Time To Cancel Debt

The British economy is in the tank. Although this is largely due to the insane policies of the current Labour Government, the problem goes a lot deeper, and that problem is...debt. It isn’t only Britain that is in debt though, most of the nations of the world are in debt. On top of that there is corporate debt and there is personal debt, which begs two questions – where does all this debt come from and who owns it? After all, if there is a debtor, there must be a creditor, right? All the debt in the world is by definition equal to all the credit in the world.

The simple answer is that debt is created by the banking system, and by the accumulation of interest. The great Major Douglas explained the creation of credit by the banks way back in the 1920s; the process was known before him but Douglas provided a mathematical proof. There really should be no mystery about this because debt has been around since before the formal invention of money. Interest is the real killer though, and bank loans demand repayment at compound interest.

If you invest $1,000 at 7%, it will grow to a little over $2,000 in ten years. Many commercial debts are repayable over a longer period. We need not concern ourselves here with government bonds or local bonds, it will suffice to say that a loan must be repaid with interest, and sometimes that interest can be substantial.

Even worse than government and corporate borrowing are payday loans. A few years ago there was a big scandal here over these; people would take out relatively small loans from a payday loan company, and when they were unable to repay promptly, the debt would spiral out of control. People have been known to commit suicide due to their dire financial straits as a result of taking out payday loans.

Returning to the UK, our national debt is now around £3 trillion. Last year, the interest paid on that was over £100 billion, and there is no letting up on government borrowing. What does the Government spend our money on apart from interest? Tens of thousands of bogus asylum seekers, staggering sums paid to France, ostensibly to stop the flow of these migrants, millions upon millions given to fake charities such as Migrant Help, Migrants Organise, Refugee And Migrant Justice. Charlotte Gill has researched this area extensively and points out that BBC Media Action received over £50 million between 2021 and 2025. Have you even heard of this outfit?

Then there are all manner of insane projects, most of which come to nothing; there are people, many of them highly educated academics feeding off the state churning out statistical garbage and contrived narratives. All this contributes to the national debt.

The current Labour Administration is making bad problems even worse by imposing punitive taxation on businesses. This has hit the hospitality industry extremely hard. There is taxation on everything, even dying – inheritance tax. So is there an alternative to governments and their subjects continuing to service an increasing national debt? Yes, debts are conjured up out of thin air, and they can be vanished back into it.

The government of the day tackled the aforementioned payday loan scandal by taking action against predatory lenders. If it has the will, it can cancel a substantial tranche of our national and private debts. The usual response to this is that the heavens will fall, but will they?

The Jubilee 2000 Campaign saw $100 billion cancelled for 37 countries. Following the 2010 Haitian earthquake, pressure from concerned governments saw $268 million of debt cancelled.

There have been many other substantial cancellations of debt throughout history, and the sky still hasn’t fallen. So what can be done for the UK? The first priority is to stop profligate spending which means in the first instance stopping the migrant invasion and kicking out as many of these undesirables as possible.

The Government must also stop borrowing money at interest and create its own credit for public works, which will greatly reduce the burden of taxation. And once again the usual suspects cry this will cause inflation. Yes, but we have inflation already, we also have profitable businesses going to the wall. Provided credit is created sensibly at zero interest, it will do very little harm and a great deal of good. This has been done throughout history, most notably in Guernsey and by Abraham Lincoln’s famous greenback issue.

The Government can also simply write off many loans such as student loans, something the United States should do also. When this is suggested, the usual suspects cry something slightly different – that would be unfair to people who have paid off their student loans and to the taxpayer who must pick up the tab. In the first instance, life is unfair, live with it, and in the second instance, there will be no tab to pick up if the debt is simply cancelled.

There are many organisations, especially in the United States, that lobby for the cancellation of debt; they include Debt Collective and Debt Justice. You may not agree with their ideologies, but that doesn’t matter if they succeed in what they are doing.