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S t o p W o r l d G o v e r n m e n t
"... them of the synagogue of Satan, which say they are Jews, and are not, but do lie..."
The New Testament in the Bible
King James Version
Only the federal government treasury should have the power to create money out of nothing...
Last updated: 9th January, 2016
The solution to the scam of our current banking system in which privately-owned banks create money out of nothing and loan it out at interest is to establish one single, publicly-owned bank in each country in place of the current banking system of privately-owned banks in each country. A publicly-owned bank in each country would similarly create money out of nothing but it would spend the money into circulation from the account of the federal government treasury, such as by paying the salaries of public servants, or loan it into circulation without charging interest on it in the case of mortgages for owner-occupied residential real estate. Unlike our current system, the money supply wouldn’t decrease when these mortgages are repaid. The only way the money supply would decrease is if the federal government treasury destroys money in its own account, such as money it has received in the form of taxation revenue.
Inflation in each country would be controlled directly by controlling the size of the money supply through the creation of money in the account of the federal government treasury to increase the size of the money supply and through the destruction of money in the account of the federal government treasury, such as money received in the form of taxation revenue, in order to decrease the size of the money supply. The federal government treasury would control inflation by matching the size of the money supply to the productive capacity of the economy – the volume of goods and services that the citizenry are producing. The federal government treasury would be accountable to the citizenry via direct democracy for this exclusive power to control the size of the money supply by creating and destroying money.
Unlike the privately-owned banks which make up our current banking systems in each country, the proposed publicly-owned banks in each country (which would have names like "Australian Federal Bank") would not have a profit motive. Their purpose would be to support economic activity in the country in which they operate for the benefit of all citizens in that country. The operation of each publicly-owned bank in each country could be funded with account fees and transaction fees, not interest, since these banks wouldn’t charge interest on any loans that they make, in recognition of the fact that the money loaned was created out of nothing.
The establishment of a single, publicly-owned bank in each country would enable the federal government treasury in each country to create whatever money it needs out of nothing, instead of borrowing it from individuals and entities all around the world by issuing government bonds. The federal government treasury could spend that newly-created money into circulation by paying for the construction of federal infrastructure, such as federal roads, or it could allocate it to the state government treasuries so that the state governments can spend it into circulation by paying for the construction of state infrastructure, such as roads or hospitals. No government treasury would ever again be indebted to any other entity, such as existing bondholders all around the world.
A publicly-owned Australian Federal Bank would provide mortgage lending only to citizens who need the funds to purchase residential properties to live in themselves. Citizens would have to fund property investment out of their own savings. The Australian Federal Bank would not approve any loans of any amount for property investment or property speculation. The true purpose of housing as shelter, being the fourth most basic need after water, food and clothing, would be restored to its rightful place in society, which would result in a correction of house prices to their true level, instead of the inflated level we see today courtesy of bank lending for property investment/speculation. Similarly, a publicly-owned Australian Federal Bank would not approve loans to citizens for other investments such as share purchases in companies. Citizens would be forced to fund such investments with savings from their income, which would greatly curtail speculation in the share market and cause a correction of share prices to their true level, instead of the inflated level we see today courtesy of bank lending for share purchases.
In the absence of charging interest on mortgages supplied by the Australian Federal Bank to Australian citizens, house prices would be controlled by restricting the amounts loaned in proportion to the income capacity of the borrowers, using an appropriate formula. A borrower with a poor credit rating would not be able to borrow as much as a borrower with a better credit rating, assuming that their incomes were the same, since the formula that ties the allowable amount borrowed to the income of the borrower would also adjust according to the credit rating of the borrower.
The fact that the privately-owned banks in our banking system are taxpayer guaranteed means that all of them should be publicly-owned, which points to the need for one, single, publicly-owned bank called the Australian Federal Bank. Anybody who then wants to engage in lending at interest for any other purpose such as investment or speculation can form their own private bank and accept the responsibility for any profit or loss they make in the course of operating such a private bank. Only the publicly-owned Australian Federal Bank would have the power to create money out of nothing and spend it into circulation, such as on infrastructure or the salaries of public servants, or loan it into circulation without charging interest, such as for mortgages for Australian citizens to purchase residential properties to live in themselves. So any money that a private bank, that is set up for lending for investment or speculation, deals in will have already been created by the Australian Federal Bank. Since the Australian Federal Bank will not lend money to other entities in the economy to set up their own privately owned banks, the funds used to set up such a private bank will have to be supplied from savings out of income of entities such as citizens and companies throughout the economy. Fractional-reserve banking would be prohibited by law so that these private banks would have to operate under full-reserve banking by law. Namely, funds deposited with these private banks by a customer would not be allowed to be lent out by the bank unless the customer has willingly forfeited the right to withdraw these funds while they are lent out. When a loan is made by such a private bank, the funds would be transferred in full from the lender to the borrower, so that the lender doesn’t have access to the funds until they are repaid.
Despite that the Australian Federal Bank would only ever lend funds without charging interest, any other entity in the economy would be free to lend funds at interest, which funds would be savings out of income. This is consistent with economic freedom and with the principles of a free market by not prohibiting entities in the economy from engaging in whatever financial agreements they like with each other. However, there would be minimal incentive for anybody to borrow funds at interest from any entity in the economy, because the Australian Federal Bank would lend money without charging interest for a variety of necessary purposes, including residential mortgages for the owner-occupied dwellings of Australian citizens.
If somebody thinks a piece of real estate is going to appreciate by 15% per annum over the next two years, they might approach another entity to borrow funds to purchase this piece of real estate at an interest rate of 8% per annum. Whatever transpires as a result of such a loan being made and such a speculative purchase of that piece of real estate being made, this lending activity for speculation is taking place exclusively in the private domain utilising funds that have already been created by the Australian Federal Bank when they were originally spent or lent into circulation in the economy and that have been amassed to finance this loan out of savings from income. The size of the money supply is not altered by such a transaction, irrespective of its outcome for either the lender or the borrower, since the ability to create or destroy money would be the exclusive power of the federal government treasury alone. Any damage arising from this speculative lending would be borne by the lender and the borrower.
The manner in which the monetary system of an economy like Australia’s operates and the manner in which the banking system in such an economy operates is THE most important subject in economics, yet few people have real knowledge and insight into how either of these functions. I believe that this general ignorance, even among people like me who have studied economics at university, is by design. The people who operate the monetary system in Australia and the banking system in Australia don’t want the citizenry to know how either of the monetary system or the banking system functions. They want the citizenry to simply defer responsibility to those in charge and let them do whatever they want. In the case of our banking system comprising privately-owned banks, this means maximising the profits of these banks. This is why the Australian Prudential Regulation Authority (APRA), which is responsible for regulating these privately-owned banks in Australia, has not banned them from lending for investment or speculation in property or other assets like shares. Instead, APRA has timidly requested that the banks restrict their year on year growth in funds lent for property investment to under 10% per annum. Clearly, APRA is committed to maximising the profits of the privately-owned banks by allowing them to continue lending for property investment even while it causes huge problems in Australian society by increasing house prices to stratospheric levels.
I had an opportunity in 1991, in my first year of university studying economics, to work towards exposing the gigantic scam that is our current banking system. That was twenty-four years ago. It was clear to me at this time that there was something very wrong with the banking system described to me in our lectures at university. I can clearly remember wondering why our monetary system used interest rates to control inflation when the size of the money supply is the most direct means of controlling inflation. At the time in Australia, we were in the middle of a recession characterised by high interest rates pointing directly to the dysfunction of our monetary system and banking system. Home mortgage rates were 14.5% in early 1991 after reaching a peak of 17% in 1989. Lending rates for business loans were even higher. I didn’t know any of this at the time. Economically and financially, I was completely clueless. As it turned out, a lot of what I studied over the course of my degree involved interest rates in one way or another. I quickly became weary of the manner in which interest rates attached themselves to the subject at hand like a parasite. Faced in 1991 with what I could instinctively see was a design problem surrounding our current banking system, I deliberately declined to delve deeper and instead swept the whole conundrum under the rug. Little did I know that I was staring directly at the primary means by which the synagogue of Satan, also known as the satanic Illuminati, wages war against humanity.
Beyond any doubt whatsoever, the scam inherent in our current banking system is the greatest and most urgent fraud facing all of us today that has done untold damage to many millions of lives down through the decades, both here in Australia and in other western nations like the United States of America, Canada, the United Kingdom and New Zealand.
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