Since the ‘credit crisis’, national debts have been mentioned as big figures. But nobody seems to question their validity or benefits, let alone their damages.
Let’s put it in a nutshell:
- national governments have been creating Cash (notes and coins) free of interest – as a medium of exchange
- with the Bank of England Act 1694, the first National Debt was born: £ 1.2 million at 8%
- since then, other Central Bankers have issued “money” as “Credit” to national governments
- governments believe they can raise money only by taxing or by borrowing.
What’s the problem?
- that nobody creates the INTEREST that is necessary to pay off Credit
- hence we, the voters and consumers, pay taxes so that interest payments on “public debts” can be serviced
- in the UK, these interest payments constitute similar amounts to military expenditures.
Also in German on Die Geissel der Nationalen Schulden – Wie Völker verwirtschaftet werden, und Europa es besser machen könnte.
More on Public Debts => Problems.