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The Last Thing We Need Is More Debt-Money

By: Rita Jacobs | Published: 4/21/2020

 
Money supply v debt
 

Current federal debt is over $25 trillion. The fifth clause of the Article I, Section 8 of the U.S. Constitution gives Congress the authority to create money. So why doesn’t Congress create money instead of continuing to allow private banks to create money? Why should private banks be allowed to create money to buy government bonds? And why should the government continue to pay interest on borrowed money when it doesn’t need to? Have you ever asked your Congress person why that is? You should start asking. The government debt has reached such a high level of debt that the interest alone on the debt is the fastest growing budget item in the federal annual budget. It is not sustainable. It serves only to make the wealthiest among us wealthier.

Why is there so much personal debt? U.S. student loan debt has reached $1.6 trillion; auto loan debt $1.1 trillion; and credit card debt $1.04 trillion.

Have you noticed there’s a class war going on? Do you wonder why the two major political parties won’t allow a candidate to run for president who truly recognizes the average person’s problems within our society? Do you wonder why you can’t accumulate any wealth, save for your retirement, pay off your debts? Do you wonder why you can’t afford health insurance? Do you wonder what kind of a world your children will grow up in?

Do you wonder what’s causing wealth inequality, homelessness, loss of health care, increase in mental illness and suicide? Do you wonder why the economy crashes every few years, and each time it happens, the middle class loses, and the billionaires increase their wealth?

This problem has been going on for a long time. The Federal Reserve Act of 1912 was the primary legislation that put control of money creation squarely in the hands of private bankers. It has resulted over time in creating immense wealth in the private banking sector. Financial institutions are now major shareholders in many of the largest corporations, and control them through ownership of controlling shares, and increasing and profiting off their indebtedness. These include major oil corporations, military weapons manufacturers, health care systems, and many of the associated businesses that provide services and resources to those corporations. The financial institutions have as their main goal increasing their own wealth. Their disregard for people and the planet is apparent when they use their immense wealth to control the government by financially backing the legislators who will enact policies that protect their wealth creation.

The Covid-19 pandemic is the latest opportunity for the financial sector to increase its wealth at the expense of the 99%. Many of the stimulus programs will result in an increase in government debt, as well as an increase in private debt, and a decrease in wealth among the most vulnerable members of our society.

It is time to end this special privilege and immense power that has been bestowed on the private financial institutions by our government. There is no reason why the government cannot simply create public debt-free money and spend it into circulation through implementing programs to serve the general welfare, and making grants to states and local government to enact their own programs for the benefit of local communities.

Voting will not make this happen. What is needed is a mass movement of education so people understand the unfair monetary system that is destroying their wealth and any means of obtaining wealth, or getting out of debt. We do not have freedom when we are debt slaves.

“Freedom is never voluntarily given by the oppressor; it must be demanded by the oppressed.” ~ Dr. Martin Luther King, Jr.

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