Executive Summary The private banking interests and therefore the Fed will do anything to keep debt deflation from occurring. Introduction Deflation is a nightmare scenario for central banks because it restricts their ability to stimulate the economy. For example, with the low-interest rates in the US (combined with the need to massively subsidize private banks),…
Executive Summary The quotation in this article explains the impossibility of a government not being able to borrow in its own currency. Introduction This is covered in the following quotation. “Fear the government will be unable to sell securities overlooks the mechanics of the process itself. The imperative of borrowing is interest rate support. By…
Executive Summary Balanced budgets function in a set of assumptions that the central bank is private and money is created with debt. Introduction Why this is a myth is explained in the following quotation. “You’re having government spending on the economy being cut almost everywhere. That means that the only source of spending for growth…
Executive Summary Private banking interests are constantly focusing attention on the public debt, which allows them to seize the high ground in public spending. Introduction It is common to say that the US federal debt is too high and will be negative for future growth. Normally the person making this claim will use an increased…
Executive Summary Public debt is a feature of countries that have a private central bank. Introduction Public debt exists because of a private central bank. The government goes into debt every time it issues a bond. From here, debt is created. However, when the government creates its own money, there is no bond, and no…
Executive Summary Debt jubilees are ways of mitigating the feature of the debt overhang and undermining society. Introduction A debt jubilee is an ancient practice that goes back to Sumeria where some debts — debts to the palace or government were canceled, normally upon the death of a king or upon losing a war. Debt…
Executive Summary Debt is a primary way that wealthier nations take control over less wealthy nations. Introduction Using debt as a type of warfare is explained in the following quotation. “If you treat debt as a weapon, the basic idea is that finance is the new mode of warfare. That’s one of my chapters in…
Executive Summary The phrase is often stated that all money is debt. The answer is that it depends upon whether the central bank is public or private. Introduction It may seem that the interest on any federal debt of any country that controls its own currency (so not the EU countries) is paid by taxpayers,…
Executive Summary Private debt is differentiated from public debt. Introduction Debt is the accumulated level of credit. Private debt is the combination of business plus household debt. Mainstream economists, as directed by private banking interests, do not spend much time discussing private debt levels. This is repeatedly observed by Richard Vague and Steve Keen. According…
Executive Summary Debt is a primary way that monied interests persecute those with fewer financial resources. Introduction How debt is often used is described in the following quotation. “In America, in colonial times, sharpies (especially from Britain) would lend farmers money that they knew the farmer couldn’t pay, then they would foreclose just before the…