The injustice at the heart of national debt and fiscal policy

Posted: November 27, 2019 in Debt, Fractional Reserve Banking, Geo Politics, Monetary System, Paper money, Poverty
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We have just passed yet another general election cycle where voters had to decide which lies they believed the most

As the purse strings are loosened in order to bribe voters there has been comment on the rising levels of public spending and the impact this will have on total borrowing, resulting in greater national debt.

Should it be needed to remind us, this raises the fundamental debate of justice at the heart of government spending plans. The cutting or expanding of public services are touted as the principle factors for how effectively a nation manages it national debt

If debt reaches proportions which are too high, service cuts are said to be the main remedy in restoring market confidence and being able to pay down total debt. This is the same sentiment used by the IMF when it looks to safeguard it foreign loans by insisting on public spending restrictions

Perhaps Ahmed Thompson articulated the deceit best in the tweet captured below

The greatest threat to debt levels have always been compound interest payments due to reckless borrowing in the first place. This compounding cannot be managed or paid off, but it can be written off by those who artificially created it in the first place

And therein lies the rub….we choose to cut spending for the most humane causes which will make no impact on the compounding interest built up but are utterly unmoved by the choice to retain financial commitments which exist on paper yet cause real world suffering. The choice is made to cause hardship in the name of keeping the monetary system afloat in the fallacy that it would cause a much greater impact if it were to sink….how can we loose something that was never real in the first place

The financial crises was an example of choosing not to let confidence (which is manipulated) drain away by signing blank cheques for quantities never heard of, yet the cutting of essential services to the vulnerable was fair game.

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