Chapter 25 - Examples of Debt-Free-Money systems

Genghis Khan

Genghis Khan used a debt-free-money system. His massive empire was made easier with gunpowder but the killer app was debt-free-money. It was popular with the people and people prospered. It lasted many years and was only brought down by the plague. The Mongol money was created on parchment and was spent into society.

Commonwealth Bank of Australia 1911 to 1924 and During WW2

In 1911, Australia created a national public bank which operated for the benefit of the nation. The new Commonwealth Bank issued debt-free-money which was spent into society. It built the Trans-Australian Railway and completed other projects effectively at no cost to the nation. Australia had the highest standard of living in the world at the time. It was later undermined by private bankers under persuasion from bankers in England and its activities curtailed. The Sydney Harbour Bridge was later built with a loan from City of London banks. It took until 1988 to repay the private London bankers for the Sydney Harbour Bridge loan.

The government-owned Commonwealth Bank was also in charge of the banking system during WW2. It regulated all of the private banks. It successfully financed the wartime effort. It transformed Australia’s economy from a farming backwater into a farming and industrial powerhouse with a world-class machine tool sector. Its activities were again curtailed after the Second World War

King Henry The First 1100AD

Henry the First, son of William the Conqueror, set up debt-free-money with the tally stick in 1100 AD. This system lasted seven hundred years. Tally sticks were spent into society and taxed back out of society. Even though tally sticks were intrinsically worthless, taxation created a demand for them. England had no debt. Again, England had no National-Debt. National-Debt arrived with the private bankers. Never forget that National-Debt is by definition money owed to private organizations. The creation of the tally stick took money out of the hands of the money changers and thus stopped the practice of usury. King Henry had created the tally stick system to counter the influence of private goldsmiths and moneychangers who were wreaking economic havoc by manipulating the supply of gold coins.

Napoleon Bonaparte

Napoleon Bonaparte organized debt-free-money for France. After ten years of violent revolution, France quickly became the world’s leading economy and Paris a beautiful city. But too powerful for its neighbors. The neighbors had debt-based-money. The imbalance caused a war. The British sent Wellington to correct the imbalance. The rest is history.

Abraham Lincoln

Abraham Lincoln created debt-free Greenbacks. He got shot in the head.

Abraham Lincoln was wise enough to refuse to borrow banksters money at 37% interest to fund the civil war. Lincoln decided what the founding fathers advocated which was to create an independent and inherently debt-free currency which were called ‘Greenbacks’. A short while later, a message circulated between private British and American banking interests. It stated:

“...slavery is but the owning of labor and carries with it the care of laborers. The European plan is that capital shall control labor by controlling wages. This can be done by controlling the money. It will not do to allow the Greenback, as we cannot control that.”

Lincoln wrote that he “gave the people of this Republic the greatest blessing they have ever had - their own paper money”. He also said: “I have two great enemies, the Southern Army in front of me and the financial institutions at the rear, the latter is my greatest foe”. Lincoln was shot in the head. Soon after, his Greenbacks became bankers money with debt attached. Some would say that the USA was handed into the hands of the international bankers.

Benjamin Franklin

Benjamin Franklin created debt-and-interest-free-money with ‘Colonial Script’.

Julius Caesar

Caesar created debt-free-money which he spent into society building infrastructure and canals for the benefit of society. He was very popular. He got assassinated.


During the hyperinflation, Germany created interest-and-debt-free-money. It was a success and Germany turned from a basket case of a nation to a strong and prosperous nation in five years. Germany overcame hyperinflation to become a model economy during the Great Depression. Is was too strong for its neighbors. Unfortunately, war broke out. Germany was reduced to rubble. However, unlike the heavy debts incurred by most allied governments to private bankers, Germany financed its government and war operation from 1935 to 1945 without debt to Private Banking Corporations. It did take the whole of the Communist and Capitalist world to destroy them. Many still believe the propaganda.

We were not foolish enough to try to make a currency [backed by] gold of which we had none, but for every mark that was issued we required the equivalent of a mark’s worth of work done or goods produced... we laugh at the time our national financiers held the view that the value of a currency is regulated by the gold and securities lying in the vaults of a state bank.

Henry C. K. Liu, Asia Times, 2005

“The Nazis came to power in 1933 when the German economy was in total collapse, with ruinous war-reparation obligations and zero prospects for foreign investment or credit. Through an independent monetary policy of sovereign credit and a full-employment public-works program, the Third Reich was able to turn a bankrupt Germany, stripped of overseas colonies, into the strongest economy in Europe within four years, even before armament spending began.” [4]

Adolf Hitler, as quoted in “Hitler’s Monetary System” by C. C. Veith 1949:

“We were not foolish enough to try to make a currency [backed by] gold of which we had none, but for every mark that was issued we required the equivalent of a mark’s worth of work done or goods produced... we laugh at the time our national financiers held the view that the value of a currency is regulated by the gold and securities lying in the vaults of a state bank.” [2]


Libya created a system of interest-and-debt-free-money and became the wealthiest nation in Africa. Libya tried to lift Africa by creating the pan-African dollar backed by Libyan gold. This plan ended when Libya was attacked by NATO and the west.

John F Kennedy

Top: United States Note 1963. Bottom: Federal Reserve Note 2009

President, John F. Kennedy understood the predatory nature of Private Banking Corporations. JFK organized government issued debt-free-money with Executive Order 11110. This ordered the US Treasury to issue a government currency, the United States Note. Unlike the Federal Reserve notes, these United States Notes incurred no debt to the private Federal Reserve and were backed by the nation’s silver stock. Billions went into circulation. This reduced debts and interest to the Private Banking Corporations and thus their influence over politics. Unfortunately, he got himself shot. The United States Notes were immediately removed from circulation by the replacement president. Anybody linking 11110 with his assassination is called a ‘Conspiracy Theorist’. You can still see some of his debt-free-money. They have ‘United States Note’ written on them instead of ‘Federal Reserve Note’. These notes are from my collection. The top note is JFK Treasury issued debt-and-interest-free-money. The bottom is the common Federal Reserve issued debt-based-money. The two notes look similar, but they make a big difference to the National Debt. It is interesting that the Warren Commission included bankers and bank presidents.

Saracen Empire

For many centuries, the Saracen Islamic Empire had a common debt-free currency and interest was forbidden. Social responsibility in commerce was stressed in Islam. Lending was allowed for business in a form of equity financing. Interest was not allowed and investors shared in the outcome of a venture whether it be successful or a failure. Their financial system allowed the Islamic Empire to outshine Saxon Europe. [1]

Austria 1932

The town of Wörgl in Austria created a local debt-free-money in 1932, at the height of the great depression. It was massively successful. It was banned a year and a half later under pressure from the central bank. Many cities copied this idea across Austria and Germany. The successful local money was banned by the Central Bank who regained their monopoly on issuing money cash that is then augmented with large quantities virtual money created by Private Banking Corporations. This monopoly continues to today and we consider it ‘normal’.

Guernsey Channel Islands

Guernsey is an island state about 75 miles south of Great Britain. The government of this British Crown dependency created its own money, at no cost to the people, in 1818. Guernsey changed from an impoverished nation to a prosperous community free of debt. The government has no debt to the banks. Partly as a result, Jersey and Guernsey people experience prosperity unknown in many countries. Income tax is only twenty percent. There is no VAT, GST, inheritance tax or capital gains tax and the National-Debt is zero. British pounds can be used on the island but Guernsey pounds cannot be used in the Britain.

Lula In Brazil

A former factory worker and union leader, Luiz Inácio Lula da Silva became president of Brazil in 2002. For many years, Brazil had been the most indebted nation in the world. Its debts were so large, it could not even pay the interest on the debt. It had forty-six million people living on less than $1 per day. It had corrupt administration. It had foreign Private Banking Corporations. He implemented government programs including health, education, work, food supply, social development, agrarian development, and family agriculture and a number or infrastructure projects. Lula transformed the government-owned National Development Bank (BNDES) into a key driver of economic growth. The BNDES financed his social programs and a good number of public infrastructure projects with debt-free-money. Brazil’s recovery was also aided by a Government Savings Bank, Caixa Econômica Federal, the state-run mortgage lender. About twelve million new jobs were created. About twenty million Brazilians were lifted out of absolute poverty. The economy has surged. BNDES issued more than $55 billion in debt-free loans in a year. Interestingly the western press still writes ill of him. Lula even reversed some of the privatizations carried out by the previous government, under which many large and viable state companies were sold for very little to multinationals. [3]