THE HIDDEN TRUTH
BEHIND GLOBAL DEBT
4) How much could prices fall and wages increase if
businesses did not have to pay huge sums in interest payments which have to be
added to the cost of goods and services they supply...?
1) What is money... how is it created and who creates it?
2) Why is almost everyone up to their eyeballs in debt...
individuals, businesses and whole nations?
3) Why can’t we provide for our daily needs - homes,
furnishings cars etc. without borrowing?
5) How much could taxes be reduced and spending on public services such as health and education be increased if governments created money themselves instead of borrowing it at interest from private banks…?
"If you want to be the slaves of banks and pay the cost of your own slavery, then let the banks create money…" Josiah Stamp, Governor of the Bank of
WHAT IS MONEY....?
It is simply the medium we use to exchange goods and services.
- Without it, buying and
selling would be impossible except by direct exchange.
- Notes and coins are virtually
worthless in their own right. They take on value as money because we all
accept them when we buy and sell.
- To keep trade and economic
activity going, there has to be enough of this medium of exchange called
money in existence to allow it all to take place.
- When there is plenty, the
economy booms. When there is a shortage, there is a slump.
- In the Great Depression,
people wanted to work, they wanted goods and services, all the raw
materials for industry were available etc. yet national economies
collapsed because there was far too little money in existence.
- The only difference between
boom and bust, growth and recession is money supply.
- Someone has to be responsible
for making sure that there is enough money in existence to cover all the
buying and selling that people want to engage in.
- Each nation has a Central
Bank to do this - in
- Central Banks act as banker
for commercial banks and the government - just as individuals and
businesses in
TODAY’S
"MONEY"... CREATED BY PRIVATE INTERESTS FOR PRIVATE PROFIT.
1. Central
banks are controlled not by elected governments but largely by PRIVATE INTERESTS from the world of commercial banking.
2. In Brita in
3. The
remaining 97% is supplied and regulated as credit - personal and business loans,
mortgages, overdrafts etc. provided by commercial banks and financial
institutions - on which INTEREST is payable. This pattern is repeated
across the globe.
4. Banks
are businesses out to make profits from the interest on the loans they make.
Since they alone decide to whom they will lend, they effectively decide what is produced, where it is produced and who produces it, all on
the basis of profita bility to the bank,
rather than what is beneficial to the community.
5. With
bank created credit now at 97% of money supply, entire economies are run for
the profit of financial institutions. This is the real power, rarely recognised
or acknowledged, to which all of us including governments the world over are
subject.
6. Our
money, instead of being supplied interest free as a means of exchange, now
comes as a debt owed to bankers providing them with vast profits, power and
control, as the rest of us struggle with an increasing burden of debt....
7. By
supplying credit to those of whom they approve and denying it to those of whom
they disapprove international bankers can create boom or bust and support or
undermine governments.
8. There is
much less risk to making loans than investing in a business. Interest is
payable regardless of the success of the venture. If it fails or cannot meet
the interest payments, the bank seizes the borrower’s property.
9. Borrowing
is extremely costly to borrowers who may end up paying back 2 or 3 times the sum
lent.
10. The money loaned by banks is created by them
out of nothing – the concept that all a bank does is to lend out money
deposited by other people is very misleading.
- We don’t distinguish between
the £25 billion in circulation as notes and coins (issued by the
government) and £680 billion in the form of loan accounts, overdrafts etc.
(created by banks etc,).
- £100 cash in your wallet is
treated no differently from £100 in your current account, or an overdraft
facility allowing you to spend £100. You can still buy goods with it.
- In 1948 we had £1.1 billion
of notes and coins and £1.2 billion of loans etc. created by banks – by
1963 it was £3 billion in cash and £14 billion bank created loans etc.
- The government has simply
issued more notes and coins over the years to cover inflation, but today’s
£680 billion of bank created loans etc. represents an enormous increase,
even allowing for inflation.
- This new "money" in
the form of loans etc, which ranks equally with notes and coins – how has
it come into existence?
This is how it’s done…. a simplified example...
- Let’s take a small
hypothetical bank. It has ten depositors/savers who have just deposited
£500 each.
- The bank owes them £5000 and
it has £5000 to pay out what it owes. (It will keep that £5000 in an
account at the Bank of England – what it has in this account are called
its liquid assets).
- Sid, an entrepreneur, now
approaches the bank for a £5000 loan to help him to set up a business.
- This is granted on the basis
of repayment in 12 months - plus 10% interest – more on that later.
- A new account is opened in
Sid’s name. It has nothing in it, nevertheless the bank allows Sid to
withdraw and spend £5000.
- The depositors are not
consulted about the loan. They are not told that their money is no longer
available to them– The
amounts shown in their accounts are not reduced and transferred to Sid’s account.
- In granting this loan, the
bank has increased its obligations to £10,000. Sid is entitled to £5000,
but the depositors can still claim their £5000.
- If the bank now has
obligations of £10,000, then isn’t it insolvent, because it only had £5000
of deposits in the first place? Not exactly..
- The bank treats the loan to
Sid as an ASSET,
not a liability, on the basis that Sid now owes the bank £5000.
- The bank’s balance sheet will
show that it owes its depositors £5000, and it is now owed £5000 by Sid. It
has created for itself a new
asset of £5000 in
the form of a debt owed by Sid where nothing existed before - this on top
of any of the original deposits still in its account at the Bank of
England. - it is solvent - at least for accounting purposes!
- (At this stage the bank is
gambling that as Sid is spending his loan, the depositors won’t all want
to withdraw their deposits!)
- The bank had a completely free hand in the creation of this £5000
loan which, as we shall see, represents new "money", where
nothing existed before. It was done at the stroke of a pen or the pressing
of a computer key.
- The idea that banks create
something out of nothing and then charge interest on it for private profit
might seem pretty repellent. Anyone else doing it would be guilty of fraud
or counterfeiting!
- Sid’s loan effectively
becomes new "money" as it is spent by him to pay for equipment,
rent and wages etc. in connection with his new business.
- This new "money" is
thus distributed to other people, who will in turn use it to pay for goods
and services - soon it will be circulating throughout the economy.
- As it circulates, it inev
- When it is paid into
someone’s account which is not overdrawn, it is a further deposit - Sid
pays his secretary £100 and she opens an account at our hypothetical bank
– it now has £5100 of deposits.
- If we assume for a moment
that the remaining £4900 ends up in the accounts of the original depositors
of our hypothetical bank, it now has another £4900 in deposits - £10000 in
total if the depositors have not touched their original deposits. In
practice much of it would end up in depositors accounts at other banks,
but either way there is now £5000 of new "money" in circulation.
- Thus in reality, all deposits with banks and
elsewhere actually come from "money" originally created as loans
– (except where the
deposits are made in cash – more on cash very shortly).
- If you have £500 in your bank
account, the fact is someone else like Sid went into debt to provide it.
The key to the whole thing is the fact that :-
1. Cash
withdrawals account for only a tiny percentage of a bank’s business.
2. Bank
customers today make almost all payments between themselves by cheque, switch,
direct debit or electronic transfer etc. Their individual accounts are adjusted
accordingly by changing a few figures in computer databases – just book keeping entries.
No actual money/cash changes hands. The whole thing is basically an accounting
process that takes place within the banking system.
THE ROLE OF CASH- The state is responsible for
the production of cash in the form of notes and coins.
- These are then issued by the
Bank of England to the high street banks - the banks buy them at face
value from the government to meet their customers’ demands for cash.
- The banks must pay for this
cash and they do so out of what they have in the accounts which they hold
at the Bank of England – their liquid assets. Their accounts are debited
accordingly.
- The state (through the
Treasury) also keeps an account at the Bank of England which is credited
with the face value of the notes and coins as they are paid for by the
banks. (This is now money in the public purse available for spending on
public services etc.)
- This is how all banks acquire
their stocks of notes and coins, but
the cash a bank can buy is limited to the amount it holds in its account
at the Bank of
- As this cash is withdrawn by
banks’ customers, it enters circulation in the economy.
- Unlike bank created loans
etc, cash is interest free and can circulate indefinitely.
- With so little cash being
withdrawn, and from experience knowing that large amounts of deposits
remain untouched by depositors for reasonable periods of time, banks just
hope that their liquid assets will be sufficient to enable them to buy up
the cash necessary to meet the relatively very small amounts of cash that
are normally withdrawn.
- A bank has serious problems
if demands for cash withdrawals by depositors, and indeed borrowers who
want to draw some of their loans in cash, exceed what the bank holds in
its account at the Bank of England.
- In practice it would probably
try to get a loan itself from the Bank of England or another bank, to tide
itself over. Failing that it would have to call in some loans and seize
the property of borrowers unable to pay.
- Once you have made a deposit
at the bank (in cash or by cheque), all you then have is a claim against the bank for the amount
in your account. You are simply an unsecured creditor. Your bank statement
is a record of how much the bank owes you. (If you are overdrawn, it is a
record of what you owe the bank). It will pay you what it owes you by
allowing you to withdraw cash, provided it has sufficient cash to do so.
- If customers are trying to
withdraw too much cash, this is a run on the bank, which will soon refuse
further withdrawals. So it’s first come first served!
- Should you want to make a
payment by cheque, this is less likely to be a problem – you are simply
transferring part of your claim against the bank to someone else – the
person to whom your cheque is payable - just a book keeping entry.
- If the person to whom your
cheque is payable has an account at the same bank as you do, the deposit
stays with that bank – overall the bank is in exactly the same position as
it was before.
- I give you a cheque for £50 –
we both have accounts in credit at Barclays – what Barclays owes me is
reduced by £50, what Barclays owes you increases by £50 – but nothing has
left Barclays – the total deposits or claims against Barclays remain the
same…..
- ….BUT if you keep your account
at Lloyds, deposits at Barclays are reduced by £50, whilst deposits at
Lloyds increase by £50.
- Millions of transactions like
this take place every day between customers of the various banks, using
switch cards, direct debits, electronic transfers as well as cheques –
deposits are therefore constantly moving between the banks.
- All these cheques and
electronic transfers pass through a central clearing house (which is why
we refer to a cheque being "cleared").
- The transactions are set off
against one another, but at the end of each day, a relatively small
balance will always be owed by one bank to another.
- A bank must always be ready
to settle such debts.
- To do this, it makes a
payment from its account at the Bank of England to the creditor bank’s
account at the Bank of England.
Thus a bank faces claims from two sources (which it meets out of its
liquid assets) – its customers wanting cash, and other banks when it has a
clearing house debt to settle.
Unless all the banks are faced with big
demands for cash at the same time, the banking system as a whole is safe,
although an individual bank is vulnerable, should a large number
of depositors for some reason withdraw their deposits in cash or transfer their
deposits to other banks.
- We now see how today the
whole system is basically a book keeping exercise where millions of claims
pass between the banks and their borrowers and depositors every day with
relatively very little real money or cash changing hands – backed by tiny
reserves of liquid assets.
- The system is known as FRACTIONAL RESERVE BANKNG and banks are sometimes
accurately referred to as dealers in debts.
- Barclays Bank’s 1999 accounts
illustrate the whole thing very well - it had loans owing to it of £217
billion, it owed £191 billion to its depositors – backed by just £2.2
billion in liquid assets!
- A bank’s level of lending is
geared to the amount of cash it has or can buy up – its liquid assets -
rather than the amount of its customers’ deposits.
- But if a bank can attract customers deposits from other banks, it
will add to its liquid assets, as other banks settle the resulting
clearing house debts in its favour – hence there is tremendous competition
between banks to attract deposits.
- Let’s now return to Sid – he
has to pay our bank 10% interest on his loan - £500. These interest
payments are money coming into the bank, they are profits and they end up
in its account at the Bank of England - additional liquid assets for the bank.
- It now has an extra £500 to meet its depositors’
withdrawals. If Sid manages to repay the original loan as well, it will
have an extra £5500.
- Our bank created for itself
out of nothing an asset of £5000 in the form of a loan to Sid. It is no
longer owed anything by Sid, but in repaying his loan with interest, Sid
turned a mere debt into £5500 of liquid assets for the bank – a tidy
profit for the bank…. and the basis on which more loans can
be made.
- Banks today risk creating
loans 100 times or
more in excess of
their liquid assets as Barclays Bank’s 1999 accounts show – (see above).
- Thus our bank will soon be
making many more loans. Thus, the deposits it receives back will increase
and so will interest payments and therefore profits.
- With more loans and more
deposits, there will be a greater demand to withdraw cash – but increasing
profits means more cash can bought by the bank. (This is how the amount of
cash in circulation has been increasing to reach £25 billion by 1997.)
- It is a myth to think that
when you borrow money from a bank, you are borrowing money that other
people have deposited – you are not – you are borrowing the bank’s money
which it created and made available to you
in the form of a loan.
- Sid’s interest payments and
any repayment of the loan itself to the bank means however that this
"money" is no longer circulating in the economy.
- Any payment into an overdrawn
account reduces that overdraft. It operates as a repayment to the bank and
the "money" is lost to the economy.
- More money must be lent out
to keep the economy going. If people don’t borrow or banks don’t lend,
there will be a fall in the amount of money circulating, resulting in a
reduction in buying and selling - a recession, slump or total collapse
will follow depending on how severe the shortage is.
- The increase in bank created loans
over the years is additional conclusive proof that banks do create
"money" out of nothing - £1.2 billion in 1948 up to £14 billion
by 1963 up to £680 billion by 1997.
- Today’s supply of notes and
coins after taking inflation into account, has similar buying power to the
supply in 1948 (£1.1 billion) but since then, there has been a ten fold
plus increase in real terms in money supply made up of credit created by
banks.
- This has enabled the economy
to expand enormously, and as a result living standards for many people
have improved substantially.... but it has been done on borrowed money!
What is credit to the bank is debt to the rest of us.
- The banks are acquiring an
ever increasing stake in our land, housing and other assets through the
indebtedness of individuals, industry, agriculture, services and
government - to the extent that Br
1) Goods and
services are much more expensive...
The cost of borrowing by producers,
manufacturers, transporters, retailers etc. all has to be added to the price of
the final product.
2)
Consumers’ have much less money to spend...
They are burdened by the cost of mortgages,
overdrafts, credit cards, personal loans etc. As a result of 1) and 2) there is...
3) A surplus
of goods and services...
...because the population overall can’t afford
to buy up all the goods and services being produced. This in turn creates.....
4) Cut
throat competition...
Businesses try to cut prices and costs to grab
a share of this limited purchasing power in the economy, as illustrated by:
(i) Wages
being held down as much as possible.(ii) Shedding of jobs.
(These both reduce people’s spending power even more.)
(iii) Retailers importing cheap products from abroad where wages are
much lower.
(iv) Production of cheaper goods that don’t last as long.
(v) Protection of the environment a low priority.
(vi) Mergers and take-overs - corporations get bigger and bigger, driven to
search out new markets.
(vii) Big companies shifting production to poorer countries which have
cheap non-unionised labour and the least stringent safety and
environmental laws or....
(viii) Demanding large government subsidies and tax free incentives as the
price for setting up new production or not relocating abroad.
5) Ever
increasing indebtedness.
- When a bank creates money by
making a loan, it does not create the money needed to pay the interest on
that loan.
- The bank lent Sid £5000, but
it demands £5500 back. Sid has to go out into the business world and
compete and sell to get that extra £500 from his customers. It can only
come from money already circulating in the economy - made up of loans
other people have taken out – so soon someone will be left short of money
and have to borrow more.
- Thus the only way for
interest payments to be kept up is for more loans to be taken out.
- Although a few individuals
and businesses may pay off their debts or get by without additional borrowing, OVERALL people and industry must keep
borrowing MORE AND
MORE to provide the
money in the economy needed to keep up interest payments on the overall
volume of debt.
- The present level of debt at
£680 billion means we are borrowing about £60 billion of new
"money" into existence each year to pay the interest on it.
- But people and industry can’t
go on borrowing indefinitely - they will no longer be able to afford to,
and will gradually stop borrowing more money into existence. When this
happens, the economy will go into decline. The system thus contains the
seeds of its own destruction.
- When loan repayments and
interest payments are made to banks, this is money taken out of
circulation. If it went on indefinitely, in an economy where the money
supply is largely made up of loans etc. created by banks, there would
eventually be almost no "money" left in circulation and with it
no economy.
- Under the present system, if
the economy is to be kept going, money must be constantly lent out again.
It would be possible simply re-circulate the existing money supply without
creating new money were it not for the fact that extra money is needed to
cover interest payments and also to enable the economy to grow.
6)
Inflation....
is guaranteed because producers constantly have
to borrow more, and must add the cost of that
increased borrowing to the price of the goods produced.
- Why is it that when the
moneylenders hike their prices (i.e. put up interest rates) this is
supposed to reduce inflation?
- It doesn’t....
- It’s just that there is a delay in industry putting up prices.
- Initially industry is forced
to hold or even reduce its prices with profits down, or even sustaining
losses in a desperate bid to sell its products in an economy where money
available for spending is reduced because of higher interest payments
being made to the banks.
- Inflation may be held in
check or even reduced temporarily, but eventually industry must put its prices up in order to
recover these higher costs.
- This most readily happens
when interest rates come down, more people borrow, and money supply and
consumer spending increases. Inflation then races ahead.
- The fact that levels of
borrowing/money creation have to keep on rising as already explained,
adding to the overall burden of interest payments, guarantees that
inflation will be present as long as we have an economy based on an
increasing burden of debt.
EFFECTS ON
INTERNATIONAL TRADE
- Surplus goods in the national
economy have to be disposed of somehow. The obvious way to do this is to
try to export them!
- The absurdity is that every
nation is trying to do this, because of the same fundamental problem at
home.
- This creates frenzied
competition in world markets and masses of near identical goods madly
criss-crossing the globe in search of an outlet.
- Instead of international
trade being based on reciprocal mutually beneficial arrangements where
nations supply each others’ genuine needs and wants, the whole thing
becomes a cut-throat competition to grab market share in order to stay
solvent in a debt based economy.
- Big corporations demand
unrestricted access to every nation’s market – so called "free"
trade.
- The European Union
"single market", the North American Free Trade Agreement and the
World Trade Organisation are the best examples of the drive to open up all
national markets.
Exporting
is good for a nation’s economy...
because when exported goods are paid for, this
brings money into the exporting nation’s economy free of debt.
- The money to pay for them was
borrowed from banks in the importing nation.
- That money is lost to the
importing nation’s economy, but the debt that created that money still has
to be repaid by the importer out of the remaining money in the importing
nation’s economy.
- If a nation can become a big
net exporter, for a time it’s economy will boom with all the interest free
money coming in - a trade surplus will exist.
- If some nations are building
up trade surpluses in this way, others must be net importers and building
up trade deficits.
- Ultimately, those with big
deficits can no longer afford to import, since so much money is sucked out
of their economies leaving a proportionally increasing burden of debt
behind.
THIRD WORLD DEBT
AND THE INTERNATIONAL MONETARY FUND (IMF)
- The IMF was set up to provide
an international reserve of money supposedly to help nations with big
deficits.
- In practice it makes matters
worse.
- A nation with a big deficit
has to seek a bail out from the IMF.
- BUT this comes in the form of
a loan, repayable with interest.
- Like loans from a commercial
bank, IMF loans are money created out of nothing, based on a cash reserve
pool, which is provided by western nations who go into debt to provide it
(see National Debt).
- The nation with the deficit
goes even more heavily into debt.
- It will however be able to
carry on trading and importing goods from the wealthier nations.
- As a result, much of this
borrowed IMF loan money flows into the economies of wealthier western
nations.
- However, the repayment
obligation including the interest payments remains with the debtor nation.
- This is the true horror of
third world debt - the poorest nations borrow money to bolster the money
supply of the richer nations.
- In order to secure income to
pay the interest, and redress the trade balance, these poorest nations
must export whatever they can produce. Thus they exploit every possible
resource - stripping forests for timber, mining, giving over their best
agricultural land to providing luxury foodstuffs for the west, rather than
providing for local needs.
- Today, for nations in Africa,
Central and
- The sums paid in interest
over the years far exceed the amounts of the original loans themselves.
- The result is a desperate
shortage of money in their economies - resulting in cutbacks in basic
health and education programmes etc.
- Grinding poverty exists in
nations with great wealth in terms of natural resources.
- Structural Adjustment
Programmes - these are now attached to IMF loans and include conditions
that recipient countries will reduce or remove tariff barriers and
"open up their markets to foreign competition" - in other words
take surplus goods off another country that can’t be sold at home.
NATIONAL DEBT
British national debt now stands at £400
billion - the annual interest on that debt is around £25 -30 billion. The
government can only pay it by taxing the population as a whole, so we pay!
National debt is up from £26 billion in 1960 and £90 billion in 1980.
- Successive governments have
borrowed this money into existence over the years.
- Instead of creating it
themselves and spending it into the economy on public services and
projects boosting the economy and providing jobs, they get banks to create
it for them and then borrow it at interest.
- It all started in 1694 when
King William needed money to fight a war against
- He borrowed £1.2 million from
a group of
- In return for the loan, they
were incorporated by royal charter as the Bank of England which became the
government’s banker.
- Interest at 8% was payable on
the loan and immediately taxes were imposed on a whole range of goods to
pay the interest.
- This marked the birth of
national debt.
- Ever since then the world
over, governments have borrowed money from private banking interests and
taxed the population as a whole to pay the interest.
- When governments borrow
money, in return they issue to the lender, exchequer or treasury bonds -
otherwise known as government stocks or securities.
- These are basically IOU’s - promises by government to repay
the loan by a particular date, and to pay interest in the meantime.
- They are taken up chiefly by
banks, but also by individuals with money to spare including very wealthy
ones in the banking fraternity and, in more recent years, pension and
other investment funds.
- When government securities
are taken up by banks, this is money creation at the stroke of a pen by
the banks out of nothing.
- Banks are creating money as
loans out of nothing by lending it into existence to the government in
very much the same way as they do to individuals and companies.
- The government now has new
money in the form of loans to spend on public services etc.
- If this money was not
borrowed into existence in this way, there would be that much less
economic activity as a result.
- Under this system NATIONAL DEBT IS CREDIT
ISSUED TO THE GOVERNMENT AND AS SUCH HAS BECOME A VITAL PART OF THE TOTAL
MONEY SUPPLY OF ANY MODERN NATION.
- The government constantly
tells us that there isn’t enough money for this that and the other,
because it knows that the cost of borrowing any money it needs has to be
passed on to the taxpayer.
- Instead, it sells off state
assets and now gets the private sector to fund public services instead.
enormous increases in national debt...
enormous profits for the banks...
- Massive government borrowing
and money creation by banks is required to fund a war effort.
- The same international
bankers have covertly funded both sides in both world wars and many other
conflicts before and since.
- Having profited from war
leaving nations with massive debts and more beholden than ever to them,
the banks then fund reconstruction.
- Bankers have even helped
bring wars about. The calling in of loans to the German Weimar republic
largely created the conditions for the rise of Hitler.
- The pattern was well
established by the mid 19th. century - by then international
banker and speculator Nathan Rothschild could boast a personal fortune of
£50 million.
- In the same way that under
the present system, industry and individuals must keep borrowing more and
more to enable interest payments to be kept up on their existing loans, so
government must constantly borrow more and more to keep up interest
payments on its existing loans.
- Furthermore, when a
particular government stock is due for repayment, the government simply
borrows more by issuing new government stocks.
"If the government can issue a dollar bond, it can just as easily issue a dollar bill." Thomas Edison.
- Government could stop
borrowing money at interest, and start creating it itself by spending it
into the economy on public projects and services, at the same time
creating jobs and stimulating the economy.
- It already does this to a
very limited extent – the amount it receives from the banks when it sells
cash to them is added to the public purse and is available for spending on
public services and projects.
FINAL
REMARKS...
Seeking to redistribute what money there is by
taxing the rich to pay for services for the less well off does nothing to solve the problem of the overall
shortage of money in the economy caused by interest payments on a debt based
money supply - a problem which most socialists have yet to recognise.
The world’s economies are our economies. We create the real wealth through our
ingenuity, enterprise and hard work. The current banking system operates as a
massive drain on that wealth as well as concentrating power and control in the
hands of a tiny minority.
Money is the means of facilita ting the exchange of goods and services.
There is nothing wrong with creating it out of nothing, because this is the only way to provide the means of exchange. The amount that is printed or created simply needs to be matched to the amount of economic activity that is taking place. What is wrong is that the right to do this has been allowed to pass to private interests who create it as loans for private profit.
There is nothing wrong with creating it out of nothing, because this is the only way to provide the means of exchange. The amount that is printed or created simply needs to be matched to the amount of economic activity that is taking place. What is wrong is that the right to do this has been allowed to pass to private interests who create it as loans for private profit.
- U. S. President Abraham
Lincoln considered it a primary duty of the government to provide a nation
with the medium of exchange to enable the economy to function.
TO CONCLUDE....
- Can we not ultimately
incorporate the human
- For so long as the power to
create money is in the hands of private interests who do it for profit and
control, we can never say that we live in a democracy.
POST
SCRIPT...
The European Union single currency gives the
power to regulate the money supply of all those states that join up, to the
European Central Bank. The Maastricht Treaty (article 107) forbids national
governments and all other EU institutions to seek to influence the bankers who
make up the ECB. For the first time this puts the creators of money totally
beyond any form of democratic control or accountability.
ALTERNATIVES – see
below_______________________________________________________
THIS HAS BEEN A
VERY BRIEF INTRODUCTION…. I go into more detail with
fuller explanations including how creating money as a debt produces the cycles
of growth and recession and how banks profit from both. Also housing and
mortgages and a little bit of history showing how the present system developed.
All contained in a 20 page A4 sized resume available for 10 second class stamps
from my address below. I also
have a 4 page introduction to the alternatives available for 3 second class
stamps (this includes state
owned banks lending money interest free, a national credit office, local
currencies operating alongside national currencies, a citizens dividend etc.)
Both available for 11 second class stamps.
Book: "The Grip of Death" - a study of
modern money, debt slavery and destructive economics.. by Michael Rowbotham - 326 pages £15 Jon Carpenter ISBN
1-897766-40-8. Highly recommended for the most detailed examination of the
problem and how the current system could be phased out over a period of time.
News sheet: "Prosperity" -
Freedom from Debt Slavery - monthly from 268 Bath Street , Glasgow ,
G2 4JR
Contacts: The British Association for
Monetary Reform, 27 Imberhorne Lane West Sussex , RH19 1QX..
E-mail: BAMR@bamr.fsnet.co.uk Campaign for Interest Free Money, Global Cafe,
E-mail: courtj@globalnet.co.uk
Richard Greaves - member
of the Bromsgrove Group of monetary reformers and contributor to
"Prosperity" "The
Old Stables", Cusop, Herefordshire, HR3 5RQ. E-mail: rgreaves@supanet.com Tel: 01497
821406. Revised - September
2001.
YOU ARE WELCOME TO COPY AND
CIRCULATE THIS INFORMATION SHEET.
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