THE CYCLE OF DEBT

November 2011

How long can the world economy run like this? It has absolutely no chance of paying its debts accumulated and even if it could, there would be no money left for the world economies to run. The prospect of even servicing these debts is increasingly getting harder and harder in every country. The debt just gets bigger and bigger and eventually as it must, one nation after another will collapse.

The debt burden in Europe now threatens to break it apart and if it does it will throw massive shock waves to the world’s financial system. Forget about a double dip recession, a world depression is now on the cards.

Stimulus packages are no longer an option in most nations. Tough Austerity measures are now beginning to be forced on the nations of the world. We are trapped in a debt spiral, a massive black hole we cannot escape from. Expect massive unemployment, record bankruptcies, higher taxes and less government spending, rising homelessness and even food shortages. Yes, the money supply is running out !

The Great Depression of the 1930’s will look like a picnic against the one we are about to enter. Real Monetary Reform is badly needed now, to avert the one coming our way. Don’t wait for our politicians to do something about it, the past action of these people have contributed greatly to it.

It is up to us now to push for real monetary reform using social credit or similar ideas to remove debt and run a stable financial system that works for everyone.

Get involved, share this site with others. The people need to see this information, they need to see the real reason of why we are in so much debt. We need to scream at our incompetent politicians to force them to make some positive changes in monetary reform. The banks have had their way and now it’s time to fight back. There is a solution to all this and we need to make it happen. We can not afford the alterative.

November 2010

The stimulus packages around the world are starting to run out. The IMF is now putting pressure on the worlds economies to reduce their debts and deficits. The only way they can attempt to do this is by taxing their people more or by spending less on government services. This of course will reduce the money supply and undermine any good the stimulus packages did in the first place.

In Europe, countries worst affected by the global recession are starting to go bankrupt. One by one they are starting to fall. Financial aid from the European Union and even the Monetary Fund is holding these countries from bankruptcy. Europe as a whole is now weakened even more by these individual nations. The dominoes are starting to tumble. America on the other hand is continuing to borrow more money to buy it's way out of the recession. They have no hope in paying this money back. It's only a matter of time before the obvious will happen, you can't keep borrowing money for ever.

The rest of the world is not much better. We are at the mercy of the banks. The world will continue to go bankrupt if the international bank's let it happen. One world currency is not far away. The world badly needs Social Credit, It is our only hope.

April 2010

What has changed since the last post?

Governments around the world have set up economic stimulus packages to help keep their economies going. While it is true that it has prevented the world economy from going into a depression it must be considered a temporary solution only. Why! These stimulus packages have come at a great cost.

This money has been borrowed and must be repaid back. The citizens of each country will have to face higher taxes to maintain the extra costs from these new stimulus loans. When this happens the money supply will reduce significtly (The money supply increased by these stimulus packages will run out unless further stimulus packages are received. Obviously we cannot keep going down this track.

Social Credit - The Debt Crisis

THE CYCLE OF DEBT

To help you understand the major role the banks have in enforcing the world in debt, I have come up with a fictional board game called Bank Monopoly (a game depicting the banks control) it is a real life game.

You can try playing the monopoly game your self using the rules below, you will quickly understand that money issued as debt demands more debt. Bank Monopoly is similar to the original Monopoly game except for these simple changes.

1/ you are not given money to start the game- you must borrow 100 thousand dollars for a property you have purchased.

2/ you do not pay rent when you land on a player’s property; you only pay rent if you loose your house.

3/ you do not get any money when you go round the board passing go - you must pay 10 % interest on your loans each time you pass go. You earn money from dealing with other players

4/ the government has issued 10 thousand dollars to each player to stimulate the economy; this money has been raised by government loans and must be repaid back in taxes.

5/ the bank can seize your property if you fail to keep up the payments

It is important to note that the money used between players stays in the game (stays in circulation). Money payed out for interest repayments leaves the game. (reduces the money supply) If the money supply to the players is not increased in further bank loans, the money supply will run out and each player will go bankrupt.

The bank is the only real winner; every single dollar issued in this game has been issued as debt and must be paid back in total with interest payments. The players in total have borrowed 400 thousand dollars. When all four players have passed go once the bank receives 40 thousand dollars in interest. If all the players pass go a further 9 times the bank would have collected 400 thousand dollars, the exact same amount the players in total borrowed at the beginning of the game.

The players still owe 100 thousand dollars each even though they have all paid 100 thousand dollars in interest. The game would have ended by this stage as the money supply would of run out. Obviously dropping the interest rate will extend the game a little but in the end more money is needed for the game to continue.

The world economy needs money to keep going; failing this it will collapse. This is how the real world, now Operates.

Interestly, if we issued all money in this game as social credit instead, then the money supply would never run out. All money issued in this game stays (no interest payments removed from game) Money keeps circulating and any short fall of money needed for game to continue would be issued as dividends to each player using social credit. No taxes or any repayment is required from players as these payments are only issued when a correction is needed to maintain the money supply to a certain level.

see info gaphs

Social Credit as descibed here can be used in any country of the world.

See link Solution: The Banks Can Be Beaten!

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