As An Engine Needs Fuel. .... So An Economy Needs Money By Peter Davis

     It is a sad fact very few people have any comprehension of how our "money supply" is created. Nor, its importance to a functioning National economy and the power exerted by those who control its flow into our economy. The objective of this brief paper is to try and convey those three criteria; How our money is created; its rate of distribution; and the control exerted by the private Reserve Banking system.

     In terms of simplicity, an internal combustion engine, together with its fuel supply, is an excellent illustration of how money functions in an economy ... Let us accept we possess an engine and we have some fuel. Providing we supply fuel in the correct air /fuel ratio the engine will run, thus performing our desired task. By increasing or decreasing the rate of flow of fuel/air we control the work performed, {the speed} of our engine; or, indeed, we stop the engine by turning off the flow of fuel.

     However, if the fuel /air ratio is to "rich" ... {too much petrol} .... the engine will run erratically. It will blow black smoke and eventually cease to run. Or, if the fuel/ air ratio is too "lean" {too little petrol} the engine will run hot and erratically before stopping from lack of fuel.

     If our fuel supply is contaminated by dirt, water or impediments, our engine will not run properly.

     If the flow of the correct fuel/air ratio is not "governed", or controlled, our engine will steadily increase in speed and eventually explode. The correct mixture of fuel/ air at the required rate delivers predictable, reliable performance we expect from engines.

     Whilst simple to describe, the fuel we feed into our engines typifies the role of "money" in our economy. "Money" is the fuel for our engine, our National economy.

     What is our "Money''? Who controls the supply and where does it come from?

     MONEY in a modern economy can be broken up into basically 2 forms .....

     First, there are our notes and coins manufactured by the two Commonwealth Mints located in Canberra and Perth. The Government Mints create a steady supply of “CASH". It represents about 3% or less of the "money'' in circulation at any given time. This "cash" belongs to the Federal Parliament and is used by us people to pay "cash" for our purchases.

     Second, the remnant 97% of our money, or fuel supply, is “money” created by the private banking sector. This 97% of our money is created in the form of “loans" to Government or people borrowing from the banking sector. Thus, we "borrow money" to buy a home, a car, build a road or hospital from "the Banks". We citizens do so by way of "Mortgages" which are nothing more than promises to pay back the borrowed amount at the required rate of interest over time. Mortgages are as old as the ancient Roman empire .... Demonstrated by the origin of the word MORTGAGE .... Mort, as in a mortuary or mortician, thus DEATH: Gage, from Latin French "to engage" .... To clasp or grip; a contract. Thus the literal translation of "mortgage" is "deathgrip."

     Given the magnitude of our Governments' expenditures, their need for money, [fuel] is met by borrowing "money" from the Reserve Bank of Australia. Whilst the RB.A. is owned by the people of Australia, its activities are controlled by its Board of Directors. It is a sad fact that from 1924, when the old C.B.A. was effectively privatised, the Nation lost control of its financial Sovereignty. Whilst The RB.A. rarely refuses a borrowing request from Government, the financial impact is the inevitable steady, unrepayable, increase of THE NATIONAL DEBT .... Which is the National MORTGAGE .... And upon which we people are required to pay interest as well as repay the original amount borrowed.

     The fundamental question, "From where or whom does the R.B.A. [ or your friendly big 4 banks] gain their supply of money [fuel]," has a simple answer .....

     Most people understand the "Ecloud", where uncountable amounts of personal computer documents are stored, and which we "draw down" daily at the press of a computer button. Now, for all intents and purposes this self same "Ecloud" has been used by the private banking system for centuries to supply the fuel needed by commerce, Governments and people to carry out our every day activities. In times past the necessary bookkeeping took place laboriously with pen, ink and paper ..... Today a few computer entries involving that Ecloud and your "money" is created, virtually at NO COST ..... But, with the legal requirement to repay the borrowed amount PLUS interest over the term of the "loan". Thus your mortgage. BUT .... Your physical "MONEY", or debt, or loan DOES NOT physically EXIST . It is nothing more than an Ecloud computer entry.

     Proof? THE ONE THING ALL BANKS FEAR IS A "RUN" ON THEIR DEPOSITS ..... Why? Because when a’ ‘RUN'' occurs, we-people want our deposits returned in hard CASH, which banks do not possess ... WHY? THERE IS ONLY ROUGHLY 3% Cash circulating and BANKS CANNOT MEET THEIR LIABILITIES. And remember, our current Federal Government has floated the concept of "privatizing" the two mints. It wants to sell off its Sovereign right to create the Nation's cash supply to private interests! Needless to say the private banking sector is looking forward to promoting a cashless society together; with a massive increase in banking power over us all.

     Sheered of all its mystique and "spin," the above is the principle upon which we expect the engine of our Nation to function .... The performance of our engine, the Economy, is held to ransom by the world wide private banking cartel known as the Bank for International Settlements based in Basie, Switzerland. It's true the above is an oversimplified explanation. But, fundamentally it explains why we have an exploding National debt, a struggling economy and all governments dreaming up new methods of syphoning off the fuel flowing to our economy .... More TAXATION. For example, consider the G.S.T .... which burns off 10% of the fuel from our most vulnerable sector. The simple action of cancelling the G.S.T. entirely out of existence would at one stroke effectively return 10% more purchasing power overnight to all workers, unemployed and retirees.

     So, how could the Commonwealth and State Governments fund their immediate taxation SHORTFALL? Simple: Take back complete control of the Reserve Bank of Australia and create the shortfall debt free .... By freeing up the flow-of ''Fuel" to our engine, the Nation will cease incurring exploding National Debt, continue the supply of necessary fuel to build roads, hospitals, schools, national infrastructure, etc. WHY SHOULD WE INCUR INTEREST BEARING "DEBT" PAYABLE TO PRIVATE BANKING INTERESTS TO BUILD OUR OWN NATIONAL ASSETS?

     Whilst it is easy to state the obvious, should our Federal Parliament choose to take back the power to create its own debt free fuel, the international repercussions will be severe. But, the effect of the current fuel policy is increasing indebtedness and associated effective covert National slavery to the banking sector. Fiddling with the current fuel flow will continue our roughly running economy together with the economic uncertainty gripping our people. The outstanding global proof that a Nation/ State can gain clean fuel is America's Bank of North Dakota ..... In November, 2014, The Wall Street Journal reported that the Bank of North Dakota, America's only State owned depository Bank, was more profitable than J.P. Morgan Chase or Goldman Sacks. Until we gain a reliable flow of clean fuel it is absolutely inevitable our National and personal indebtedness will continue its inexorable rise together with our unreliable economy.

  Sincerely, Peter Davis



 

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Sunday, 25 October 2020
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