This blog intends to point out

  1. the fact that there are two kinds of money in circulation:
    • Cash, consisting of notes and coins, issued by the State
    • Credit, aka “central bank money”, issued by monetary and financial institutions
  2. that there are fundamental differences between these two kinds of money
    • for Cash, the authority of the issuing agency is in the UK the Sovereign, i.e. The Crown or HM The Queen
    • “credit money” requires “interest money” that nobody issues
  3. that the effects of interest are equally debilitating for the public and the private sector of the economy:
    • every interest payment requires borrowing from Peter to pay Paul
    • mainly the people in monetary and financial institutions benefit from interest payments
    • the growth of compounding interest on interest is exponential, i.e. unsustainable; see understanding exponential growth
  4. that increasing the money supply is decreasing the value of the currency due to printing “money”
    • the value of “money” is deflated as the money supply is inflated willy nilly
    • the function of money changes from “medium of exchange” and “store of value” to “tool for control”, since debts are legally enforceable
  5. the fact that credit becomes cash or “money”, behind the bank counter, means:
    • the quality conditions under which Cash is produced, the correctness of paper and printing for notes and the quality of metal for minting coins, are not applied
    • no quality control means absence of quality, if not counterfeiting…
  6. the fact that governments facilitate this process of Credit becoming “money”, aka laundering, means:
    • by borrowing money as “national” or “public debt”, the supply of “credit money” is increased, i.e. the value of the currency is debased to the detriment of the nation
    • by demanding taxes to pay interest to the financial economy, the real economy is debilitated
    • no matter which party wins an election, governments have been perpetuating the process of borrowing more and more through the budget deficit
  7. the trend that has led to virtually replacing Cash with credit money from 50/50 after WWII to 3% Cash in the money supply; see What is the Cash Crumble?.

The blog was inspired by a lady who wanted to spread the message about Money as Debt. She had been aware of the activities around the Forum for Stable Currencies and offered her support.

The Forum has been advocating economic democracy through freedom from national debts as the ultimate goal. But the road to economic democracy is marked by many milestones that many people can contribute.

The purpose of this blog is spelled out in our first post.

An alternative to the current system of creating money as a financial product is on the (proposed) Bank of England Act 2010.

My name is Sabine Kurjo McNeill and my profile is on LinkedIn.

19 responses to “About

  1. You have a terrific blog Sabine! I also started a monetary blog…it is on blogspot…but yours has so much information and is nicely displayed….I did not see this wordpress theme available when I tried to make a wordpress blog…..either way…..moneyasdebt is a good looking blog you should be proud of….Have you tried to monetize your blog?

    That is a debate I am having as I want to continue with my blog and earn too.

    • Thank You, Nizam,

      Sorry I only spotted your comment now, as I’m re-visiting my blogs due to more clarity. For I’m working on National Debts in German.

      See Nationale Schulden.

      No, I’m not trying to make money out of my various blogs. I’ve learned to live off the minimal existence I’m offered due to a very serious car accident on official duty trip.

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  3. I came across your site and thought it was fantastic. Especially the links into German language material. Das fand ich unglaublich toll und ganz selten findet man etwas so interessant, die mit Finanz zu tun hat und auch in den beiden Sprachen ist. Es muss ganz schwer sein die beiden Seiten zu schreiben.

    If you are interested, please contact me regarding advertising. Advertising on your sites would be fantastic.
    Keep up the good work and viel Glück


  4. Oh, THANK YOU, Janice!

    Well, since German is my first language, it’s not difficult. In fact, I’ve lived outside Germany for longer than inside and thus I prefer to write in English.

    However, I’m envious of Arthur Rubinstein who grew up learning Polish, was taught the piano by a German teacher and then moved to Paris.

    French was not his last language though. He added English, Spanish and Italian…

    I think I’ve got enough “confusing” info on my sites and don’t want to “irritate” with advertising. Thanks for the offer!

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  6. Hi Sabine, nice blog
    But im afaid on number 4 it really is not that simple and all depends on what assumptions you put into MV=PY.

    Friedman put the following assumptions in to claim printing money was inflationary.
    M: That which is money is easily defined and identified and only the central bank can affect it’s supply, which it can do with autonomy and precision.
    V: The velocity of money is related to people’s habits and the structure of the financial system. It is, therefore, relatively constant.
    P: The economy is so competitive that neither firms nor workers are free to change what they charge for their goods and services without there having been a change in the underlying forces driving supply and demand in their market.
    y: The economy automatically tends towards full employment and thus y (the existing volume of goods and services) is as large as it can be at any given moment (although it grows over time).

    So picking through those assumptions well you can see M is incorrect straight away as they control the price of money not the quantity.
    V empirically velocity is all over the place.
    P is the old nonsense about supply=demand.
    Y we are at full employment really?

    You are a mathmatician play around with the figures 🙂

    • I am also a systems analyst, Andy.

      I don’t just play with figures. I question assumptions, definitions and certainly ‘economics’. For it’s a pseudo-science – only created to camouflage what the bankers are doing.

      The fundamental difference between the creators of money is
      — the government for interest-free Cash
      — banksters for interest-bearing Credit – who get away with calling it ‘money’, albeit they used to make the difference between ‘broad’ and ‘narrow’ money.

      The real killer is difference: exponentially growing and not created by anybody.

      Thank you for your thoughtful comment!

  7. Hi Sabine
    “‘economics’. For it’s a pseudo-science – only created to camouflage what the bankers are doing.”

    Agreed but it should be noted you are talking about Neoclassical economics, there are other schools as you know, my nickname gives away who i support.

    Assumptions are the crucial point as ive shown in the above equation when people just say “money printing” is inflationary they are doing exactly the same thing as Friedman.

    I think we are on the same side, on your related blogs SK debunking economics is sitting right here next to me, and i really like Ellen and use her stuff when arguing with the goldbug loons 🙂

  8. I emailed Mervyn King last year with a solution for the UK’s debt problem, I called it ‘Funny Money & the 4 Card Trick’ and loosely based it around the gag that was doing the rounds at the time

    I’d imagine that most have heard the joke, it was about a 100 Euro note or maybe $100 bill in its American guise, and the circuitous route it took in getting rid of the debt of a small town.

    In the unlikely event that you haven’t I’ve reprinted it below: –

    It is the month of August on the shores of the Black Sea. It is raining, and the little town looks totally deserted. It is tough times, everybody is in debt, and everybody lives on credit.

    Suddenly, a rich tourist comes to town:

    He enters the only hotel, lays a 100 Euro note on the reception counter, and goes to inspect the rooms upstairs in order to pick one

    The hotel proprietor takes the 100 Euro note and runs to pay his debt to the butcher.

    The Butcher takes the 100 Euro note , and runs to pay his debt to the pig grower.

    The pig grower takes the 100 Euro note , and runs to pay his debt to the supplier of his feed and fuel.

    The supplier of feed and fuel takes the 100 Euro note and runs to pay his debt to the town’s prostitute that in these hard times, gave her “services” on credit.

    The hooker runs to the hotel, and pays off her debt with the 100 Euro note to the hotel proprietor to pay for the rooms that she rented when she brought her clients there.

    The hotel proprietor then lays the 100 Euro note back on the counter so that the rich tourist will not suspect anything.

    The rich tourist comes down after inspecting the rooms, and takes his 100 Euro note, saying that he did not like any of the rooms, and leaves town.

    No one earned a thing, however now the whole town is without debt, and looks to the future with optimism.


    But what if the joke was put to the test on a much bigger scale and slightly tweaked in terms of time, how would it pan out?

    Here are the FX rates on the date I happen to be writing this (15/06/2012), obviously being UK based I’ve used GBP in all the
    currency pairs.

    GBP/JPY : 122.63
    GBP/USD 1.55
    GBP/EUR 1.23

    If Japan were to print and buy one trillion GBP of Gilts nothing much should happen if we ignore the immediate impact on the currency pair and the effect on Gilt yields for the purposes of this action.

    But what if Japan then announced that they were gifting the Gilts back to the UK to use to pay off UK debt and support the GBP?

    What would be the effect on the currency pair?

    Would it take us back to the mid 2007 position where exchange rates were: ‐

    GBP/JPY : 209.95
    GBP/USD 1.86
    GBP/EUR 1.46

    Except now we have no debt, other than the unquantified unfunded ones in books yet to be opened.

    If we were then to give a trillion pound to the US and they then to Europe in a repeat of the Japanese generosity is it not feasible that all four countries would have had a considerable reduction in their debt and an effect on the currency, in zero sum game that is FX, once our European cousins helped out Japan?

    Only central banks could operate on such a scale of duplicity, but the fallacy of the fiat system is becoming ever clearer as money from nothing in the minds of many, bringing the risk of hyperinflation ever closer.

    How well it would read if a trillion pound debt was extorted from the sharp suited city types who speculate on currency markets rather than the hardpressed worker or retiree, even if not strictly true and we all ended up happy ever after, a trillion pound richer and with FX rates of:

    GBP/JPY : 122.63
    GBP/USD 1.55
    GBP/EUR 1.23

    A good joke yes?

    Just not funny of course.


    Ellen Brown’s proposal is remarkably similar, albeit more considered and better thought out, oh and more practical too, but if my experience is anything to go by, she won’t be getting a reply from Merv or any of his lakeys anytime soon 🙂

    • THANK YOU, dear Monk!

      I did get responses in the usual ‘fob off’ style that I’m used to by now.

      So it seems we must recognise and accept that it’s not in their ‘interest’ that we know that our agenda doesn’t match theirs!…

      Sick, sad and sorry…

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  13. Fascinating insights and valuable lessons that more people need to be aware of. Thanks for posting!


  14. As a person who has struggled with credit card debt and money issues all her life, I’m really grateful for your blog. It’s simple and I love what you are trying to make people understand. Keep up the great work!

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