More Debt than Money
Individuals are in debt. Businesses are in debt. States are in debt. Nations are in debt and if you check the IMF statistics, almost all nations are massively in debt to international banks. Debts that can no longer be repaid. Now what is really bizarre is that the money we collectively owe did not exist before it was lent out and the amount we collectively owe exceeds the amount of money available to pay those debts. The system bears remarkable similarities to a Ponzi or pyramid scheme. New debts are required to create new money to prevent recession. It turns out that those with money could not even pay off the debts of those that are in debt. This cannot be fixed whilst the politicians get their votes from the public but their instructions from corporations and lobby groups.
A website by Andrew Chalkley 2014.
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To privately owned international banks that create the money out of thin air.
  The money setup of Europe guarantees increasing debt to the Keynsian Endpoint. The point at which the Tax Department becomes a collection agency for the banks. The point at which debt repayment exceeds tax revenue.  
   Money Creation  
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Billions for the Bankers 
J.P. Morgan

African Land Grab

Bank of America

G-7, IMF and World Bank

Bank of America lied
Sovereign debt to government income. Notice how they are all in debt!

Australia's Banking History by Trevor Sykes

Bankwest would have collapsed

Deposits at Risk

Simon Thorpe Ideas

Money As Debt

Steve Keen’s DebtWatch

Whitlams Election Speach

Pastor Sheldon Emry


Our current financial system has left us with the highest personal debt in history, unaffordable housing, worsening inequality, high unemployment and banks that are subsidised and underwritten with taxpayers’ money. Positive Money is a movement to democratise money and banking so that it works for society and not against it.
Jubilee Debt Campaign is part of a global movement demanding freedom from the slavery of unjust debts and a new financial system that puts people first. Inspired by the ancient concept of ‘jubilee’, we campaign for a world where debt is no longer used as a form of power by which the rich exploit the poor.
For millions of people around the world, prospects for a better future are buried under old debts. In the 1960s and 70s, developed nations and the international institutions loaned millions upon millions of dollars to countries that had no capability of paying them back. The loans were presented as a means to development and poverty alleviation. In reality, it was more like political commerce, trying to buy the alliance of commodity rich countries across the developing world. Creditors agreed to give money to administrations and dictators that were known to be corrupt and non-democratic. They funded projects that were of no benefit to the people, but which were profitable for the companies involved, and for the corrupt elites in the developing nations. Interest rates shot up in 1979 making interest payments unmanageable. The debtor nations took out new loans to make debt repayments. The living conditions of the most deprived people in the world have deteriorated almost everywhere over the last twenty years. Yet wealthy governments and international financial institutions never cease to demand the repayment of those debts.
Rolling Jubilee is a Strike Debt project that buys debt for pennies on the dollar, but instead of collecting it, abolishes it. Together we can liberate debtors at random through a campaign of mutual support, good will, and collective refusal. Debt resistance is just the beginning.
US Tuition Debt is over $1 000 000 000 000.

of American households are in debt.

of all bankruptcies are caused by medical debt.

Student debt has exploded.

1 in every 7 Americans is being pursued by a debt collector.

of indebted households used credit cards to pay for basic living expenses.

The Move Your Money campaign -- the ongoing effort to encourage mega-bank customers to move their money to local institutions has had great success. The Occupy movement’s outrage over Wall Street ran a Bank Transfer Day on 5 November. ~5.6 million customers moved their money.
The Robin Hood Tax is a tiny tax (0.05%) on banks, hedge funds and other finance institutions. Levied on foreign exchange transactions, derivatives and share deals, it could raise hundreds of billions of dollars annually.
  More Debt than Money
  More Debt than Money
More Debt than Money

More Debt than Money
  If all the people in Australia who had money tried to pay all the debts of the people that owed money, it could not be done.
If all the people in USA who had money tried to pay all the debts of the people that owed money, it could not be done.
If all the people in UK who had money tried to pay all the debts of the people that owed money, it could not be done.
If all the people in France who had money tried to pay all the debts of the people that owed money, it could not be done.
If all the people in Europe who had money tried to pay all the debts of the people that owed money, it could not be done.
If all the people in the world who had money tried to pay all the debts of the people that owed money, it could not be done.
Irving Fisher: "Thus, our national circulating medium is now at the mercy of loan transactions of banks, which lend, not money, but promises to supply money they do not possess." [Irving Fisher in "100% Money"]
  Any attempt to pay off these debts tends to create a recession and the debt again rises.  
“Our money system is not what we have been led to believe. The creation of money has been “privatised,” or taken over by private money lenders. Thomas Jefferson called them “bold and bankrupt adventurers just pretending to have money.” Except for coins, all of our money is now created as loans advanced by private banking institutions, including the privately-owned Federal Reserve. Banks create the principal but not the interest to service their loans. To find the interest, new loans must continually be taken out, expanding the money supply, inflating prices and robbing you of the value of your money. Not only is virtually the entire money supply created privately by banks, but a mere handful of very big banks is responsible for a massive investment scheme known as “derivatives,” which now tallies in at hundreds of trillions of dollars. The banking system has been contrived so that these big banks always get bailed out by the taxpayers from their risky ventures, but the scheme has reached its mathematical limits. There isn’t enough money in the entire global economy to bail out the banks from a massive derivatives default today.”
Individuals and Businesses
Cash notes$50 billion
Bank deposits$1 000 billion
Bank loans$2 000 billion
Reserve Bank of Australia data May 2012 slightly rounded
Observation One: Loans exceed deposits. Thus there is More Debt than Money.
Observation Two: The cash does not match the deposits. If you thought the banks have the cash to pay back the depositors, think again. The numbers in accounts must be virtual and are called Commercial Bank Money.
Observation Three: Might they be lending out money that does not exist?
Observation Four: For those of you that talk about 'Fractional Reserve Banking', there is $50 billion cash, $1000 billion deposits. The Fractional component must be held as virtual deposits. It is certainly not cash. There is only $50 billion cash, and that is mostly in peoples back pockets.
Observation Five: Interest is charged on the loans. Thus the level of debt in the nation will have an upward trend.
Conclusion: There is more 'so called' money in deposits than cash available to pay back the depositors. The depositors cannot be paid back in cash, only in more virtual money.
Conclusion: Bank deposits are virtual. They do not exist as 'Legal Tender'.
Conclusion: There is More Debt than Money.
Conclusion: It is impossible to pay off the loans. Australian individuals and businesses are in perpetual debt.
Edward Bernays: “Those who manipulate the organized habits and opinions of the masses constitute an invisible government which is the true ruling power of our country.” [Edward Bernays, assistant to William Paley, founder of CBS]
The Nation
Total Australian Debt~$4 700B~$4.700T (trillion)
Broad Money Supply~$1 570B~$1.57T (trillion)
Data from The Australian Debt Clock
Conclusion. There is More Debt than Money.
Conclusion. It is impossible to pay off the loans.
$4.7 trillion works out at $188 000 per person. And we are supposed to be in a good financial position. Let us ask the banks to justify the imbalance of debt against money.
David Korten: “The professional study of economics has become ideological brainwashing. It is a defense of the excesses of the capitalist system.”
World Public Debt
(Government Debt)
$51 000B$51T
The World Debt Clock
Total World Debt $220 000B$220T
ING report
Total World Money M2 $US $10 500B$10.5T
How Stuff Works
Total World Money M3 $75 000B$75T
Gizmodo Blog Comment
Total World Money M3 2009 $59 000B$59T
Mike Hewitt on DollarDaze
If you look at the The Global Debt Clock you will notice that all countries are coloured. All countries have debt. Doesn't that seem wrong?
To whom are they all in debt? Is it possible to pay back this money? Does this worldwide debt increase? Why don't we have direct trade between nations and bypass the international banks?
ING economists report that total indebtedness of the world is $220 trillion. This includes all parts of the public and private sectors. The ING economists found that Per-capita indebtedness is about $11,600 in emerging economies. It is ~$170,000 for developed economies.
This is what struck me when I wrote some pamphlets for Occupy. As an ex mathematics teacher, average debt should come to zero.
When we talk about debt, we are really talking about how much is owed to banks. In Australia there is $50 billion cash. The debt certainly didn't come from people depositing cash or withdrawing cash, as there is $1000 billion in deposits and $2000 billion in loans. Where did it come from? How did the deposits get there? There is only $50 billion cash. We owe banks a lot of money that never existed until the bank made a loan. The banks have created un-payable loans.
Walter Cronkite: “A handful of us determine what will be on the evening news broadcasts, or, for that matter, in the New York Times or Washington Post or Wall Street Journal.... Indeed it is a handful of us with this awesome power....And those [news stories] available to us already have been culled and re-culled by persons far outside our control.”
Kevin Williamson argues that the real US national debt is about $130 trillion. In 2008, Forbes claimed it was $70 trillion. In 2008 the entire supply of money in the world (“broad money,” i.e., global M3, meaning cash, consumer-account deposits, checkable accounts, CDs, long-term deposits, travellers’ checks, money-market funds, the whole enchilada) was estimated to be about $60 trillion. Thus the US National debt is greater than all the money in the world. In 2008 Global GDP was about $60 trillion. Thus the US national debt is greater than the entire annual economic output of the planet. UNPAYABLE DEBT
Noam Chomsky: “The question is whether privileged elites should dominate mass-communication, and should use this power as they tell us they must, namely, to impose necessary illusions, manipulate and deceive the stupid majority, and remove them from the public arena.”
When you deposit $100 into your bank account at the teller, they increase a number in the computer against your name. This means they owe you $100. The $100 note is given to the next person in the queue who then walks out through the door. So what is in your account. It is not cash. The cash went straight out the door. There is only $50B cash in Australia and most of that is in peoples back pockets. There is supposed to be $1000B in peoples deposit accounts. But there is only $50B cash in the nation. It must be that there is nothing in the bank account except numbers. They are relying on very few people wanting to convert thier virtual commercial bank money to cash money. When you make a bank transfer, or write a cheque, the bank decreases the virtual money in your bank account by $100 and increases the virtual money in the other persons account. Now the reserves they talk about don't exist either. The central bank conjours up some more mythical money that acts as reserves in case a bank runs out of mythical money. If we keep the myth running then it will work quite well.
Oh! Except that the money you borrow out does not exist either. They write $1000 into your account and make you sign some papers that you will pay them back with interest. Which is all very well except that no extra money was created to pay the interest, so someone, somewhere will loose his house. Unless, of course, they keep lending out more and more virtual money.
Oh! Now if they lend more money out then it tends to push up house prices amongst other things. So people borrow more and more, creating asset inflation called a bubble. So when they slow down the lending, the house and asset prices fall because there is no money to buy at the inflated prices. There is less money around and a deflation occurs.
Oh! If I create money it will create all sorts of drama and I go to jail. But a bank for some reason does not need permission to do so and as long as people think their money actually exists there will be no problem, unless of course we all want cash.
Now if you look at this ugly table from the RBA , where did all the money come from? The first column is Currency. Well the RBA printed it. But it only gets to the customer via an ATM or teller as the government does not pay for things in cash. It increased from $0.8 billion in 1959 to $55.9B in 2013. They printed $55 billion of extra currency in that time. An increase of 70 times or 7 000%. The column M3, which is the money supply, increased from $6.7B to $1584B between 1959 and 2013. This is an increase of 236 times or 23600%. This relects our reduced use of cash as we have moved across to virtual commercial bank money. Cash was 12% of the money supply in 1959. It is now 3.5% of the money supply.
So the money supply increased from $6.7B to $1584B between 1959 and 2013, but only $55.9B is in cash. Where is the rest?
World debt cannot be paid off by austerity or taxation. Banks demanding austerity programs, is counter productive.
We cannot solve the debt issues of the world by creating more debt. The only solution is by debt cancellation.
We can end the debt problem by cancelling, all national, individual and corporate debt to banks. This is pushed by the various Jubilee organisations. Please join.
The five thousand year human money experiment has clearly demonstrated that debt does not work as a world financial system. It is money that makes us poor.
The goldsmiths of old fraudulently issued receipts for gold that did not exist. These receipts were used as money. This worked and went undetected most of the time. Until of course, too many went to claim their virtual gold. Confidence inspiring terms are generated to bolster the practice such as 'Fractional Reserve Banking' and 'Money Multiplier Method'. Later cheque account systems were invented that required no issue of a receipt. Non existent money was moved from account to account by changing ledgers for money that did not actually exist. Thus the need to keep reserves of real money (gold or currency notes) was greatly reduced. Nowadays the reserves are not even held as real money but as more fictional money. Virtual money is held by a central bank as reserves for the virtual money supposedly held by the private banks. We have become so used to this that we accept it as normal. Even the student economists are taught this as if it were normal . But we forget that more and more of this virtual money is manufactured out of nowhere each year by private banks , but not nearly as fast as new debt is created .
What we have now is something similar to the non existent gold receipts, where people believe there is cash to back the deposits in their bank accounts. When we changed from gold coins to government issued cash notes, banks continued to keep ledgers denominated in the value of a the currency of the nation. And the amounts recorded in the ledgers simply did not exist in the vault. Nor was there the currency in existence in the whole nation to the value listed in the banks. So we are running on a make believe money system where banks say you have so many dollars in your account but it does not exist. And this is backed up by non-existent money in a central bank that manufactures virtual money at the stroke of keyboard. We are now operating on 97% virtual money. Society runs and is very productive as we have seen over the last two hundred years. But too productive for the sustainability of the planet. We have been running on money that long ago ceased to exist. The main downfalls of this make believe money system are:
  • It takes a lot of trust and a full backing by the government. aka: 'spin'
  • You can finish up in a situation where there is more debt than deposits.
  • The lending habits of banks encourage speculative behaviour leading to bubbles and recessions.
  • People start to believe the make believe system is real.
  • The school curriculum teaches debt as normal.
  • The universities teach debt as normal.
  • The economics profession teaches debt as normal and tries to make it work well, without realising that it will never work well. It was flawed from day one.
  • It encourages predatory lending behaviour.
  • It encourages hoarding including tax havens full of mythical money.
  • It encourages making of money from money rather than its original purpose of enabling trade.
  • It encourages concentrated city life and land speculation.
  • It encourages over extraction of minerals as nation chase dollars to pay debts.
  • It encourages people to work excessive hours to pay debts.
  • It encourages heavy advertising to create demand for goods.
  • It encourages war and conflict.
  • It encourages constant growth.
  • And numerous other issues that you can think of yourself.
My pension is held by a private company as virtual money to be paid to me at some time in the future. Interestingly, the pension funds actually hold government bonds. This means that our pensions are partially coming from the nations future tax payments.
It is the act of offering loans that allows people to buy that which they cannot afford. Thus advertising is required to manufacture the want. Then more advertising to suggest that the loan is common practice and acceptable. It never was. It was banned for most of recorded history.
When a central bank is in charge of creating currency, there will always be more debt than money. When private banks are allowed to create money, there will always be more debt than money.
There is not enough money in the world to pay off the debts we owe to the banks. But clear as this may be, nothing is being done to correct it. that is where you come in. The five thousand year experiment with money is going wrong. Fix it.
We have basically allowed debt to get completely out of hand at this stage of the human experiment in money.
jubilee debt cancellation
When the issuer of the currency is different to the collector of taxation an imbalance occurs in favour of the issuer. A 'Government Debt' or 'National Debt' occurs. If the Treasury issues the currency and spends it into circulation, then no debt is possible.
When the issuer of the currency is separate from the government, as it now is in most economies, at least two currency issues occur.
Firstly: The government is charged at full face value of the currency, rather than the printing cost.
Secondly: Interest is payable on the bonds used to pay for the currency. The compound interest accrues exponentially. It is a debt spiral that will go on perpetually until it eventually bankrupts the country.
Money is spent into society with no compounding interest cost. This reduces the debt burden on government. This reduces reduces the burden on tax payers.
Money is spent into society. There is less need for individuals to borrow. This reduces the debt burden on individuals.
Money is spent into society at a local level. This creates local investment allowing local areas to thrive.
Debt-Free-Money is issued by government on behalf of the people. The government banks will generally direct that money to those wishing to purchase a first home. Private Banking Corporations operate for profit and tend to lend for investment homes which tends to push up land prices.
Money created by banks tends to push up house prices. But it’s the wealthiest who benefit most from these rising prices. For those on lower incomes, or younger people who haven’t bought their first house, rising house prices push up the cost of living, leaving them with less disposable income and a lower standard of living. So rising house prices, fuelled by money created by banks, makes the gap between the richest and the rest of us even bigger.
Debt-Free-Money is issued by government on behalf of the people throught the Treasury and a network of Public Banks. The Government Public Banks will generally direct that money to local business rather than lend for financial speculation. This creates local employment. It is somewhat logical as the government benefits from the taxes collected from those businesses. Thus a government could lend to a local business at zero interest and still make a profit from the taxes collected.
COMMONWEALTH BANK OF AUSTRALIA 1911-1924 Australia had a quality debt free money system from 1911 to 1924. The newly created Commonwealth Bank issued debt-free-money which was spent into society. It built the Trans-Australia Railway at no cost to the people. Australia had the highest standard of living in the world. It was a golden age for Australia. It was undermined by private bankers in 1924. A money shortage followed and the depression started. Australia was brought to it's knees and has been there ever since. Foreigners now own most of our debt.
GENGHIS KHAN His massive empire was made easier with gunpowder but the killer app was debt-free-money. It was popular with the people and people prospered and we started wearing trousers. His empire was brought down by the plague.
ABRAHAM LINCOLN created debt-free Greenbacks. He got shot in the head.
BENJAMIN FRANKLIN did it with his debt-free 'Colonial Script'. He didn't get himself shot.
JULIUS CAESAR created debt-free-money which he spent into society building infrastructure and canals for the benefit of society. He was very popular. He got assassinated.
NAPOLEON BONAPARTE organised debt-free-money for France which was spent into society. France became a powerful nation. Too powerful for her neighbours who had debt-based-money. He got flattened.
GERMANY created interest-and-debt-free-money during the hyper-inflation. It was a success and Germany turned from a basket case to a strong and prosperous nation in 5 years, again too powerful for its neighbours. Germany was reduced to rubble. Many still believe the propaganda.
KING HENRY THE FIRST 1100AD set up debt-free-money with the tally stick system. This system lasted seven hundred years. Tally sticks were spent into society and taxed back out of society. England had no National-Debt. National-Debt arrived when private banks took over the money supply.
WÖRGL IN AUSTRIA 1932 created a local debt-free-money in 1932 during the great depression. It was massively successful. This was copied in many cities across Austria and Germany. The successful local money was banned in favour of the private Central Bank monopoly on issuing money. This monopoly continues today and we consider it 'normal'. It is not normal.
LIBYA created interest-and-debt-free-money and became the wealthiest nation in Africa with generous benefits for the people. Libya tried to lift Africa by creating the Pan African dollar backed by Libyan gold. But Libya was attacked by NATO and the west and Gaddafi got himself killed. I wonder where his gold went.
LULA IN BRAZIL Factory worker and union leader, Luiz Inácio Lula da Silva became president of Brazil in 2002. Brazil had been the most indebted nation in the world. It could not pay the interest on it's debt. Forty six million people were living on less than $1 per day. It had foreign banks. He implemented government programs for health, education, work, food, rural development and infrastructure projects. Lula transformed the government owned National Development Bank (BNDES) into a key driver of economic growth with debt-free-money. Brazil’s recovery was aided by a Government Savings Bank as state-run mortgage lender. About twelve million new jobs were created. About twenty million Brazilians were lifted out of absolute poverty. The economy has surged. Interestingly the western press still writes ill of him. Lula even reversed some of the privatisations carried out by the previous government, under which many large and viable state companies were sold for peanuts to multinationals.
THE SARACEN EMPIRE supposedly forbade interest on money for one thousand years, and its wealth outshone Saxon Europe.
GUERNSEY CHANNEL ISLANDS created its own money at no cost to the people in 1818. Guernsey changed from an impoverished nation to a prosperous community free of debt. Income tax is 20%. There is no VAT, GST, inheritance tax or capital gains tax and the National-Debt is zero.
For those of you who have heard of Fractional Reserve Banking, what we have now is not 'Fractional' and the 'Reserve' is not held as cash or gold but as more fictional virtual bank-money. Thus the deposit becomes the reserve for the next loan. The Private Banking Corporations then create virtual money at will and avoid charges of counterfeiting. The notion of reserve is to keep you believing everything is hunky dory. The loan is virtual and did not exist until the loan was made. The deposit is virtual. The reserve is virtual. It takes massive confidence to accept this. One major issue could bring this virtual world of virtual money crashing down. And that may happen before I get all the typos out of this website.
Currently about 97% of the money is generated by banks by creating deposits as they create loans. Again they create debt but not the extra money required to pay interest on that debt.
This also means that for every dollar of money, there is a corresponding dollar of interest-bearing debt. The amount of debt will increase due to exponentially increasing interest. And this extra debt is un-payable because the the money to pay it does not exist.
Edward Bernays Propaganda 1928: “The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society. Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country. We are governed, our minds are moulded, our tastes formed, our ideas suggested, largely by men we have never heard of. This is a logical result of the way in which our democratic society is organized. Vast numbers of human beings must cooperate in this manner if they are to live together as a smoothly functioning society.” [P37]
Money is like cricket scores. We don't stop a match for lack of cricket scores. 'Sorry. Stop play. We have run out of cricket scores'. Cricket scores are created on an 'as needs' basis. They do not alter the game. Same with money. The Treasury can create dollars as needed and spend them into society. The society runs almost debt free. Like cricket scores, the problems occur when there is not enough money tickets for people to trade. A few too many cricket scores, and we all have a bit more to trade with. We are all a bit better off. If volume of trade increases with the volume of issued money tickets, then there is no inflation. The problem of shortage of money tickets can occur by not spending enough into society or by persons hoarding the money tickets. Hoarding for wealth and money making schemes are a major cause of our current money issues.
In our society there is work to be done repairing and building infrastructure, but we have unemployment. The missing ingredient is local money supply. Working people pay more tax. If we can pay them, then more tax will come back to the government and the rest of their earnings will be spent into society. State Public Banks would go a long way towards fixing this because they are mandated to fund the local businesses and fund state infrastructure. Thus putting money into the local economy.
Money is not a limited resource. It is needed to make transactions occur between humans. If it is in short supply, the transactions cease and we go hungry. It is not the lack of work or the lack of food, it is the lack of money tickets to facilitate the trade.
Malcolm X: “The media’s the most powerful entity on earth. They have the power to make the innocent guilty and to make the guilty innocent, and that’s power. Because they control the minds of the masses.”
The BRICS (Brazil, Russia, India, China, and South Africa) countries are home to around half of the world’s population. The leaders of the BRICS announced their intention to establish a New Development Bank aimed at “mobilising resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries.”
BRICS have the much of the worlds unexploited economic potential. This reflects the enormous successes in economic development during the last four decades. The BRICS’ aggregate GDP is now greater than that of the advanced countries when the Bretton Woods institutions were founded. There has been a rebalancing of global economic power. This demonstrates the BRICS’ ability and willingness to work together, for their own benefit and for that of the entire world.
Peter Hitchens: “Is there any point in public debate in a society where hardly anyone has been taught how to think, while millions have been taught what to think?”
Through most of history, the rulers and institutions such as the church banned usury. Usury is the charging of interest. Now the usurers are in charge of the system. Their control of the system of money creation and who can have loans controls most areas of life. Their controlling tools include:
  • Manipulation of public opinion via the media system.
  • Control of the voting system via media and funding of political parties.
  • Who has access to loans.
You can see this happening in your own country. Watch the news and each day they tell you about your two main political parties, but no other party. If you see an unheard of politician mentioned, then in a few weeks that politician will be put into a position of influence. They are pre-announcing politicians and policies. If they put an article about increasing taxes, then in a few weeks, taxes will rise. They are shaping public opinion. If they want a war they support the war propaganda. They always support their wars. Andy Chalkley 2014.
G. D. McDaniel: "If, as it appears, the experiment that was called 'America' is at an end... then perhaps a fitting epitaph would be ... 'here lies America the greatest nation that might have been had it not been for the Edomite bankers who first stole their money, used their stolen money to buy their politicians and press and lastly deprived them of their constitutional freedom by the most evil device yet created --- The Federal Reserve Banking System.'"

It would appear that the world is approaching a Keynesian Endpoint. The point at which interest to privately owned corporate banks exceeds tax revenue. The point at which the Tax Department becomes a collection agency for the Corporate Banks. The solution to usury issues in the past has been total war on a country or an international war. Although in biblical times they forgave all debts and called it a Jubilee. One side of this war would likely be the usurious nations and those controlled by the usurious nations. Control being exerted via international media and international banking. The other side is likely to be those escaping the international usurious debt situation. This might be the Brics nations. (Brazil, Russia, India, China, South Africa). We need to rapidly wake up our young, young economists, veterans, activists and as many as will listen.
There is a solution and that includes: a ban on private corporate banks creating money, a government issuing electronic tally sticks and a move to a Robinhood Tax. Andrew Chalkley 2014.

This would have the effects of:
  1. reducing or eliminating the national debt.
  2. stabilising the boom bust cycle.
  3. reducing tax.
  4. reducing personal debt as money would be spent into society rather than lent into society.

The government on behalf of the people would be the only issuer of money. It would issue the currency from the treasury or a truly public owned bank not the fake Reserve Bank linked or influenced by the BIS. The government alone would issue paper currency and electronic money. The current private banks would operate on a 100% reserve requirement and be the reseller of loans. Private banks would not be able to create money.
Our National Public Bank would be like the Commonwealth Bank of 1911-1924. Creating interest-and-debt-free-money spent into the society rather than lent into society as it is today. Tax would be greatly reduced. Debts would start to disappear.
Each state would have a public bank to complement its taxation function. It would be specifically mandated to support farmers, businesses, new home buyers and state infrastructure. It would be backed by the resources of the state. Tax would be greatly reduced. State debts would start to disappear.
NATIONAL AND INTERNATIONAL DEBT FORGIVENESS A debt jubilee. When banks made the loans, they should have seen the impossibility of paying off the loans. Any loan that cannot be paid off including lack of money available to pay off the loan, should be nullified.
Tax Havens are a cause of poverty and decreased revenue for nations. Many multinational corporations don't pay taxes to the developing governments that need the revenue most. Between 2000 and 2008, $6.5 trillion left the developing world completely untaxed. One way to stop tax avoidance, is by requiring country-by-country reporting of corporate payments to governments.
HEAVY TAXES ON UNEARNED WEALTH Taxing capital gains that are made without being earnt. This includes annual estimation of the value of a house under current Negative Gearing arrangements.
COMMONWEALTH BANK OF AUSTRALIA 1911-1924 Australia had a quality debt free money system from 1911 to 1924. The newly created Commonwealth Bank issued debt-free-money which was spent into society. It built the Trans-Australia Railway at no cost to the people. Australia had the highest standard of living in the world. It was a golden age for Australia. It was undermined by private bankers in 1924. A money shortage followed and the depression started. Australia was brought to it's knees and has been there ever since. Foreigners now own most of our debt.
IF THE BANKS FALTER. NATIONALISE THEM Perhaps one to each state as state public banks.
Corporations can buy access and influence through campaign contributions. Elected officials will lose campaign contributions if they dont vote as required by their elite controlled party. We must make sure that the will and concerns of the people are not drowned out by the financial influence of the few.
If voting in parliament is secret, the politicians can vote without the influence of party and their moneyed sponsors.
THE GLASS STEAGALL ACT. Banks can be High Street/Commercial Banks or speculating Investment Banks. Not both. This stops speculation with ordinary savings and redirects money into the local economy.
ROBIN HOOD TAX is a very small financial transaction tax of less than 0.5% on financial transactions would replace GST. This would reduce financial speculation, currency speculation, increase financial instability.
Public banks and public credit societies tend to do this best. State banks can be directed to support local production and farming.
POLITICIANS TO BE ECONOMICALLY LITERATE Aspiring politicians need to do a short course on New Economics. Not the brand of economics that uses private banking principals as its core doctrine. Money creation by privately owned banks is not normal and should not be the core of the economics syllabus
ECONOMICS SYLLABUS TO BE CHANGED Economics study that accepts private banking as its core doctrine is wrong. Money creation by privately owned banks is not normal and should not be the core of the economics sylabus
Ensure politicians devote more time to their constituents than to their fundraising. Ensure political decisions are made on principle, without the distorting effect of lobbyists. Ensure individual citizens have access to clear information about their leaders and how and what they are voting on.
BAN LOBBYIST FEES Companies use lobbying to get politicians to change rules. Corporations now have big lobbying budgets. Forget your vote. These guys rule. Restrict lobbying and lobbyists. Lobbying methods include campaign contributions, endorsements, bribes, threats of bad publicity, jobs for family members, consultancies after politics, favours, supply of expert advice.
ODIOUS DEBTS Apply the principle of the Doctrine of Odious Debts.
Many communities around the world have created alternative currencies to stimulate their local economies and protect themselves from national money problems. Alternative currencies can be created by individuals, communities, companies and also by national, state and local governments which includes you.
Society makes a tax profit from trained people. This is an evil tax, if ever there was one.
LIMIT INTEREST CHARGED Napoleon limited interest charges to ten percent. Stop this usury trick on our gullible young and our unfortunate.
WAKE UP TO AUSTRALIA'S FINANCIAL EXPOSURE [THE AGE] “Official Reserve Bank figures, from APRA, show Australian banks' off-balance sheet derivative exposures now totals $13.8 trillion, although that is subject to various accounting procedures and represents an unthinkable meltdown in world finances.” 3 Nov 2008
Australia's Gross Domestic Product is about $1.5 trillion. END THE POLITICAL POWER-SHARING DUOPOLY
NO PARTIES IN THE UPPER HOUSE like local government. It is a house of review, to check the government. It should be more like a court jury reporting directly to the people in a weekly statement.

STOP NEGATIVE GEARING 'Negative Gearing' occurs when an individual purchases an investment property and claims the interest as a tax deduction at his maximum income tax rate. Thus an individual pays a much higher effective interest on his mortgage than an investor. It also inflates land and house prices.
CORRECTLY ACCOUNT FOR THE ASSETS OF A NATION The rocks and minerals, the environment and the people are the true assets of the nation. These rocks are worth more in the ground for future generations. Account for the value of the non-renewable resource when sold.
STATE BANKS Create state banks to look after state development and local businesses. Western Australia had the 'Rural and Industries Bank' that developed the state with minimal state debt.
The Bank of North Dakota is a state bank and North Dakota consistently outperforms other states in unemployment, job growth, state debt, budget surplus, foreclosure rate, credit card default, bank failure rate and taxation. The Bank of North Dakota (BND) does not compete with local banks but partners with them, helping with capital and liquidity requirements. Over a 15-year period, according to other data, the BND has contributed more to the state budget than oil taxes have.
COOPERATIVE AND BUILDING SOCIETIES ensure that local savings are used for local projects and businesses and homes.
CAPITAL GAINS TAX The tax system favours debt financed speculation in property and shares. This inflates house prices, increases household debt, and denies home ownership to the young.
LAND TAX would cut land speculation. You pay to use the land not speculate with the land. In conjunction other tax reductions, of course.
REPLACE INCOME TAX WITH TAXES THAT PROMOTE EQUALITY such as the death tax, inheritance tax, Robin Hood tax, asset tax, bank savings tax. Tax the wealth as well as the income.
LEASEHOLD LAND for farmers and businesses in trouble. This cuts speculation and land prices.
PROTECT THE RICH. REDUCE INEQUALITY The rich and the poor both suffer when inequality grows. Inequality increases crime, violence, resentment, stress and affects health.
DEMURRAGE makes money move fast.(Search )
TAX UNEARNED INCOME at the same or a higher rate than physically earned income like wages. Including capital gains, bonds, dividends and bank interest. Stop this unfair benefit to the wealthy.
REMOVE THE POWER TO CONTROL PUBLIC OPINION The power to control public opinion is essential to the moneyed class. It is why faltering media is rapidly bailed out by big banks. It is why Liberal/Labor are pushed to the exclusion of other parties. Stop treating TV as the truth. Avoid news from tainted overseas sources. Bolster Australian content in line with our concepts of decency, morals, fairness and good nature. Stop the cheepo US morally bankrupt programs.
LOW INTEREST GOVERNMENT BANK LOANS TO FARMERS The farms are being bankrupted by banks that we, the taxpayer bailed out. We need farmers and food more than we need bankers.
GOVERNMENT PENSIONS Pensions linked to dollars are a disaster waiting to happen. Government pensions linked to cost of living, maybe linked to tax paid are more logical. It is after all, what we pay tax for. Take the worry out of pensions.
POLICE TO TACKLE THE BIG CRIMINALS instead of the little guy.
HOME OWNERSHIP should be a civil right.
Albert Einstein: “Private capital tends to become concentrated in few hands, partly because of competition among the capitalists, and partly because technological development and the increasing division of labor encourage the formation of larger units of production at the expense of smaller ones. The result of these developments is an oligarchy of private capital the enormous power of which cannot be effectively checked even by a democratically organized political society. This is true since the members of legislative bodies are selected by political parties, largely financed or otherwise influenced by private capitalists who, for all practical purposes, separate the electorate from the legislature. The consequence is that the representatives of the people do not in fact sufficiently protect the interests of the underprivileged sections of the population. Moreover, under existing conditions, private capitalists inevitably control, directly or indirectly, the main sources of information (press, radio, education). It is thus extremely difficult, and indeed in most cases quite impossible, for the individual citizen to come to objective conclusions and to make intelligent use of his political rights.”
We get in debt to foreign banks.
The interest compounds exponentially. We must export more and more in order to raise enough money to pay the interest on the debts in a timely manner.
Because other countries are in the same debt position, we get in a price war competing for the same export markets. We must work harder and harder and export more and more to meet the repayments.
Our government needs to increase exports just to keep our currency stable and earn foreign exchange with which to help pay off our debts.
Our governments must spend less and we must reduce consumption to keep paying the debts.
But strangely, all the other nations are also in debt to the same international banks. Banks that don't belong to nations but to corporations owned by individuals.
Voltaire: ... it is dangerous to be right when the government is wrong. [Voltaire 1694-1778]
Most of the local reports are truthful but the international news comes in to countries from international agencies with doubtful sources.
Local content: has a lot of censorship by omission. They tell you about their preferred political parties, Liberal and Labor in Australia, but little about your other political choices. It always supports war. It pre-announces items like raising of taxes and political appointments.
International content: comes from limited sources and appears to match CFR reports. (Council on Foreign Relations). It appears to push the line of the US military industrial complex. It always supports America's wars. It labels dissenting groups as Freedom Fighters or Terrorists.
John Swinton: "There is no such thing, at this date of the world's history, in America, as an independent press. You know it and I know it. There is not one of you who dares to write your honest opinions, and if you did, you know beforehand that it would never appear in print. I am paid weekly for keeping my honest opinion out of the paper I am connected with. Others of you are paid similar salaries for similar things, and any of you who would be so foolish as to write honest opinions would be out on the streets looking for another job. If I allowed my honest opinions to appear in one issue of my paper, before twenty-four hours my occupation would be gone. The business of the journalists is to destroy the truth, to lie outright, to pervert, to vilify, to fawn at the feet of mammon, and to sell his country and his race for his daily bread. You know it and I know it, and what folly is this toasting an independent press? We are the tools and vassals of rich men behind the scenes. We are the jumping jacks, they pull the strings and we dance. Our talents, our possibilities and our lives are all the property of other men. We are intellectual prostitutes." [John Swinton (1830-1901) to a journalists' gathering in April 1893]

”The International Monetary Fund creates new money, out of thin air, using 'Special Drawing Rights,' a synthetic currency beyond the control of any sovereign nation. Every country the IMF and World Bank got involved in ended up with a crashed economy, a destroyed government, and sometimes in flames with riots.” (Former chief economist of the World Bank, Joe Stiglitz, was fired in 2009.)
Reginald McKenna: “I am afraid the ordinary citizen will not like to be told that the banks can and do create money. And they who control the credit of the nation direct the policy of Governments and hold in the hollow of their hand the destiny of the people.” [Reginald McKenna, as Chairman of the Midland Bank, addressing stockholders in 1924.]
Also called 'Country Assistance Strategy.' Aan 'assistance' program is designed for each poor nation. The Bank hands each finance minister the same four-step programme. The finance minister is handed a 'restructuring agreement' pre-drafted for 'voluntary' signature.
Step One: Privatisation. (Briberization) Many politicians happily sell their electricity and water companies, influenced by the possibility of receiving heavy commissions for assistance with the sale. Carefully selected individuals are promoted with the media campaigns and money to change public opinion. The same faces keep on rotating, with no alternate choices for public to chose their Representatives. This happened in with the biggest privatisation of all, the 1995 Russian sell-off. The US-backed oligarchs stripped Russia’s industrial assets. This cut national output by nearly half. Depression and starvation followed.
Step Two: Capital market liberalisation. The capital market deregulation supposedly allows investment capital to flow in and out. However money tends to flow out. Cash comes in for speculation in real estate and currency, then flees at the first whiff of trouble. The nation's reserves may drain in days. Then the IMF demands these nations raise interest rates to 30%, 50% and 80%. Higher interest rates demolish property values, destroy industrial production and drain the national treasury.
Step Three: Market-based pricing. A fancy term for raising prices on food, water and cooking gas. This leads to
Step-Three-and-a-Half: The IMF riot'. The IMF riot is painfully predictable. When a nation is, 'down and out, [the IMF] squeezes the last drop of blood out of them. They turn up the heat until the whole cauldron blows up,' - as when the IMF eliminated food and fuel subsidies for the poor in Indonesia in 1998. Indonesia exploded into riots. There are other examples — the Bolivian riots over water prices and the riots in Ecuador over the rise in cooking gas prices imposed by the World Bank. These riots were totally expected.
According to several documents obtained from inside the World Bank, based on Interim Country Assistance Strategy for Ecuador, the Bank several times suggests that the plans could be expected to spark ’social unrest’. That’s not surprising. The secret report notes that the plan to make the US dollar Ecuador’s currency has pushed 51% of the population below the poverty line.
The IMF riots (means peaceful demonstrations dispersed by bullets, tanks and tear gas) cause new flights of capital and government bankruptcies The remaining assets are then sold at fire sale prices. The clear winners seem to be the western banks.
Step Four: Free trade. This is free trade by the rules of the World Trade Organisation and the World Bank opening markets. Europeans and Americans today are kicking down barriers to sales in Asia, Latin American and Africa while barricading our own markets against the Third World's agriculture. . . . because the plans are devised in secrecy and driven by an absolutist ideology, never open for discourse or dissent, they 'undermine democracy'. Second, they don't work. Under the guiding hand of IMF structural 'assistance' Africa's income dropped by 23%. Botswana avoided this by telling the IMF to go packing.
Joseph Stiglitz was an insider, a whistle blower who was fired from World Bank in 1999.
Websearch: joseph stiglitz imf four steps to damnation
Henry Kissenger: "Who controls money controls the world."
The IMF has changed from serving the global economic interest to serving the interests of global finance.
The IMF has prescribed the same medicine for troubled third world economies for over two decades:
Monetary austerity. Tighten up the money supply to increase internal interest rates to whatever heights needed to stabilise the value of the local currency.
Fiscal austerity. Increase tax collections and reduce government spending dramatically.
Privatisation. Sell off public enterprises to the private sector.
Financial Liberalisation. Remove restrictions on the inflow and outflow of international capital as well as restrictions on what foreign businesses and banks are allowed to buy, own, and operate.
Only when governments sign this “structural adjustment agreement” does the IMF agree to:
  • Lend enough itself to prevent default on international loans that are about to come due and otherwise would be un-payable.
  • Arrange a restructuring of the country’s debt among private international lenders that includes a pledge of new loans.
The top 1 percent have the best houses, the best educations, the best doctors, and the best lifestyles, but there is one thing that money doesn’t seem to have bought: an understanding that their fate is bound up with how the other 99 percent live. Throughout history, this is something that the top 1 percent eventually do learn. Too late.[Vanity Fair]
Our exchange rate is at the mercy of the speculators at Forex, Most of the dealing is big speculators betting on our currency. Thus our exchange rate has little to do with our trade. We can go rapidly into international debt even when we are doing well. ~80% of trade on the Foreign Exchange market is speculation. Thus only 20% has anything to do with international trade. Speculation in currency must be stopped. It played a significant part in the cause of WW2 and other wars.
Adam Smith 1776: As soon as the land of any country has all become private property, the landlords, like all other men, love to reap where they never sowed, and demand a rent even for its natural produce. [Adam Smith, ‘The Wealth of Nations’ 1776]
“...I am convinced that the agreement [Bretton Woods] will enthrone a world dictatorship of private finance more complete and terrible than any Hitlerite dream. It offers no solution of world problems, but quite blatantly sets up controls which will reduce the smaller nations to vassal states and make every government the mouthpiece and tool of International Finance. It will undermine and destroy the democratic institutions of this country - in fact as effectively as ever the Fascist forces could have done - pervert and paganise our Christian ideals; and will undoubtedly present a new menace, endangering world peace. World collaboration of private financial interests can only mean mass unemployment, slavery, misery, degradation and financial destruction.”
Prophet Muhammad: “When a man makes a loan to another, he must not accept a present.”
  Australia floated the Australian dollar and we are now well up the list of IMF debtor nations. According to the IMF statistics, almost every country in the world is massively in debt to the IMF. Strange really. How can everyone be in debt to a bank not owned by any country.  
Robert Hemphill "This is a staggering thought. We are completely dependent on the Commercial Banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the Banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon." [Robert H. Hemphill, Credit Manager Of Federal Reserve Bank, Atlanta, Georgia]
Jeff Nielson: “Warren Buffett once described derivatives as ‘financial weapons of mass destruction’ - and for a very good reason. While U.S. ‘unfunded liabilities’ are larger than the entire global economy, the derivatives market is 20 times larger than the entire global economy — at an astonishing $1 quadrillion. Yes, you heard me correctly - $1 quadrillion! And get this - this derivative market is totally unregulated. It is totally lacking in transparency, meaning that all we know about this $1 quadrillion mountain of banker-paper is what the bankers tell us.”
$1000 over 20 years at 10%> $1000, $1100, $1210, $1331, $1464, $1610, $1771, $1948, $2143, $2357, $2593, $2853, $3138, $3452, $3797, $4177, $4594, $5054, $5559, $6115, $6727. Our ancestors had knowledge of this and had methods of dealing with the rapid accumulation of wealth by the wealthy. Some banned usury. Some zeroed all debts each 7 years. Some had better lending practices. Usury is the lending of money at interest. Usury soon creates un-payable debts. The lending of virtual money that previously did not exist by an account entry creates a dilemma. No extra money was created to pay the interest. The interest can never be repaid and more debt is required. Foreclosures and misery occur.
Money will double in 24 years at 3% interest.
Money will double in 16? years at 5% interest. (1.0,1.05,~1.10,~1.16,~1.22,~,~,~,~,~,~,~)
Money will double in 12 years at 6% interest.
Money will double in 8? years at 10% interest.
Money will double in 6 years at 12% interest.
Money will double in 4 years at 20% interest. (1.0,1.2,1.44,~1.73,~2.07)
Graham Towers: Question: "Will you tell me why a government with the power to create money should give that power away to a private monopoly and then borrow that which Parliament can create itself, back at interest, to the point of national bankruptcy?" Graham Towers: "Now, if Parliament wants to change the form of operating the banking system, that is certainly within the power of Parliament." [Graham Towers was the first Governor of the Bank of Canada from 1935 to 1951. In 1939, at a Canadian Committee on Banking and Commerce, Graham was asked a question.]
Margarit Kennedy claims that interest makes up ~33% of everything we buy.
In 2011 Economist Michael Hudson arrives at a figure of 29% presumably for the USA.
My simple calculations suggest it might be 28% for Australia.
William Lyon Mackenzie King: “Once a nation parts with the control of its currency and credit, it matters not who makes the nations laws. Usury, once in control, will wreck any nation. Until the control of the issue of currency and credit is restored to government and recognized as its most sacred responsibility, all talk of the sovereignty of parliament and of democracy is idle and futile.”
  DERIVATIVES are legal bets (contracts) that derive their value from another asset, such as the value of something in the future. A derivative has no asset backing. It is virtual. Australia has an exposure to about $20 trillion in derivatives. We have a Gross National Product of $1.3 trillion. If derivatives go bang, we go bang. You and I will suffer more than the clowns that created this situation. Solution. Create an Australian Glass-Steagall type act to protect savings and pensions. Warren Buffett warned that derivatives were time bombs and “financial weapons of mass destruction”. Alan Kohler (The Drum 2012) “Almost all financial derivatives trading adds nothing but risk to the world and should be banned.”

Chicago Federal Reserve: "Banks do not really pay out loans from the money they receive as deposits. If they did this, no additional money would be created. What they do when they make loans is to accept promissory notes in exchange for credits to the borrowers’ transaction accounts." [Chicago Federal Reserve, Modern Money Mechanics: A Workbook on Bank Reserves and Deposit Expansion]
We have a democracy subverted by manipulation of public opinion and undermined by moneyed lobbyists.
Bernard Lietaer: "While economic textbooks claim that people and corporations are competing for markets and resources, I claim that in reality they are competing for money - using markets and resources to do so. Greed and fear of scarcity are being continuously created and amplified as a direct result of the kind of money we are using. For example, we can produce more than enough food to feed everybody, and there is definitely enough work for everybody in the world, but there is clearly not enough money to pay for it all. In fact, the job of central banks is to create and maintain that currency scarcity.” [Former Central Banker Bernard Lietaer in an article titled “Beyond Greed and Scarcity,” YES! Magazine, Summer 1997.]
  AUSTRALIAN DEMOCRACY has ended. Australia is not a democracy. It is a combination of a Murdocracy and a banktocracy and a political duopoly. The gullible populace are constantly told it is a choice between Liberal and Labor, both of whom dance to the tune of the Money Power. We are rarely told of our other choices. Look at the effort they put into destroying Pauline Hanson who was a threat to their money system so they called her 'racist'. Look at the vitriol they heap on 'Citizens Electoral Council'. Federal elections are distracted away from economics to side issues like boat people. Over the last hundred years the banks have had their way to a situation that we are a very indebted nation with our assets rapidly being sold off to overseas interests and the papers telling us all is ok. We actually were ok when we had our public Commonwealth Bank. But even that was sold out to foreign interests with fancy phrases like 'opening up to international competition'. We even encourage foreign investment which is fancy talk for selling our productive assets. Some even buy our assets with the help of their public banks. It could have been done with our public bank except that we don't have one.
Sir Josaih Stamp 1927: "The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was every invented. Banking was conceived in inequity and born in sin. Bankers own the earth. Take it away from them but leave them the power to create money, and with a flick of a pen, they will create enough money to buy it back again . Take this great power away from them and all great fortunes like mine will disappear, for then this would be a better and happier world to live in . But if you want to continue to be the slaves of bankers and pay the cost of your own slavery, then let bankers continue to create money and control credit." [Sir Josiah Stamp, president of the Bank of England and the second richest man in Britain in the 1920's, speaking at the University of Texas]
  THE GLASS STEAGALL ACT of 1933 was a law that Franklin Roosevelt used to get the United States out of the Great Depression. The act forced banks to choose between Commercial Banking or Investment Banking. This stopped Commercial Banks from risk-taking speculation with people’s life savings. A rarely mentioned side effect was to redirect investment into the local economy. Under pressure from the banking lobby, the Glass-Steagall Act was repealed in 1999. A massive investment speculation followed. Then followed the financial crash of 2008. The problem bubble still exists. Wait for the bang.
Robert Hemphill: "This is a staggering thought. We are completely dependent on the Commercial Banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the Banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon." [Robert H. Hemphill, Credit Manager Of Federal Reserve Bank, Atlanta, Georgia]
THEY DON'T MIND WHO YOU VOTE FOR, SO LONG YOU VOTE LIBERAL OR LABOR. The greatest weapon of the 21st century is the power to control public opinion. In Australia it works beautifully. We fight their wars and vote for their chosen parties and pay debts on virtual money.
Benjamin Disraeli 1844: "The world is governed by very different personages from what is imagined by those who are not behind the scenes." [Benjamin Disraeli. Prime Minister of England 1844.]
To find the real reason for a war, look at the war outcomes not the media illogic. WW1 - overthrow of 4 empires and communism planted on Russia. Big debt and big deaths. Easily controllable 'Constitutional Democracies' set up elsewhere. (Money Power loves to manipulate democracies. It's why we have democracies.) WW2 — Overthrow of independent banking in Germany. Break-up of British Empire. Creation of Israel. Rise of American power. Allowed Communist Russia to take over many countries. Huge debt to private banks. Unbelievable deaths. Iraq - American bases along oil field areas. Central Bank takeover. Death and debts. Vietnam - Failed to prop up a corrupt regime.
Have you ever noticed that the media always supports war.
Ralph Hawtry: “Banks lend by creating credit. They create the means of payment out of nothing.” [Ralph M Hawtry, former Secretary to the Treasury.]
Australia, UK, USA, Canada, Europe and most of the world now have debt-based money. Today Australia and Australians are drowning in debt. But is was not always like this. For most of history we had ....

DEBT-FREE-MONEY issued by government on behalf of the public. The money is created without debt or interest. The modern method would be for the treasury to issue or spend the money at approximately the same rate that it is taxed out of society.

PRIVATE BANKS = DEBT-BASED-MONEY Money is created and lent into society. Compound interest magnifies the debt. Repayment of these debts is a mathematical impossibility. Attempts to pay off the debts dry up the money supply and causes a recession. It is thus impossible to pay off these debts. The banks make so much money, it impoverishes the people, the businesses and the nation. The rich guys then take over public utilities, shares and assets of the nation. We work around the clock, destroying our lives and the environment to pay off the debt and interest. This is our current problem in Australia. It is the current problem in much of the world. But it need not be.

Money is created at negligible cost and spent into society or lent at low interest. The combination of tax and interest means that the people and the government have negligible interest and low tax. This was the situation in Australia from 1911 to 1924 with the public owned Commonwealth Bank. We were a very prosperous and very low debt country.
Winston Churchill 1920: “From the days of Spartacus-Weishaupt to those of Karl Marx, to those of Trotsky, Bela Kun, Rosa Luxembourg, and Emma Goldman, this world wide conspiracy for the overthrow of civilization and for the reconstitution of society on the basis of arrested development, of envious malevolence and impossible equality, has been steadily growing. It played a definitely recognizable role in the tragedy of the French Revolution. It has been the mainspring of every subversive movement during the nineteenth century, and now at last this band of extraordinary personalities from the underworld of the great cities of Europe and America have gripped the Russian people by the hair of their heads, and have become practically the undisputed masters of that enormous empire.”
  ROBIN HOOD TAX is a very small financial transaction tax of less than 0.5% on financial transactions would replace GST. A financial transaction tax would be very significant to speculators who gamble with our financial system and our currency and a boon for the less well off. John Maynard Keynes wrote "The introduction of a substantial Government transfer tax on all transactions might prove the most serviceable reform available, with a view to mitigating the predominance of speculation in the United States.” Recommended  
Thomas Jefferson: "The dominion which the banking institutions have obtained over the minds of our citizens...must be broken, or it will break us."
  MOVE YOUR MONEY Move Your Money campaign claims that ten million accounts have left the large banks in the last two years. Websearch “move your money australia”  
John Kenneth Galbraith 1977: “When people put their ballots in the boxes, they are, by that act, inoculated against the feeling that the government is not theirs. They then accept, in some measure, that its errors are their errors, its aberrations their aberrations, that any revolt will be against them. It's a remarkably shrewd and rather conservative arrangement when one thinks of it.” [The Age of Uncertainty (1977), Chapter 12, p. 330.]
The bailout of 2008 and guarantee of bank deposits using our future tax payments effectively makes them privately owned but publicly guaranteed banks. Guaranteed by our taxes. Next time, lets make them totally public owned banks. The underlying problems of 2008 were not fixed. As money is virtual, the virtual investments and derivatives still remain as a bubble. A bubble guaranteed by your future tax. The UK took partial or full ownership of Royal Bank of Scotland and HBOS and Lloyds. We could give banks to Federal Government and individual states. Run the banks for the people not for the rich guys. House loans for the Aussie battler rather than the investor. Low or no interest loans to our farmers rather than money in tax havens and Lear jets. Low interest loans for the local businesses that employ us.
  OUR AVAILABLE MONEY is 3% cash printed by the Reserve Bank of Australia. 97% is created when loans are issued by local banks. This is inherently unstable and an exceedingly expensive way of money creation. It has an awful compound interest situation where we finish up with more debt than money. Individuals, businesses, states, government and the nation are sinking into debt at a rapidly increasing rate. The media tells us we are ok because we are not as bad as some other nations. Yet other nations with public banks are surging ahead. One national bank would likely fix this. Our money system is also a monoculture and is linked to international currencies. If they go down, we go down. We need you to set up 'alternative currencies' in your district tomorrow.
The World Gross Domestic Product was $63 trillion in 2010. The financial industry is many times bigger than the value of all goods and services produced in the world. Shares and bonds are about the same value of world GDP, but derivatives trading and foreign currency transactions are ten and fifteen times bigger than World Gross Domestic Product.
For 2010
The World Gross Domestic Product: $63 trillion.
Volume of shares and bonds traded: $87 trillion.
Value of Derivatives: $601 trillion.
Currency trading: $955 trillion.
Conclusion: The world has gone mad.
Nicolas Copernicus 1525: "Nations are not ruined by one act of violence, but quite often, gradually, and almost imperceptibly, by the depreciation of their currency, through excessive quantity".
The current economic system is based on creating the money supply as interest bearing debt. It is unworkable. Economics is the study of a flawed system and how to fix it. AJC
The Keynsian Endpoint is reached when government interest exceeds government revenue. Thus The total tax income does not cover the interest to private corporate owned banks. Borrowing more money becomes more difficult of impossible
During the Great Depression, Keynes argued that in times of economic downturn, government should spend money to pull the nation out of recession. He argued that the stimulation would result in growth in the economy, which in turn would stimulate more production and growth by a multiplier effect.
This is fine if the government generates the money through the treasury. I argue that if it is financed by borrowing from private corporations, the debt and interest will comes back to bite and create a worse situation in future years. Governent deficit spending by borrowing from corportaions accelerates the nation towards the The Keynsian Endpoint. The only solution is for the government to be the sole issuer of money. I think of it as Electronic Tally Sticks issued by treasury.
Cicero: "A nation can survive its fools and even the ambitious. But, it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and he carries his banners openly against the city. But the traitor moves among those within the gates freely, his sly whispers rustling through all alleys, heard in the very halls of government itself. For the traitor appears no traitor; he speaks in the accents familiar to his victim, and he wears their face and their garments and he appeals to the baseness that lies deep in the hearts of all men. He rots the soul of a nation; he works secretly and unknown in the night to undermine the pillars of a city; he infects the body politic so that it can no longer resist. A murderer is less to be feared. The traitor is the plague." [Cicero, speech to the Roman Senate per the historian Sallust]
The China Development Bank’s financing mechanisms: focus on foreign investments by Alessandro Provaggi
China Development Bank (CDB) makes use of different methods to promote overseas investments in infrastructure projects, expand its global portfolio and support Chinese companies abroad. It provides financing to Chinese firms, stipulates energy-backed loans to foreign authorities and national oil companies and invests in private equity funds.
China Development Bank is a major financial institution in the People's Republic of China. It is at the centre of Chinese infrastructure development and has financed high-speed railways, roads, power grids and large-scale projects such as the three Gorges Dam. CDB is also the largest development bank in the world and, by financing Chinese investment overseas, a key player in China’s ‘going out’ policy.
This financial institution was established in 1994 as one of the three Chinese policy banks to support projects in line with government’s policy objectives. It is subordinated to the jurisdiction of the State Council, China’s highest governing body. The Bank raises its capital by issuing bonds with terms of up to 30 years to institutional investors on China’s interbank bond market and foreign markets in both renminbi and other currencies. The Chinese state has full ownership of the Bank and implicitly guarantees its debt. As a result, CDB can provide lower interest rates and longer-term loans than other Chinese banks.
CDB has been able to support the macroeconomic infrastructural development policies of the central government, while at the same time pursuing a very commercially oriented and profit-driven strategy. The story of CDB is inextricably connected to the man at the helm of the organization, Chen Yuan, who has been praised for making the Bank a very successful institution. Under his guidance, the CDB’s non-performing loan ratio dropped from 42.65 percent in 1997, the year before he took office, to below 5 percent in only four years and then further to less than 1 percent, a level lower than any other major bank in China. He also depoliticized the lending process by creating a system that separates the people in charge of the credit risk assessments from those responsible for the loan approval.
Therefore, if on the one hand CDB has a very competitive and commercial vision, on the other hand its rating is linked to the sovereign rating, making funding costs relatively low. As it finances itself with long-term bonds rather than short-term bank deposits as other Chinese banks, long-term lending is less risky for CDB.
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Factory worker and union leader, Luiz Inácio Lula da Silva became president of Brazil in 2002. Brazil had been the most indebted nation in the world. It could not pay the interest on it's debt. (Called the Keynsian Point). Forty six million people were living on less than $1 per day. It had appalling inequality. It had foreign banks. He implemented government programs for health, education, work, food, rural development and infrastructure projects. Lula transformed the government owned National Development Bank (BNDES) into a key driver of economic growth with debt-free-money. Brazil’s recovery was aided by a Government Savings Bank as state-run mortgage lender. About twelve million new jobs were created. About twenty million Brazilians were lifted out of absolute poverty. The economy has surged. Interestingly the western press still writes ill of him. Lula even reversed some of the privatisations carried out by the previous government, under which many large and viable state companies were sold for peanuts to multinationals.
In December of 2008, Newsweek magazine named him the 18th most influential person in the world. When Lula left office, he had approval ratings: above 80%, according to some pollsters.
  ***** TO THE IMF BRICS group of Brazil, Russia, India, China and South Africa no longer depend on the IMF for sources of capital. Latin America and East Asia have sought to build an alternative. Venezuela and Argentina have proposed a ‘Bank of the South’, which would fund regional infrastructure projects such as oil and gas pipelines. And at the 2007 Kyoto meeting of ASEAN+3 finance ministers, the countries of East Asia agreed to press ahead with a $80 billion regional currency swap arrangement that is somewhat like an Asian Monetary Fund.  
Public Banking -- it already works in the United States and is catching on! Twenty States are considering some form of state banking legislation.

Kyle Bass Talks

Kyle Bass: Japan and Europe

James Wolfensohn

China: Triumph and Turmoil


97% Owned

Ben Dyson: Money Creation

How Banks Create Money out of Thin Air

The Ascent of Money by Niall Ferguson

Money As Debt

Economic Truth


The Creature from Jekyll Island


Billion Dollar Day


All Wars are Bankers Wars Michael Rivero

Was World War I the error of modern history? Niall Ferguson

Bill Still - The Money Masters

The Secret of Oz by Bill Still

America — From Freedom To Fascism - Aaron Russo

Destruction of America's Middle Class


Slavery by Consent by Bushwack productions for the Wake Up Project

Greg Palast interviews former World Bank Economist Joseph Stiglitz

World Bank Creating Poverty - Greg Palast

IMF & World Bank are weapons of war, by John Pilger

IMF & EU Conspired with Insider to Loot Cyprus Banks

USA Wealth Inequality

John Pilger - The New rulers of The World.


Media lies to manipulate us

CIA Media Manipulation

The media’s manipulative influence over your morals.

Constructing Public Opinion

Constructing Public Opinion. - Professor Justin Lewis

US manipulated public opinion before Iraq war

Media war against Iran

Controlling Public opinion

Manufacturing Consent - Noam Chomsky

How You Are Being Mind Controlled


Democracy, Media and Public Opinion: An Interview with Noam Chomsky

The War On Democracy - John Pilger

Gaddafi’s Green Book - Western Democracy is a Dictatorship


The Corporation - Canadian documentary

Ralph Nader, The Road to Corporate Fascism

Corporatism Explained


Occupy Wall Street (Full Movie)

Zeitgeist: the Movie

The debt time bomb that is Britain.


The Great American Bubble Machine

Gangster Bankers: Too Big to Jail

People vs. Goldman Sachs

Secrets and Lies of the Bailout

Occupy Wall Street

The Scam Wall Street Learned From the Mafia

How Wall Street Killed Financial Reform

The Big Takeover: How Wall Street Insiders are Using the Bailout to Stage a Revolution

The Real Housewives of Wall Street

Wall Street's Bailout Hustle

Looting Main Street

Everything Is Rigged: The Biggest Price-Fixing Scandal Ever

Looting Pension Funds

Ripping Off Young America: The College-Loan Scandall
You are in debt for virtual money that did not exist until the person that lent it to you, created it out of nothing. Then the same person charged interest on the virtual money that appeared out of nowhere. There is now more debt then money so someone will default on this non-existent virtual money. Lender now owns your house because you are stupid enough to believe that you owe him money that never existed before he lent you the money.
In fact you can actually create money your self. Its called the LETS scheme.
lets + scheme + money + creation
But a better way is to stop the corportate banks creating debt money and create money direct form Treasury in the same way that treasury creates the Australian coins. Or create money from a government public bank.
public + bank
Ellen Brown
The Irish

Postal Savings Bank Postal Savings Bank

Think Your Money is Safe

Making the World Safe for Banksters

Buyout of America

Fleecing Pensioners

Winner Takes All

Public Sector Banks: From Black Sheep to Global Leaders
Poisonous Million Dollar Pay Packages

Publicly Owned Banks

Leaking Syria Strike

Trans Pacific Partnership

No More Gambling With Taxpayer Money
“Loans alone cannot sustain the money supply because they zero out when they get paid back. In order to keep money in the system, some major player has to incur substantial debt that never gets paid back; and this role is played by the federal government.”
Ellen Brown in Web of Debt
  I don't suffer from insanity, ....

I enjoy it !!!.
Today we face a crushing burden of foreclosures, dropping incomes, and a financial elite that has bought our government. The elite consensus is powerful enough to prevent change, no matter who is elected. The situation seems, at least in electoral terms, hopeless. Yet, America has been here before, and has shown remarkable resilience in the darkest of times. So just how do we get the debate we deserve? How do we root out the corruption, greed, and fraud in our system? Clearly, the root of much evil in our system of government comes from the financing of political campaigns by powerful interests. And the Supreme Court has said that money is speech, and thus, protected by the Constitution. So we must pass a Constitutional amendment to speak back to the Supreme Court, and assert the primacy of government by the people.
Derivatives: The Unregulated Global Casino for Banks

Who Loaned Greece the Money

Cyprus Financial Crisis: Deposit Confiscation

Illusion of Insured Bank Deposits

Food Stamp Nation

Presidential Elections

World In Debt

Cost of War

European Debt