The problems associated with the public debt are numerous as far as the public interest is concerned.
In terms of the globalisers, they are, of course, the most effective mechanism for exploiting people and planet.
The German / Swedish lawyer Dr. Henning Witte mentions six levels of dispossessing the public:
- the shift of assets from the real economy to banks
- pension contracts and savings lose their value through the effect of inflation
- taxes have to be increased regularly
- “system relevant” banks (too big to fail) are bailed out with taxpayers’ money
- nation states are rescued with taxpayers’ money
- currency reforms, such as from DM to Euro, ensure the loss of value.
With my system analytical mind, let us differentiate the following levels:
1. the monetary level of national currency
- the purchasing power of a currency is influenced by currency trades, interest rates set by central banks as well as sovereign bonds
2.the financial level of government budgets
- governments raise money from taxes or by borrowing
- budget deficits arise from spending more than raising income
3. the financial level of taxpayers and consumers
- the value of money is ‘watered down’ by much more than official inflation figures, for “interest money” has never any value in the real economy
- governments talk about taxpayers’ money but maintain the need for borrowed money, i.e. interest payments
- interest payments are higher than the budget for schools, which the new government wants to address, but the cause for borrowing is not addressed. To the contrary, the increase in borrowing is projected to rise more steeply than ever!
4. the governmental principle of raising money for public services
- health, education, social security
- pension payments
5. the ethical principle of making money out of money
- interest payments on public debts
- dividends from shares
- rent from property
6. the political level of power and control
Mayer Amschel Rothschild
- money is a necessity for survival
- money is a tool for employment
- financial power has shifted from governments to financial and multinational corporations
- the centralisation of power is the goal of the globalisers.