Creating money and the national debt

Question: Can the masters comment on current financial issues? Money has been printed so rapidly and governments are taking huge loans to help out the economy. I do not understand to whom all governments owe the money that they borrow. At the same time people are losing their jobs. What are the long term consequences of artificial money making? Do the power elite secure their positions and people have less freedom? 


Answer from the Ascended Master Mother Mary through Kim Michaels. This answer was given at the 2020 Webinar for the Liberation of Women.

Well, we have to some degree commented on the financial aspects of the corona crisis. What I will say here is that it is a very valid question. When governments borrow money, from whom are they borrowing this money and to whom do they owe the money? And you can see that in several nations, most obviously, in the United States, the government borrows money from private banks that make up the Federal Reserve Banks. The Federal Reserve is not a federal institution, it’s privately owned banks that are owned by the financial elite. Most Americans are not even aware of this. But the fact is that governments often owe money to private banks, or other international financial institutions.

There are already economists who have come up with a new approach to the economy, where the government creates the money itself. And of course, you can look back at history and see that the government of Germany in the 1920s created so much money that it caused hyperinflation and this is not, of course, a constructive approach. But this doesn’t mean that you can say that the current approach of letting private banks create money as debt is better—both will lead to inflation. Both will lead to increasing prices if they are taken too far. But in today’s world, as we have said, with computer technology and more experience and knowledge about the economy, it is possible for governments to create the money in a balanced way that will not lead to hyperinflation and therefore will stimulate the economy. And it is, quite frankly preferable to have a democratically elected government be in charge of creating money than to have private banks  that do not answer to the people, but only to a few shareholders. The question really is: Do you want a financial system that is controlled and dominated by the elite, or controlled and dominated by a democratically elected government? Obviously, the elite will never look at the best interest of the people. But at least there is a reasonable possibility that a democratically elected government will, or that they can at least be replaced by another government.

It’s clear that,as we have said also, debt has already reached a level in the world that is unsustainable. It cannot be paid back. There are even politicians in the United States who are not worried about the national debt skyrocketing, because they believe that the nation will never have to pay it back. But is the nation still not paying interest on this debt? Where does that money come from? It comes from the taxes paid by the people. Is the nation not allowing a small financial elite to create money out of nothing, but still extract money from the people that they use for their own purposes, which is primarily to maintain or increase their dominance over the financial system? And is this democratic? Is this in accordance with a democratic constitution? I can assure you it is not.

It is not what Saint Germain intended for America or any other democratic nation, and certainly not what the founding fathers intended. You may see that the American revolution started as a reaction to the oppression of the British King. But today, the oppression of the financial elite is far greater than the one exerted by the king back in 1776. Is there a need for another American Revolution? Well, not a violent revolution, but certainly an economic revolution.

 

Copyright © 2020 Kim Michaels