The global central banks operate a system of debt creation called the Private Debt Money System. By participating in this system the population of the world manufacture for themselves a chain of debt that has and will continue to enslave them. This Formula for Debt is designed to illustrate how that process works. The system begins with the appearance of wealth for all, but over time, as the total debt grows, more and more people are subjected to poverty, unemployment and even homelessness. The Private Debt Money System creates a roller coaster of booms and busts. Eventually this system must lead to a bust that is severe and global. We are getting close to that time. Homelessness is increasing all over the world. Every country is experiencing more debt. They are all cutting services just when they need to be increased because of this debt. Hunger and starvation are claiming more people; close to 40,000 children will starve to death today, and tomorrow, and the next day, and so on and so on. Remember this fact, for as long as you live very time you take a breath a child will suffer the agony of starving to death.
Study this formula well for within it may be your own suffering. If not you, your children and if not them, your grand children. Under the Private Debt Money System the economic situation of the world cannot improve. It may at times take on the appearance of abundance but it will only be the appearance of abundance for a few. The suffering of the majority will increase until the majority is everyone.
You can bury your head in the ground and hope that thing will magically improve but there must be a place in you that begins to see the obvious. Without your participation nothing will change. The vast majority must become a vocal majority before any government will make the changes necessary to place the creation of money back where it belongs; with a people's government. A peoples government that spends money into circulation at no interest; money that can never create a debt for the people. We must have a Public Credit Money System.
Your task, if you chose to accept it, will be to learn all you can about how money is created and then work to ensure the right to create money be taken back from the worlds private bankers and be returned to the peoples Government..
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P – (P + I) = D
We start from the point of this formula as it applies to our world economy because more than any other device its effect determines the conditions of every human life in the world. The belief (or truth) that our present economic system can and will create abundance for all is a provable myth. We can prove this by applying this formula to every unit of currency (the yen, the euro, the dollar, etc.) circulating within our global economy today. I am a Canadian so will apply this formula to the Canadian dollar. Those who chose to can apply it to their own unit of currency and find the same result.
To understand this formula it is necessary to grasp two facts:
1. Every dollar circulating within our economy has been borrowed from a private bank.
2. Each dollar is borrowed for a specified time and must, at the end of that time, be repaid to the bank with interest.
Knowing these two facts we can now replace the symbols within the formula for debt with actual numbers. The symbols in the formula stand for:
The “P” stands for the Principal – the amount borrowed from a private bank.
The “I” stands for the Interest charged on the borrowed dollars.
The “D” stands for any Debt resulting from the process of borrowing dollars from a private bank.
Basically the formula states that the borrower has received the principal (indicated the first P). Subsequently the borrower must repay the principal plus interest (indicated by the P + I within the parentheses)
As an example let’s use a loan of $1,000 borrowed for one year at an interest rate of 5%.
P – (P + I) = D
$1,000 – ($1,000 + $50) = D
There is a precedence rule in mathematics requiring that whatever is found in parentheses be calculated first. Therefore, in our formula the $1,000 and the $50 must be added first. Doing this operation reduces our formula to:
$1,000 - $1,050 = D
Now our formula states that the borrower has received $1,000 and must return $1,050. Doing this we arrive at the following:
- $50 = D
In other words, borrowing $1,000 from a private bank at 5% interest results in a debt of $50.
Now you may say that the borrower just needs to “earn” the $50 from the dollars already circulating within the Canadian economy. On the surface this may seem to be true but this thinking is just another myth. Remember that every dollar circulating within the Canadian economy has been borrowed and must be returned with interest to a bank. Let’s assume that there is a total of one billion dollars in circulation within the Canadian economy. If there was an interest charge of only 2% on this money that would mean that One billion, twenty million ($1,020,000,000) would have to be returned to the bank. If there was only one billion borrowed, where will the twenty million needed to pay the interest come from? The twenty million dollars doesn’t exist, therefore an un-payable debt of $20,000,000 has been created.
Now you may say that Canada just has to market some of its natural resources, thereby obtaining the money necessary to pay the $20,000,000. Based on the fact that Canada’s natural resources are estimated to exceed 2,500 trillion dollars it is very possible for it to “earn” the money necessary to pay the $20,000,000 in interest by marketing just a few of these resources to other countries. This fact helps perpetuate the myth that money can be “made”.
Remember that not only Canada, but every country in the world has borrowed every unit on currency circulating within their economy. By marketing its resources to another country Canada removes some of its currency from its economy, thereby reducing the money available in that country. That country now does not have sufficient funds to repay the principal borrowed never mind the interest. You see, once debt has been created by borrowing money at interest it never goes away. It is possible for some countries, some corporations or some individuals to amass a “profit” but only at the expense of others. Under what is called the Private Debt Money System debt is the only guaranteed result. Even the bankers themselves have told us this.
Banking was conceived in iniquity and was born in sin. The Bankers own the earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of Bankers and pay the cost of your own slavery, let them continue to create deposits.
Josiah Stamp. Director of the Bank of England, 1928-1941, and the second richest man in England
I strongly recommend that you stop here to reflect on the above. It is imperative to you understanding of our present global economic crisis that you understand how that crisis came about; not only understand how it came about but understand that under our present Private Debt Money System it was guaranteed to come about. Once you really understand this no amount of wool pulled over your eyes will hide the fact that debt is the guaranteed result of our present money system. Your homework should you chose to accept it is to read The Money Myth Exploded. You can find this simple but true story at, http://www.michaeljournal.org/myth.htm. While you’re on that site read the following article as well: http://www.michaeljournal.org/bankphilo.htm.
This one issue, (borrowing money from a private bank) controls most of your life and affects everyone in our society. It creates (read guarantees or mandates) all the poverty, unemployment, and homelessness. Study this short chapter well. It is important that you understand that by using the Private Debt Money System to finance the operations of our economy we all play a part in producing the debt that eventually results in the wholesale selling of our resources to global corporations.
If the people ever allow a central bank to control the money supply they will wake up homeless in the land their forefathers conquered. – Thomas Jefferson
Thomas Jefferson was a prophet. The people have allowed it and are beginning to wake up homeless. Only the people, you and I, and all our neighbours must act to change this situation or we will all one day awake and find ourselves homeless.
One final point, it is impossible to “make” money. Vehicles like the stock market, trust funds, etc., operate entirely with borrowed money. Remember the first point; ALL money in existence has been borrowed. What happens when you go to a casino and win some money? You have won someone else’s borrowed money. Someone must lose for you to win. Whether at a casino, in the stock market, the lottery or the work force, someone had to lose for you to win.
