CHOKING ON THE GRIP OF DEBT
AVERAGE HOUSEHOLD DEBT UP 50%
Average household debt has risen by more than 50%, since 1997. Figures from the Office for National Statistics show the average family is now in debt by £37,500, against £24,500 in 1997. Economists are forecasting that the government will need to borrow £33.7bn next year, against Mr Brown’s forecast in April’s budget of £24bn. (figures from Sarah Hall, "Family debt 5O% up under Labour", The Guardian, 26 July 2003, p. 10.)
It is not surprising that debt levels are increasing. What else can we expect when virtually all money comes into society only as an interest-bearing debt owed to the banking system?
Money Reformers say that debt levels across society will continue to increase with hugely damaging effects until the government exercises its right to create a stable supply of debt-free money and spend it — not lend it — into society.
FRACTIONAL RESERVE BANKING QUESTIONED
A positive sign that mainstream journalists are starting to raise issues related around the Money Reform critique, came to us this month from the article, "Third-way addicts need a fix" by Larry Elliott in The Guardian of 14 July 2003. He wrote: The globalisation of financial markets was not an act of God but of governments. Likewise, the limited liability company is a privilege granted by governments to business, not a right. The same applies to fractional banking, the means by which the state allows private banks to create money unsupported by their reserves.
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Freedom from Debt Slavery
Number 43 July 2003