Debts in the Name of the Nation

This petition to save the canal properties of Waterways stirred me to put as succinctly as possible why the National or Public Debt has reached its most heinous peak of abusing “public” for private enrichment. The sell-off of “Government assets” is in the news: BBC, Mail Online, the Telegraph and more.

The National or “Public” Debt in a Nutshell

A Mechanism for the Oppression of Their Majesties’ Subjects

The first National Debt of £1.2 million at 8% interest was created with the Bank of England Act 1694 – when the Corporation was founded with the intention not to oppress Their Majesties’ subjects.  See Enforcement of Bank of England Act 1694.

UK Public Debt 1855 - 2002 This graph shows the exponential rise of the debt (red) in £ billion and the percentage of GDP (blue).

During history, the National Debt was at times annulled, because it was not repayable.

The national debt between 1855 and 2002, published by the Debt Management Office, has unfortunately not been accessible since it was downloaded.

Appreciating the exponential growth of compounding interest means that the purpose of the National Debt is not to be paid off, since it is too large. Its purpose is to provide long-term (30 years) interest payments to those who buy the Treasury Bonds with which it keeps growing. Public debt interest payments form a regular item in all budgets, in the UK as large as military expenditure. See United Nations Statistics Division.

The principle of National Debts has been copied by the Federal Reserve System and “exported” to all Nation States. See The World Factbook by the CIA, where the USA are not listed and the UK is in position 35 after Zimbabwe as the most indebted of 126 countries.

Instead of issuing their own money, as the Monarch used to, Treasuries or National Finance Ministers are persuaded to borrow money at interest, or to raise taxes to supply public services. In democracies, the State prints money and mints coins, i.e. creates Cash – free of interest.

With the National or Public Debt, the Government creates the need for “interest money”. In addition, banks are creating that demand by supplying money into the economy as Credit.

After World War II, the share of interest-free Cash in the economy was nearly 50%. Now it is 3%. Hence the increasing need for “interest money” via real resources such as canal properties. See our submission to the Treasury Select Committee Green Credit for Green Purposes.

2 responses to “Debts in the Name of the Nation

  1. Pingback: In the name of the National Debt « Enforcement of Bank of England Act 1694

  2. Pingback: Liberia sued by Vulture Funds in London « Money as Debt also known as Credit

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