Government Debt

“Government debt is a fiction. The government ought to have sovereignty which includes the right to print a currency. Yet in America and in the modern world with the exception of Singapore the right to create money has been given to the bankers. We have had three Presidents who supported the right of the government to issue Treasury Notes (Debt free money) instead of Federal Reserve Notes. Unfortunately for us, all three were killed by “lone assassins.” (Code for “Agents of the Rothschilds”)

Let me begin by explaining what money is. Money is a commodity that measures the value of all other commodities and services. Prices are a ratio of money to all other goods for sale. If the ratio remains constant then there is no inflation. For example, if the money supply were one trillion dollars and production increased by 4%, then we could increase the money supply by 4% without fear of inflation.

So, you ask, how do banks and governments differ in how they create money? Imagine it is in the early 19th century and we are shipwrecked on an island far from the shipping lanes with no immediate chance of rescue. I would open a bank. I would find an artist to help me create one thousand one dollar bills. I would spend these “Island Treasury Notes” into circulation by paying anyone who did community work, such as, building a clinic or a school. I would have a popular government as I would dispense more social services than I took from the people in taxation.

Now imagine you are stranded on an island with a New York or London banker. He would set up a private bank and create money which he would loan to you. Notice he is not loaning you anyone’s savings. He is functioning as a counterfeiter. He is using loan agreements to pass counterfeit money. And he is requiring you to pay interest on his forgeries. This form of banking is nothing more than a theft as it will eventually through monetary creation, interest payments, inflation and depression transfer all wealth from those who produce wealth to those who print the currency.

Suppose our banker runs low on paper to print money. He can create checking account money. You go in for a loan and he gives you a check book in which he gives you the right to write checks up to the amount of the loan. (These days you would use an EFTPOS card or online direct deposit.) Notice again he is not loaning you someone else’s deposit. He is creating money out of thin air and obligating you to work to repay him both the amount he counterfeited and the interest.

Full Article.

Government Debt