''No sovereign government should ever, under any
circumstances, give over democratic control of its money supply to
bankers or borrow any money from any private
bank.''
-Prof John Hotson
The financial system based on the Bank of
England model is not sustainable. It creates nearly all money as
debt. Such money only exists as long as someone is willing and able
to pay interest on it. It disappears, wholly or partially, in
recurring financial crises. It requires that new debt be created
faster than principal and interest payments due on old
debt.
When a bank makes a loan, the principal amount of the loan
is added to the borrower's bank balance. The borrower has to repay
the loan plus interest even though the loan has created only the
principal sum but not the interest amount.
Therefore unless indebtedness continually grows it is
impossible for all loans to be repaid as they come due.
These loans do not create new money, but they do create
debt.