Croatia Leads The Way

Money is only an idea

The world financial system is in chaos and the focus of world financial trade is about debt. Banks and corporations trade debts and it is only a minority of smart corporations and individuals who actually make profits.

The idea of money has always been somewhat twisted and at one point in our history a unit of currency was a price for a loaf of bread and everything was calculated from that. In terms of providing a means of exchange money came into being to facilitate indirect bartering. In other words it enabled traders to exchange their goods with one person for money and buy new goods from another with the money from their previous sale.

Croatia is a country that came out of the former Yugoslavia, it has a small population and a significant percentage are in debt primarily in the local currency and Swiss francs. The Swiss recently unpegged their currency from the euro and its value has increased significantly disadvantage in the Croatian borrowers.

Given the sad state of the Croatian economy and the high rate of indebtedness, the cancellation of debts for those on the lower end of the socio-economic scale is a great idea. Freed from their burden, they will be able once more to participate as equal members within their country.

You may ask, what about the creditors?

When we think about money in the scale of commercial banking, there is no paper money, there is no gold. Money only exists as a number within a computer program in the minds of the people who think that they possess that money, but money like an idea is very hard to possess as it has no inherent substance.

Prime Minister Zoran Milanovic said in a press conference last month that no previous government had taken such a measure although in fact the city state of Rome may have done this in about 68 A.D as debt was spiralling out of control.

Given the rotten state of the world economy, a total cancellation of all debts would be a great step in transforming the world and making life more equitable for all citizens.

I would go a step further and also ban lending. But let's step back and think about what might happen if all debt was abolished. Everyone would still have their trinkets and possessions and from a material standpoint, nothing would really change. Those with money would still have what money they had, but those without would have a fresh start and a new opportunity to participate in life as free individuals. Under the current system, there is no doubt that many would go back into debt and become slaves to that debt once more, but if we went that a step further and banished lending, then no one to get into debt and no one would ever be a slave to a creditor.

So for the moment, give our thanks and support to Croatia and maybe the world will follow.


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