When you examine the concept of microcredit what you find is access to capital on a small scale. What most people identify as a major function of a bank is that banks provide capital. Microcredit is a beautiful example of the potential of a free banking system. Thus it is obvious that a free banking system is most helpful, and a free banking system is easily put into place. The question that will now need to be answered is: How will the interventionists try to prevent this from becoming common knowledge?
An additional merit attributable to a free banking system that provides microcredit is the trustworthiness of the recipients, enhanced by designing in accountability using social contracts. In the economic literature on free banking, a free banking system is self-regulating because in the unhampered market only the banks that are trustworthy in the eyes of the depositors would remain viable. The instant there is any indication of poor ethics the depositors will transfer their funds to a trustworthy competitor.
The microcredit concept adds a second tier of stability to the free banking system. The social contracts protect the assets of the bank by serving to guarantee a trustworthy relationship between the debtor and the creditor.
It is clear then that free banking is a strong and productive means of bringing about prosperity.
Stepping back though we can also see where the problem is. The currency which is used as the medium of exchange has to be worthy of trust. This is where the interventionists fail. They are using their powers of intervention to extract wealth and direct it to the favored ones. Afterwards the debased currency flows to others, but through heavily controlled channels.
Now the challenge becomes clear. Can the interventionists use the influence of the media and of their education system to portray the worldwide system of interventionist banking as better and more viable than a free banking alternative? They do have the resources to influence us.
Those who think clearly and independently will know that the corrupt system will continually intensify its intervention and impede human prosperity while those places where the elements of a divine economy appear will show signs of true prosperity.
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