This seven-minute video shows better than any other medium how devastating the effect of compounding interest upon interest is.
The trouble is that, by now, brainwashing (rather than education) has been so successful that everybody thinks ‘money’ must be borrowed. At interest. Nobody asks where the interest is supposed to come from.
And there is a big difference whether
- you and I borrow for our personal or small business needs (little money)
- whether banks and central banks borrow (making money out of money aka usury)
- and whether the Government borrows ‘big’ money
- for its own needs
- the provision of public services
- the compensation for shortcomings provided by public officials
- to ‘run’ the economy – which it hardly does, compared with the effect of money as debt.
Yes, it’s about ‘big’ money and ‘little’ money, and it’s about long and short time frames. That’s what the video shows!
‘Austerity cuts’ are far from necessary. But The Bradbury Pound is not known, since it is not taught by any economist. For the bank(st)ers do their best to camouflage what they are doing: create money from thin air and charge interest for it.
The big question is: why do all politicians seem to fall for this ‘trick’ such it has been beautifully institutionalised into the Debt Management Office?
The history of the national debt is published here. But who benefits is not published, i.e. the recipients of interest payments!
Posted in Banks, Central Banks, City of London, Compound Interest, Credit creation, Debt Management Office, Government budgets, Government debt, Money as Debt, National debt, Public debt, United Kingdom
Tagged Business, Central bank, Directories, Federal Reserve System, Finance, Government, Interest, Monetary policy
An interesting chart about the UK national debt by an interesting organisation: the Economic Research Council – with an explanation here, about the huge increase. How come I just read today that the PM claims the national deficit has been cut by more than a quarter? I suppose the deficit is not equal to the debt in his mind…
Also interesting is the previous chart:
Posted in Government debt, National debt, Public debt, United Kingdom
Tagged Business, Debt, Financial Planning, Financial Services, Government, government debt, United States, United States Treasury security
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.
Are enough people waking up to make a difference like this cartoonist? Click on the image to enlarge it.
Central banks create “money” from thin air, call it quantitative easing, sell it as “public debts” or “treasury bonds” to get interest payments, and people are in awe of fancy papers and words they don’t understand.
Banks do the same, while talking about “financial products”…
And governments? They play along and betray their tax payers. That’s why the Treasury gets staffed with Bilderberg attendees.
Institutions live longer than people. They follow the money to employ people. In 1694, the Bank of England was the second central bank after the Swedish Rijksbank 30 years earlier…
Same circus, different clowns!…
Posted in Banks, Campaigning, Central Banks, City of London, Credit creation, European Central Bank, Federal Reserve, Government debt, Money as Debt, Nation States, National debt, Public debt
Tagged Central bank, Government, Quantitative easing
Getting letters from Officials is always interesting.
This one is an anonymous response from public.enquiries AT hm-treasury.gov.uk and states:
The National Debt is not owed by the public, but is owed by the Government. It is not Government policy to repay the national debt completely. Governments borrow in order to spread the capital of projects across generations, so that all those who benefit from a government policy contribute towards it.
Borrowing also allows the Government to smooth its expenditures over time, allowing for a more stable tax system.
If the Government did not issue debt, then taxes would have to be constantly changed. This approach is unfeasible and economically inefficient.
I shall send an email in response to this and ask others to do the same.
This is what happens when money ceases to be a ‘medium of exchange‘ and is a ‘tool for control’ instead:
The proposal by HM Revenue and Customs (HMRC) stresses the need for employers to provide real-time information to the government so that it can monitor all payments and make a better assessment of whether the correct tax is being paid…
What a farce:
- Central Banks create “money” from thin air as “public debt”
- then they charge “interest” to the Government
- the Government charges “taxes” to its citizens.
And how many businesses have been made bankrupt by HM Revenue and Customs???