All the Eurozone countries are massively in debt. Our governments collectively owed nearly €9.3 trillion at the end of 2014.
The cost of this system to Eurozone taxpayers is enormous. In 2014 alone, Eurozone taxpayers paid over €267 billion in interest payments to the Financial System. If we look back over the last 20 years, we discover that European Union countries have collectively borrowed €7.8 trillion, of which an astonishing 86% (€6.7 trillion) has been used to make interest payments on public sector debt.
This is because the Euros that we use are essentially all created by Commercial Banks when they make loans. The Bank of England made this perfectly clear in a publication called "Money Creation in the Modern Economy" that was published in 2014.
Here's what they said;
" Whenever a bank mades a loan, it simultaneously creates a matching deposit in the borrower's bank account, thereby creating new money.The reality of how money is created today differs from the description found in some economics textbooks:"Broad money is made up of bank deposits - which are essentially IOUs from commercial banks and companies - and currency - mostly IOUs from the central banks. Of the two types of broad money, bank deposits make up the vast majority - 97% of the amount currently in circulation. And in the modern economy, those bank deposits are mostly created by commercial banks themsleves."
- Rather than banks receiving deposits when households save and then lending them out, bank lending creates deposit"
"Commercial banks create money, in the form of bank deposits, by making new loans. When a bank makes a loan, for example to someone taking out a mortgage to buy a house, it does not typically do so by giving them thousands of pounds worth of banknotes. Instead, it credits their bank account with a bank deposit of the size of the mortgage. At that moment, new money is created."
Although it is now perfectly clear that Commercial Banks create the money they lend to people like us, what is less clear is that they also create the money that is borrowed by our Goverenments. Indeed, not even the European Central Bank has the right to create new Euros.
The N-Euro provides an alternative monetary system that can be used by administrations up to the level of governments that can avoid the need to borrow the monetary tokens from Banks.