The history of debt, jubilee, and usury
4,000 years of the same fight

For as long as debt has existed, civilisations have recognised that it compounds faster than income — and that without periodic cancellation, free citizens become serfs. The jubilee, the prohibition on usury, the tally stick: all were attempts to solve the same problem IOUNet solves mathematically.


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Ancient Jubilees — 4,000 years of debt cancellation

The concept of periodic debt cancellation is as old as debt itself. The earliest known debt cancellations were decreed by Sumerian and Babylonian kings — the ama-gi (Sumerian for “return to the mother”) and andurārum (Akkadian for “freedom”). These were not acts of charity. They were pragmatic social engineering: when debt became unsustainable, the king wiped the slate clean to prevent social collapse.

The tradition was codified in the Hebrew Bible. Deuteronomy 15:1–2: “At the end of every seven years you shall grant a release of debts.” Leviticus 25:10: “Consecrate the fiftieth year and proclaim liberty throughout the land to all its inhabitants. It shall be a jubilee for you.” The jubilee was not optional. It was law.

Rome abolished the tradition in 27 BC. The debt mountain has grown without a ceiling ever since. IOUNet is the first system since antiquity that makes the jubilee automatic, continuous, and mathematical — no king required.

~2400 BC — Sumer
King Enmetena of Lagash decrees ama-gi — the first recorded debt cancellation. Debt tablets are physically destroyed. The word becomes the Sumerian symbol for “freedom”.
~1750 BC — Babylon
Hammurabi’s Code includes provisions for debt release. His successors issue regular mīšarum decrees cancelling consumer debts and freeing debt slaves.
~1400 BC — Israel
Mosaic Law codifies the sabbatical year (every 7 years: release of debts) and the jubilee (every 50 years: return of land, freedom of slaves). Leviticus 25, Deuteronomy 15.
27 BC — Rome
Augustus becomes Emperor. Rome has no jubilee tradition. Debt becomes permanent. The creditor class consolidates power. The pattern persists for 2,000 years.

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Usury — the universal sin

If the jubilee is the oldest demand for debt cancellation, usury is the oldest named evil that makes it necessary. Every major religion in human history has condemned the charging of interest on loans — not merely excessive interest, but any interest at all. The Biblical Hebrew word for it is neshek, meaning literally "a serpent's bite". The Arabic is riba. The condemnations are not peripheral footnotes. They are central moral teachings, repeated across millennia, by Moses, Jesus, Muhammad, Aristotle, Aquinas, Dante, Luther and Calvin.

The logic is simple and has never been refuted: interest is unearned income. Money itself does not labour, does not create, does not risk. The lender extracts a guaranteed return from the borrower's distress regardless of whether the venture succeeds. It transfers risk from those with capital to those without, structurally enriching the already rich and impoverishing the already poor. Every ancient civilisation understood this. The modern financial system is built on forgetting it.

The prohibition collapsed in the West not because anyone disproved the moral argument, but because the Catholic Church invented Purgatory — a place where usurers could purchase absolution — and because the Protestant Reformation fragmented the authority needed to enforce it. The sin was not abolished. It was rebranded as "finance".

Exodus 22:25 — Torah
"If you lend money to one of my people among you who is needy, do not be like a money lender; charge him no interest." The Hebrew word neshek — usury — comes from the root meaning "a serpent's bite". Read it →
Ezekiel 18:13 — Prophets
"He lends at interest and takes a profit. Will such a man live? He will not! He has done all these detestable things, he is to be put to death." Ezekiel equates usury with bribery and extortion. Read it →
Luke 6:34–35 — Jesus
"Lend to them without expecting to get anything back. Then your reward will be great." Jesus does not merely prohibit interest — he asks his followers not even to expect repayment of principal. Read it →
325 AD — Council of Nicaea
The First Council of Nicaea forbids clergy from practising usury. By 800 AD, Charlemagne makes the prohibition law across the Holy Roman Empire. The Catholic Church maintains an absolute ban until the 16th century.
Qur'an 2:275 — Islam
"Those who devour usury will not stand except as stands one whom Satan has driven to madness." Riba is among the gravest sins in Islam — ranked alongside adultery and murder. Muhammad cursed all parties: lender, borrower, witness, and scribe. Read it →
1314 AD — Dante's Inferno
Dante places usurers in the seventh circle of Hell, alongside the violent and the sodomites — condemned for the "unnatural" act of making money breed money. One Paduan banker is named directly; his son commissioned the Scrovegni Chapel from Giotto in expiation.

The religions are unanimous. The billionaires are not.

JudaismNeshek ("serpent's bite") forbidden. Leviticus, Exodus, Ezekiel, Psalms, Deuteronomy — repeated across the entire Torah and prophetic tradition.
ChristianityJesus forbids expecting repayment. Council of Nicaea (325 AD) bans clerical usury. Pope Clement V declares absolute prohibition in 1311. Dante puts usurers in Hell, circle 7.
IslamRiba is one of the gravest sins in the Qur'an. Muhammad cursed every party to an interest transaction. Islamic banking — finance without interest — remains a multi-trillion dollar industry today.
Buddhism & HinduismAncient Vedic texts (1400–2000 BC) prohibit usury among the highest castes. The Buddha condemned moneylending as incompatible with right livelihood.
Today$340 trillion of global debt, generating trillions annually in interest. The billionaires who finance Christian Nationalist politics extract this income while every religious tradition they claim to represent names it a sin. Global debt: $348 trillion (IIF, end-2025).

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Tally Sticks — privacy by destruction

Around 1100 AD, King Henry I of England introduced the tally stick — a hazel wood rod scored with notches to record a debt. The stick was split lengthwise: the creditor kept the longer half (the “stock” — origin of the word “stockholder”) and the debtor kept the shorter half (the “foil”). On settlement, the two halves were matched and destroyed. Privacy by physical destruction — 800 years before IOUNet.

Tally sticks were peer-to-peer, required no bank, charged no interest, and could not be counterfeited (the wood grain had to match). They circulated as money for over 500 years. The system was so successful that it competed directly with the Bank of England after 1694 — which is precisely why it was eventually banned.

IOUNet is the digital tally stick. The same principle — record, match, destroy — now implemented in mathematics rather than hazel wood.


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The Bank of England

King William III of England, desperate for money to fight France, granted a Royal Charter to a group of private merchants on 27 July 1694. They would lend the Crown £1.2 million at 8% interest. In return, they received the exclusive right to issue banknotes — to create money. The Bank of England was born.

Within four years, the national debt had grown from £1.2 million to £16 million. It has never stopped growing since. The Bank replaced the interest-free tally stick system with interest-bearing paper debt — transferring the power of money creation from the sovereign to private bankers. Every central bank that followed used the same template.


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The Burning of Parliament

By 1834, tally sticks had been out of official use for decades, but an enormous stockpile remained in the basement of the Houses of Parliament. Parliament ordered them burned. The workers, eager to be rid of them, stuffed them into the furnaces beneath the House of Lords.

The furnaces overheated. The flues caught fire. Both Houses of Parliament burned to the ground. J.M.W. Turner painted the inferno from across the Thames — “The Burning of the Houses of Lords and Commons” (1835). Charles Dickens, in a speech to the Administrative Reform Association in 1855, used the fire as a parable of government incompetence.

The debt-free money had to be destroyed to make way for the banking system. The fire that did it accidentally destroyed the seat of government itself. It remains the most expensive bonfire in British history — and the most symbolic.


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The Camel & the Needle

“It is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God.” Three Gospels record the same words. The message is unambiguous.

The IOUNet version: “It is easier for a camel to go through the eye of a needle than for a billionaire to reach ⊙0 at the full moon.”

Why? Because 1⊙ = 1 minute of your time. A minimum wage worker: 60⊙ = €12. A billionaire earning 8% on €10 billion = €1,520 per minute: 60⊙ = €91,200. The ⊙ is the first currency where the rich pay more by construction, not by legislation. Oxfam would happily send 60⊙ for €91,200.

Progressive by construction, not legislation

Minimum wage worker60⊙ per hour = €12
Average earner60⊙ per hour = €25
Billionaire (8% on €10B)60⊙ per hour = €91,200
Reaching ⊙0 at the full moonEasy for most. Mathematically near-impossible for the ultra-wealthy.