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On the other hand, if, instead of lending depositors' money, banks encouraged and assisted depositors to make equity investments with their money, then, instead of burdening the economy and future generations with debt, as loans were repaid and new equity investments made, we would begin the process of reducing the burden of debt - freeing and unleashing the economy - and also begin the process of collecting assets to leave to future generations. Both will contribute to a healthier future for all.
The cause of the current international economic malaise can be found at the root of the western money system itself. Banks create new money by creating new debt. No two governments or economies behave exactly the same. Therefore, the rate of demand for the creation of new debt will not be the same in any two countries. It follows that the banks in each country will expand money supply at different rates. Thus, in order to achieve a single currency, the European Community has established criteria to force the various member nations to behave more similarly. the great difficulty experienced in achieving the criteria is a further demonstration that the debt-based money system isn't working.
Economist, leaders and opinion formers have focused on the wrong target. We must address the money system itself not attempt to fit all of the economies in Europe into a mould designed to comply with a flawed money system.
The need for a new money system is URGENT and PRESSING. The UK money supply stood at £31 billion in 1971. Just 25 years later it is over £610 billion. That is a twenty-fold increase. To achieve the same growth over the next 25 years without changing the system will require a money supply of £12,000 billion - ninety per cent of which will be created through new debt!!
The burden will be intolerable. Society as we know it is unlikely to survive.
There is a great amount of data and examples to support this analysis, yet most people are unaware of either the problem or its extent.
A TV programme on this subject will help to inform and will arouse significant interest.
John Tomlinson Author of 'Honest Money'
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