" ... the Guernsey experiment is absolutely not what the modern idiots and Socialists are proposing"
I'm pretty sure that's not what the Socialists, et al, are proposing.
The Socialists want Social Benefits of one kind or another to be dished out by a Government. But a "Government" doesn't produce Revenue of itself. It's not an Industrial Corporation, or similar, that earns revenue from making anything or providing services, etc, that it can distribute. What it dishes out comes FROM TAXES, which in turn COMES FROM INDIVIDUAL TAXPAYERS AND BUSINESS.
And when that TAX INPUT is insufficient then the Government has to borrow money by issuing bonds, which has an "Interest Component", the "coupon".
And what makes matters worse is the historical fact that the policies of a Socialist government are NOT CONDUCIVE TO A THRIVING ECONOMY AND JOB CREATION. That results in LOWER TAX REVENUE, which just ends up by that government having to "BORROW MORE", WITH AN ONGOING GREATER INTEREST BURDEN, etc, etc, etc,. .....
And then we have a country's Central Bank setting the interest rate that a commercial bank has to "borrow" money at. The commercial bank then adds on its couple of percent to that rate when it lends money. BUT the bank can lend out several multiples of amounts greater than the amount it actually has,i.e. BCM, AND CHARGE INTEREST ON THOSE SEVERAL LOANS. Which is where the principle of GCM (Government Created Money) as compared to BCM (Bank Created Money) comes in .....
The BANKS, via this BCM process, are the BIGGEST CULPRITS IN TERMS OF THE HIGH LEVELS OF DEBT WE SEE IN MOST COUNTRIES TODAY.
There are very interesting chapters in this regard in "The Money Mafia" by Paul Hellyer, including a section on Guernsey ..... |
