The graph of debt slavery

Describe your idea and concept of your work in relation to the festival outlines:

It seems that some of the most influential economic and political actors on the global or a particular local (i. e. national) present-day scene are sundry (private) financial institutions (such as banks) that control “money production”. Those who control money production may, to a high degree, control world politics, particular nation-state politics, or at least global (or a particular national) economy – in spite of the fact that money production rests on a deception. Namely, banks routinely create money “out of thin air” for their loans – this is standard banking practice (as admitted frankly Lawrence V. Morgan, president of First National Bank of Montgomery, in court in the Credit River case in 1968). Banks create money and credits upon their own books by bookkeeping entry. A vast amount of money and credits first come into existence if and when (private) banks create them. (“The new money introduced by the central bank is multiplied by commercial banks through fractional-reserve banking. Due to the prevalence of fractional reserve banking, the broad money supply of most countries is a multiple larger than the amount of base money created by the country's central bank” (Wikipedia).) Of course, banks produce and loan money at interest to increase their income (i. e. profits). That means that they “don’t use interest incomes for spending them, but rather as any form of investment for gain” (Paul Grignon, 2006). Such a bank policy could “lead to vast amounts of money being routed into the gambling economy of high finance” (ibid.). And that could result in financial crisis suchlike the one that had broken out in 2008.

The 2008 financial and subsequent global economic (i. e. debt) crisis made loans even more expensive. So, a lot of private and government debtors fell into a debt trap. A debt trap is a situation in which a debtor adds on a new debt in order to pay an existing one, ‘cause doesn’t have enough money to make the interest payments on the “old” loan. In such case someone’s debt easily becomes perpetual. It can never be paid off without re-borrowing – the debtor became a debt slave. And the tyranny of debt is established. Well, according to Grignon (author of documentary films Money as Debt I, II, III) (2006) debt slavery isn’t recent phenomenon, and it won’t last for ever: “Money created as interest-bearing bank credit is a magic trick, a fraud – now 3 centuries old. This is a system designed for elite control of the people by those who have given themselves the privilege of creating money. It is also, I believe, a system that is designed for catastrophe”. How so? According to Michael Hudson (distinguished research professor at the University of Missouri-Kansas City) (2012), “Compound interest keeps on growing until the debts exceed the amount that can be paid”. A system that rests on a fraud related to money production and usurious rates of interest is therefore designed to bring disaster.

Governments in debt (and those run by neocons or neoliberals (i. e. big corporations)) often decide on austerity measures. Consequences of suchlike decision could be reflected in even larger government and non-government indebtedness since austerity reduces economic output. Besides, austerity reduces or even annuls welfare polities. That means that indigent groups of society could be completely marginalized. Or the poor are forced to run into debts if they want to educate themselves, to pay health insurance premiums, to pay flat rents etc. In other words, austerity measures shouldn’t be imposed when an economy is saddled by rising debt costs (and high unemployment). If they are and welfare polities are reduced, then debtfare take a place.

Let me sum up: 1) fractional-reserve banking: commercial banks create money “out of thin air” for their loans; 2) they loan in-this-way-produced “money” at interest to produce even more money – “Money is debt and debt is money.”; another problem: “re-lending interest causes defaults” (Grignon, 2006); 3) banks “produce” (government and non-government) debtors that could easily become debt slaves; 4) welfare is replaced with debtfare (i. e. debt slavery).

What kind of communication approach do you use?

A drawing and a graph representation combined in a poster.

What are in your opinion concrete benefits to the society because of your communication?

I have no reliable data about CONCRETE benefit to the society.

What did you personally learn from creating your submitted work?

Now I can draw a distinction between compound interest and simple interest. ;) BTW: do you know that compound interest is standard in finance and economics? Loaners can’t do (gainful) business without usurious interest…

Why is your work, GOOD communication WORK?

I try to represent some pretty complicated economic matters, processes, (possible) consequences in as simple as possible, funny and yet educational way.

Where and how do you intent do implement your work?

Don’t know yet, maybe it’s going to be published in some comic magazines or in my comic album.

Did your intervention had an effect on other Media. If yes, describe the effect? (Has other media reported on it- how? Were you able to change other media with your work- how?)

I have no data about an effect on other Media.