A study of modern money, debt slavery and destructive economics

The only way to provide economic improvement–under the debt finance system–is to create more and more debt.

Michael Rowbotham has opened a can of worms with this book. Many controversial books appear in print every now and then, but this book stands out. It not only rejects the conventional wisdom but it also laughs at it. If you like "In your face" kind of books, I recommend that you read this one. I must warn though that this book certainly is not for those who have agreed to believe everything that they hear.

Himself a monetary reform pundit, Rowbotham has presented a very lucid plan for a reform of the world economic system. His principal argument is that the subject of economics has failed to deliver what it was supposed to. The beauty of this book is that it is amazingly simple. It is written for anyone who has a quest to learn about the problems, challenges and frustrations of modern man. It assumes no knowledge of economics on behalf of the reader, and what is more, doesn't lecture on economics. So even if you did rather poorly in your high school economics course, you can still read and enjoy this book. In fact, if you hated economics, this book is a way to get back at those teachers who haunted you with demand and supply gibberish.

He observes, "Our government officials, political economists and newspaper columnists appear intellectually content with the current arrangements, oblivious to the depth of crisis that economics presents to the world.

"They still happily argue about the dangers of 'overheating' or needing to 'cool off', as if an economy that functions along the lines of a domestic boiler or kitchen toaster provides an acceptable basis for co-ordinating human activity."

"It is assumed by everyone – and clearly by economists – that money is a neutral and accurate medium; that money does no more than reflect the economic facts."

He explains that modern money, actually, operates within its own detached and limited mathematical world. "Facts," as we know them, do not appear to the money managers in exactly the same light. So there is always a marked distinction between what is perceived good by the common men and what is perceived good by those in-charge of managing the economy.

Rowbotham explains how the only way to provide economic improvement – under the debt finance system – is to create more and more debt, but it is a false way, as the time of reckoning has to come eventually.

In order to prevent bankruptcy, manufacturers, shop owners, the self-employed and others, who are all in debt, must stay one step ahead of ruin by winning, at the expense of others, and maintaining "market share".

The family run corner shop is threatened because bigger firms have caught up with their advantage of being open all hours. Flexible working hours, and all the other encroachments upon leisure time, social time and rest time have all given added advantage over rivals in the fight for "market share".

Other opportunities for advantage over competitors are low wages and tax breaks. This fight for "market share" and money to stave off bankruptcy is echoed in the international market – that's why we have the WTO and MAI to enable strong nations and multi-nationals to exploit advantages. It's all caused by the debt finance system