Archive for February, 2009

Why are we in a global financial crisis – The Problem with Orthodox Economic Theories

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Today, as I write, the new merged UK banking giant Lloyds has underestimated the loss that is about to be incurred as a result of the merger with HBOS. The banking giant has received a huge bailout selling more shares to the government and is on its way to being yet another private bank doomed to nationalisation.

On the television I hear no mention of why this might be apart from propaganda trying to make the public angry about the CEO’s who have taken too much bonus and ’caused’ all this mess. It is very easy to divert attention away from our unsustainable system by blaming the crisis on greed when you have every newspaper and television show focusing Keep Reading…

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Monetary Reform is not a conspiracy theory

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As you research this topic further, monetary reform is often presented alongside a full blown conspiracy theory, which claims that the financial system is being shielded from criticism and deliberately employed as a device for keeping people in a state of dependency, so as to advance a high-level political agenda. But this conspiracy theory is far from proven. Certainly, most political figures clearly know nothing of the weakness of conventional economics.

What dominates the world is not a conspiracy, it is a philosophy, a philosophy Keep Reading…

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A debt based monetary system, Export Warfare & Third World Debt

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Our debt based monetary system is directly responsible for world export warfare and third world debts. In order to understand the need for exports it is necessary to understand that there is no such thing as a supply of permanent money to the economy, and the vast bulk of money within the economy has its origins in loans and is represented by a matching domestic debt. When goods are exported, foreign money is brought back into the economy, but the debt behind that money remains overseas, in the country of origin. Through exporting, money that has been borrowed into existence in another country is brought into the economy free of debt. The money can easily be turned into domestic currency via the foreign Keep Reading…

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A debt based monetary system & forced debt slavery

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As a direct consequence of a debt based money supply our entire economy is plagued by intense competition for money to pay interest in an economy that suffers from an impossible lack of purchasing power. The chart below that plots the growth of money stock (M4) and domestic debt over a 33 year period in the UK clearly highlights that the total debts carried by consumers and industry is greater than the money that exists in the entire economy. Keep Reading…

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What is a debt based monetary system?

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As the financial crisis grows more and more intense, it seems increasingly certain that many of our major banks will be taken into state ownership. This is a mistake – if we are to nationalise anything, it should not be the banks, but the money supply itself.

Contrary to popular belief, most money in our economy is not created by the government or the Bank of England. It is created by the commercial, high-street banks every time they issue a loan, mortgage, credit card or overdraft. This is made possible by the fact that most money these days is not cash or coin, but simply electronic numbers in computer systems. Whenever a loan is made, these numbers Keep Reading…

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