Every thinking citizen should know about the National Debt. For it has many different effects:
1. the government forces tax payers to produce interest payments
2. only rich individuals and privileged institutions can buy government bonds to benefit from secure interest payments
3. the State abdicates its power to issue its own money (Cash) free of interest
4. the State foregoes the income of Seigniorage that comes with producing Cash
5. the State passes its power to create money to the banks – at the cost of its citizen.
By letting banks create Credit in an uncontrolled fashion, while Cash has been consistently reduced over decades, the State fuels a process of “monetary inflation”. This means the steady growth of the supply of “credit money”, which requires interest and compound interest. People thus have to borrow to make interest payments.
Is that not enough to know about the power of creating money and the politics of controlling the supply of Cash versus the creation of Credit?