Exploiting National Debt mechanisms for Bailout money

Most people don’t understand the significance of the national debt: it is used to increase the money supply, so that people can buy ‘gilts’ and thus obtain interest as passive income.

‘Gilts’ or ‘national bonds’ are issued by the Government, backed by the Nation as an entity. But unfortunately the taxpayers of the Nation do not benefit. Only the people who can buy those papers.

Today’s article in the Telegraph may bring it home: people who are in a position to dip into the money pot, do so:

Government stakes in RBS and Lloyds could add £1.5 trillion to UK national debt

4 responses to “Exploiting National Debt mechanisms for Bailout money

  1. An obvious fact that escapes almost everyone, particularly those who angrily talk about budget deficits, national debt, and money printing; and the alternative of borrowing from the financial community is the absence or no other rational system of monetization. They also believe that the earning money is the way to go… for governments, it’s to tax; for people, is to get work. But the basic idea of where does money come from, is never discussed, or truly understood.

    It is a debt based system, and no new money can exists without borrowing against the future or monetizing existing wealth. Both are physically and mathematically limited, and will never sustain an economic system. The result of continuing the present system is that no government debt will ever be retired, except with yet more securities against the future productivity of the nation.

    When the financial community can’t find new sources of money, the bubbles burst, and have no other choice than ask that the government go into further debt. It could work this way if people didn’t panic under the weight of truly false debts, which can’t be paid anyhow, except through inflation and devaluation.

    After the financial community did away with trillions of dollars, and the crisis is based on the system’s lack of liquidity, what would people propose? Don’t answer. You have no idea. Have you been tracking money through the system through its loops? The obscurity and methodology is beyond an easy read; and not answered in a brief post, although the key to unravel the conundrum is in understanding the monetary system, and the irrationality of the debt based system.

    • Yes, Yes, dear Nick!

      We all have to learn to think it out for ourselves. Fortunately, the net helps us enormously. The real challenge is to set up healthy alternatives, for the mosquitoes can only do so much to the elephant… Onward and upward!

      With many thanks for your comment,

  2. Money has no metric. The numbers have no definition, like expecting people to measure length with a meter but without anyone having a meter stick. We need to put the hour on money everywhere in the world. Time organizes all economic activities, except money. We need to unite Time and Money as people already do intuitively. The standard for a fair wage and a fair price is an hour of money for an hour of work. People can always negotiate deviations, but they would be much more within reason than the ridiculous differences in incomes we see today.

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