by Ron MorrisonProsperity, March 2004

‘m often asked to condense Monetary Reform into an A4 sheet or a quick sound bite. Here’s my effort…

Society has taken fifty years to mutate from what it can achieve to what it canafford to achieve.

This is the debt virus killing our Public Services, and the catalyst for Third World Poverty, War and Terrorism.

It’s not about Economics — it’s about Money — and the urgent need to move half of it out of the banks’ debt and interest purse and back into the State’s debt and interest-free one.

It won’t effect the total money supply or your personal or business finances, but it will transform public investment in fixed assets and infrastructure, and that will benefit everyone.

Consider for a moment:

  • All money sources from the State, either as the national currency or as chequebook credit under the Banking Acts.
  • In 1948 the ratio was half and half. The State printed our pound notes and spent them into circulation as supplementary to tax income — debt and interest free. Bank credit, however, always carries interest and must be repaid.
  • The United States was the last country to discontinue the gold standard. All money is now fiat money — it has no intrinsic value or reserves, and represents value only by decree of the State.

In the 1980s deregulation enabled banks to issue unlimited credit. In the UK today credit is now 97% of our money supply — yes, only three pence in every pound is now spent into circulation debt and interest free, by the State.

Now go back to our dilapidated public services which we cannot ‘afford’ to maintain, let alone improve.

If half our money was still spent into circulation today, then in 2000/01 the entire programme of new build Public Services and infrastructure for that year — called "Fixed Capital expenditure" — would have been financed debt and interest-free.

In other words — they could be afforded — and no PFI nonsense.

Jubilee — debt forgiveness — costs the money-lenders nothing except their endless tribute of compound interest.

We have debt enforcement on behalf of money-lenders by sole courtesy of the economic, political and military power of our democracies — yes that’s the folk we’ve voted in year after year.

Finally, worried about war and terrorism?

That’s the price we pay for supporting unbridled money-lenders — they are the only winners.

Did you know:

  • Shortly after WW2 when the UK was broke we could afford the best health service in the world and inflation was less than today.
  • That the total money supply — our means of exchange — was equivalent to 20% of GDP (our national production) in 1948, and that today it is equivalent to 98% of GDP. This is the result of burgeoning Financial Services, a form of monetary incest. There’s a lot more money about relative to productivity than there was in the past because of money making money, rather than money making goods and services.
  • Did you know that Financial Intermediaries — enterprises holding other people’s money and lending it out again — now constitute 27% of our GDP?That’s twice the total amount we spend on Health, Education and Social Services combined — and the entire construction industry is a mere 5%!

This is the House of Cards assembled by money-spinners who make money out of money.

It governs our erstwhile democracies. It is the real inflation parasite eating away the lifeblood of societies world-wide — it exploits and threatens everyone on the planet.

We are on our way to putting this genie back in the bottle but everyone needs to know about this. Spread the word!

Please print out, photocopy and distribute these articles. Also copy and paste them to emails, and circulate widely, and please include all the essential contact information below. Thank you.

Essential Further Reading:
PROSPERITY: Freedom from Debt Slavery
is a 4-page quarterly Journal which campaigns for publicly-created debt-free money.PROSPERITY is edited and published by Alistair McConnachie and a 4-issue subscription is available for £10 payable to PROSPERITY at 268 Bath Street, Glasgow, Scotland, UK, G2 4JR. Tel: 0141 332 2214; Fax: 0141 353 6900, Email: contactus AT ProsperityUK DOT com All back-issues are still available. The 40-page Report,Clarifying our Money Reform Proposals, launched at the 2006 Bromsgrove Conference, is available for £10 payable to PROSPERITY and is essential reading for beginners.

The Grip of Death: A study of modern money, debt slavery and destructive economics by Michael Rowbotham, [Jon Carpenter Publishing, 1998] and Goodbye America! Globalisation, debt and the dollar empire by Michael Rowbotham, [Jon Carpenter Publishing, 2000] and Creating New Money: A monetary reform for the information age by Joseph Huber and James Robertson [New Economics Foundation, 2000] are all available fromPROSPERITY.