When a nation, or community, surrenders its sovereign power to create money without debt or interest, a deadly economy is inevitable due to the cumulative toxic consequences of interest-bearing debt.
The debt-money system is fundamentally destructive, because:
- Money as debt is bondage
- Compound interest is fatal
Money as debt is bondage
Throughout human history, money has been created as debt to impose systemic bondage on societies. The current debt-money system is based on the Babylonian banking system of debt bondage that has been operating in various guises since the time of the first Babylon. The powers-that-be achieve domination by coercing the living to bail their assets over to a dead fiction as the surety for a debt, after which the dead fiction is held as the surety in bondage in the jurisdiction of a foreign state.Money as debt is a false device used to entrap, enslave, and control people. Debtism imposes a slave economy by restricting the supply of money to the populace, whereas a living economy has sufficient circulating money for healthy trade.
“Debt” and “credit” are unnatural concepts that were invented to facilitate servitude by accounting for productive capacity (energy) using double entry booking-keeping – which is basically a master and slave ledger of bondage. In Nature, there is no “debt” and “credit”, because there is no concept of enslavement. Among natural creatures, energy is always exchanged in the service of life, not in the service of a master.
While the essence of money is “human energy” backed by Nature, it can be recorded as “money of account”, physically exchanged for goods and services as “money of exchange”, and it can be commodified as “money of substance”.
Practically, “money of exchange” is a “medium of exchange” (a utility token) used by communities by consensus to enable trade beyond direct barter. It requires no proprietary source other than people to create it, but its supply must be limited to retain its functionality. Limiting the money supply has been achieved in the past by using gold and silver as a Bimetallic standard. Whatever the form of money, it is a corruption of money to create it as debt, and its circulation must be sufficient for economic health.
Debt-based banking can be described as human bondage by fraud.
Banks do not function as intermediaries lending their customers' deposits. Instead, they issue a “loan” in “exchange” for the “borrower's” valuable “promissory note”.
“What they do when they make loans is to except promissory notes in exchange for credits.”
(emphasis added) – Modern Money Mechanics, Federal Reserve Bank Chicago
(emphasis added) – Modern Money Mechanics, Federal Reserve Bank Chicago
It is the “borrower's” signature on a “promissory note” that creates the credit. The “promise” represents the “commercial energy” of a living man or woman, which has value in the real economy. The “promissory note” is an asset created by the “borrower”. Banks not only rent “borrower's” their own credit (the principal), but also charge them interest/usury.
Interest-bearing debt and deposit interest extract unearned income from the economy. The cost of interest is embedded in the cost of all money and all goods and services. Interest functions as a hidden redistribution mechanism, continually transferring wealth upward, causing growing income inequality. This leeching of wealth – life energy, is parasitic.
“This illustrates one of the least understood reasons why the rich get richer and the poor get poorer.”
– Professor Margaret Kennedy
Accelerating debt and inequality are the debt-money system's fait accompli.
The system is administered by assigning the debt to a dead legal fiction as “surety” for the debt, while the living man or woman unwittingly “acts” in “joinder“ to the dead legal fiction – an “artificial person”. This is a life-long system of debt-bondage that begins when a baby is born and issued a birth bond – evidenced by a certificate, representing their life-long commercial value. The birth bond is issued in the name of a Foreign Situs Trust, combining the given and family names of the baby. Using this estate/trust NAME is how a living man or woman enters, and is controlled by, the artificial world of legal fiction commerce.
Every man or woman who consents to “act” in “joinder” to an “artificial person”, becomes a debtor and “surety” for the debt system, bonded in debt-slavery.
Registration is the primary “legalisation” mechanism, by which living men and women descend into the phantom world of legal fiction commerce, in the foreign jurisdiction of Admiralty/Maritime/Commerce, the international Law-of-the-Sea.
Sovereign nations are captured by “incorporation”, thereby surrendering their power of sovereign money issuance. An incorporated government does not have the authority to issue debt-free money, being subservient to the incorporating authority to which it reports its annual accounts. After incorporation, a government can be legally bankrupted and administered in the legal fiction system of commerce. This has been the tragic fate of every Central Bank nation under the Bank for International Settlements.
By this ingenious deception, almost the entire world has been economically enslaved by the private international banking cabal, who collect unearned wealth from the people of every nation so insidiously defrauded.
The debt-slavery formulae is: Scarcity > Dependence > Control
“History records that the money changers have used every form of abuse, intrigue,
deceit, and violent means possible to maintain their control over governments
by controlling money and its issuance.” – President James Madison
deceit, and violent means possible to maintain their control over governments
by controlling money and its issuance.” – President James Madison
The death and destruction caused by this heinous system is incalculable. As a planet of debtors, humankind is literally foreclosed upon, prevented from finding its true place in a peaceful and prosperous world. By our own ignorance, we do this to ourselves.
Babylonian debt-bondage has never ended.
Compound interest is fatal
Money must be limited, because the source of all money in the “system” is the finite planet Earth. But compound interest is not limited.It is a fatal corruption of money to create it as interest-bearing debt.
“Money was intended to be used in exchange, but not to increase at interest.
And this term interest, which means the birth of money from money, is applied to
the
breeding of money … of all modes of getting wealth this is the most unnatural.”
– Aristotle 325BC The Story of Philosophy, quoted by Will Durant (L.1258B4)
Money, as Aristotle reminds us, is sterile and unable to breed. Interest converts money into something that it is not – a multiplying commodity.
Ultimately, the system is mathematically guaranteed to collapse, because the interest, which is not created, compounds exponentially, requiring ever more new debt to service existing debt.
There are no limits to the growth of debt, and yet all debt is sooner or later a future claim on Nature as the limited source of all wealth. Servicing debt requires extracting production at any cost beyond the limits to growth on our finite planet.
The “growth imperative” to service endless debt guarantees a suicide economy.
“It’s the compounding of interest and increasing indebtedness in both the private and the public sectors that is the primary driver of economic growth. But this growth misallocates resources and prevents the emergence of a sustainable and equitable economy. Like a cancer, the political, interest-based, debt-money system destroys the environment, corrupts democratic processes, increases disparities of power and wealth, and shreds the fabric of society. ...With an interest-charging system of money creation we have no choice but to grow the economy, otherwise there will be less new debt issued to service existing debts, and there will be defaults, foreclosures, bankruptcies, unemployment, depression and, as history shows us, crime, extremism and even war.” – Tom Greco
“Compound interest is an exponential growth function, which means that debt grows, not at a constant steady pace, but at an accelerating rate. The global money system therefore requires the further continual expansion of debt in order to avoid financial collapse.” – Bernard Lietaer
“The problems facing our communities, and civilization as a whole, stem from the mechanisms by which money is created and allocated by the members of the most powerful cartel the world has ever known. Our current monetary system is the main underlying cause for multiple crises with sovereign debt, environmental destruction, spiraling inequality and mass unemployment.” – Jem Bendell
In this deadly economy, the mantra of “economic growth” is heard even in countries with stable or declining birth-rates – most Western countries.
The growth rate of debt must be higher than the growth rate of production to keep the system functioning, hence the pressure to transfer productive wealth to unproductive wealth through speculation and financialisation.
Incorporated governments and their agencies are bound to pursue any type of cost cutting and wealth extraction, including selling off state assets. Politicians who tout initiatives for the poor and the environment, will nevertheless remove statutory barriers to even more rampant exploitation. People who protest are ignored, oppressed, threatened, jailed as dissidents or killed.
The system must expand forever to avoid collapse, even though doing so guarantees destruction. Conversely, any attempt to reduce the debt is also destructive because when debt is discharged the money supply is destroyed.
The historic response has been a debt jubilee (debt forgiveness) and some kind of system reboot. Collapse events provide an opportunity to ramp up the war industry, because wars typically apply all the levers of power forcefully enough to reboot a new order of corruption.
For the debt-enslaved victims there is no escape, but for the elite perpetrators, the ensuing economic chaos, war, death and destruction, always delivers immense monetary wealth and power.
Interest-bearing debt, viewed from any rational perspective, is deadly.
Compound interest is the system's embedded self-destruct code.
“The most powerful force in the universe is compound interest.” – Albert Einstein
