Tag Archives: government debt





The Absurdity of the National Debt – published by The Duke of Bedford in 1947

We are not the first in history

to notice the tension

between the City of London and the City of Westminster…

Page 1 – Page 2 – Page 3 – Page 4

One of the gems on Financial Reform.

How quickly the national debt rises in the UK and how an app brings the problem to US phones

An interesting chart about the UK national debt by an interesting organisation: the Economic Research Council – with an explanation here, about the huge increase. How come I just read today that the PM claims the national deficit has been cut by more than a quarter? I suppose the deficit is not equal to the debt in his mind…

Also interesting is the previous chart:

USdebt.kleptocracy.us: a great visualization of the US national debt

It’s too bad that most people don’t appreciate the significance of the national debt. In view of the visualization that simply illustrates the HUGE number of dollars, let me repeat my essential points here:

  1. Governments always had the right to mint their coins and print their notes
  2. In 1694, the Bank of England was established to lend the then King the first national debt at 8%; why was the King so naive, one has to ask
  3. Banks have gradually virtually replaced the interest-free money of governments (Cash) by interest-bearing Credit
  4. the national debt will never be paid back; but interest payments come in regularly to those who know about the issuance of national debt bonds and can afford to buy them
  5. by continuously increasing the need to pay more and more interest, the economy acquires an artificial pace and speed
  6. it is effectively a deep betrayal of the taxpayer who is made to believe that his taxes are the income of the state, when, in fact,
  • taxes are only a share of the income of the State
  • borrowing is the other source of income that could be entirely be replaced by governments printing their own money.

The argument that ‘printing money’ means creating ‘inflation’, is not accurate, since there are two kinds of inflation to consider:

  1. price inflation
  2. monetary inflation, i.e. the increase of the money supply.

The wise way would be to reduce the share of Credit in the money supply and to watch the Cash : Credit ratio go towards 50/50, as it was before WWII.

Here’s the visualisation of the US National Debt.

Dear Correspondence & Enquiry Unit @ HM-Treasury

Dear Correspondence & Enquiry Unit

I found your letter to Mr X so interesting that I published it on http://publicdebts.org.uk

As a mathematician and system analyst who used to diagnose high energy physics software at CERN, I trust my logic and analysis. Hence I would like to ask:

1.     How much of the capital of the National Debt is paid annually?

a.     Where are the statistics?

b.     Who determines the amount or percentage?

2.     What is the time span that is considered for ‘spreading across generations’?

3.     I do find the logic interesting that the National Debt is used for a ‘more stable the tax system’.

a.     Why do taxes get changed anyhow?

b.     What do you consider “economically efficient or inefficient”?

4.     What do you or the IOBR consider a “sustainable position”?

a.     Where is the clear and measurable fiscal mandate?

b.     Is there an equally clear and measurable mandate for the National Debt?

5.     What prevents HM Treasury to increase M0 to stabilise the tax system?

6.     Why is it relevant what the IMF thinks about HM policy?

7.     Why do you think that the IMF comment about “market reaction has been positive” is proof of the Government’s strategy to be “working”?

Looking forward to your response,

Yours sincerely,

Sabine K McNeill


3D Metrics, Director

Forum for Stable Currencies, Organiser and Promoter

21a Goldhurst Terrace – London NW6 3HB

T: 020 7328 3701 – M: 07968 039 141

It’s not Government policy to repay the National Debt completely…

HM Treasury, admittance of National Debt 1HM Treasury, admittance of National Debt 2Getting letters from Officials is always interesting.

This one is an anonymous response from public.enquiries AT hm-treasury.gov.uk and states:

The National Debt is not owed by the public, but is owed by the Government. It is not Government policy to repay the national debt completely. Governments borrow in order to spread the capital of projects across generations, so that all those who benefit from a government policy contribute towards it.

Borrowing also allows the Government to smooth its expenditures over time, allowing for a more stable tax system.

If the Government did not issue debt, then taxes would have to be constantly changed. This approach is unfeasible and economically inefficient.

I shall send an email in response to this and ask others to do the same.

Money from Thin Air – Explained a in 3 Minute Video

This video is a good summary of the essence of

  • money created from thin air – as national debts
  • the impossibility of paying back national debts

