In the days ahead, the Spring Statement that will be made to the Westminster Parliament by the UK Chancellor is likely to usher in mayhem of a kind we have never seen. Cuts to the Civil Service and Welfare Payments sit alongside taxation policies announced in the October ’23 Budget that should be flying red flags for many more of us than those who are ready to see, warning us about the mess the UK – and the World – are now in.
All for the love of money
The financial, economic or monetary system we have was designed by people who understood the following:
The power of money isn’t in the value of money itself. The power of money lies in what people without money can be convinced to believe the value of having money will be.
In the period running up to the ending of the Gold Standard, the launch of FIAT, GDP and tools like the (EU) Common Market, failing politicians who were desperate for control, power and the money they needed to spend on getting (re)elected, were easy to convince that FIAT and the tools that MMT and Neoliberalism had value, for us all.
The creation of a money system that wasn’t backed by gold or linked to anything with tangible value opened a world of possibilities.
Because at the bottom line of the whole balance sheet, money was always going to be worth whatever the people controlling that money said it was.
Naturally, the politicians didn’t really think about who would actually be in control of the money, as the real political pay-off was the way that the creation of money by banks and finance houses kept the true workings of everything far away from public view.
Creating the myth of credibility within shared systems
Through the adoption and regard of GDP as an accepted international economic benchmarking system, any money or unit of currency created by a private bank or finance house and introduced to the economy as loans or finance can be counted over and over multiple times.
Every unit (Pound, Dollar, Euro etc) adds another multiple of its original created value as it passes through each transaction or link in a supply chain, with the monitoring and publication of GDP recording output and growth that was really never there.
Total GDP figures are themselves then used to devalue or rather hide the debt that politicians incur through public spending, which is published as a percentage of what is required to be permanently growing GDP.
Traditional public spending is itself ‘dead money’. Because public service supply chains are typically short and revolve around providing public servants income and earnings.
The attraction for politicians to let the MMT genie out of the bottle was that they would be able to use money that they could borrow, rather than what they would have to obtain through raising taxes, to gain and maintain their power by buying votes. All with policies that they would not be able to afford or win support for in any other way.
The deregulation that was necessary – presented to all of us as ‘free markets’ – was never about freedom of small business in the sense that many even today believe.
Free markets are about giving freedom to big corporations and financial titans to set their own rules and control everything to do with money.
The freedom they have gained through deregulation has then dictated what the money they created can then buy. So that they could do whatever they want, take whatever they want and control whatever they want.
They knew that in time, the bogus system they created would eventually allow them to take over anything and everything that offered independence to anyone or anything that could provide a morally legitimate alternative to what they dictate would be our culture and way of life.
The big downside for every part of government and the ambitious and inept political classes who have blundered along whilst this has all unfolded using their signatures, is that they themselves have been manipulated, controlled and duped by the same interests that we have been conditioned by all along.
Politicians now go cap in hand to borrow from money creators who are always willing to use more of the false money that has enriched them to buy up the bonds the Government Treasury ‘sells’ them so that they can then charge interest on the money they gave the Government that doesn’t exist, but that we see made ‘real’ by our puppet politicians in the form of Public Borrowing.
The Credit Trap (For people)
Growing this system and measuring ‘growth’ is dependent upon the amount of money outside of the public accounts:
- That has been added to circulation (the total volume of money that is known to exist in bank accounts or as cash) that can be realised or moved around, and
- The multiples that can be added by the movement of that money, each time that it changes hands in a way that can be recorded through GDP.
This means that credit or money creation has become more important than traditional forms of production – which have historically been the source of value creation; and that these forms of production needed to be absorbed by the new system, so that everything within every supply chain could be leveraged – no matter the real cost to us all – so that they could force the creation of more new money or credit in some way.
As you begin to understand how valuable consumerism and everything that feeds it, such as mass production, globalisation, rent, leasing, subscription and licensing has become, you can also see how what is arguably the biggest and perhaps the perfect crime enacted against humanity, has really played out.
Through the necessity dictated by its need for ‘growth’ and now survival, The System has relied upon developing new and ever more inventive ways to force the masses into borrowing and the use of credit.
Using politicians and the law, we have deliberately been led and in some cases pushed away from owning resources, earning enough or having any kind of financial independence (including the use of cash) of our own.
The Credit Trap (for governments)
The growing value of the public debt was never intended to be paid off using this system.
It couldn’t be, because all of the natural forms of production and infrastructure that the population, normal businesses and even government once owned have steadily been sold off, moved and even rented back to us.
All so that those who used fake money to trap us all, could use the material wealth that they had bought and accumulated with fake money, to force us to borrow even more of that non-existent fake money, so they could gain increasing control over everything and make even more.
Our currency has become worth less and less in proportion to the value of the money that the banks and finance houses have been creating, which itself has been increasing from the start.
Unfortunately, all this has meant that as the assets and genuine productive value of the UK economy have been increasingly stripped away.
Government at every level – like all of us, has been left with less and less in terms of options to find money or income in any alternative way – because there is basically less and less happening in terms of independent production that remains available to be taxed!
The basic equation that politicians and government can no longer accommodate is this:
Privately or corporately created money and its circulation through increasing growth MUST always eclipse public spending for The System to keep working.
That is why everything we know and understand about the role of money, our access to it and our use of it has moved towards credit and debt creation that allows the flow of created or printed money at a level previously never known, that has then been used to finance the takeover of everything that has followed.
This is why we are now in the mess that we are in.
The System was always destined to fail. The only question was when
Public spending could be argued as having been out of control from the very beginning of this ‘system’.
Even economists believe that The System is genuine, because for no better reason than the subjectivity within the realms of an intergenerational period of time, it can certainly be argued that it does.
However, the realities of a system with malfeasant legitimacy were hidden so well by what remained of the ‘traditional’ or ‘old’ system for the first two to three decades, that politicians really had a honeymoon period.
Once bedded in, and the turmoil that followed adoption of the new system and what it really meant in the 70’s was complete, Politicians believed they could increasingly do whatever they wanted and didn’t see any danger hidden in everything they were being advised and influenced to do.
In reality, it was only the level of our Politicians own stupidity that could prevent them from getting successive wins, within The System of the 80’s, 90’s and early 00’s as it then was.
The real turning point when everything should and could have gone a different way was the Global Financial Crisis (GFC) of 2007/08 (Which has quietly been renamed The Great Recession) – when the stupidity and recklessness of the bankers own making through the actions of their employees and systems should have brought the whole system down.
The System was saved because the entire establishment by then depended upon it to survive.
Everyone with responsibility for the way everything we should be able to rely upon working for us, was already in it up to their necks.
The volume of cash created to bail out the banks in response to the impact of the GFC removed any real question over whether the existing financial system has any moral backbone or grounding in reality or not.
The fact that public borrowing being used to refinance private banks was accepted as being ‘normal’ in the way that it was, does indeed tell anyone looking on objectively, all they need to know about where the real priorities within The System lay.
The Politicians, establishment and bankers we so emboldened by the idea that they had got away with that one, it really didn’t take much for those in power, but without the skills, experience or leadership skills they all should have, to abuse the situation even further to get themselves out of a blind panic the very moment that the Covid Pandemic arrived in early 2020 and people began to die.
The explosion in unnecessary public spending, in response to the Covid Pandemic and then everything to do with the War in Ukraine that has followed, have contributed exponentially to the situation we see today and are key contributors to the fiscal decisions that the UK Chancellor and the Labour Government behind Keir Starmer is taking now.
UK government no longer has the ability to pay for all the public services that we need. Because private money creation and the ‘growth’ in credit is no longer high enough to hide everything that government needs to do.
The historic or traditional forms of production that the UK once excelled in and led the world with no longer exist to create either the value and therefore the money flow (through taxes etc) in any other meaningful or visibly legitimate way.
Our Armageddon is already here, today
The reason that so much of this is breaking into the open now, isn’t a warning of what will come if we don’t change our politicians’ minds and get them to run government differently.
It’s all coming into the open now, because it’s already too late.
When we begin to appreciate just how deeply rooted this bogus financial system is and how it is affecting so many different areas of life, we can begin to see just how serious the collapse of The System will be.
It is already making many fearful for what not having a system that works this way at the centre of the lives will mean.
Not because there isn’t an alternative, but because of the fear of losing whatever we believe we have gained.
Those who are responsible for keeping this morally bankrupt excuse for an economic system going know this and feel this too.
They are desperate to rescue themselves, their positions, influence and wealth with a new system that will keep their interests in place.
Alongside, they also plan to create a new set of myths for those of us who can be useful, and disregard everyone else.
In order for them to survive, the elites must change everything we know that’s built around the lies that are either unfolding or can already be seen to no longer work and replace them with new lies and The Systems that appear to work until those inevitably break too – no matter the cost to all of us.
Adam Tugwell 
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