Here are a few links that address a number of questions around "debt-free money":

• Money - Questions and Answers - by Father Charles Coughlin
• Money is created by banks - Graham Towers (Governor of the Central Bank of Canada 1934 - 1955)
• Thomas Edison on money

Question: What does "debt-free money" mean?

Answer:

In order to understand "debt-free money" it is important to understand what type of monetary system we currently have. Our current system is a "money as debt" system.

• Money as debt - means that all the money that exists (be it in your wallet or your bank account) only came into existence because either you or somebody went to a bank and borrowed it. Even if you earned that money (and didn't borrow it) - someone else borrowed that money from the bank, and still needs to "return it" with interest to the bank. This means that all the money in our economy actually belongs to the banks - and that we merely rent it from them, and pay them interest for the privilege of using it. Collectively - we as Australians do NOT own our money - it is all borrowed as has to be returned.

• Debt-free money - is the goal of the Australian Sovereignty Party. In such a system, the government will create money, but only introduce it into the economy by buying or paying for infrastructure that will belong to the people. The person who gets paid by the government for building the infrastructure has rightfully earned such money - and it does not have to be returned to the government. It is for this simple reason that we say that such money is "debt-free" - it does not have to be repaid to the entity that created it. It was earned into existence (and not borrowed into existence), and the person who earned it, owns it.

It may be difficult to grasp the concepts above - but once you do, it becomes very obvious what the consequences are for each type of system. In a "money as debt" system, our collective debt to the banks (relative to the amount of money that was borrowed from them and is now circulating in the economy) will keep increasing with the passing of time. This is the effect of interest. Mathematically, our collective debt is always larger than the money we have with which to repay the debt - and interest keeps making the problem worse.

With a "debt-free money" system, money will be introduced into the economy without debt, i.e. it will be earned into existence and not borrowed into existence. This makes all the difference in the world. Two of the biggest expenditures in government can thus be eliminated, namely debt repayments and interest on debt (with an equal reduction in taxes).

The ASP believes that it is the sovereign right of a nation to create the money its economy needs, and not to borrow such money from someone else who creates it and then lends it out at a cost to the nation.

Question:

In the case of the ASP leading the country, what time frame would be necessary to delete the current monetary system to that you propose? With so much debt incurred at present, to implement a new system would need a lot of money.

Answer:

The minimum time frame required to change the money system from a "debt based money system" to a "debt free money system", is the amount of time needed by the banks to alter their systems to effectively do away with the "monetisation of debt" business practice. An estimate of this time frame is between 2 years and 4 years.

Practically the maximum amount of time needed to eliminate all government debt is the future date of the longest dated Treasury note in issue - if someone intends to hold that note to maturity. The government can always offer to buy back all its Treasury notes at a premium, and if all the holders accept the offer, then the government debt is extinguished when the last note is redeemed.