Public Debt - What a Whizz!

USA public debt rises by 1 Million Dollars every 18.5 seconds.
That's 4.6 Billion dollars per day!!!
The average US citizen owes circa $44,750 and incredibly this debt is
rising by circa $3,000 per year!
That’s before they even begin to plan their own personal finances.
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UK debt rises by 1 Million pounds every 6.5 minutes.
That’s 221 Million pounds per day!!!
The average UK citizen owes circa 14,500 pounds and incredibly this debt is
rising by circa 1,000 pounds per year!
That’s before they even begin to plan their own personal finances.
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Global outstanding public debt is circa 40.66 trillion dollars.
That’s $5,930 per person in the world. Considering half of the world's population live on less than $1,000 per year, it shows that that half would need to give all of their cash for 6 years to pay off their share of the debt, debt that they most likely never profited from in anyway.
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We are an evolving and advanced species and yet we see nothing wrong with any of the above. Having huge outstanding public debt means we are constantly paying off excessive loans and interest. There is not, nor will there ever be, a population level capable of ever paying off these debt levels. It is a virus that grows and grows.

Inefficient governments and credit pushing bond dealers are priming this debt spiral. But there are only part of the problem. The real problem of course is those who issue and validate these monies. For hundreds of years we have allowed private central banking institutions issue and control our public money. They are free to set punative interest rates and cream vast profits off the public purse. The inability of governments’ world wide to set their own fiscal policies by
issuing their own money and setting their own interest rates has led to the intolerable situation as above. None of the real problems of the world, like poverty and/or poor public infrastructure will ever get tackled effectively as long as we allow this position to continue. No private banking institutes should have ever gotten their tentacles into public expenditure. It is time to root them out.

Canada is a great example.
From 1935-1974 Canada as a nation state managed the issuing of its own monies and setting
of its own interest rates. This process started in '35 to drag them out of the great depression. During the subsequent 40 year period Canadian debt flat lined, at approximately 18billion dollars. Many great public projects were undertaken during that time, like the repatriation to the workplace of thousands of WWII veterans and the building of the great cross country railways. However the public debt stayed on a steady flat line. Why? Because no private greedy mitts had their hand at the tiller. It serves no purpose to charge yourself high interest rates and crucify your peoples. Many who lived their adult lives throughout this time spoke of a sense of social cohesion and a lack of visible poverty. Post 1974, due to significant lobbying from the banking industry, Canada ceded control to the private bankers. Its public debt acquired an exponential curve ever since then. It now stands at 544 billion Canadian dollars!!!!! (That's right, 18 to 544 in 36 years).
It has been estimated that roughly 10% of that bill is actual spending that the state has undertaken, while the other 90% is compounded interest, amassed through the recent years.

And so we come back to the 40trillion world wide figure above. How much of that is real spending? How much is just compounded interest? Interest on interest on interest ad infinitum for the past few hundred years. We owe this money to private banks. Private individuals profit from the payment of these debts. These debts serve no other purpose in society. If we took the Canadian figures above we could guess we may actually only owe 4 trillion, as opposed to 40 trillion.

It really is as simple as declaring a large portion of this debt null and void, then moving on with reset currencies and a more inclusive and socially responsible method of controlling public finances. Political courage would fix this problem in a really short space of time; however intense lobbying and false and fearful propaganda is keeping the old dysfunctional ways in situ.
DEBT (of this kind) - Debilitating Emasculating Bespoke Tyranny

Barry Fitzgerald
Author of "Building Cities of Gold"
Buy Now From Amazon
(Paperback or Kindle)
http://tinyurl.com/22t3mkc
Publishing house: ATTM Press.
http://www.allthingsthatmatterpress.com/buynow.htm

The Farce - Act I, Scene (God only knows)

A report has highlighted how respectable and solid investment funds from the pension and insurance industries are planning to take the Irish government to court, to seek a reversal on, or even damages for, the governments decision to deeply discount the payments to these funds on sub-ordinated bonds in Irish banks.

We all know by now the crazy situation where our government had agreed to honour all senior bondholders in the Irish banks, but thankfully they have at least decided to not honour 100% of the monies invested by junior debt holders, or those sub-ordinated bondholders from above. Usually these bondholders would slink off into the night licking their wounds, recouping their energies, to proceed onto newer markets. But, considering the ineptitude and naivety of our ruling class in Ireland, they figure in this instance they may negotiate higher remittances, especially with the threat of court cases against the government.

All of this again beautifully highlights our dysfunctional modern relationship with money. If these guys had slinked off, we would never think about them and what they represent in our lives. By speaking up and demanding more they have shone a light on themselves.

We are told they are from trusted and respectable industries like the insurance and pension funds. Obviously commentators think that means we are to treat them better than rich private investors or vulture funds. However they only have money because we, the individuals who make up society, give them money. By investing in our future security, as the pensions and insurance industries promise us, we allow these companies amass massive funds that are then often invested in the bond market to generate vast profits for these companies. Our future security is drawn down when we need an insurance claim or when we retire, monies that are only a fraction of that generated by these companies on their investments in the long term.

As we all know by now the bond market is the main funding vehicle for our countries. Any revenue that is needed over and above taxation from the people is raised in the bond markets. So on one side we have investors needing somewhere to invest, i.e. pension and insurance companies seeking reliable, yet profitable investment opportunities. On the other side we have governments, mainly inefficient and inept, who repeatedly run their economies in deficit and so constantly need extra funding. So as well as paying individual taxation to run a country, our invested monies are also feeding back into our countries to meet the spending shortfalls.

Try explaining that to a six year old. I’m sure they would tell you it is madness. A circulation of money, your money, that is feeding two addictions. The addictions of the investors for fat returns and the addictions of our governance for access to easy credit. Now we can waste vast amounts of energy bemoaning morally bankrupt financial types or we can spew our venom at Muppet politicians but, and here is the crux of it, NOTHING will change. Nothing will change. Let it sink in. Nothing will change. Why? Because whatever legislation is passed to curb the tendencies of those trading in bonds and markets will always be bypassed and superseded eventually. Also no matter how much governance bleats on about change and root and branch reforms, the old inefficient ways will always kick back in.

Surely then we should despair. Throw our hands in the air. Well no we shouldn't, because there is an answer. I am sure too that the six year old would tell us how. STOP giving away our money to these industries. The promise of your future security is being used to trap you into committing your hard earned money. There is another way. Retain your money in your life today, use it to build real security and then you will not need to draw down cash at a later stage of your life. Form local community insurance models that create jobs and build real life enhancing infrastructure to provide services like ongoing free energy. These projects have the added benefit of building strong local communities.

Only when we stop priming these companies with our cash will they start to shrink in size and subsequently start to have less cash available to loan out to governments. Only then will huge profits and bonuses that attract risk takers, stop being paid. More importantly if the cash source is gone only then will our governance learn to balance their budgets and live within their means. You guessed it, only then do they become efficient. That is real effective change.

I’m sure our six year old would also question why it is considered totally acceptable for any Euro zone state to post a budget deficit year on year of 3%, and receive kudos for this. 3% of the Euro zone GDP equals the economy of Austria or Greece for one whole year. So every year the Euro zone is building up debts equal to one of the large countries above. I’m sure he/she would say, "But how do you spend money all the time that you don’t have". Exactly how do you?
It’s not like a huge population spike is coming down the tracks to pay it off. It's accepted and endorsed because it is feeding the two addictions. The only problem then is we, the bill payers, have to run faster and faster on the treadmill to meet these voracious addictions; longer working weeks, longer working lives, more taxes, higher premiums to offset risky losses etc.. etc..
p.s. If they are so respectable what are they doing investing in higher risk sub-ordinated debt? Higher returns in good times, thats why.