The reality of the global debt money system

Colette Browne’s cynicism (Opinion, Feb 8) regarding the hypocrisy displayed by a member of the banking elite is sincere, but she didn’t pinpoint the real conundrum of our money system.

Namely, that it is entirely a debt money system.

Another way of stating this fact is acknowledging that “money” is people’s promise to pay back more ‘debt money’ in the future.

The premise of John Reynold’s argument, president of the IBF, makes some sense in the context of our present system: Remove debt in circulation and you remove the money supply.

What would happen if all borrowers paid down or cancelled their loans? No money. However, the concept of a debt money system is offensive to reason, and only suits bankers who create money from nothing and then have borrowers work as serfs to pay down their loans.

The solution, as advanced by Nobel prize-winning economist Milton Friedman, is to buy back bonds from banks gradually with debt-free money, until banks only have as much money on their books as they can loan.

Writing down debts may postpone confronting reality, but to say it is even a sticking plaster would be delusional.

Colm Gillis

Norwich

England