It’s too bad that most people don’t appreciate the significance of the national debt. In view of the visualization that simply illustrates the HUGE number of dollars, let me repeat my essential points here:
- Governments always had the right to mint their coins and print their notes
- In 1694, the Bank of England was established to lend the then King the first national debt at 8%; why was the King so naive, one has to ask
- Banks have gradually virtually replaced the interest-free money of governments (Cash) by interest-bearing Credit
- the national debt will never be paid back; but interest payments come in regularly to those who know about the issuance of national debt bonds and can afford to buy them
- by continuously increasing the need to pay more and more interest, the economy acquires an artificial pace and speed
- it is effectively a deep betrayal of the taxpayer who is made to believe that his taxes are the income of the state, when, in fact,
- taxes are only a share of the income of the State
- borrowing is the other source of income that could be entirely be replaced by governments printing their own money.
The argument that ‘printing money’ means creating ‘inflation’, is not accurate, since there are two kinds of inflation to consider:
- price inflation
- monetary inflation, i.e. the increase of the money supply.
The wise way would be to reduce the share of Credit in the money supply and to watch the Cash : Credit ratio go towards 50/50, as it was before WWII.
Here’s the visualisation of the US National Debt.
Here’s my Santa Letter that I put here. Will you add yours?
Dear Bank of England,
For Christmas, it would REALLY be nice if ALL of your employees were invited to remember how you were created in 1694: the Bank of England Act foresaw a punishment for TRADING, to avoid the SUPPRESSION of Their Majesties’ subjects, at TREBLE the value of the trade. See http://bit.ly/fgU3Ps
Hence my biggest wish is that you stop selling ‘bonds’ or any other papers or currencies to the Treasury as “public debt”, only for us the taxpayers to pay interest every year, in every budget, no matter who’s in government.
My next biggest wish is that you stop listening to the Fed, the IMF and any other American economists or bankers. Think your own thoughts! And think about what is good for the people in the UK and not just the global financial elite. Could you please put your allegiance where it is supposed to be, and not with whoever wines and dines you best?
And then I do wish that you supervise all banks propoerly, for self-regulation does NOT work. With the internet it’s easy now. Get proper statistics together! Just as everybody gets hit and hurt when ZERO is reached in an account, so please hit and hurt your fellow bank(st)ers:
- when there is too much Credit and not enough Cash in the money supply
- when short, medium AND long-term inflation figures become unacceptable
- when banks get bailed out WITHOUT victims of financial exploitation and legal oppression being compensated for white collar crimes committed by people in your institutions.
What a lovely 2011 it would become!!!…
Yours gratefully in advance,
Organiser, Forum for Stable Currencies
Web Publisher, Victims Unite!
Posted in Banks, Campaigning, City of London, Currencies, Economics, Federal Reserve, Inflation, International Monetary Fund, Monetary inflation, Price inflation
Tagged Bank of England, Federal Reserve System, IMF, International Monetary Fund, Money supply