Chapter 5 - The European Money Supply Destroyed.

Europe suffers in the straightjacket of the Euro money system:

Graph of Loans for Europe. Creative Commons Attribute - Andy Chalkley. www.andychalkley.com.au

In Europe, the European Central Bank has created a total of €1070billion in Cash Currency. [2015] This is the sum total of Cash Currency created by the European Central Bank. The ECB has created no more than this figure. The Money Supply of Europe is €10591billion. Thus, only 10% of the money in Europe originated from the ECB. 90% is created as credit when the banks write numbers in accounts to record the volume of euro notes that they owe that customer. This €9521billion as account entries in citizens bank accounts is unredeemable as the European Central Bank has never created this volume of Cash Currency. However, provided people don’t ask for real money, the system works. The banks shuffle numbers to effect payments between citizens. It also requires that debt is only collected slowly. Total debt in Europe is €28687billion. This vastly exceeds the volume of credits in bank accounts. There is 2.7 times as much debt as there is money in Europe. These debts are uncollectible. The Euro system has created 2.7 times as much debt as there is euro money. There is no hope of repaying this debt. There is no hope of collecting this debt.

Europe Money and Debt. Graph by Andy Chalkley. Creative Commons Attribute Data: Bank of Greece and OECDstat

No country in Europe can pay off its debt. Even Germany has ‘more debt than money’. Germany survives because more credit is created each year which enables businesses to pay the previous years interest.

Germany Money and Debt. Germany cannot pay off its debt. Graph by Andy Chalkley. Creative Commons Attribute

I there a country in Europe that is not in debt?

Europe debt. Graph by Andy Chalkley. Creative Commons Attribute

This graph encourages you to compare the national debts of the various nations. What is bizarre is that they are all in debt. The system ensures that the nations go into debt to a supranational organisation where bankers have more control than nations.

Europe debt. Graph by Andy Chalkley. Creative Commons Attribute
Europe debt. Graph by Andy Chalkley. Creative Commons Attribute

Money is a freely created commodity. Any amount of money can be created at no cost. Money is either printed on cheap paper or created at an even lower cost by writing numbers in ledgers. To buy a villa in Switzerland, the bank writes "we owe you one million euro" into the account of the seller of the villa. In the account of the purchaser of the villa, the bank writes: "you owe us one million euro". The bank has created the money to buy a villa by book entries. From this moment, there is €1000 000 more money in Europe and €1000 000 more debt in Europe. The debt magnifies with interest by the magic of usury. After one year, the purchaser owes €1000 000 plus interest. after two years the purchaser owes €1000 000 plus interest plus interest. By the magic of money creation, banks create all the money used to buy houses in Europe. By computer entries, the private banks can create credit entries sufficient to purchase all the property in Europe. If you want money, you must borrow it from the entities that create money: the banks. If governments want money, they must borrow it. If citizens want money, they must borrow it. If businesses want money they must borrow it. There is a cost associated with the use of money called interest. You have an alternative to borrowing and that is to earn the money. However, the money you earn is money that someone else borrowed a while back. The money the unknown stranger borrowed was passed from person to person by adjusting bank account registers until you earned it as wages. Its origin was a stranger’s borrowings. Thus the private banks have been given a monopoly on the creation of money whilst the European Central Bank ahs the monopoly on the creation of Cash Currency.

The ECB states on it website: “The ECB has the exclusive right to authorise the issuance of banknotes within the euro area.” The wording is cleverly written. The unthinking citizen of Europe would assume that the European Central Bank creates all the money in Europe. But this is simplistic thinking. The European Central Bank makes 10% of the Money Supply. It makes the cash Currency folding notes. The private banks piggyback on this and create credit in registers where entries represent the equivalent of the notes printed by the European Central Bank.