Tag Archives: Finance

A FLAW in the Monetary System?

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
  1. for its own needs
  2. the provision of public services
  3. the compensation for shortcomings provided by public officials
  4. 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!

USdebt.kleptocracy.us: a great visualization of the US national debt

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:

  1. Governments always had the right to mint their coins and print their notes
  2. 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
  3. Banks have gradually virtually replaced the interest-free money of governments (Cash) by interest-bearing Credit
  4. 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
  5. by continuously increasing the need to pay more and more interest, the economy acquires an artificial pace and speed
  6. 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:

  1. price inflation
  2. 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.