Subsidiarity is not the breaking down of a power into smaller and smaller units, but a power whose issuance is fully expended, fully spent, into a corporeal work which creates another body. This is what a government printing its own money and then spending it into existence through infrastructure is about: Catholic teaching.
The gold standard is the implementation of the law of the jungle and the turning over of creativity, time, energy, labour and invention to the bondage of an idol.
Update: Bitcoin is Kitcoin. It is the eradication of "who". The money issue is not a money issue. It is a national sovereignty issue. Free trade is not trade.
Update II: The Magic Isle of Guernsey, By Bill Still:
simple fact is that a nation's money should be created in the public
interest. Unfortunately, that is not the case today in almost every
nation on earth. Money creation is given over to private banks through
the deception that it is being created in the public interest by
national central banks such as the Federal Reserve, Bank of England,
Bank de France, Deutsche Bundesbanke, etc.
believe that the only solution is a return to gold-backed money. I do
not agree. I think this is yet another deception and I believe world
monetary history proves this incontrovertibly. To me, the main point to
remember is that it is not what backs the national money that is
important; what is important is Who controls the quantity!
the nationalistic-sounding names of these central banks, don't be
deceived; they do not create money in the public interest. Every dollar,
every pound, every euro is created as an interest bearing debt -
primarily owed to - and the quantity controlled by - the commercial
The reason solution is two-fold:
1. Forbid government borrowing - no more national debt. Nations do not have to borrow. Nations can create their own money.
2. Forbid fractional reserve lending. This is where banks can lend
out 10 to 12 times the money they actually have. Banks must go to
In other words, the only way to end this worldwide spiral of
depression is for every nation to return to a debt-free money system. Without the money power firmly in its control no nation can really be
sovereign. In fact, creating money in the public interest is the very
definition of sovereignty.
Fortunately, this is not a new or radical idea. It has been used
hundreds of times throughout history, but every time it has been
employed, it has been attacked mercilessly by the big banking class who
lose profits whenever the idea of money creation in the public interest
surfaces. So, this is a timeless struggle and nothing less than survival
of the human species is at stake, because the debt the current system is
generating is the primary cause of the world's hunger, poverty and
misery, and is quickly destroying sovereign democratic governments and
returning humanity to a nouveau-serfdom system from which it will soon
be unable to escape.
Debt-free money creation has been going on in the tiny island of Guernsey for 200 years. Lets take a look.
Despite the fact that the island of Guernsey has only 30 square miles
and a population of only 65,000 people and very little in the way of
natural resources except cows; their per capita income is $40,000 per
year, 9th highest among the 200 or so countries of the world. What
gives? Guernsey has used a money system since 1817 that can serve as a
model for the rest of the world to use to escape the ongoing depression
of the 21st century.
Despite it's proximity to France, Guernsey is actually a British
Crown Dependency and, to it's credit, has never joined the European
Union. After the Napoleonic Wars, Guernsey was in dire straits. The
island's roads were mere cart tracks, only 54-inches wide. In wet
weather they were virtually impassable. There was not a vehicle for hire
of any kind on the island. There was no trade, nor much hope of
employment among the poor. The sea was washing away large tracts of land
due to the sorry state of the dykes.
Guernsey, like most nations at that time (as well as today) had
borrowed heavily from the banks. The States Debt was £19,137 with an
annual interest charge of £2,390, but the gross national revenue of the
entire island was only £3,000, leaving only paltry £610 per annum to run
the entire island. In other words, interest paid to banks consumed 80%
of the GDP, thus reducing the populace to a state of pitiful serfdom.
In 1815, a committee of well-respected public spirited elders was
assembled to finance the building of a public market near the the main
harbor, Saint Peter Port, so the farmers could more easily sell their
products for export. The cost of the new facility would be £6,000. In
addition, fixing the dykes would cost an additional £10,000.
Further taxation of the impoverished island was impossible. Borrowing
money from the banks would result in even higher interest charges that
could never be paid. The committee made a historic recommendation to
remedy this dire situation.
The committee recommends that the expense should be met by
the issue of State Notes of £1 sterling to the value of £6,000.... and
that these notes will be available not only for the payment of the new
market, but also for Torteval Church, roads to construct, and other
expenses of the States.
The committee argued that there was little to fear from inflation
because the local banks already had £50,000 of their money (notes) in
circulation. As a further protection against inflation, the overly
cautious citizens of Guernsey placed redemption dates on the notes of
April 1817, October 1817, and April 1818. In other words these notes were
good for payment of taxes and good as regular money in circulation
until the expiration date was reached. At that time, the notes would no
longer be legal tender and the state would destroy them.
In this manner, without increasing the States' debt, it will
be possible to finish these works, leaving sufficient money in the
Exchequer for other needs.ii
Once the good citizens realised that these notes would work without
the skies falling on the gentle island, additional issues took place in
1820 and 1821. By 1821, some £10,000 of Guernsey notes were in
circulation, all created without debt.
[It was] the most advantageous method of meeting debts, from
the point of view both of the public and the states finances. Indeed, the
public seemed to realise this fact, and, far from being averse to
taking the notes, they sought them out eagerly.iii
The citizenry clearly understood that these Guernsey Notes were
clearly government financing in the public interest. They also realised
that if there were to be any inflation as a result, at least it was
better than no money at all, and at least they could all shoulder the
In 1824, another £5,000 notes were issued for the markets, and in
1826 £20,000 to erect Elizabeth College and certain other schools.
In the bill d'Etat it was a frequent subject for
congratulation; and it was stated over and over again by imminent men of
those times that without the issue of States' notes, important public
works, such as roads and buildings could not possibly have been carried
out. Yet by means of the States' issue, not only were these works
accomplished, but also the island was not a penny the poorer in interest
charges. Indeed, the improvements had stimulated the flow of visitors
to the island, and with increased trade, the island enjoyed its new-found
In 126, however, the first signs of opposition by the banking
community began. A complaint was lodged with the British Privy Council
that Guernsey had no right to issue debt-free notes. However the
Guernsey (also known as the 'States') Financial committee explained the
situation to the satisfaction of all, and the matter was closed.
In the next year, surprise, surprise, a new commercial bank opened,
called "Old Bank". They began printing up private bank notes in such
quantity that the island became flooded with money. Soon Guernsey feared
that inflation would set in - or worse that their own debt-free money
experiment would be blamed for the inflation. So a committee was
appointed to confer with the banks. What went on in these meetings
remains a mystery to this day; but the result was that £15,000 of
Guernsey Notes would be withdrawn from circulation and the government
would be limited to issuing a grand total of only £40,000 of their own
notes. This agreement remained in force until World War 1.
In the wake of World War 1, the banks came under severe restrictions
on how much money they could issue. All bank money was being directed
towards the war effort. But Guernsey was under no such restriction,
probably because its experiment was unique, and perhaps forgotten.
Guernsey made good use of her opportunity. By the end of the war, in
1918, Guernsey had issued £14,000, and 40 years later, that had grown to
£542,765. Today, private bank notes no longer exist. British money
circulates side by side with State Notes.
Naturally, there is a greater demand for the State Notes; no
sane citizen of Guernsey wishes to pay debt charges! To enlarge on this
theme: In 1937 the States Note money, about £175,000, cost the States
only £450 for printing and handling. A loan of the same dimensions would
have about £11,383 annually. So can you blame the Guernsey taxpayers
for preferring their own money since, under their sensible and benevolent financial system, they pay hardly any income tax.v
During the entire experiment in Guernsey, from
1817 to date, there has at no time been a threat of inflation from the
creation of State Notes. At all times, the States were very careful in
the issue and cancellation of notes according to their ability and
Today, Guernsey remains an island of prosperity. As author Ellen Brown puts it:
Guernsey has an income tax, but that tax is relatively low (a
"flat" 20%), and it is simple and loophole free. It has no inheritance tax,
no capital gains tax, and no federal debt. Commercial banks service
private [lending], but the government itself never goes into debt.
When it wants to create some private work or service, it just
issues the money it needs to pay for the work. The Guernsey government
has been issuing it's own money for nearly two centuries. During that
time, the money supply has mushroomed to about 25 times its original
size; yet the economy has not been troubled by price inflation, and it
has remained prosperous and stable.viii
Once you understand the Guernsey story, you have to admire the modesty of their website:
Guernsey's ability to look after its own fiscal affairs has
meant that it has been able to foster a favourable tax climate. This has
led to many offshore banks, fund managers and insurance companies
establishing here. Whilst the traditional industries of flower growing,
fishing and dairy farming still playing an important part, contributing
both to the varied economy and to the islands character.
Guernsey also has its own stamps and currency, and while the
British pounds can be used on the island, Guernsey pounds cannot be used
in the UK.!
But the question may arise,what keeps them from printing too much.
They watch inflation closely, and the calculations are all completely
transparent, run by a committee of citizens, and open for all to see on
That's all they care about; Is this causing inflation? They expand as
much as they want as long as it causes no inflation. They don't care
about theory. Born out of desperate need, they found out the secret of
money and have quietly gone about using it and thereby have a high
standard of living and very low taxes.
Fortunately, the Guernsey experiment is not an aberration. It has
been tried time and time again, and when the quantity is controlled in
the public interest, always with success. The bankers, however,
inevitably attack these in-the-public-interest, debt -free government
issues of money. Debt-free money is in everyone's interest except
bankers'. Typically, they will use their money and influence to create
some financial emergency then bribe sufficient politicians to convince
them to vote for legislation giving the bankers monopoly on issuing all
the nation's money as a loan, thereby stripping the nation of its
ability to issue its own money debt free.
During the depths of depression of the 1930's, the majority of
economists in the US discovered this monetary reform solution. In 1936,
Frank D. Graham, professor of economics at Princetown University offered
his perspective in the American Economic Review:
"What we need is not control of banking but a government
monopoly of the supply of money, with commercial banks left to lend on
short-term...out of capital funds, debenture borrowings, and real time
deposits. Such a system... is a[n] indispensable prerequisite to
regulation of the money supply on which all attempts to bring greater
stability into our economic system, through monetary means, must
inevitably be based. We are certainly not likely to get stability so
long as the supply of money remains even partially in the hands of those
who have no responsibility for the total issue and no motive to do
other than increase it as far as law, and a merely selfish prudence,
There is a way for citizens and their governments to take back the
money-creation power of the banks. Yes, bankers are experts with money,
but they are experts in maximizing their profits and rarely have much
interest in the public interest. Freeing your government from borrowing
money from bankers is the first, and most important, step for national
freedom and prosperity. It is also THE most important step to limiting
governmental overspending. If a government cannot borrow, it MUST live
within its means.
Debt-free, government issued money - where the quantity is properly
controlled in the public interest- has always worked to promote low
taxation and maximise freedom for the majority of the nation.
i Grubiak, Olive and Jan; The Guernsey Experiment ( 1960, 1999 reprint, Bloomsfield Books, Sudbury, England ), p.8.
iv ibid, p. 8-9
vi ibid, p 11-12
vii ibid, p.12
viii Brown, Ellen h., Web of Debt, ( Baton Rouge, Louisiana, Third Millenium Press, 2007), . p. 100-101
From the Sovereign Independent June 2011
Bill Still has a book out called No More National Debt: www.billstill.com