Michael Hudson in his book Killing the Host: How Financial parasites and Debt Bondage Destroy the Global Economy states:

A financialised economy becomes a mortuary when the host economy becomes a meal for the financial free luncher that takes interest, fees and other charges without contributing to production.

The mathematics of compound interest leads economies inevitably into a debt crash, because the financial system expands faster than the underlying economy, overburdening it with debt so that crises grow increasingly severe. Economies are torn apart by breaks in the chain of payments.

The good news is that we can demonetise economies overnight. We do this by cutting the lifeblood to the parasite.  We get rid of compounding debt.

The financial parasite feeds off us through the issuing of money as compound interest debt.  We replace this form of debt with non compounding loans. We repay the loan with goods and services produced with that debt.  We issue the loans to our communities and repay the savers in our communities. We fix the price of the loan at the time we take out the new loan at a value that gives a fair return to savers.

Doing this will at least double the value we get from a given amount of money.  We replace all our current debt by issuing non compounding loans to ourselves. This immediately frees up all our Capital tied up in debt.  We are no longer burdened with debt repayments and we can buy back any assets we may have sold.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s