Can we remove world debt? Print
The short answer to this is yes but we need to fully understand the main reason why we have so much debt in the first place.

There has been an enormous amount of waste full spending by many governments of the world but it pales in significance to the main reason of why there is so much debt. The bulk of all this debt comes from the mechanism of fractional reserve banking.

Basically the majority of all new money is created as debt by commercial banks from the process of fractional reserve banking. All money created by this system is fiat money meaning this money is created out of nothing.

Most people, who are first told about this, often have great trouble believing it and it is very understandable. The majority of the world’s population is very ignorant on the practices of money creation by the banks, and the banks intend to keep it that way.

We will never be able to remove world debt,  if we continue to use fractional reserve banking as our primary source, to supply the world's  money supply. Money should never be created as debt, with or with out interest, because  it has an extremely negative affect on our economies. (see cycle of debt)

From time to time, the world has experienced shortages of  all kinds, as well as it fair share of natural disasters. But man kind has always found a way to surviive, providing all the basic needs and much more. What man kind has achieved in the last 300 years is nothing but remarkable. Our technology has greatly enhanced our abilities in all areas particularly the agricultural and manufacturing industries. The hardest task of all to supply the world's needs has been achieved with remarkable results. No human being on earth should ever go with out !

But supplying the world's money supply to facilitate trade should be the easy part, it should be created in correct amounts in line with production and there should never ever be a shortage of it. Unfortunetly the shortage of money we are seeing right around the world at the moment is completely unnecessary and it is man made.

An economy will grind to a halt when there is a shortage of money. All sectors of the economy will begin to shut down, causing massive unemployment.  As a consequence government revenue is decreased as a result from fewer taxes received. Taxes are raised and government spending reduced with public services drastically cut. Social security payments made by the government soon runs out, leaving many without a roof over their heads and nothing to pay for the basics.

Soon there are riots in the streets. The remaining assets left are sold to help service these debts, but the battle is lost, we cannot continue to run our economies further without increasing our debts more. But this money must be made available, so we go begging to the banks again.

The banking system has artificially created a shortage of money. Fractional reserve banking is an evil that must be removed. The problem the world is facing at the moment is not necessary a shortage of resources but rather a shortage of money that has been artificially created and manipulated by the banks. The banks make huge profits for themselves by basically creating money from nothing. What the banks are doing is far worse than counterfeiting.

How we can remove Debt

As already mentioned, the majority of all world debt has been created from commercial banks using fractional reserve banking. This money has been created out of nothing and does not represent anything of value, it truly is fiat money. Any value it does have comes from the faith of the people using it. This fictional debt the banks have created is paid for in real wealth from the actions of society. Fiat debt can be very easily removed as it did not exist in the beginning.

To avoid any major impact to the economies of the world, new fiat money (as in quantitative easing) could be used to remove this debt completely and should be done with little or no effect. Currently it is only done in a limited form to increase the excess reserves of the banks. With additional excess reserves the banks are able to increase the money supply further through the process of fractional reserve banking. But as we have seen in the U.S this does not always happen with interest rates on reserves paid at a higher rates(by the taxpayer)  than what they would normally get on the market at present, the banks are quite happy to leave it there in depressed times.

  A few countries around the world are presently using quantitative easing to prevent a default. If your country is experiencing these problems in the Euro Zone then you are out of luck as this is not allowed. Countries facing default here must rely on the mercy of the European Central Bank to set monetary policy. Unfortunately tough Austerity measures are usually put in place. It would be better to leave The European Union altogether. But there is a better way.

Third world Debt

Most poverty in this world has been contributed greatly by our current banking system. Much of this can be erased by the use of fiat money. Once this debt has been removed, social credit policies would need to be put in place. Many of these nations are rich in mineral assets and the ownership of these assets must be given back to these people. Modern farming methods must be made available. Electricity and clean water which we take for granted in the developed world should be made available. With the help of of social credit principles, these nations can be poverty free and self sufficient. Poverty can be removed and it must be implemented. Please spread the word it can be done.