What you say regarding Principal and Interest is true.  In a way I am surprised you are posting this information.  I have tried on numerous occasions to get this point across to people and they just cant seem to grasp the basic fact let alone the greater ramifications of this practice.  Essentially it is this: First everyone is borrowing money from the initial printing of principle/loaned monies.  Second they all struggle to extract the interest from that same quantitive pool of money initially printed.  Those (Interest) funds do not exist! PERIOD.  Therefore there is a very real cash shortage purposefully “created” at the outset by the Federal Reserve and in turn the banking system.  

This shortage of “Interest” also has a cause and effect wherein people are willing to settle for lower wages or bid lower on contracts just to be able to extract what they need in interest from the original pool; thus this further diminishes the wealth of the middle class as they bid against each other essentially creating a financial battleground where only they loose and the bankers once again win.

When you add to the the ability of banks to loan out $10.00 for every $1.00 they are holding, they have yet established another plateau of of advantageous separation between the lender and the borrower.  So the banks have a 10 to 1 advantage over the borrower + interest.

I also find this Banker/Borrower situation to be a direct reflection of the Southern Plantation Company Store Slave Debt Circle.  The slave works all week long for the plantation owner and when it comes time to be paid his paltry dollar, he is asked by the clerk at the company store if he wouldn’t like some alcohol or some tobacco or some sugar.  After working all week in the hot sun he sure would like some of those “addictive” products to sooth his misery.  The company store then Subtracts his wages from the cost of the products and Adds additional debt to cover the costs which his wages did not cover.  In the end the worker never can earn enough to free himself from debt to the company store and so the cycle continues week in and week out.  Now days we have something called a mortgage.  Mort = Death, Gauge = Time it will take until the debt is paid in full.  = NEVER!

- Orbmanelson