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Governments think that they can get money only via

  1. Borrowing which leads National Debts
  2. Taxation which leads to a whole host of sources for injustice. 

Public Expenditure is the purpose of government spending.

Lord Saatchi addressed Taxation and Public Expenditure on Jan 27 2000.

The Money Supply of a nation has two sources:

  1. Interest-free Notes and Coin supplied by Government (M0)
  2. Interest-bearing Credit created by banks (M4)

M0 has gone down from 21% to less than 3% in Britain over the last thirty years.

Money Supply, i.e. the creation of money, is institutionalised such that

-- change is extremely difficult

-- institutions benefit through passive income from interest

-- the control through interest rates is extremely ineffective

-- scarcity is automatically built in

-- inflation is the natural effect of compounding interest on interest

-- exponential growth is natural through compounding interest on interest.

Conclusion: in order to make a difference, local initiatives are a beginning and regional economic developments would be more effective because national currencies are 'poisoned' through

-- money creation through central banks

-- circulation control through interest rates

-- value instability through

bulletthe use of national currencies as trading commodity
bulletthe provision of money for public expenditure at interest
bulletthe use of money as private credit by banks.

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