Debt and the Money Supply
It's obvious that the onerous levels of debt that people and their governments are burdened with has a very restrictive effect on what we want to do or achieve in life. Society is constantly petitioning the government to do something about the many ills that plague us, like poverty, homelessness, and inequality, but the government's efforts are feeble at best. We've all heard their litany of excuses that all boil down to this one: "we don't have the money", and they like to point at the national debt and they warn against going into deficit. Let's have a revealing look at the national debt in relation to our money supply.
It's reported that total debt in New Zealand, public and private, is now at the incredible amount of half a trillion dollars owed. Yet the Reserve Bank's monetary statistics say there's about $320 billion in the money supply. How can this be? That is a shortfall of some $180b giving a debt to money supply ratio of 1.7 . In Canada the situation is similar with a $1 trillion shortfall and a 1.5 ratio. There's not enough money to pay the debts owed and given that interest charges add to the debt over time, it's apparent the debt cannot and will not ever be paid off.
Even worse is the global situation. Recently it's been reported that the global debt threat stands at $212 trillion. However the global money supply is estimated at under $100tr. To whom is all this money owed? The situation is preposterous. Debts that can't be paid, won't be paid. Why should we continue to endure this insanity? It's clear that private control of the money supply is designed to keep us in a state of debt bondage, stifling human potential and perpetuating inequality.
Things could be completely different. Let's do what we can to make money reform an idea whose time has come. Change money, change the world.