A Real Alternative To A Debt Based Economy

This article was first posted here on 5 December 2008.

My apologies for the length of time since my last post, this having been due largely to transferring all my data and programs to a new PC.

I said last time I would talk about a real alternative to the “bailouts” of the US and UK governments. Let’s first, though, have a cold, hard look at what our governments have done to try and deal with the financial crisis.

Broadly speaking, the National Debts of the US and the UK have in just the last four months doubled in size. Here in Britain, after years of priding himself on his financial prudence in keeping public borrowing under constraints, Gordon Brown has embarked on a reckless borrowing spree. He has used most of the borrowed money to buy stakes in Britain’s major banks - Halifax Bank of Scotland, Royal Bank of Scotland and Bradford and Bingley being the largest and most well known.

Now he is set to spend another £1 billion on providing a “safety net” for home owners who lose their jobs or businesses and as a result cannot pay their mortgages. As many as 175,000 families are forecast to have their homes repossessed in 2009. This massive £1 billion is said by some commentators to be enough to save just 9,000 of them.

In another sign of desperation, the Bank of England’s base rate has been reduced by one per cent to just 2 per cent, the lowest rate in its miserable 314 year history. The result will be another run on the pound in the foreign exchange markets, and possibly a foreign exchange crisis to add to all the other crises.

This is just some of the lunacy. Public works are being brought forward or increased so as to create work and jobs, the cost of which must be borne by future generations of taxpayers. It’s like the alcoholic having a few more slugs of meths to try and clear his head and solve his drink problem.

What’s the alternative? Well, they say that half the battle of dealing with a problem is accepting that you have the problem in the first place. The mainstream political parties in all western countries are mired in the corruption emanating from the usurious debt system. Neither they nor the politicians inhabiting them will do anything to upset this rotten system, no matter how bad things get.

The alternative, then, is a new economic and political system operated by new people not tainted through contact with the present system. It must reject the banking families who control the world economy and defy what will undoubtedly be a vicious and desperate reaction from the global elite, through their ownership and control of the world’s media, and legal and banking systems.

Each nation, while it still has time, must issue its own, new, money, based on the value of goods and services produced by it. Once the amount required has been determined, it should not substantially alter, except in response to fluctuations in the amount of goods and services in the economy.

This money must be debt-free. No-one must have the power to create money except the government or a government department, answerable to the people. This body will be responsible for the smooth running of the economy, and will only increase or decrease (through taxation) the amount of money in circulation in accordance with the value of the economy from time to time.

It will mean a complete revolution and upheaval in national economic life, but it only has to be done once and the benefits will remain for ever. For more detail of how this should be done, please see a more detailed article here.

My next posting early next week will be on the subject of what you can do to best protect yourself from the financial disaster still unfolding. And if you haven’t yet downloaded the classic “Promise To Pay” by Dr R. McNair Wilson, then do so by visiting our home page.

Spread the word!

Philip Gegan