In the 2012 edition of Occupy Money released last week, Professor Margrit Kennedy writes that a stunning 35% to 40% of everything we buy goes to interest. This interest goes to bankers, financiers, and bondholders, who take a 35% to 40% cut of our GDP. That helps explain how wealth is systematically transferred from Main Street to Wall Street. The rich get progressively richer at the expense of the poor, not just because of “Wall Street greed” but because of the inexorable mathematics of our private banking system.
This hidden tribute to the banks will come as a surprise to most people, who think that if they pay their credit card bills on time and don’t take out loans, they aren’t paying interest. This, says Dr. Kennedy, is not true. Tradesmen, suppliers, wholesalers and retailers all along the chain of production rely on credit to pay their bills. They must pay for labor and materials before they have a product to sell and before the end buyer pays for the product 90 days later. Each supplier in the chain adds interest to its production costs, which are passed on to the ultimate consumer. Dr. Kennedy cites interest charges ranging from 12% for garbage collection, to 38% for drinking water to, 77% for rent in public housing in her native Germany.
Her figures are drawn from the research of economist Helmut Creutz, writing in German and interpreting Bundesbank publications. They apply to the expenditures of German households for everyday goods and services in 2006; but similar figures are seen in financial sector profits in the United States, where they composed a whopping 40% of U.S. business profits in 2006. That was five times the 7% made by the banking sector in 1980. Bank assets, financial profits, interest, and debt have all been growing exponentially.
http://www.oftwominds.com/blogsept12/cui-bono-Fed9-12.html.
Exponential growth in financial sector profits has occurred at the expense of the non-financial sectors, where incomes have at best grown linearly.
http://lanekenworthy.net/2010/07/20/the-best-inequality-graph-updated/
By 2010, 1% of the population owned 42% of financial wealth, while 80% of the population owned only 5% percent of financial wealth. Dr. Kennedy observes that the bottom 80% pay the hidden interest charges that the top 10% collect, making interest a strongly regressive tax that the poor pay to the rich.
Exponential growth is unsustainable. In nature, sustainable growth progresses in a logarithmic curve that grows increasingly more slowly until it levels off (the red line in the first chart above). Exponential growth does the reverse: it begins slowly and increases over time, until the curve shoots up vertically (the chart below). Exponential growth is seen in parasites, cancers . . . and compound interest. When the parasite runs out of its food source, the growth curve suddenly collapses.
People generally assume that if they pay their bills on time, they aren’t paying compound interest; but again, this isn’t true. Compound interest is baked into the formula for most mortgages, which compose 80% of U.S. loans. And if credit cards aren’t paid within the one-month grace period, interest charges are compounded daily.
Even if you pay within the grace period, you are paying 2% to 3% for the use of the card, since merchants pass their merchant fees on to the consumer. Debit cards, which are the equivalent of writing checks, also involve fees. Visa-MasterCard and the banks at both ends of these interchange transactions charge an average fee of 44 cents per transaction—though the cost to them is about four cents.
How to Recapture the Interest: Own the Bank
The implications of all this are stunning. If we had a financial system that returned the interest collected from the public directly to the public, 35% could be lopped off the price of everything we buy. That means we could buy three items for the current price of two, and that our paychecks could go 50% farther than they go today.
Direct reimbursement to the people is a hard system to work out, but there is a way we could collectively recover the interest paid to banks. We could do it by turning the banks into public utilities and their profits into public assets. Profits would return to the public, either reducing taxes or increasing the availability of public services and infrastructure.
By borrowing from their own publicly-owned banks, governments could eliminate their interest burden altogether. This has been demonstrated elsewhere with stellar results, including in Canada, Australia, and Argentina among other countries.
In 2011, the U.S. federal government paid $454 billion in interest on the federal debt—nearly one-third the total $1,100 billion paid in personal income taxes that year. If the government had been borrowing directly from the Federal Reserve—which has the power to create credit on its books and now rebates its profits directly to the government—personal income taxes could have been cut by a third.
Borrowing from its own central bank interest-free might even allow a government to eliminate its national debt altogether. In Money and Sustainability: The Missing Link (at page 126), Bernard Lietaer and Christian Asperger, et al., cite the example of France. The Treasury borrowed interest-free from the nationalized Banque de France from 1946 to 1973. The law then changed to forbid this practice, requiring the Treasury to borrow instead from the private sector. The authors include a chart showing what would have happened if the French government had continued to borrow interest-free versus what did happen. Rather than dropping from 21% to 8.6% of GDP, the debt shot up from 21% to 78% of GDP.
“No ‘spendthrift government’ can be blamed in this case,” write the authors. “Compound interest explains it all!”
More than Just a Federal Solution
It is not just federal governments that could eliminate their interest charges in this way. State and local governments could do it too.
Consider California. At the end of 2010, it had general obligation and revenue bond debt of $158 billion. Of this, $70 billion, or 44%, was owed for interest. If the state had incurred that debt to its own bank—which then returned the profits to the state—California could be $70 billion richer today. Instead of slashing services, selling off public assets, and laying off employees, it could be adding services and repairing its decaying infrastructure.
The only U.S. state to own its own depository bank today is North Dakota. North Dakota is also the only state to have escaped the 2008 banking crisis, sporting a sizable budget surplus every year since then. It has the lowest unemployment rate in the country, the lowest foreclosure rate, and the lowest default rate on credit card debt.
Globally, 40% of banks are publicly owned, and they are concentrated in countries that also escaped the 2008 banking crisis. These are the BRIC countries—Brazil, Russia, India, and China—which are home to 40% of the global population. The BRICs grew economically by 92% in the last decade, while Western economies were floundering.
Cities and counties could also set up their own banks; but in the U.S., this model has yet to be developed. In North Dakota, meanwhile, the Bank of North Dakota underwrites the bond issues of municipal governments, saving them from the vagaries of the “bond vigilantes” and speculators, as well as from the high fees of Wall Street underwriters and the risk of coming out on the wrong side of interest rate swaps required by the underwriters as “insurance.”
One of many cities crushed by this Wall Street “insurance” scheme is Philadelphia, which has lost $500 million on interest swaps alone. (How the swaps work and their link to the LIBOR scandal was explained in an earlier article here.) Last week, the Philadelphia City Council held hearings on what to do about these lost revenues. In an October 30th article titled “Can Public Banks End Wall Street Hegemony?”, Willie Osterweil discussed a solution presented at the hearings in a fiery speech by Mike Krauss, a director of the Public Banking Institute.
Krauss’ solution was to do as Iceland did: just walk away. He proposed “a strategic default until the bank negotiates at better terms.” Osterweil called it “radical,” since the city would lose it favorable credit rating and might have trouble borrowing. But Krauss had a solution to that problem: the city could form its own bank and use it to generate credit for the city from public revenues, just as Wall Street banks generate credit from those revenues now.
A Radical Solution Whose Time Has Come
Public banking may be a radical solution, but it is also an obvious one. This is not rocket science. By developing a public banking system, governments can keep the interest and reinvest it locally. According to Kennedy and Creutz, that means public savings of 35% to 40%. Costs can be reduced across the board; taxes can be cut or services can be increased; and market stability can be created for governments, borrowers and consumers. Banking and credit can become public utilities, feeding the economy rather than feeding off it.
___________
Ellen Brown is an attorney and president of the Public Banking Institute. In Web of Debt, her latest of eleven books, she shows how a private cartel has usurped the power to create money from the people themselves, and how we the people can get it back. Her websites are http://WebofDebt.com, http://EllenBrown.com, and http://PublicBankingInstitute.org.
Filed under: Ellen Brown Articles/Commentary |
WEB OF DEBT BLOG 
If you do not choose to gain an understanding of the system itself…its’ history, its’ purpose and those responsible for its’ upkeep you will never fully understand it and thus never gain the ability to ameliorate it.
It is already a “public utility.” It already serves its’ purpose. With this in mind, continue the debate from a holistic position.
The “the 1% are mean people who get richer and richer while us regular people get poorer and poorer…” has been perpetuated for centuries. The premise itself (the demonization of the haves by the have nots) has gotten the 99% exactly nowhere and will keep them there until they abandon it.
The business/financial/political system that is in place is a rewards system. Once the activists who “think” they have figured it out learn this system and leverage it to their advantage they will have the chance for change. Until then, we remain the peasants at the castle ramparts crying for bread. It is a broken record that any historian can affirm.
We all have a very accessible political system within the state we reside. Go to the state treasurer’s office. You will learn that they are in fact RUNNING A BANK . It is their “de facto” bank and can be easily converted to a state chartered bank. Now, gain a consensus within your state using the political system itself and the players involved and you have a chance at a state bank. If you come in from the “outside” you will fail (ask anyone at this website who has tried). Use the rewards system that the 1% has used for thousands of years to your advantage……or go to that castle and yell at the rich people….they like it when you do, it makes them feel important.
What may be perceived as the flaw with State Banking is that it doesn’t address the disease I.E., private for profit banks being allowed to compound their profits from lending their own newly created money which allows them to eventually OWN EVERYTHING and still have a remainder owed.Compounding is the most powerful force in the universe.If all money comes into existance (like the US dollar) with interest attached that is to be paid to “private for profit banks” the disease will over time prevail.
Google : “William Black, banks”.
Google : “Michael Hudson, “Compound Interest”
Google: “justaluckyfool, WordPress”
and most important , read, “The Role of Money” by Frederick Soddy,
written in 1926,and 1933.
********************THE SOLUTION IS SIMPLE*********************************
No new legislation is required. Ben Bernanke has proven it is legal and possible. We need only to:
(1). Mandate “100% reserve for all private financial institutions.
(2). Have the Federal Reserve be the only source of new currency issuance.
(3). Since all wealth (goods and services) of the nation is already owned by the people of that nation and since “currency” is merely
a physical means of distributing and transferring that wealth; that currency must come back to its rightful owner. Until that currency (colorful paper or metal, or whatever), is redeemed it is only a loan,
something that is taken from an owner that must be returned.
Please explain, Why do you prefer servitude ,when you govern a country that seeks “the pursuit of happiness”?
Please post, repost, tweet, do what ever you can. Until there is such an outcry that social media could be the ways and means for God to continue to bless America.
IF NOT FOR OURSELVES, THEN FOR OUR CHILDREN.
fed makes sure the “intrest” will allways be with us,very simply
by not printing enough frauds to pay it off.
WOW! Thank you Gordon Gecco for the insights on your justification that “Greed…..is good”.
“Use the rewards system that the 1% has used for thousands of years to your advantage……”
Maybe you haven’t noticed that in the real world if an average person tried to make money like the 1% they end up in jail for a very long time. Just try and pull an MF Global at your local 7/11 and see what happens.
Anyone other then “banks” would be charged with a felony, its called counterfeiting.
But the solution is simple. Stop the now allowed counterfeiting, make all counterfeiting a felony.
Referring to Bank interest as a strongly regressive tax that the poor(80%) pay to the rich(10%) is probably an apt description. But I don’t think people would object if this “tax” went into the country’s general tax revenue, and was used for roads,hospitals, schools, healthcare etc.
The current Banking set up is really the new slavery. Slavery was abolished around 1850 (I think) and the owners were banned from whipping, and not paying their workers. So a new method of ‘voluntary slavery’ had to be devised.
Borrowing large sums of money to buy a home requires you to sign a “Mortgage” to the Bank.
‘Mort’, is the Latin word meaning, ‘Death’
‘Gage’ is an old French word meaning ‘Contract’
A mortgage does not necessarily end in death itself, but, when you are mortgaged to the Bank, it means you WILL do what you are told, and accept any treatment you get in your workplace, to avoid losing your income, and consequently, your home. (A sad and very real outcome many Americans are now familiar with)
And, given that the Bank didn’t have the money, until you asked for the loan, and therefore receives interest on money they didn’t have, for 25/30 years. It’s a neat system, if you are the Banker.
This sure does answer the question “why is everything so damn expensive these days?” It’s the parasites at the top, of course.
Zora, I used to ask myself the same question, “why is everything SO damn expensive these days”. And of course, the answer is obvious. Prices increase when money is plentifull, (Too much money chasing too few goods). So, Banksters supply plentifull money(housing loans, car loans, Credit Cards etc) which means everyone can have everything NOW, which causes prices to rise, but, it all has to be paid back. Welcome to slavery by debt !!
I think it’s more complex than that, Brian. “They” want you to think that it’s like a simple gas law — more money in necessarily causes prices to rise, and the “law of supply and demand” makes prices just. But prices are not just — they’re controlled by collusion and monopoly privilege. More money into the system tends to make prices rise, but things are expensive relatively because wages don’t rise along with prices. The owners control both prices and wages. They get “cheap” stuff from China and sell it dear. I agree that we’re screwed by debt, but in other ways too.
ErnieM, Of course you are right, I was being too simplistic. But when you look at how The Fed, and the Banks who own the Fed control the money supply, you realise just how much power they have over the economy, (and the Government). Having SO much power, concentrated into the hands of an immensely powerful elite means that the economy is run for the benefit of the elite, and not the people. The USA Treasury should be controlling the Economy, not the Banks.
right on, Brian.
WELL SAID.
Please , Ellen, BH, anyone this includes Wm Black,M. Hudson,
all economist, please reintroduce FREDERICK SODDY:
http://archive.org/stream/roleofmoney032861mbp/roleofmoney032861mbp_djvu.txt
THE
ROLE OF MONEY -WHAT IT SHOULD BE,
CONTRASTED WITH WHAT IT HAS BECOME
By FREDERICK SODDY
Preface:
This book attempts to clear up the mystery of
money in its social aspect. With the monetary
system of the whole world in chaos, this mystery
has never been so carefully fostered as it is to-day.
…there is not the slightest reason for this mystery.
This book will show what money now is, what it
does, and what it should do….It was recognized in Athens and Sparta ten
centuries before the birth of Christ that one
of the most vital prerogatives of the State was
the sole right to issue money. How curious that
the unique quality of this prerogative is only now
being re-discovered. The” money-power ” which
has been able to overshadow ostensibly responsible
government, is not the power of the merely ultra-
rich, but is nothing more nor less than a new
technique designed to create and destroy money
by adding and withdrawing figures in bank ledgers,
without the slightest concern for the interests of
the community or the real role that money ought
to perform therein.
The more profound students of money and,
more recently, a very few historians have realized
the enormous significance of this money power
or technique, and its key position in shaping the
course of world events through the ages. … It is con-
cerned less with the details of particular schemes
of monetary reform that have been advocated
than with the general principles to which, in the
author’s opinion, every monetary system must at
long last conform, if it is to fulfil its proper role
as the distributive mechanism of society. To allow
it to become a source of revenue to private issuers
is to create, first, a secret and illicit arm of the
government and, last, a rival power strong enough
ultimately to overthrow all other forms of
government. ”
****And for a little fun, read:
“The Wealth of a Nation Is In How That Nation Redistributes Its Wealth”
by justaluckyfool.
READ- CHALLENGE-IMPROVE-USE IT AS YOUR GUIDE!
[…] Ellen Brown Web of Debt […]
Praise be to God, “The Truth Shall Set Us Free”
Stop paying interest to the private for profit banks.
Start collecting interest on our own money instead of STUPID taxes.
Google-“Justaluckyfool”
Read: “Yes, You Can Lower Taxes, Pay Off The Debt, And At The Same Time Increase Revenue.”(Justaluckyfool)
Why not then as Einstein said, “Make it simple”?
Reduce federal income taxes to zero while at the same time raise TWICE as much revenue
using a fair system of taxation that is ; collecting interest on our own money instead of income taxes!
Read more: http://bit.ly/MlQWNs
Thank you, Ellen Brown for you continuous search for the truth and for allowing it to be published.
(redacted)
Surely, usury is the very evil we want to be rid of, so I don’t get why you mention wanting to charge any interest to anyone.
Charging interest is surely not a healthy, honest, or sharing thing for any society. All souls are equal before God, and the true aim of life is not to penalize certain people financially by cracking the whip, but to view this plane of existence as a place to learn compassion, sharing and helping each other to come to know God once again, and thus come to know ourselves as we truly are, eternal spiritual beings. There is no number crunching or other financial consideration in the spiritual world.
The combined skills of the population, the natural resources available on their land, and the hours of labour they put in are all that is needed, and all money owned by the people’s communal state bank MUST represent real goods, in one form another.
All loans must be from the banked surplus or stored produce of the people, and bank stock could even be in the form of commodities such as refined metals, timber, foods or whatever, as long as they are of a certain quality.
Those in need could borrow, until they are also in a position to repay back into the common fund what they had borrowed, and that would help everybody start in life.
This type of state bank would accept any minor losses and write them off, after all, many times more money is ‘lost’ by the present criminal system of ‘banking’ used by the NWO to fleece us all completely.
The NWO plan is to break up each country’s manufacturing ability so that they can quickly be brought to their knees whenever required by the NWO one world government. This must be stopped and all manufacturing done recommence being on a self-sufficient basis within each separate state, with any imports only being of luxuries or exceptional rarities.
The labour-saving devices already available to all of us, combined harvesters, road-laying machines, robotized car manufacturing plants etc. mean that if fractional reserve banking were to be made illegal, then the working week would be no more than 10 hours for everyone of working age.
The excess that is crookedly extorted from us all by fractional reserve banking, as well as several other just as nasty banking scams, goes to be squandered on never-ending warfare dictated by politicians.
The money they steal is not intended to be spent on hospitals, free medical care for everyone, schools etc. Why is such a productive country as the US bankrupt and borrowing? Because it costs 50 million dollars to kill each Taliban member they tell us, and in Iraq there are graveyards of thousands of expensive military trucks, written off and dumped because of minor mechanical problems that could have been repaired easily.
The scam is that instead of being repaired, another brand new truck is ordered at exorbitant prices. The entire aim of all this is to thoroughly exhaust all the workers, mentally, physically and spiritually; that is the actual desired product, if you can see through it all.
The life of the workers is intentionally made as hellish as possible by this very method, and then you get kicked in the teeth by being denied universal free medical care, that should be available to all citizens.
After all, people cannot help becoming injured or ill, and we are all supposed to be helping each other with what God has given us, so denial of healthcare to the underprivileged should not be the weapon it is today. The thing is, the resources and money exist today for all these things to be put right.
Mothman777, “Charging interest is surely not a healthy, honest, or sharing thing for any society.”
*REPLY*It is sad that you first use a statement that is untrue and try to pass it off as fact. Charging interest is a healthy,honest, and sharing thing for any society . Charging interest allows money to be redistributed from a lender to a borrower with an attachment that give reason to lend as well as a way to recover costs of lending.
It is a pure and moral transaction.
BUT as with all human transactions there could be a moral hazard. In the case of interest, What the receiver of the interest DOES WITH THE PROCEEDS is where we could have a problem.
Banks are “private for profit corporation” and as such they are bound by their owners to maximise profits. They are bound to turn over their profits for “the selfish use of their owners”.
WHAT IF a socially responsible government were to collect that interest and use it “”a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…”” at the same time reduce personal income taxes to zero , while maintaining controll of the quality and quantity of its currency?
Please,anyone, Why would this not work?
That’s because we, the people, allowed the dual standards of justice, especially about handling cash or currency.
We need to establish one universal standard for cash accounting/audit.
If you issue an IOU repayable immediately or any time the creditor comes to claim it, you must set aside that money in safety vault or deposit it with a bank as “deposit on demand”.
This simple principle must be applied to every players in the society.
For the banks, they can keep it in their vault or make a deposit with the central bank. Therefore we don’t need the idea of “fractional reserve”.
Agreed. Well put.
Banking for profit will never work, because the private banks have proven to be owned by an exclusive class of people who see themselves as literally superior to all others.
Interest that the banks steal from their victims becomes used against them, to further the cause of the NWO, vast amounts being spent on private military bodies, like Al Qaeda for instance, which is now provenly a terrorist asset of the bankers being used in furtherance of NWO world domination.
We can see Al Qaeda being stated by Hilary Clinton as previously merely being officially US funded and trained Taliban that have merely gone their own way, but they have done anything but going their own way; now they merely act covertly in the pay of the same masters.
And we plainly see the false ‘revolutions’ of the Arab ‘Green Spring’ merely being initiated, agent provocateur style by terrorist Al Qaeda, in order to justify the intervention of NATO countries, which then fight alongside Al Qaeda, as we clearly saw in Libya, whilst officially, Al Qaeda is the ‘enemy’ in the ‘war on terror’, whom we must all fight against.
Al Qaeda is merely the mercenary military force of the bankers that is used to justify invasion of one country after another, as they initiate their false flag attacks repeatedly.
Usurious banking inevitably grows into a weapon that empowers a lazy class, that increasingly demands more and more interest, whilst they themselves do no labour at all, and produce no food, housing, or other material or other resources required by society.
Some profit can continue at this time to be justified in individual commercial transactions, to reflect the necessity of a reward for individual initiative and effort, even in the complete absence of any form of usury.
Who knows, in a future world, where robots do most labour, even commerce to produce profit will no longer be necessary, as resources will be so plentiful.
The present type of bankers are divorced from the rest of society, seeing themselves as a superior people, purely by reason of the power they wield over governments and their captive populations.
They effectively control, inevitably because they are a self-serving entity that effectively controls all governments wherever they can to accomplish what the banker Warburg envisaged, a NWO one world government, which he stated we will have inevitably, whether we like it or not, either by consent, or by conquest.
The means of arriving at such a NWO state, is necessarily by military conquest, immense human suffering, and immense damage to all other creatures in this world, as well as immense damage to the planet itself, with DU salted everywhere in the soil and oceans of the entire planet, and GMO’s, another genocidal NWO WMD, both devastating time bombs that will damage the DNA of all living things, forever in this world, to cause immeasurable suffering to all.
And it has all started as it means to go on, because of the insane and snooty mentality of the very people that control the banks, who do not recognize their captive victims of the mortgage scams and so on as eternal spiritual beings, worthy of compassionate consideration, but rather as an eternally lower class of beings that should only be marshalled to serve the upper class alone.
If we cut the head off the snake by starving it of cash, by using a non usurious system of banking, the NWO bankers will have no more money to pay their terrorist mercenary armies.
Dear Justaluckyfool:
While I appreciate your sincere search for the truth of this overly complex, usurious situation that humans created, it will not come from the perps who benefit from it. As always, we learn best and most surely from history, although this is the aspect least looked at in the debate. The various factions have their axe to grind, so they prefer ideology rather than accurate recall of what has been tried, ergo what failed or succeeded.
It has been known since at least Hellenic times, and declared by no less than Aristotle, that “money shall not breed money,” as that is an unnatural relationship which creates falsity from the get-go. If we create false premises at the outset, then all our conclusions will be equally false. And that is how we got here, and why matters are so confused.
The best way to unravel this and learn what true solutions are available is to read “The Lost Science of Money” by Stephen Zarlenga, 2nd Edition. This magisterial study of more than 600 pages w/more than 400 illustrations will entertain you and you learn from it!
Here in Canada the banks are among the most profitable in the world, year after year, simply because they are allowed usury, NOT because they are skilled, efficient productive people. In my case, at nearly 70 yrs and recently a victim of a business associate’s fraud and theft, I had to drop my two VISA credit cards and get a consolidation loan to pay down the remaining balances of about C$ 21,000 which he charged to me.
Banks claim they can turn good profits on a spread 1.5 to 3.0% over the rate charged them by a government’s central bank. At present here it is 1% or less, OK, same as the USA. Even if we took 3%, the high end of the spread in the event I were a credit risk [very far from it!], add it to the 1% banks pay, that’s only 4% in total. Instead, I am charged 12.9%. How fair is that? I am a victim twice over, first by the perp and second by usury from my bank.
josephbc69, First , Thank you for the Aristotle thought, but I believe it address one type of interest as there are two. Interest as a payment for a service is one, the other (Aristotle refers to) is the payment for a false service.
****”It has been known since at least Hellenic times, and declared by no less than Aristotle, that “money shall not breed money,” as that is an unnatural relationship which creates falsity from the get-go.
‘Money breeding other money’ is money that is created from “fictitious lending”-that is the unnatural, false relationship. A lender giving the right to goods and services that the lender does not posses rather that is only entrusted to them by a rightful owner.
With “true lending”, interest is an earned payment for service. The lender can not use the same rights without them being returned by the borrower.
This is why it is necessary to have all lenders on a 100% reserve basic. They can only lend what they posses, and they may not counterfeit.
And they can not “fail”, or be “too big” since all wins or losses shall be payable.
Therefore they cannot “gain the world and all its wealth” because the borrower must eventually default because there is no more “liquidity” available.
P.S. No more bubbles, why? There is not enough liquidity for the bigger fools to put up to keep the bubble going and there is no problem with getting paid on the down side. It is nor sustained by “thin air” rather by cash.
****Aristotle on Usury in 350 B.C. wrote:
The most hated sort of money-making, and with the greatest reason, is usury, which makes a gain out of money itself and not from the natural use of it-for money was intended merely for exchange, not for increase at interest. And this term interest, which implies the birth of money from money, is applied to the breeding of money, because the offspring resembles the parent.
It is humorous to watch the collapse of our global economic system into the hierarchical structure described in ‘Proofs of a Conspiracy’ 1796. John Robson, and to observe how citizens have failed to heed every previous warning. C.H. Douglas, with his concepts of Credit Banking, fore ran what Elanor is talking about with public banks, many years ago. He also pointed out that any economic system based on the basis of money being created as a DEBT to the community, rather than a CREDIT, is destined to implosion. The A+B=A theory exposes the inanity of the system we have had forced on us by the bankers and their political servants.
If A equals ALL available money, cash, and B equals the interest to be paid to the bankers, who have illegally claimed ownership of our money, how can the debt be paid, as the interest money is not physically available, it doesn’t exist. How can A+B=A?
Social Credit is the only viable alternative, and that is the fundamental principle of Ellen’s Public Banking ideas.
The concept is great, but you are fighting the bank controlled media and political system, who are intent on global subjugation of the community under the guise of economic and political freedom. Watch out America, you have just elected the man who will finally sell you all into abject slavery and the world into a global conflagration.
________________________________
People must all get together and agree to form their own banks, lending money without practicing usury. Banking with usury is a parasitical business, as bankers do not work, not do they produce food, or labour as others do.
Germany and Libya did this very successfully, using state banking staff paid a normal wage from public funds in just the same way as librarians are paid from public funds, and their banking activities would not include gambling on Forex or on stocks and shares, or any other of those forms of fraud.
The only thing holding this from coming to actuality is indolence and cowardice of the people, and their mistrust of all others, as they all think they would rip each other off, so the state needs to maintain the smooth running of such a non-usurious system. They would much rather be terrified by the state instead of standing up and demanding an end to slavery.
In Germany, you can buy a 2 bedroom, 2 storey pre-fab houses of extremely high quality for £50,000, that can be erected in 5 days, as long as you have a land plot with planning permission first.
Just imagine not having to pay such exorbitant costs for building, through saving on labour, and see how the current building processes are a huge scam. Fraudsters in England buy an acre of arable land with no chance whatever of gaining planning permission, for £10,000 for instance, usually far less, then divide that into 8 plots or so, giving someone the impression they will be able to build a house there eventually, and sell 8 plots an acre for £10,000 each, simply for buying a whole acre, dividing into 8 on paper and reselling it, and that is the entire truth of the ‘work’ these fraudsters do, when any individual could achieve exactly the same result by spending their £10,000 on one acre and keeping it all for themselves. Yet there is no end of buyers who fall victim to this evil scam.
Capitalism loves suckers, and the criminals that perpetrate these kinds of fraud should all lose their citizenship and be jailed for a very long time with very hard labour, as that is what they condemn the rest of us to for no good reason.
Fractional reserve banking practiced by these criminal vampires means that they print 90% of what they lend from thin air, just as any other criminal forger or fraudster would do.
So, when you take out a mortgage loan from your average capitalist bank, you are required to pay back $300,000 on a $100,000 loan over 25 years. BUT, because 90% of that money lent is entirely fraudulent, you were only lent $10,000 in reality, and have to pay back 30 times, not just 3 times, what you were actually lent.
Although you have your house, the fake money injected constantly into the monetary supply causes huge inflation, and yet we hear one government economist after another swearing blind that they have no idea how the inflation is happening. They should all be locked up for practicing slavery, quite literally, governments included.This money is the same money used not for schools and hospitals, but for waging illegal wars all over the world to bring in the NWO one world government.
I should have added that besides ‘quantitative easing’ as an additional rip-off that degrades the value of what we have earned, another absolutely huge criminal rip off that is used to enslave us all, is perpetrated by the planning permission scam, where an acre of arable or green belt land, at, say £2,000 to £10,000 an acre, suddenly becomes worth £1,000,000 an acre. All land should be much more equal in price, as there is surely no real difference in terms of true value, outside mere financial valuation, between farm land, or land to be used for housing. It needs to be made illegal to mark up land values like that; all land should be classed as being of fairly equal value, and there is plenty of it to go around.
These are very basic points I know, but factored in all together, they present a devastating illustration of a huge financial scam by parasitical slave masters. Whereas the ‘money created as debt’ scam only rips us all off for 8%, the factional reserve banking scam is taking 3,000% more back than whatever is lent on top of that.
A nice little list could be made up of all the additional scams, and we would see how much we really are working for.
Though of course, we in the West are relatively near the top of the pyramid ourselves, when we consider that third world countries are only paid 1 cent on the dollar for the goods we take from them and retail amongst ourselves; those poor people are ground down to the lowest depths of degradation in the most dire poverty.
There should be no more 30% per annum IMF loans. There should be no more usury.
Until humanity can agree to go easy on each other and agree to help each other up to the position where they have more time outside labour to devote to spiritual culture, aestheticism and other pastimes, then society around the world will suffer terribly.
The darkness of karmic repercussion for the suffering inflicted on the third world will always continue to stymy our own spiritual potential for happiness, no matter how many material trinkets we surround ourselves with, as global consciousness is a unified field through the auric subtle bodies, beyond the more apparent immediate sensitivity of the human brain, that will always drag us down or lift us up, depending on what we put into it.
Hare Krishna
Here in Kanada we are NOT doing as well as Ms Brown suggests. The Bank of Canada allows the private banks to create debt-dollars by electronic magic, while it only creates 5 to 10% of the currency in circulation, mostly in the form of coinage, much the same as done by the Feral Res Bunco in the USSA. To make matters worse, the present Gubner of the Bank of Kanada is another Goldman Sachs stooge, mouthing all the pious BS that PoS Bernanke initiates.
Our BM, little Stevie Harper, and his Harpettes like it way, as it means they’ll all get cushy, no-work positions w/the banks after they exit politics. Don’t kid yourself about the Great White North: we’re as screwed by the NWO as the USSA is!
Josephbc69, In a modern economy, I believe the amount of actual cash in circulation is no more than 3% of the money supply. The rest is in the form of Bank loans, Credit Cards, Car loans etc.
[…] (Click here) […]
Dr. Brown:
Argentina has had a decent Central Bank Law from the late 40´s which was replaced by in 1977 by another which lowered the 100%
Insurance deposit for private banking to a perilous 16%, eversince
banking and finantial crisis became cyclic and with each one, either
The Central Bank had come to the rescue of private banking or depositors were cheated, with all the benefits of the scam going to private banking coffers.-
Under the shadow of very large foreign debt, little can be done against private banking which has the inmediate leverage of the World
Bank or the IMF pressuring the Gvmt. on inmediate payments or denying any refinancing of debts.-
Besides, there is always the need for the opening of credit charts so the exports can be made and hard currency obtained for imports.-
On te opposite of the USA who fought the “lobsterbacks” to become independent and to have a respected currency, Argentina was born under the aegis of England banking bussiness (Rothschild and Baring)
and the worshipping of the british pound with deletereous consequences.-
After the 2001 crisis (not the last), the issue of provincial currencies
was an answer to mitigate the funds scarcity among local budgets, so
salaries and servces could be paid and sustained, but under the
combined pressure of the WB-IMF those sources were forced to dissapear.-
Indeed, private banking was resenting not to be asked for credits to cover the deficit, which is the bankers dream: to have the Gvmt as the main customer and tax revenue wholly reserved to pay for the
interests: slavery at its best.-
Coexistance between private and official banking in the end its like a ship with two skippers, one ordering South and the other North course.
And thats the story of a nation who once dreamed to become an
industrial Mecca and ended up entangled in the fianantial whims of the “City” and Wall Street, as a sample: in the 60´s Brazil was just a
cofee and banana exporter, Argentina was making fridges, cars and aircrafts, today, most of our fridges and cars and also aircraft come from Brazil, with most of our exports based on suoy bean, meat and grains.-
Finances, or if you want more properly call it compound interest, has replaced any other form of planning ahead any solid national future
postponing infrastructure and industrial development with oil burning
generators instead of hydroelectric dams or chinese imported goods
instead of once locally made ones, with the impossible to defend argument that its faster to get energy and dams kill river worms or,
worst, why bother to make anything that could be more expensive than Chinese products.-
The price: unemployment, dwindling foreign currency reserves and increased oil imports, not a single road made, the feeble construction
boom, a source of income for the banking sector is in the downturn.-
Certainly, the sacrosanct reverence to the even budget theory has carved deep in the minds of the average citizen, after so many years
of TV shows where the guest stars were economists in the payroll of international banking consultants and major Banks, always pontificating about the danger of the State issue of money to cover the deficit, but never recommending more production of goods, to prevent inflation, which seems to be disease so dear to the hearts of
the “Chicago” Friedman boys school of economy and the likes.-
[…] It’s the Interest, Stupid! Why Bankers Rule the World […]
Reblogged this on disaffected purveyor.
95% of this article is correct, it is the other 5 % that I need to correct.
Interest should not be going to these private bankers, for sure. And these Private bankers should be rounded up and put on trial for treason. However, These people are not just money grubbing bankers , these are the wealthiest most evil people in the world establishing a world government before our very eyes.
We cannot just pass one piece of legislation and think that our problems are solved.
The article claims that these banks should be taken out of the hands of these bankers and made into public banks. Well this is not a bad concept but Just out of sequence of the many things that need to be done first.
When we are talking a public bank we are talking about government run banking instead of private. These private bankers control our government, we the people are not in control of it.
We need to get control of government first. They can block any legislation they need to and they can make sure that the objectives discussed in this article never happen.
The only way to get control of government is to establish the true “ecclesia” as how Jesus Christ explained in the bible. The ecclesia was the Greek word translated as “church” in most of our bibles. The actual meaning of the word is ” a political body of people gathered together. Go online and look this up and see if I am not telling the truth. The Christian church was supposed to be in complete control of government, that gives a new meaning to the words “public banking”, which I would then fully agree with the article. But one exception, interest is forbidden entirely in the bible.
The ecclesia would not need to charge people 2 or 3 times the actual price of a home in order to make government work, we would just be trading places with the miserable bankers.
Tithe, is what the bible teaches is all that the government needs, those who do not tithe, do not get to speak in front of the ecclessia, or vote. There is great incentive to tithe in the true teachings of the bible.
Please,anyone challenge:
We do not need new legislation.
We can fix the problem.
If you find this to be correct:
1.The Fed can mandate 100% reserve.
2.The Fed can QE Infinity.
.
I’m not sure what you mean.
1. Why would the Fed mandate 100% reserve?
2. The Fed IS doing QE Infinity.
What point are you trying to make?
…not sure what you mean.
1. Why would the Fed mandate 100% reserve?
If banks and financial institutions were to be on 100% reserve, they would not be “printing money”. They would be only allowed to use
only that amount which they have of their own or which they would have to borrow. They would be 100% solvent, 100% liquid. Be able to receive any gain and be able to pay any loss. They would no longer be tied to the government for guarantees as there would be no need to guarantee since anyone that pays 100% for any investment
simply can not default, or for that matter will be paid on any gain.
They will not be able to leverage their dealing. Credit expansion can only be on a 1unit to 1 unit basis.
2. The Fed IS doing QE Infinity.
What point are you trying to make?
As for QE Infinity: It would be for the purchase of assets not for the benefit of the private for profit banks, rather for the benefit of “we the people”.
P.S. NO matter how large any financial institution becomes, it can never be “TOO BIG TO FAIL” because at 100% reserve they
can simply pay there loses and either go away or come back another day to play.
Question, Would there have been a financial crises and depression of 2008 if all the mortgages and direvatives were actually funded by 100% reserves?
JALF, I understand that, but, The Fed(a private company, not owned by the USA Govt) will never do what you suggest, because they would lose too much money, (and power).
And who would willingly give up the right to print unlimited supplies of their own money? The USA Treasury should take back the power that was deceitfully given to the Fed in 1913.
The Feds would never-never is perhaps too strong a word.
If the GOVERNING body of the USA demanded they do something,
They damn better do it. When “we the people fully understand that we possess “the absolute power via the secret ballot, we can be “free again”.
They can buy the poles, spend trillions on lies, but when each individual is in that booth-anything can happen.
Also note the Chairman of the Fed is appointed by the elected president, also Congress at ANY time can legislate what would be deemed in the interest of all.. But once again it is “we the people” who must elect only those that were to agree to “work for the betterment of all the people.”
The process is simple, ASK any candidate for any office,
“Will you support -Our Mandate Article A and Article B ?”
If those that say ” yes” are elected; in 4 years the executive branch and the legislative branch would have a mandate that would be unstoppable.
Why not start now? Why do you not wish prosperity for yourselves and your children?
May God continue to bless America.
Sorry, used a dirty word “depression”, forgot modern times call it
” a sort of ressession”
Back to the question.
If the financial institutions were on 100% reserve and QE Infinity for 2013, were to be $200 trillion available to purchase assets ( loans at 2% for 36 years ) ,Would these assets raise $11 trillion per annum
for the next 36 years for the US Treasury for the use of Congress for funding, reducing debt, etc.?
Would that sattisfy both Romney and Obama ?
“You must raise revenue “somewhere else”,if you wish to lower taxes and increase spending” Do the math-lower taxes to zero,
earn interest income of $11 trillion per year. Is that more than the
$3-$4 trillion now ? But then why would we want prosperity without first some real pain?
[…] Ellen Brown Featured Writer Dandelion Salad webofdebt.com Nov. 8, […]
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[…] by Ellen Brown web of debt […]
Just promoting public banking is not enough.
We should ban private banking completely.
Or, we must redefine the word ‘banking’.
Nobody should allowed to issue any certificate that he keeps money for somebody redeemable anytime with exchange of that certificate unless he actually set aside that money fot the depositor.
In other words, we should eliminate the idea of ‘fractional reserve’ – this is a fraud, systemic and organized crime.
Here is my practical suggestion:
1)Let every financial institute calculate and report its total debts owing now to all of its customers(deposit on demand). And how much cash on hand available now. This shortage amount of money was fraudently created by commercial banks in violation of the soverign right of the government(segniorage).
2)Nationalize the central bank. BOE is already done so.
3)The shortage amount of each banks should be accounted as loan from the central bank to commercial banks at the interest rate of central bank funds.
4)Then we can calculate total amount of money existing by adding up all the cash held by out of financial system, by financial institutes, by central bank plus the total amount of loan to the banks from central bank. This is the total currency at the moment.
5)The congress should set the limit for central bank to create additional currency each year, basically related to the actual growth of the economy.
6)No more net increase of government debt, unless special approval from the congress for specific projects like TVA.
7)Issuing treasury bonds to pay off existing debt or deficit of budget should be redesigned:
– Bond coupon rate must be same as that of central bank funds.
– Bond should be sold at the price of par or above.
– Clearly announce to the public that if any unsold remaining bonds to be purchased and held by the central bank with newly created currency(This is another way of currency increase which is approved and accepted by the open market).
8)Learn from the Bank of Canada which released newly printed Canadian Dollar of $100 and $50 and go one step further should announce that exting paper money of $50 or more face value to be brought to any banks to be exchanged with new money or to be deposited within next 3 years.
After that time limit old money should be nullified.
For anyone interested, can I suggest you go to You Tube, and search for, The Banker (www.youtube.com/watch?v=peX4dBEFOVg). You’ll get a good idea of how much contempt they have for us all.
Hi Brian. I just tried to watch that very video, and guess what, YouTube have made it unavailable without any explanation, and they usually put some explanation up, like copyright infringement, or there only being a licence for it to be viewed in certain countries, but no explanation has been attempted this time.
It must be a good video..
Hi again Brian, after all that, after putting in just the title The Banker – film, in the search bar, another link has come up which is working at present.
It’s mere crocodile tears to avoid public awareness of their deceit.
Remember? The first crime of fraud committed by the banker was:
The issuance of “certificate of gold deposit” with no actual gold on hand. What’s the difference between this fake certificate and $100 paper money of counterfeit and a certified cheque issued by a banker without actaul fund set aside for the cheque?
And when and how were the bankers authorized to create credit ou of thin air?
It’s a matter of seigniorage.
In modern society, Seigniorage can be justified only by the principle that it belongs to the whole nation, it works for the benefit of the public.
As Frederick Soddy wrote :
“The Role Of Money” (1926,1933).
Google it.
Thanks for your advice.
However, the author might not have imagined the evolution we’ve seen for last several decades in terms of systems to manage transactions.
Can you explain why most of the central banks stopped publish statistics of M1?
When the checkable savings acccount came out, they could not see a clear line distinguishing between deposit on demand and savings account.
For me, the line should be set by (1) is the account holder can withdraw the whole balace immediately? (2) Is this account paying interest for the balance lower than the central bank funds rate?
If both answers are yes, it should be regarded as deposit on demand.
But, the money is not used for the good of the nation, and the mortgage scams combined with fractional reserve lending mean that you have to work 30 times more for your house than you should, though if we add in the factor of profit for the companies that made the housing components and so on, then we can say that we are working at least 10 times longer than we should, probably very much more.
It is a very underhand, and devious method of ‘taxation’, and it is so precisely because the intention is to use the money that is gained in such a fashion for purposes which are very much against our own self-interest.
This carrot and stick method, which gives us a house that we never really own, as the state owns all property, even after we have paid for it, as we are just tenants, means that we are working without being able to stop, or we would be homeless, and thus, the only means of protest against spending on illegal wars is entirely beyond the reach of most people.
If we could strangle the NWO bankers by cutting off their funding to pay the mercenary armies that do their dirty work, the NWO take over would and could never happen.
Just think, if we had our own houses, and land to grow our own food, and were self-sufficient communities, then when the NWO one world government wants to come along and recruit us all, for war. and use all our continued labour for that same purpose, we can all say we are entirely self-sufficient and have no need to go to war.
The genocidal NWO war machine knows that it is vital for it to have continued access, unstoppably, by these usurious and fractional reserve methods, to funds, resources and labour, in order to compel us all to work unceasingly, to make the very weapons that will ultimately be used to exterminate us all, so that only the NWO people can inherit the Earth.
Take for instance the example the threat of nuclear annihilation of the entire world outside of Israel using nuclear weapons, using the ‘Samson Option’ and consider how that terrorist threat against the entire planet came to be in force today, and how the nuclear weapons were first developed in other countries, using their resources, then the technology stolen through espionage, etc etc.
Consider also the 1991 Noahide Laws passed through Congress by George Bush in 1991, which enable the guillotining to death of all US citizens who are not of a specific religion, and this is totally legal and can come into actual practice, with guillotines already installed on military bases throughout the USA, whenever the constitution is suspended due to a state of emergency and an emergency administration comes into effect with these already existing powers.
Think about that; has any rational explanation been offered to the American people as to why such legislation might actually be necessary, and how it might actually be for their own benefit?
Of course, genocide of the American people can never be for their own benefit, but you see people voting Barack Obama into office again, completely under waking hypnosis. They have not even demanded of him that he repeal such laws and remove this threat of genocide against the American people. The NWO Marxist agenda is in full swing, and the executioner’s blades are set to fall, and people are actually celebrating. How surreal.
It is precisely for the continued funding of the military methodology of those powers that the carrot and stick method of mortgage, other usurious methods, and fractional reserve banking, as well as all the other financial scam methods exist, to make sure the sheeple cannot do a thing about it, unless they all do it together, putting in their own non-racist administration, running their own state bank, cancelling all debts, and starting again from fresh, without usury, and the sooner the better.
It’s mere crocodile tears to avoid public awareness of their deceit.
Remember? The first crime of fraud committed by the banker was:
The issuance of “certificate of gold deposit” with no actual gold on hand. What’s the difference between this fake certificate and $100 paper money of counterfeit and a certified cheque issued by a banker without actaul fund set aside for the cheque?
And when and how were the bankers authorized to create credit ou of thin air?
It’s a matter of seigniorage.
In modern society, Seigniorage can be justified only by the principle that it belongs to the whole nation, it works for the benefit of the public.
Youme41. Seigniorage, as I understand it, is the profit governments make by printing $notes and minting coin. In the old days, before “plastic money”, governments made a very nice profit printing $100 notes for 0.5c each, and selling them to Banks for $100.
But in modern economies, cash makes up only around 3% of the money in circulation, so governments don’t now have this revenue source.
Banks print “plastic money”, or lend for cars, housing, etc. No, or very little cash is involved in most transactions these days.
Modern day money in the meaning of legal tender is made up with cash and cash equivalant. i.e. ‘deposit on demand’.
In other words, it’s called currency(M1).
When I say that we have to eliminate the idea of “fractional reserve”,
we don’t necessarily keep all the reserve in the form of paper or coin money.
When the central bank makes a loan to a commercial bank, it does not need to print actual paper money.
However, there must be enough fund available authorized for the central bank to make that loan.
It’s said that central bank is the bank for banks.
Therefore each and every liscensed bank should have an account with the central bank for cash deposit or borrowing. If the balance is positive, it will earn interest for the bank while negative balance occurrs interest for the central bank.
When you dig deeper into this idea, you might come to the fact that
there is no accounting rule for the central bank for cash.
This is mainly to support the idea of fractional reserve.
Each nation should be able to calculate it’s total amount of currency at this moment and nobody dare to manipulate this – utmost transparency is required!
Money in thesedays are transfrred mostly by electronically.
This system manages smooth transter of money from accout A to account B. Nobody should attempt to steal funds from others account,
nor should dare to create fund into his own account.
Only the central bank should be able to create fund into its own account in due process. This the seigniorage! The most important contents of national sovereignty!
Young Kim, Thanks for that, There doesn’t seem to be a lot of information available in regard to how Banks and central banks interact.
Yes, I agree.
That’s because, I believe, the Lord of Finance doesn’t want that his secret hands of Midas revealed to the people.
Most of the central banks on the world are not controlling commercial banks under their jurisdiction, actually they are controlled by big private banks.
Even under the fractional reserve system, the reserve requirements are not examined daily. How is it going in Australia?
The Reserve Bank of Australia is 100%owned by the Australian Govt,unlike the Fed in the USA which is a privately owned bank. My understanding is that The RBofA monitors the actions of the Banks in Aust, but as to the day to day interaction, I am unaware.
The Australian Banks(like the Canadian Banks) seem to have steered clear of the massive Dirivatives trading created in the USA after the Glass steagal act was over-ridden by Pres Clinton.
Given that our 4 big commercial Banks all are within the 22 largest Banks in the World(by Capitalisation) and we only have a population of 23 million, seems absurd, but it highlights how badly the American Banks in particular have been conducting themselves lately.
It may be my imagination, but I believe there is a preconceived plan to concentrate the Banking industry around the world into fewer and fewer Banks, and that is why I think that the USA bailing out the Banks that caused the Financial Crisis of 2008 was an extremely bad idea.
Brian, excuse me for intruding into your conversation, but I believe you are absolutely spot on with regard to your last paragraph ( and all that you write is extremely perceptive). There seems to be a plan (perhaps devised some time ago), and not only a plan, but a successful attempt has been underway and is still going on, to concentrate the banking industry in the U.S. and around the world into fewer TBTF banks. It is not your imagination. It is and has really been happening. It’s a horrible idea, and very destructive for the people, the 99%. There are a few writers on the more progressive websites here who come to the same conclusions, but you are way ahead of most people. Some of these websites are Truthout, Common Dreams, Truthdig, and others (too long to mention here) where Ellen Brown has posted many of her articles. I have been reading these for over a year, and I see it as you do. You are very fortunate to have so many better options in your country, and I wish we had a similar setup here.
IMO, behind the TBTF banks, the vampire squids, the banksters and what we SEE as Wall Street, I believe is an invisible power, the shadow behind the 1%, some families or whatever entities they are, who may want to rule not only this country, but whatever they can get their hands on ( the rest of the planet). There is also a wonderful documentary by Bill Stills called “The Secret of Oz” which you would probably like, which supports your idea, and then some. http://www.youtube.com/watch?v=swkq2E8mswI
I also believe that the creation of public banks, like the BND, is such a terrific alternative to the private behemoths. HOW we are going to do this is what I believe Ellen Brown is trying to show us. I am sort of feeling like Sisyphus as he starts to roll that stone up a very large mountain.
Somehow, I believe we can, if enough people learn to see what a public bank is.
Calliope, I have seen the Bill Still video that you mentioned. It is excellent and I would recommend it to anyone interested. I hope Bill Still is highly regarded in the USA, although, from my understanding of it, anyone in the USA who strays from the beaten path by the Main Stream Media, doesn’t get any airtime at all.(censorship by denial of media access??)
I might add that, after the Australian Banks bought out or took over the Banks in New Zealand, NZ turned its Post Office into a Bank and it has thrived ever since. Maybe someone from NZ reading this might like to add a comment.
Brian, thank you for your reply.
Yes, I suppose it should be called censorship through denial of media access. The media seems to have been bought, just as the three branches of government have. It’s really government by the “Looter Elite”, a phrase that stuck with me and is named after the article written about them. They have a chokehold on us, and I suppose they will be bailed out again, knowing that they can and maybe threatening to tank the economy if they are not. I say let them fail.
Yes, it would be great to see how things are going in NZ. Ellen wrote an article about saving our post offices from privatization, and restoring banking services in them. That would be great, but the Austerity advocates have a massive effort underway to privatize everything, from schools and universities, the safety programs for seniors and the poor, education, and just about everything.
This is not the country I was born in. I am a stranger in a strange land.
Yes, it would be good to hear from some people of NZ on how things are going there.
So in the United States of the hidden Plutocratic Oligarchy of the 1%, where we have a system of “inexorable mathematics” created by our private banking system forcing the 99% to pay 35% to 40% of interest on everything we buy to the private banksters, the bondage that we are born into is that we are taxed when we work, we are taxed when we buy, we are taxed when we have kids, or don’t have kids, we are taxed when we go on Social Security, we are taxed when we pay our bills or mortgage on time (and if we should sometime forget to pay an electric, gas, or water bill, our house might be seized by the banks immediately, which by itself is one hell of a high tax), we’re taxed when we’re born, and we are taxed when we die. It is apparent that this is more than double taxation.
The deviousness of all these hidden taxes is perpetrated by the fancy footwork of our legal system which labels these tax burdens as “fines” “fees” “usage dues” and other technical verbiage used to hoodwink the public.
It also appears to be taxation without representation.
So, we are taxed when we are taxed, and taxed again when it appears that we have money to be taxed. The hidden tribute to the banks, this 35-40% interest on everything in the commodities universe, sells us into slavery the moment we are born.
Public banks do offer a ticket out of slavery, and a chance for a productive and creative new life. The more people find out about them, the more they will want them. I’m sure the banksters have always known this, and the next really important thing I wonder about is HOW to get public banks created notwithstanding all the pressure of corporate interests who absolutely are trying to prevent their creation, especially via Citizens United.
What about this?
– Implement payroll tax system onto every investment account.
I wrote an article about this and published on my Korean blog.
http://blog.joinsmsn.com/media/folderlistslide.asp?uid=youme41&folder=1&list_id=8676512
It’s a pretty website, but I can’t read Korean. Do you have an English translation? What do you mean by “implement payroll tax system onto every investment account”?
Payroll taxing for investment account means:
When the government gives a business liscense to a investment company, make sure that this investment company keep track of every account about I/O of money. Accumulated total of input and output must be calculated for each transaction. It should be recognized as investment income when the actual total accumulated withdraw amount exceeds that of input(investment), this excess amout is net investment income. General income tax should be withheld by the institute before pay out each withdraw or account closure.
To all, as well as YoungKim, please,please, help all mankind to find a better path.
RE: Frederick Soddy
Excerpt from http://en.wikipedia.org/wiki/Frederick_Soddy
“In four books written from 1921 to 1934, Soddy carried on a “quixotic campaign for a radical restructuring of global monetary relationships”[this quote needs a citation], offering a perspective on economics rooted in physics—the laws of thermodynamics, in particular—and was “roundly dismissed as a crank”[this quote needs a citation]. While most of his proposals – “to abandon the gold standard, let international exchange rates float, use federal surpluses and deficits as macroeconomic policy tools that could counter cyclical trends, and establish bureaus of economic statistics (including a consumer price index) in order to facilitate this effort” – are now conventional practice, his critique of fractional-reserve banking still “remains outside the bounds of conventional wisdom”[this quote needs a citation]. Soddy wrote that financial debts grew exponentially at compound interest…”
http://archive.org/stream/roleofmoney032861mbp/roleofmoney032861mbp_djvu.txt
THE
ROLE OF MONEY
WHAT IT SHOULD BE, CONTRASTED WITH WHAT IT HAS BECOME By
FREDERICK SODDY
M.A. (Oxon) ; LL.D. (Glasgow) ; F.R.S. ; Nobel Laureate in Chemistry, 1921 ; Author of ” Science and Life ” ; ” Wealth, Virtual Wealth , and Debt ” ; ” Money versus Man ” ; etc.
[…] It’s the Interest, Stupid! Why Bankers Rule the World(webofdebt.wordpress.com) […]
[…] that allows them to rob you, me and everyone without our even being aware of the fact. Did you read Joan Veon’s recent piece wherein she explains that some 40% of every item purchased goes to debt service? And who does that […]
Interesting site! That demonic people,self-segregated from the decent majority, are at the root of the problem seems plausible. Perhaps excessive concentrated wealth itself is a large part of the evil. It must be a tremendous high having so much money and so much control. IF it were legitimately, justly gained — through work and genuine contribution to society–it would be different. My view is that no one in reality deserves thousands of times more than an ordinary person. Any such excessive income is unjust and damaging to society and would best be outlawed. Progressive taxation would be a way to fix it, but banking reform would be more direct and effective. Compound interest in a private banking system constitutes, as described in the article, a regressive subsidy for the rich, purely unearned income — a barbarous relic that shows we still live in a feudal society. Perhaps when enough people become aware of their unfreedom, things will change. Ellen Brown wrote the article though, not Joan Veon.
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[…] It’s the Interest, Stupid! Why Bankers Rule the World […]
[…] It’s the Interest, Stupid! Why Bankers Rule the World […]
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[…] Source: WebofDebt […]
[…] Brown recently blogged “In the 2012 edition of Occupy Money released last week, Professor Margrit Kennedy writes that a […]
I require a graphic to understand all of this. Any recommendations?
I am a voracious reader yet, when it comes to economics and finance, I seem to have difficulty with understaning the relationship among: debt, interest, tax, consumption, production, money creation, and private versus govt banks. A graphic including these factors should suffice. So, if one exists would someone kindly post. Then I will be able to understand, argue and advocate.
I don’t have a graphic, but will keep an eye out for one. I recommend the MMT sites. I think Ellen Brown is right, that people have a mistaken idea of what money is. It is not a commodity, but credit. Not printing enough money for the economy to function is as stupid as not printing enough airline tickets or movie tickets. Obama doesn’t get it: he said that the economy is like a family; it has to live within its means. But that is not true. From the national perspective, money is not a commodity–a kind of stuff to be bartered, with our economic activity depending on the limited supply of it. That’s what the private banks want us to BELIEVE so they can stay in control and continually extract their pounds of flesh.