Letter: Cutting out debt

Instead of saving a piffling £1 billion a year by cutting child benefit (your report, 9 October), Chancellor George Osborne could save £70bn a year by changing the ridiculous situation where the private banking system creates our money supply as debt, by means of electronic book-keeping that allows the same money to be lent over and over again by the perfectly legal system of fractional reserve lending.
By The Newsroom
Published 10th Oct 2010, 17:48 BST
Updated 10th Oct 2010, 23:39 BST

We pay 70bn a year of interest to private banks on the national debt, which is just a fancy name for the sum of our unpaid borrowings of this endlessly re-lent money. Removing the burden of this interest by having the state create a debt-free money supply would cure many economic problems without benefit cuts.

MALCOLM PARKIN

Gamekeepers Road

Kinnesswood, Kinross