Dorothea Lange Country filling station, Granville County, NC 1939 • Debt Nation: The Problem, the Solutions (Valentin Schmid) • American Credit Card D [See the full post at: Debt Rattle December 17 2015]
What I would like to know is if, as the Bank of England says, 97% of all money in circulation is created by the Banks through their accounting system then why can’t the same be done for personal debt relief? Let’s say a Government ordered a twenty percent reduction in all debt on all the Banks’ books. There would be an immediate reduction in an individual’s debt and put more money in their pocket. Certainly the Banks would have a twenty percent reduction in the amount of interest receipts which would affect their profits. But so? They have been milking the system for so long. Just look at their dividend payments. There would need to be accompanying legislation to stop the system from repeating it self but there would not be any need for helicopter money.
The banks can lend but not forgive unless coerced.
Governments can create money but don’t. There are laws against doing so favoring the banking monopoly.
If government changed the laws and issued money it would reduce exposure which would ultimately benefit the banks. Yet, they would be up in arms, not because they collect interest but because they collect collateral which is generally worth more than the original loan.
Not saying it could not be done but a combination of coercion and persuasion would be required.