The Monetary Solution to the World's Problems

I will not detail the mechanisms of money creation except to say that all money in today's fractional reserve systems of banking is created by book entries so that all money is debt.

The problems with this mechanism are:

1. An elite banking hegemony is created who possess absolute power over the creation of money.

2. The money that is created through debts must be repaid as principal and interest payments.

3. To pay the interest a borrower must take from others money that has similarly been borrowed leaving the problem of the "interest gap" where some must lose for others to win. All debts as a whole cannot be repaid as a mathematical impossibility.

4. Governments tax (steal from) the people in order to provide services (and enrich themselves and those close to them).

So how can the problem of the "interest gap" be solved?

Quite easily actually.

Say a country has a brand new economy where 1 trillion of money is created through debt of one sort or another. Say for argument that the interest rate is 10%. Then this is going to create an interest gap of 100 billion units in the first year which represents the profit that the masters of this debt system are going to pocket for doing nothing other than being the "masters".

It also represents the amount by which the people (the borrowers and users of the debt money) will be out by and the poverty that they will have to endure by not by not being able to pay the interest.

So what will rebalance the system and fix the problem?

The government must be the master here and by keeping account of how much money has been created each year it must then take the right of spending the required "interest" into the economy without debt itself.

This is in essence free unencumbered money. The government by spending the gap of 100 billion into the economy allows the mathematical possibility of the repayment of the loans possible. By spending each year the interest gap into the economy it takes away the double benefit that bankers currently have with our debt system.

The dirty secret is that the central banks of most countries already spend this free unencumbered money into the economy when they will getting the benefits of both earning free interest from the borrowers and spending the unencumbered money for their own profit.

By taking away this privilege the government becomes the sovereign of money creation as it should be. It would allow a corresponding decrease in the need for taxation since the government has a steady ability to spend interest gap money derived by the increasing borrowing happening in the economy.

The borrowing presumably reflects the amount of production happening in the economy.