Debt-Free Money

Principles of benign governance. Part Three

by Fabian Ubiquitus


(And a very brief explanation).

Money is our means of exchange. Whether existing as notes and coins or numbers in ledgers or computer memories, it comprises an agreed upon system of tokens that represent goods and services.

People exchange these tokens back and forth in place of actual goods and services confident that they can exchange the tokens (pounds, dollars etc) for actual goods or services at any time.

It FACILITATES smooth exchange of goods and services between producer and consumer.

There has to be a sufficient amount of it in circulation to enable smooth exchange to occur. It must not be too scarce. If it is too scarce relative to the amount of goods and services people are trying to exchange, we wind up with what is known as RECESSION or a DEPRESSION –   situations in which production and exchange are constricted due to a relative scarcity of the means of exchange.

Money must also not be too plentiful in relation to the amount of goods and services being produced and exchanged. If it is, we get what is known as INFLATION – too much money resulting in a loss of the SPENDING POWER of money.

SOMEONE had to create money and get it into circulation. Currently, the government does NOT create the nation’s money supply.

The vast bulk of the money in circulation is currently created by the banking cartels out of nothing as mere numbers in computers. It is then gotten into circulation by LENDING IT to governments, industry, consumers etc. When these borrowers spend it, it thus enters circulation.

However, the newly created money is loaned out AT INTEREST so that the borrowers must pay back more than they borrowed.

Thus, when new money is created in this way, MORE DEBT THAN MONEY is created.

Money returns to the banks as debts are repaid. The added interest means that more returns to the banks than was created.

This creates in the economy a perpetual shortage of spending power and perpetual pressure to borrow more money in order to compensate for the scarcity and this in turn creates even more scarcity of spending power.

The small amount of cash in circulation is created by government. It is printed and minted and enters circulation without a debt-plus-interest behind it.

However, it usually enters circulation in exchange for someone’s number money (see above) which WAS created by the banks and DID enter circulation with a debt behind it.

This system IS the reason why the economy malfunctions and is swamped by ever increasing debt.

The handing by government to the banks the privilege of creating the nation’s money supply in this way, hands extraordinary unearned wealth and economic power to the banking cartels and their owners.

ANY nation that depends on private corporations to create its means of exchange in this way, winds up owing the bankers more money than actually exists (ie the debt can never be repaid). This is hidden by smoke screen of complexity but it establishes the banking cartels as a power echelon SENIOR to national governments on the basis that the lender of money holds the whip hand over he who must borrow it.

Therefore, this MUST change. The right and privilege of creating all the nation’s stock of circulating money in accordance with that economy’s need for it MUST be restored to the nation’s elected government. And the creation of the money supply must be transparent and open to public scrutiny, driven ONLY by the economy’s need for money and NEVER contaminated by political ideology, temptation, expediency or the thirst for power or popularity.


  • The creation of the nation’s money supply MUST be removed from private hands and restored in full to the nation’s elected government. Elected government must create the money supply and SPEND it into circulation, according to the economy’s need for a stock of circulating money, NEVER lend it.
  • The government MUST ALWAYS create sufficient NOTES and COINS alongside the digital money to satisfy all the citizenry’s needs or potential needs for notes and coins. The option to use notes and coins MUST ALWAYS BE A MATTER OF FREE CHOICE for the citizen and the continuance of this option in perpetuity is a guarantor of liberty. The government shall never under any circumstances cancel or inhibit the provision of notes and coins for anyone who wants to use them. NO ENTITY OR PERSON WHATSOEVER may deny any other person or entity the option and right to give or receive payment for goods and services in notes and coins if they so wish.

NOTES:  In order to keep party politics and expediency out of the creation of money supply, there must be created a National Agency, fully independent of party political or other influences and fully transparent in its operation, whose sole job it is to CALCULATE how much new money must be created in order to keep the economy adequately supplied with its means of exchange and able to expand. In so doing the Agency will steer a course between inflation (too much money) and recession (money too scarce) and the yardstick for this is: KEEP THE PURCHASING POWER OF THE NATION’S MEANS OF EXCHANGE STABLE. Having calculated how much new money must be created, the Agency then INSTRUCTS the government to create it. The elected government then creates and spends that exact amount into the economy through the provision of services (roads, schools, NHS etc etc) according to the mandate and promises on which it was elected.

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Fabian Ubiquitis writes exclusively for UK Reloaded


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