Over the last 30 years, the global economy has led almost every country on Earth into escalating and irretrievable national debt. The global economy has unnecessarily inflicted unthinkable amounts of damage upon the human race and our planet in the process.

In 1971 the ‘New World Order’ began, when changes were made to the US national currency. In 1971 the US Federal Reserve Bank severed the link between its national currency and gold. Since 1971, US currency has been created by a new method, namely through bank loans. This new kind of US currency began destabilising other national currencies, forcing them to ‘float’ their currencies, that is, change to the US designed ‘globalised’ currency system

After the currencies were changed the illusion persisted that hard work and productivity still created money. This illusion is created because workers receive money in exchange for their labour or productivity. Money comes into our existence through our productivity, and thus it is easy to assume that is how money is created everywhere. Nothing is further from the truth. The reality is that hard work and productivity no longer have any direct link at all to creating money. Because of the way money is now created, money can no longer reflect the productivity of any industry or country.

This new ‘global economy’ is still trading on society’s goodwill towards the old type of currency systems that no longer operate. Most people still think a dollar is a dollar, but the shift into the new economy that world governments have embraced since 1971 has turned national currencies into national death warrants.

HOW MONEY IS CREATED INTO CIRCULATION

Money now represents bank debt, not national wealth. When a country ‘globalises’ its economy as Australia did in December 1983, all new money that comes into circulation now does so as a debt to a bank. Money no longer comes into existence as the result of labour, production of goods or by mining gold. Nor does money come into circulation by banks lending out their customer’s deposits. These are commonly believed but dangerous misconceptions. In the new global economy, money is now created only through bank loans. Now labour and production merely redistribute the money that is created by banks.

When banks grant a loan and a borrower’s account is credited with an amount of money, that currency is created in the same instant. It is suddenly brought into being from nothing. The money did not exist before the moment the loan was granted. When that borrowed money is spent, it is then ‘in circulation’.

HOW MONEY IS REMOVED FROM CIRCULATION

When a debt is repaid, the loan and the dollars, euros, yen, etc that the loan created, all cease to exist. They are cancelled out. Other loans create more currency by the same process to replace it, and so on. The repaid money is not in the bank. It is no longer anywhere and it is certainly not in circulation. All debt repayments reduce the money in circulation by that amount.

In ‘good times’, as people pay off their debts, they are in fact drying up the amount of money flowing around in circulation. This creates a shortage of money and thus everyone in society must have less of it. Everybody tries to understand how they can be working so hard yet have so little cash in their pocket, and businesses lay off workers or go bankrupt.

The only way to replace currency in the present global economy is to take out another loan. This is why governments now “borrow their way out of debt”. As there is no other source of money, a country’s overall ‘debt’ must always remain unpayable and must continually grow as the economy ‘grows’. This is why national debts have escalated in the last three decades.

THE FATAL TRAP - DEBT IMPLIES INTEREST THAT IS UNPAYABLE

The global economy has a designer-flaw built into it. Interest is the planned spanner in the works that sabotages the global economy by ensuring there can never be enough money in circulation for everyone to have sufficient. When each loan is repaid and disappears, it leaves a residual deficit of interest that accumulated from the loan.

This is the key point to understand. In order to pay that interest more currency must be found than, by definition, can ever possibly exist. Not enough money exists to pay off the interest after the debt itself has been cancelled out. The only way to get more money to pay the interest is to borrow more through another loan.

By the end of the second loan, the first loan’s interest has been paid off, but now there is not enough left to even pay off the second loan, let alone pay its interest. A third loan must be made, and as this cycle is repeated, the amount of residual debt created by interest mounts up to impossible levels. It is as simple as 100 – 110 = –10. For every ten steps the economy now goes forward, it must take eleven steps backwards in the form of national debt.

A single loan never creates enough currency to enable it to be paid back with interest. No loan on Earth ever creates enough currency to pay back its capital and interest. All loans on Earth have created a global economy that can never have enough currency in existence to pay out the loans. This is by design, since 1971. The global economy is a pyramid sale, a planned time bomb, designed to reduce the world and the human race into a global catastrophe. The ‘global economy’ makes it inevitable that every national debt must eventually become large enough to cause national bankruptcy.

IN THE GLOBAL ECONOMY, ‘CREDIT’ NOW REALLY MEANS ‘DEBT’

In the new global economy the word ‘credit’ has taken on a new and deceptive meaning. Most of society thinks of ‘credit’ in the old way. Consider making a purchase from a shopkeeper using two different methods of ‘credit’.

In the first way, the shopkeeper gives you $100 worth of goods on credit. A year later you pay the shopkeeper $100, plus $10 interest and you are even. In the second way you get $100 of ‘credit’ from a bank (say by using a MasterCard), which you use to buy $100 worth of goods from the shopkeeper. A year later you pay back the bank $100, plus $10 interest and you are even.

The two methods of payment seem identical at first but there is a huge difference. When you get credit from a shopkeeper and you pay off the debt, the $110 of cash is still circulating in town. However, when you get credit from a bank and you pay the bank back the debt, only $90 of cash is left circulating in town. The $10 of interest had to come from the $100 that the MasterCard generated. There is nowhere else it could come from. The globalised economy is like a sleight of hand card trick.

The shopkeeper method of credit is real credit, that is, an extension of goods. The bank kind of ‘credit’ only represents an extension of a debt. Most people still think modern bank ‘credit’ is like the shopkeeper credit.

When the world changed over to the ‘debt money’ economy, it became impossible for wealth to accumulate as it could in the old economy, because now the money keeps disappearing from circulation as it is used. Wherever you see the word ‘credit’ concerning banks or finance, it can accurately be replaced by the word ‘debt’.

INTEREST IMPLIES COMPETITION

In the current economic system, which is based upon the principle of ‘not ever enough to go around’, the players are forced to compete by grasping at the dollars that are left. The cruellest, meanest, most selfish and most dishonest players get the available money while the more decent members of society are eliminated altogether.

The surviving players who provide products and services to the marketplace are not the ‘best of the best’ sorted through competition in excellence. They are merely the players that fight hardest and dirtiest to get the insufficient dollars available. Consumer choices, prices and quality of goods are dictated by how much is left for actually making the product after the research and marketing wars are over.

The sociological effect of the Western run economy dictates that there be competition between every facet of society. The new way of creating money forces members of society into conflict and competition with each other against our better natures and judgement. This keeps society divided and unable to unite effectively on any issue.

When society is structured around the rule that there can never be enough to go around for everyone, its citizens live in an ongoing terror of not having enough personally. As a result, society seems to mostly consist of citizen against citizen. After a while people in a society like this would have no choice but to be convinced it was human nature to be viciously cruel and competitive. Most of the human conflict and environmental devastation in our modern world would disappear if the global economy ran to a policy, which made financially possible that which is physically possible.

INTEREST IMPLIES CONTINUAL ‘GROWTH’

In order for the global economy to stay viable it must continually expand. It was a necessity to ‘develop’ third world countries so that the markets of the first world countries could survive via economic expansion. Third world ‘development’ is simply the transferral of the unrepayable interest debt from the first to the third world, to benefit the first world at the expense of the third.

The third world ‘development loans’ were used to generate enough currency globally, to allow the first world to pay off its debts and interest. After the third world countries’ environments and lifestyles have been irreparably ravaged, instead of prosperity they are left with unmanageable debts that can never be repaid.

WHO OWNS OUR MONEY?

It often comes as a surprise to learn that national governments do not own ‘national’ currencies. Even Federal Reserve Banks are privately owned corporations (despite their misleading names). Due to the changes that were introduced into the new global economy, multinational banks actually own and control ‘national’ currency now.

The person with whom legal custody of a commodity resides can be termed its owner. Before 1971, money represented an existing commodity, namely a chunk of gold stored in a bank.

All the money now brought into existence is borrowed by an individual, an industry or a nation from a bank somewhere. It was not given nor earned anywhere, it was loaned and it must be given back one day. Thus, whoever holds this borrowed money, only holds it in trust. Nobody really ‘owns’ money as they used to, and still think they do.

The bank that created the money against a debt is the ultimate owner of it, because a contract says the money must eventually be given back to that bank, which only ‘loaned’ it in the first place. You cannot lend what you do not own. Ironically, the banks only ‘own’ money while you hold it, because once the bank gets ‘their’ money back it vanishes.

PLANNED SCARCITY – GOING WITHOUT IN THE MIDST OF PLENTY

At the end of each cycle of production, our present economy guarantees that there will always be more goods produced than can ever be sold. Governments regularly make up the inevitable shortfall of income to multinational industries as grants, bribes, subsidies, tax breaks and free infrastructure.

This extra funding for multinational industries artificially gives them the appearance of being profitable because they can afford to sell their goods for less than the goods really cost to produce. Nationally owned businesses cannot compete with multinationals on such a non-level playing field. If multinational industries worked to the same rules as the national businesses that are taxed to support them, the multinationals would go bankrupt. Global fishing and forestry industries illustrate this point well.

It usually comes as a surprise to realize that prosperity causes recession. In ‘prosperous’ times when society reduces its debt by paying off its loans, the amount of money in circulation dries up as a result. Shops may be over stocked with goods and people may want to buy them but they do not have money to do so. There may be many who want to employ people or become employed but without enough currency in circulation - nothing moves. The only way out of recession is to borrow more debt-dollars to circulate, which increases national debt further.

More than half the world goes without because of insufficient currency in circulation. ‘Debt created’ national currency restricts a population’s ability to produce enough for themselves, even if there is a desperate national need for products or services.

EXPORTING ONLY MAKES DEBT GROW LARGER

In many people’s minds the key to reducing national debt is to increase exports over imports, thus making a net profit to pay off debt. There are two flaws in this dangerous notion.

Firstly, if virtually every country on Earth is in debt, as they are, then how can trade ever balance the global economy? One nation’s profit is another nation’s loss. A group of bankrupts cannot balance their books by trading amongst themselves.

Secondly, imbalance of trade did not create national debt so it cannot solve national debt. National debt is created by the planned and unnecessary shortage of currency in circulation. Trade imbalances appear to be the cause of national debt, only because the shortfall created by interest payments always ensures that nations appear to have a negative trade balance long-term. This is why so much global trade produces so much global debt. The debt-dollar economy guts trade of the ability to ever create overall profit.

Blaming national debt on balance of trade keeps society focused upon the red herring of ‘salvation through export’, and conveniently keeps society ignorant, and looking elsewhere from, the real cause of their social poverty and environmental destruction. As export industries borrow more money to expand, they are, in reality, further strangling the very people they claim to be saving.