- on a British site
- as “Plan B” for the British economy
- suggesting to cut bonuses and benefits to bankers..
Too much common sense!…
Too much common sense!…
This is an excellent article that brings together a few important strands of thought:
See our Early Day Motion “Using the Public Credit”: the first of our list of Early Day Motions since 2002.
And see Green Credit for Green Purposes – our submission to the Treasury Select Committee in 2007.
This article is my answer to the invitation by Will Sharp, editor of Left Foot Forward. He asked for less than 500 words:
An economy describes activities that people perform to make a living through money. However, the fundamental difference between Cash and Credit are rarely the object of enquiry among economists. In fact, the daughter of Ellen Brown, author of The Web of Debt, wanted to write her PhD on money creation. But she was told by a professor at the London School Economics that “this is not capitalism”.
The strength of capitalism is not capital. It is the passive income that is generated through interest payments and the control over those who are forced to make such payments. It happens to individuals thanks to loan sharks and landlords. It happens to companies thanks to banks and other institutions. And it happens to nation states. That is least understood; possibly because when dealing with big numbers and enter a state of glazing rather than thinking.
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?
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.
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.
Just in case you might think I’m wrong with my analysis, here is an American voice that explains it in market terms.
And The Independent formulates the Big UK question: Could the government bailout of the banks bankrupt the country?
In both countries it is clear that and how governments have given up their loyalty to their citizens in favour of their banks.
According to this article Bailouts expected to add £1.5 trillion to national debt as tax take tumbles in Times Online on February 20, 2009, “official accountancy rules”, few of the nationalised banks’ assets can be counted in the Government’s books.
The big number game continues to be played, to camouflage what is really going on.