Dear DB,
This issue is vy much one of the moment.
97% of our money supply is created ex nihilo by private banks out of thin air. On average over the past 20 or 30 years it has take between £2 and £4 of additional debt across the economy as a whole (i.e. private, corporate and public debt taken together) to produce £1 worth of so-called ‘growth’. That is not the road to prosperity but to perdition.
Cannot these idiots who spout this rubbish about ‘paying down debt’ and who appear not to have the slightest clue what most of our money is and where it comes from … understand that our money supply is thus the mirror image of the debt out of which it is created, and that if we pay down debt that will shrink the money supply, which in turn will create recession and then depression? They not only do not understand the nature of money in a fractional reserve system, but do not understand the mechanics of a debt-deflation spiral.
At least the idea of ‘credit easing’ is, if I understand it correctly, a small step in the right direction.
The money from ‘quantitative easing’ has been paid directly to the banks, and there has been much evidence that this has simply disappeared into a black hole of the shadow banking system, with little benefit to the broader economy. At least there will be siome stimulua if this mechanism is used to purchase commercial paper rather than junk debt from insolvent banks,
Rgrds
FT
Date: Wed, 5 Oct 2011 05:20:01 -0400
Subject: Conservative Party Con – Dave to urge us to pay off our credit cards
We used to be told to spend to get the economy moving, now Dave tells us to pay of our debts.
Which is it ………. do they know what they want? do they know what to do?
See, particularly the comments:
Couple of examples:
‘Inflation is the scoundrel’s tool to deal with excessive debt of all kinds. The UK has used this tool consistently over the decades since WWII and we all know these days what they are doing. Play with the indices, understate current inflation, stimulate more inflation, over 5 years reduce the debt by half with no political controversy. Easy, with the UK population, we will put up with almost anything!
‘The answer is to take a leaf from South America’s book: save in a more reliable currency than Sterling [better be careful which currency - better to buy GOLD if you can].
FROM TELEGRAPH SITE QUOTED IN ABOVE
‘If I had any debt, I’d be giving the finger to the credit holders & tearing up the reminders . . . . . do NOT give the banks any more of your money, you’re going to need it more than them.
Related articles
- MOUNTING DEBTS AND WARS But instead of peace and debt-free prosperity, we have ever-mounting debt and periodic wars. We as a people are now ruled by a system of Banker-owned Mammon that has usurped the mantle of government, disguised itself as our legitim (inquiringminds.cc)
- Billions for Bankers – Debts for the People – WHAT CAN YOU DO (inquiringminds.cc)
- BILLIONS for the BANKERS DEBTS for the PEOPLE – and judge, we were always in debt – DIVORCE COURT. (inquiringminds.cc)
- BBC NEWS – How did the US debt get so bad? (inquiringminds.cc)
- THURSDAY 29th SEPTEMBER: PROF RICHARD WERNER & NEF LAUNCH ‘Where Does Money Come From?’ @ WINCHESTER (inquiringminds.cc)
- Economic crisis nigh as BOA, WellsFargo & Citi Downgraded by Moodys (inquiringminds.cc)
- WAR ENDED “DEPRESSION” Our “depression” lasted until 1939, when the Canadian Government began to spend large amounts of money into circulation for military preparedness for ourselves and future allies in Europe. As soon as the money supply went up people (inquiringminds.cc)
- In a global economy we have a perfect recipe for contagion. We are seeing contagion right now and there’s nothing to stop it. – Dave B. (inquiringminds.cc)
- Positive Money Conference, London, 29th October + September regional events (inquiringminds.cc)
- The Market is Toast – Re: Fw: Protect yourself – it’s going to fall pretty hard – savings of millions of people are going to vanish, and this is just the beginning – BBC News video! (inquiringminds.cc)
- Breaking News. Debt & Mortgage Information (inquiringminds.cc)
- We don’t have freedom. This version of freedom is nothing more than a .50 cent sheriff badge of gold foiled plastic self-worth when comparing ourselves with the rest of the world. The only difference between us? and them is that they’ve covertly convinced (inquiringminds.cc)
- The Rothschilds have been in control of the world for a very long time, their tentacles reaching into many aspects of our daily lives, as is documented in the following timeline. However, before you jump to the timeline, please read this invaluable intro (inquiringminds.cc)
- BBC NEWS – The US economy: A lost decade? (inquiringminds.cc)
Pingback: It’s been busy time here at the office of Positive Money. Lots going on to tell you about… |
Pingback: Well Deluded |
Pingback: Furthermore, we are aware of dark hands that operate behind the scenes of government, controlling individual politicians and the government itself and we know too well that many decisions have been made to serve these interests, at the expense of the peop
Pingback: Re: If electors of Britain had seen that room, I seriously doubt they would h… – Dave B. |
Pingback: “The few who understand the system will either be so interested in its profits or be so dependent upon its favours that there will be no opposition from that class, while on the other hand, |
Pingback: NEW DEBT & MORTGAGE INTERVIEW – Everybody with a mortgage or debt needs to hear this! This is one of the coolest people i’ve ever interviewed. – I hope you find it interesting Ben |
Pingback: Yes, defaulting on debts is an option – Debt collectors trick us into contracts with them when, in fact, we don’t have to pay – the country’s debt is much the same -Paul S. |