War and Money Creation: How Our Financial System Fuels Conflict
90%
of money is created by banks out of thin air
90%
of which is used for speculation
90%
of the population does not know these facts...
Is War Actually “Good for the Economy”? Let’s Take a Closer Look
We’ve all heard it before: “War drives the economy.” But why is that? The connection between war and economic gain isn’t a natural law—it’s largely a result of how our money system is set up. In fact, the way money is created can actually encourage governments to go to war. Let’s explore why our debt-based money system keeps leading us into conflict, and what could be done to create a more peaceful world.
How Money Creation Drives Conflict
Here’s a surprising fact: most of the money in circulation isn’t created by governments; it’s created by banks as debt. Every time a bank issues a loan, it creates new money, which enters the economy as debt. This debt-based system means that governments, too, often rely on borrowing to fund big expenses, like wars. Wars, which generate enormous costs, drive up debt—and that debt can mean big business for banks and financial institutions.
Why Debt-Based Money Creation Fuels War:
- Easy Access to Credit: When wars are funded by debt, governments can borrow heavily without immediate financial consequences, making it easier to justify military actions.
- Economic Incentive: Wars drive production for weapons, equipment, and supplies, creating a short-term boost to certain sectors of the economy. But this “boost” often benefits the financial sector and corporations, not everyday people.
- Profits for Financial Institutions: Debt created to fund wars includes interest, which ultimately benefits banks and private lenders who profit off of government debt.
The Cost of War on Society
Debt-fueled wars don’t just impact those directly involved in the conflict—they affect everyone. The debt accumulated to fund wars adds pressure to national economies and can reduce spending on public services and social programs. After all, every dollar spent on interest payments is a dollar not spent on healthcare, education, or infrastructure.
How War-Driven Debt Impacts Us All:
- Higher National Debt: War spending often leads to massive national debt, which taxpayers ultimately pay for through higher taxes or cuts to social programs.
- Economic Inequality: While some sectors profit from wartime spending, most people don’t see any economic benefit, leading to greater inequality.
- Diverted Resources: The money used to fund wars could instead be invested in public goods that strengthen society, like education, healthcare, and green infrastructure.
A Path to Peace: How Sovereign Money Could Help
Imagine a money system where governments don’t have to rely on debt from private banks to fund their needs. Sovereign Money reform would allow a public authority, like the central bank, to create money directly—debt-free. This would make it harder to fund wars without public support and could reduce the economic incentives that drive military conflict.
How Sovereign Money Could Make a Difference:
- Debt-Free Funding: With Sovereign Money, governments wouldn’t need to rely on debt to fund large projects. This would remove the financial incentive to use debt as a quick solution to fund wars.
- Focus on Public Needs: Sovereign Money could be directed toward public services, making it harder to justify diverting resources to fund conflicts.
- Increased Transparency: When funding doesn’t come from private banks, there’s more public scrutiny over spending decisions, helping to ensure that resources are used for peaceful purposes.
Building a Future of Peace and Stability
The connection between war and money isn’t set in stone. By rethinking how we create money, we can create a financial system that encourages stability, peace, and investment in public good. Here’s how you can join the conversation:
- Learn the Full Story: Dive into Sovereign Money to understand how debt-free money creation could reduce incentives for war.
- Support the Movement: Join others who believe in a money system that prioritizes peace and public well-being.
- Share the Knowledge: Spread the word! A debt-free money system is a step toward a more peaceful and stable world.
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FAQs
Why would a money system encourage war? The current debt-based money system gives enormous power to the private sector, particularly banks and large corporations. Private banks profit from creating money as debt, and companies in industries like defense and weapons manufacturing benefit financially from military spending. This system creates an incentive for powerful private interests to push governments toward conflict. These influential groups often lobby for military spending, profiting from weapons sales and wartime production, while democracy and civil rights are eroded in favor of policies that serve corporate interests rather than the public.
How would Sovereign Money reduce this influence? Sovereign Money reform would allow a public authority to create money debt-free, reducing the financial power of private banks and corporations. By placing money creation in public hands, we could limit the influence of private interests that drive war for profit, allowing resources to be directed toward peaceful, democratic goals.
Isn’t war sometimes “good for the economy”? While war can boost specific industries, such as defense and manufacturing, it usually leads to greater national debt, social inequality, and reduced civil liberties. Sovereign Money would enable funding for public goods without the need for conflict-driven economic boosts, helping create a more stable, peaceful, and democratic society.
Image: jerichow
