The Debt Illusion

This past month I’ve been hanging out in the the Irish Republic – Cork, Munster to be exact.

The Irish are bemoaning “the recession”. Unemployment is high but public debt is the main cause of concern.

All political parties, just as in the UK, have agreed that the public debt must be reduced and public expenditure must be slashed.

Yes, you heard that right. The general population is suffering from a decrease in income and the general consensus is the only solution is to decrease their income even more!

It’s complete collective idiocy based on a profound misunderstanding as to the nature of money, where it comes from, and how it can be used to secure a sound economy.

The first thing that has to be done (and an independent Wales would have this option) is for once and for all separate money and debt. The financial elites have bamboozled us over the past few generations that all money must be linked to interest-bearing debt. It’s how the financial elites keep the cream (interest) for themselves and grow fat while the rest of us become debt-slaves on a treadmill with no hope of getting off.

I’ll talk more about this later but here’s the jist – 95%+ of all money in the Western economies is interest-bearing debt. Where did it all come from? Simple. When you borrow from a bank it creates the money out of nothing. Yes, nothing. Presto. That’s why it’s called fiat currency. It shows up as credit in your account but the catch is you have to pay it back with interest. And yes, the bank keeps the interest and the the main sum when you pay it back. good deal for the banks. Slavery and a massive con for everyone else – including governments – who have been duped into thinking they have to borrow money from the banks to finance public expenditure. Hence the public debt.

That’s right. An entire nation is enslaved in debt, including the government, to a small group of smug bankers, who simply made the money available by typing it into the borrows account.

You see, money is just electronic numbers these days. Less that 3% is paper bills and coins – created by the government as debt free legal tender. The rest is a massive con job.

A free and independent Wales would need no public debt.

A free Wales wouldn’t need full employment – a basic income distributed to all citizens would suffice.

An independent Welsh republic could abolish income tax – a ridiculous idea from inception.

An independent Wales could manage its own debt-free money supply for the benefit of all.

A civilized Welsh republic could make bankers do what most people think they do now – lend money they already have. And if they haven’t got enough money to lend? They would have to borrow it from the government.

That would be a sensible arrangement. Let’s turn the debt tables around. If there’s any debt it should be the financiers owing the state, not the other way around.

When will we wake up? When will we see that the financial emperor has no cloths?When will Wales be free?

The sooner the better!

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