Monday, 10 October 2016


I read a statistic this week that I won't forget in a hurry. The world is $152 trillion in debt.

As kids we are taught that banks are places where people keep their savings and the bank then lends that money out to people who want to borrow money. If money is based on gold or silver then this idea works. The amount of gold available doesn't change much. A little more is mined each year but the total amount of gold on the planet is finite. This means that the banks would only have money (gold) to lend to people, if they had deposits from people who have savings or excess gold.

Paper money has no physical limits. It literally grows on trees. We can chop down more trees, make more paper and print more money. But the government has put in strict controls to limit who can print money and how much is printed.

There are no controls at all over digital money.

Digital money represents 97% of the money supply according to positive money (who have lots of simple videos to help people understand how money really works). The banks create digital money by typing the numbers into a computer every time a loan is made, then they charge interest on it. No wonder bankers get such big bonuses and have no concern about gambling millions on stock markets and currency speculation, because they can just create more money at the tap of a key.

If you are still struggling to believe this, then ask yourself how the world can be $152 trillion in debt otherwise? Where did all this money come from to lend to people, businesses and countries?

How are we going to pay back all this debt? Create more money of course. But the banks charge interest on all the money they create so in effect you need more money than has been created to be able to repay the debt and interest. The debt can only continue to grow.

If you are personally in debt, which most people in the UK are if they have been to university or have a mortgage, there is a certain amount of stigma and guilt attached to it, along with pressure to pay it back. Partly this comes from the general feeling that we have borrowed someone else's savings, when in reality this money is created by the banks from thin air (not requiring savings or even trees to grow it).

It is important to understand that it is IMPOSSIBLE for everyone to pay back that debt in the current system, because of the interest attached, which means there will always be more money owed than money created. Not unless we change the system so that money creation is controlled and created without any interest attached. Until then people are debt slaves, working all their lives in the hope of paying off their debts so that they can enjoy their old age. Just know that when you pay off your debts they are just getting passed on to the next generation of debt slaves and their burden will always be heavier.

Please don’t get stressed or beat yourself up if you are in debt. Money in its current form is a trap and even most countries with all their financial advisors are in debt. See how fast the UK’s debt is growing here. That is currently equivalent to £48,000 for every tax payer, with an average salary of £27,000, which may put your personal debt into proportion. Some point soon there will need to be a reset – governments going bankrupt and wiping the slate clean. (Only we had best hope that we are out of the EU before then, otherwise they will force the UK to take on more debt, whilst expecting a ‘bail-in’ payment from anyone with savings over £200,000, followed by a sell-off of all assets, such as ports, monuments, and the NHS, whilst simultaneously cutting pensions and welfare payments. Just saying!)

If you want to reduce your personal debt TheMoney Saving Expert website can provide helpful tips to help you budget and save money.

The way I see it is that money no longer represents any kind of barter or exchange. It is purely used as a tool to create debt to the banks (debt slavery). On the flip side barter and exchange rates are not linked to money. Think about it. Anything you want can be bartered or exchanged without money. Money was originally created to make it easier to collect tax. The government struggles to tax 20% of the runner beans that I gave my neighbour or 20% of the jar of jam she gave me in return.
You would be surprised how many exchanges are used every day. For instance, instead of me paying for a taxi or train, my friend gave my son a lift when I wasn’t able to, knowing that I will return the favour (or complete my side of the exchange) for her daughter in the future. If you want to free yourself from debt then increase your exchange, barter, favours and gifts with family, friends and neighbours. From grouping together to provide childcare, carpooling, to couch surfing, hitch-hiking, house swapping and various other ways of cutting money out of your everyday transactions.  Focus on developing new and existing skills such as growing vegetables, carpentry, playing music, hairdressing or anything that gives you something to trade with others for the things you need.
This kind of currency promotes trust and respect – something lost from our banking system.


  1. Judy, I am completely with you on the idea of transitioning to a less money-centric lifestyle. I am busy building a community of friends and family who provide a lot of knowledge, expertise, person-hours, kindness, surplus vegies and hot meals for each other. It makes so much sense, because none of this can be taken away in an economic crisis..

  2. Yup, I agree. I saw that figure last week and blanched - this will go belly-up in my lifetime,and it won't be pretty for anyone. Still, paying off debt does give you a little more freedom and piece of mind. Glad to see you blogging again :)

    1. Thanks Rory. It is good to know you see things the same way.