Journal of Critical Realism in Socio-Economics
Vol. 4 No. 02 (2026): Computing Consciousness

A Critical Realist Reading on The Banking & Interest Crisis

Rodney Shakespeare (Trisakti University, Jakarta)



Article Info

Publish Date
30 Jan 2026

Abstract

This paper examines the ontological nature of modern money creation and the destructive socio-economic impacts of compound interest. It seeks to expose how the private banking sector’s monopoly on money creation through debt-entry mechanisms serves as a fundamental barrier to human rights, mental health, and ecological sustainability. Using a critical political economy approach and a socio-legal case study analysis, the research investigates the mechanics of fractional reserve and credit-creation banking. It specifically analyzes the correlation between usurious debt structures and social collapse, utilizing the Indian agrarian crisis (1997–2010) as a primary case study for the human cost of compound interest. The study reveals that approximately 95% of the global money supply is created as debt by private institutions, making "scarcity" a systemic artifact rather than a physical reality. The research identifies "Accumulated International Debt Syndrome" (AIDS) as a neo-colonial mechanism that prevents developing nations from achieving sovereignty. Furthermore, it demonstrates that "financial unviability" in green energy projects—such as tidal lagoons—is often a mathematical consequence of interest-based discounting rather than a lack of technological or resource feasibility. This paper bridges the gap between monetary theory and humanitarian ethics. By reframing 200,000 farmer suicides not as individual tragedies but as "systemic executions" caused by interest-bearing logic, the work calls for a paradigm shift toward debt-free sovereign money and the abolition of usurious frameworks to facilitate civilizational progress.

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Journal Info

Abbrev

JOCRISE

Publisher

Subject

Description

Journal of Critical Realism in Socio-Economic (JOCRISE) is focused on the reviews of related problems in critical realism open to the methodological moral inclusiveness of diverse issues and problems on the socio-economics domain. Scope Theory of critical realism; Theory of unity of knowledge; ...