Dear Prime Minister:
Congratulations for taking such a strong stand when you spoke at the G7 summit in Tokyo last week in favour of government spending to bring new life to moribund economies. Despite the skeptics, it is the only plan with a proven track record. In 1939 it was massive federal spending that got us out of the Great Depression and allowed us to become a significant participant in World War II.
It appears that your G7 colleagues were not only divided on the question of promoting growth, but equally stymied about the related problem of debt, which is at its highest level in history. Our society, in general, is in denial that the world financial system is broken. It has been cracked for a very long time, but in the last few decades it has become a total write off as an operating system.
This is because privately-owned banks have managed to achieve a monopoly to create “money.” It is all created as debt – debt that has to be repaid in full with interest. But there is no money created with which to pay either interest or repay capital. Basic arithmetic proves that the system is a dead end. Money is the gasoline essential for any economy, but there is no way to get any except to borrow it and go deeper and deeper in debt – a lifetime mortgage on our most precious assets.
There is only one solution that can save the system and that is a massive infusion of government-created debt-free money to dilute the ocean of existing debt, and an end to the banking monopoly that has enabled 62 families to acquire ownership of 50% of all the wealth in the world. In future the money-creation function must be shared fairly between government and the private banks.
