"Money
begins its life as a debt to a bank, and from the moment it is released
as a book entry in a bank's ledger, the credit created by the bank and
loaned to a company or individual travels through the production system,
much of it being used for consumption, and is finally cancelled when
the debt is repaid to the bank by the borrower.
- No bank lends money deposited with it.
- When a bank lends money it creates the means of payment out of nothing
- Bank loans are entries of figures in the credit column of a Bank's computer.
The only money that does not originate as a debt to the bank is the
money Banks use in their own purchases such as, its employees' salaries,
purchase of buildings etc. With this exception, most of the community's
money begins its life as a debt to the bank.
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THE BANKS LEND MONEY AGAINST THE ASSETS OF THE COMMUNITY AND HOLD THE POWER
OF LIFE OR DEATH OVER THE ALL ECONOMY.
The business world cannot function without bank credit and every person
in the community is equally dependent upon it. Stop or even restrict
bank overdraft for one week and there would be a nation wide crisis.
Continue the restriction for 3 months and this nation would be plunged
into a depression with unemployment and bankruptcy for thousands. Bank
credit is the life blood of the community.
Individuals, businesses, industries, municipal councils and governments themselves
are in debt bondage to the banks. Banks being the only source of money, the
community has to borrow from the banks the money to pay the interest on the
money it has already borrowed. It is inevitable, therefore, under this system,
that we get deeper and deeper into debt. The public debt of both the Commonwealth
and the States has risen from $4,734 million in 1944 to $43,933 million in 1984
-almost 1000% in 40 years!
As practically all money issued has its origin in interest bearing debt, it
follows that all form of taxation must increase inevitably, mathematically,
remorselessly.
For example, in Australia: In 1920, total taxation averaged about
$10 per head. 65 years later, $5,300 per head, an increase of about 53,000%!
Despite the politicians who promise election after election to create more jobs,
there are more and more people who realize there will be less and less jobs,
all because of automation.
If the rule that limits the distribution of income to those who are employed
is not changed, society is going to experience chaos. One definitely needs a
source of income that is not tied to employment, and the creation by the governments
of all nations of a debt-free money according to the growth that they are able
to generate and benefit from.
"
Author Unknown |
THERE
IS A CHRONIC SHORTAGE OF PURCHASING POWER
"Economists say, that production automatically finances consumption;
meaning, wages distributed are enough to buy available goods and services;
Facts prove the opposite.
Wages make up only one part of a finished good. The total cost price
of a finished good is made up of several factors: labor, materials,
cost of tools used, taxes, banking charges, insurances, charges for
depreciation, bank loans, etc..
In a simple formula this would be (A+B), "A", the payments
made to individuals (wages), "B", the payments made for the
rest. The retail price of a product is "A+B";
and "A", which is wages and salaries,
cannot buy all of the production which is "A+B". Which explains
that at any given time, the cost of the products created is always
greater than the purchasing power distributed.
Therefore, A DIRECT FINANCING OF CONSUMERS IS NEEDED BY
ANOTHER CHANNEL THAN WAGES.
Since this direct financing has not been implemented in the present
system... as yet... there should be theoretically a huge growing mountain
of unsold goods. If the system keeps going and its goods are sold,
it is because one has instead A GROWING MOUNTAIN OF DEBT.
In 1996, the total debt of America, the biggest economy of the world,
was over $5 TRILLION.
Institutions like the IMF - International Monetary Fund - and the World
Bank pretend to help countries in financial difficulties with their
loans but because of the interest charges they have to pay back, these
countries end up poorer than before the loans were issued.
During the period of 1980-1990, Latin American countries paid $418 Billion
in interest on original loans of $80 Billion and they still owed the
original loans, even though they paid it back MORE THAN FIVE TIMES..."
Author Unknown
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