Episode 34: Central Banks — Part 1: How Government Debt Became Money

Central banks were not originally created to control inflation or protect your savings.They were created because governments needed a reliable way to borrow enormous sums without defaulting, debasing the currency or provoking revolt.In 1694, the Bank of England lent £1.2 million to the Crown. Parliament guaranteed the interest using future taxes, while the government’s IOU was transformed into an asset against which new banknotes could be created and lent back to the public.The same debt now produced two streams of interest: one paid by taxpayers and another paid by borrowers.In Part 1 of this three-part series, we uncover:* Why kings needed a new way to finance war* How government debt became the backing for money* Why ordinary people became the permanent guarantors* How a £1.2 million loan became a national debt that has never been repaid* Why the system has survived for more than three centuriesThis is not a story about a hidden conspiracy. It is the documented history of a machine built in public view — but rarely explained in plain English.Listen now and discover where money really comes from.Stay informed. Stay independent. Stay free. Get full access to Taxed & Taken: Money, Power & Freedom from the State at patelankeet.substack.com/subscribe