THERE IS AN ALTERNATIVE TO FRACTIONAL RESERVE BANKING

The Paradigm is Changing

Current monetary policy is inimical to our interests. Do we have the mental fortitude to make the change, and mitigate potential consequences. It is a troubling subject. I imagine most politicians wouldn’t dare talk about it. Therefore, the current system is broken. It must be changed…

A few notable quotes from history.

“The few who understand the system will either be so interested in its profits or be so dependent upon its favours that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.”

“The banks do create money. They have been doing it for a long time, but they didn’t realise it, and they did not admit it. Very few did. You will find it in all sorts of documents, financial textbooks, etc. But in the intervening years, and we must be perfectly frank about these things, there has been a development of thought, until today I doubt very much whether you would get many prominent bankers to attempt to deny that banks create it.” H W White, Chairman of the Associated Banks of New Zealand, to the New Zealand Monetary Commission, 1955.

WEALTH CONCENTRATION

How is there such massive concentration of wealth into the hands of so few, while the majority shares in so little. In the US, the bottom 80% of the population owns 7% of the wealth. The top 1% of the population owns %40 of the wealth. Some people are so poor and uneducated that life is just a struggle to stay alive, eat, and generally survive. Civil disobedience would obviously benefit them immensely if they could organize and protest. They have the least to lose, and time to spare. The other slice of the poor, the working poor, people with 3 jobs and up to their eyeballs in debt, don’t have the time to protest and engage in civil disobedience. So, what about the middle class. I’m not really sure what that means. The middle class is only marginally better off than the lower class. The only difference being that someone with a full time job doesn’t have much time, while the jobless do. So, who is going to change the system, if the people most affected by the inequity are either too ignorant or busy to bother engaging in civil disobedience. Answer. Nobody.

INFLATION, INCOME TAX, INTEREST

Conventional dogma would have society believe that in order to start climbing up the ladder of prosperity, we need to borrow money to get an education so we can be employable. Once we have found a job, we will start paying income tax, even payed as it is earnt (P.A.Y.E). Eventually we will borrow again at interest, but this time for a home. Thoughts of whether the real estate market is overvalued and perhaps in a bubble, rarely enters the equation. After all, we have been taught by society to follow this path. It is normal, conventional, and acceptable, right? We chase capital gains in real estate, we know little else. We feel safe that real estate will provide us with the wealth we seek. Are you familiar with the price/rent ratio?

WHERE DO WE GET THESE IDEAS?

There is such a great volume of disinformation and lunacy bombarding our minds as though it were the absolute truth, as though it wasn’t just the self serving dogma that benefits a certain few. This dogma arrives from many sources, the main stream media, conventional education, friends and family members that propagate this ignorance.

CURRENCIES AND MONETARY SUPPLY

Lets focus on an issue of great importance, but yet an issue so uniquely misunderstood. Does society truly benefit from the Fractional Reserve Banking system and the private banking sector that creates debt for the masses by way of inflationary fractional reserve loans and interest, or a positive reserve banking system that benefits the taxpayers, the very people who end up paying the interest on the national debt. We have the right to a system that benefits mankind, not just the bankers. The IRS came into being the same year as the Federal Reserve Act of 1913. There is no need for a government to issue securities in exchange for debt. Conversely, there would no longer be such a great need for many burdensome taxes that plague society today, most infamously the income tax. P.A.Y.E!

Currencies are based on confidence and have taken many forms over the ages. The English used “Talley” sticks as their currency from approximately 1100 AD to the early 1800’s. The Talley Stick incidentally, was a very successful form of currency, that was not only difficult to counterfeit, but most notably kept the English out of debt up until the point the Bank of England was created, consequently marking the beginning of their national debt. Fiat currencies are a form of currency that has no backing of gold or other tangible resource, just the confidence of its people. The most famous example being the United States Dollar, the current global reserve currency. In reality, bills and coins only count for a very small percentage of money that is actually in supply, since most money exists as figures in our bank accounts, with no actual reserve in the bank that it is placed with, as the majority of the money supply has been created out of thin air*. Digital currencies, such as BitCoin, are new to the stage, and have some very interesting fundamentals. All things considered, we should be asking ourselves this question – whom should be entrusted to issue currency, and if at interest?

There is simply no need to exchange taxpayer backed government securities for debt. The government in question could supply money to the marketplace, not just by way of fiscal stimulation, by way of monetary policy and interest free deposits issued to the government by an independent and fully transparent domestic organization, working at the public’s behest.  Since the national currency would no longer be created out of debt, and hence bears no interest to be paid to the issuer, there no longer needs to be scarcity of money and the boom and bust cycles that go with it. If money becomes scarce, businesses start closing, foreclosures become common, and in severe cases, food goes uneaten. It is not that the farms cease producing, the sun stops shining or the soil ceases to be fertile. The capacity is there, just the loans have ceased to be issued in the current system, and people don’t have money to spend, so the market ceases to supply the goods and services. But why does the currency need to enter the system as debt that generates interest payments to the issuer? It simply doesn’t need to be this way.

CAUSE AND EFFECT: FRACTIONAL RESERVE BANKING AND INFLATION

Just like any currency, inflation can be disastrous. There are examples throughout history of this. Fractional Reserve Banking is quite inflationary in nature. How many bubbles can you name that have popped over the past decades? Why do I get the feeling that the GFC of 2008 was just the beginning, not the end? A well managed positive reserve banking system offers more advantages. It’s that simple! For far too long the current banking system and the private super wealthy stockholders have gotten away with this gross fraud at our expense. The current system has held governments and their respective populations at the mercy of debt since at least the creation of the Bank of England, and been an unnecessary burden upon the average worker in the form of excessive taxation.

It must end. And with your help, it will… I 100% recommend you acquire a copy of ” The Web of Debt” by Ellen Hodgson Brown. It will lift the veil on this subject forever.

If you think what I have stated is crazy, then I suggest you click on the following link – http://www.positivemoney.org.nz/

If you enjoyed this, please don’t forget to share on your social media, or the word will not spread.

* Comprehending fractional reserve banking is confusing, as it has been worded in order to confuse. Modern Money Mechanics, written by the Federal Reserve Bank of Chicago in the 1960’s, explains the process in Fed Speak.

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