate the next generation about the true causes of poverty, war and ecological crisis.
Conclusion
Systemic violence is not a law of nature, but a consequence of human choices and institutions. If we have the courage to change the system, we can build a world in which peace, justice and ecological balance are central.
The first step is awareness. The second step is action. The time is now.
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Koenraad Priels is a social-ecological researcher, activist and initiator of Free-B. His work has been recognized by the United Nations and international scientific journals.
Tags: Banksters, Capitalism, Cultural violence, Debt, Structural violence
This article originally appeared on Transcend Media Service (TMS) on 16 Jun 2025.
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