Our Broken Money Instrument
I totally agree with you. For what its worth I have also added my thoughts on this broken instrument we call money or rather the way it has been created and used. I wrote this approx two years ago and believe its worth adding here.
Andrew Webb (Melbourne)
Bank Credit or Social Credit,
Which one serves the country better?
Definition of bank credit
Bank credit is the amount of credit available in money terms to an individual or organisation. This amount available will depend on the borrower’s capacity to repay and the amount the banks have available to produce as debt. Remember This!
Most people have no knowledge on how money is presently created or why it needs to be created at a increasingly growing rate. When I say increase, it is paramount for any economy of the world that the money supply does exactly that.
Why! Well if the money supply did not increase, the economy in response has only one way to go and that is to go into recession. You see for an economy to run efficiently there must be enough money available for the process of trade to continue. Unfortunately the majority of all money in the money supply has been created as debt. As a consequence, all loans must be repaid back with the added cost of interest payments. This has the effect of decreasing the money supply!
Let me explain. Every single amount of new money created into the money supply (except in notes and coins by the government) is created as a debt to the economy as a future loan. This money must be paid back with interest. Can you see the problem here?
The very action of paying of debt and the added cost of incurred interest does exactly what we don’t want it to do; it reduces the money supply! (All debt paid back to the banks is removed from the economy) A constant supply of new money must always be sourced just to maintain the money supply. In other words we are forced to maintain the cycle of debt by further borrowing.
The biggest insult of all added to this, is that the banks can create this money out of nothing, with out representing anything of real value. It is all created on the basis of bank credit. This action has caused many recessions in history. The economy as a whole is then served with debt that can never be paid off. (Of course some people can pay their loans off, i.e. home loans paid off through inflation. But bear in mind that the people buying the home from them will need to borrow a substantial amount of money many times more than the original loan paid for the house originally, as a result debt has increased not reduced to the economy as a whole. The debt is growing and it is truly unsustainable.
The question of who should create a country’s money supply has been asked many times in history and many wars have been fought over this. Strangely our history books shed very little on this.
Definition of Social Credit
Social Credit is the amount of free credit available to a nation’s government and its people. Generally as a result of this, taxes are no longer needed to cover the upkeep of government expenditure and ongoing infrastructure. Individuals and organisations may also seek this credit, those seeking it usually have to pay it back (without interest). Exceptions on repayment would be on the order of how the country benefited from the use of this credit.
Money created this way will not incur debt to the country; on the contrary money will be represented and created on the basis of real wealth and more importantly created and distributed on a basis of sound economic management. Recessions and depressions will be a thing of the past. To ensure the money supply is adequate for the economy, additional money may be given to each citizen of the country at regular intervals in the form of Dividends. See forum here ' Why the dividend is so important'
It needs to be understood that money is only a tool, a very useful tool that enables us a means to exchange goods of value. Its value is only recognised by the accepted faith, we the people have on money– without this, it is worthless. Money therefore has no real value. The real things of value are in the land and what we make of it. Everything around us, the land, trees, water ect, was created for our use, it is God’s creation.
Therefore if we use money as an exchange, it must be produced in correct quantities without cost. What man is physically able to produce, grow, build, and invent, must not be limited by lack of money but rather by the lack of resources. Trade need not be restricted by lack of money.
To empathise this point more, I have added this story below;
In a remote island in the South Pacific, thousands of people could feed themselves, clothe them selves in fact supply everything they ever needed. The people lived in almost paradise and never went without. This was the case until a dark day arrived in their lives. It was discovered that almost two thirds of the island’s supply of shells (money) had disappeared and also it seems their chief banker. A crisis meeting was held with all the important chiefs in attendance. It was declared that the main supply of shells had disappeared which would put the economy in a perilous position. New shells were needed desperately or all trading would come to a halt.
Bankers from Europe offered the islanders printed-paper (money). But this came at a great cost, Interest would be charged at a rate of ten percent and one third of the island’s assets were needed as insurance for the banker’s big risk. They were told this would bring them up to date with the modern world.
The islanders thought long and hard about this and almost agreed with the banks to borrow the printed-paper. Luckily a man from another island had seen this very thing happen to his own island. He told them that the banks now owned their island because they did not have the money to pay them back. They found too late that only the banks could supply this printed paper (money).
The banks forced them to give up their property and a requirement was made that one third of the food they grew would now go to the banks until the debt was paid off. There was much bloodshed lost over this until the united islands came in and ordered them to fulfill their agreements. The world islands bank offered them more money with conditions that was not in the interest of the islanders. The debt had to be serviced at all times regardless how little was left for important services such as health care, it must be paid!
Things could only get worse (the interest was killing them!) The people no longer have a home, island or any possessions, but they do have severe unemployment, unsustainable debt and a great deal of poverty. (They now owe more printed paper (money) than they did before).
The islanders took note of this and decided to revert back to bartering for six months until all the shells needed were collected. Although bartering was very cumbersome they thought it was a much better thing to do. A ton of wood for example was used as an exchange for six weeks supply of meat. After the shells were collected everything went back to normal.
The islanders in this story were self-sufficient and had every thing they could ever need. The shells they used for trade could easily have been replaced by rare feathers. They could also of printed their own debt-free money (If they had a printing press!) There was never any need to go into debt.
This story is very simple to understand yet in real life we continue to fall prey to these banks. People are dying everywhere around the world from debt induced poverty, much of it could be stopped in its tracks if policies like Social Credit was utilised, yet we the people let it happen. It can be reversed if enough people get on board. I can’t say this enough, please spread this important message!
Believe me it really is a matter of life and death!
Be thankful that you and your family were not born in any of these dreadful poverty stricken nations. Life hangs on a thread here. I implore you and others to take action.
The lives of so many people depend on it! Your nation could be the next one to fall!
Thanks Andrew for your interest. You seem to have a fair grasp of our dilemma. One of the main difficulties for people lies in differentiating between money and real wealth, which is the point of your story. Owing to this debt money setup the money supply is our biggest liability! I think that pretty well all nations have fallen to this con, the challenge we have is getting back up.
You should register with us to get access to the advanced library section as well as the journals we have available. Like you, we (socialcredit.com.au) really want to take this thing forward.