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Take your Money out of the Bank NOW!

by on May 4, 2012

The Credit Crunch is not some natural phenomenon but an all out assault by the Money Power. What is worse: even without the crunch we are paying trillions per year in interest for absolutely nothing.
The solution is simple: quit their banks.

By Anthony Migchels for Henry Makow and Real Currencies

The Money Power’s goals are obvious. It is not just the massive multi trillion wealth transfer that is under way. It is about bringing the West down a few notches. The US seems strong with a nominal $30.000 per capita GDP, but when the dollar devalues against the Brazilian Real and the Chinese Yuan things will quickly look different. It will also end cheap raw materials.

The reason this crisis exists is because the banks, politicians, the media and economists are colluding in fooling the many into believing we need banks for our money supply. Most of them probably even believe this is true themselves.

They say we need the banks, because otherwise the real economy would have no money to trade with.

All this is complete and utter rubbish, of course. If banks can create credit, then anybody can. That’s just common sense.

Just imagine: we are led to believe that we need to cough up trillions just to have a means of exchange. One that is completely paper/computer based. I.e., almost free of cost.

Banking is part of the Babylon Mystery and bankers believe we are still enthralled with their ‘fractional reserve banking’ sleight of hand. And they are right. Although people are waking up, they still don’t get it.

A good example of this is the ‘take your money out of Bank of America’ of last October. Bank of America decides to rake in an extra 60 dollars per year with a silly fee. This upsets people.

While they are paying $300k interest over 30 years on their $200k mortgage. Which the bank created the moment they borrowed it.

Meanwhile, 45% of our disposable income is lost to cost for capital included in the prices we pay for our daily needs.

In other words: Penny wise, pound foolish.
People still don’t understand how badly they are being raped. They still don’t understand how they are fleeced through interest on fictional debt.

Coming to terms
Of course, it was a great step and absolutely fantastic to see people finally showing a little teeth. But it shows how hesitantly people are coming to grips with the reality of banking.

Boycotting the banks is the blindingly obvious approach. If somebody is enslaving you with interest and fractional reserve banking while destroying the economy by not lending why would you patronize his business?

To say this is irresponsible as it will worsen the crunch is ridiculous: propping up a system that only exists to enslave us is irresponsible, not disconnecting from it.

But only few even within the Free Media are willing to accept this simple conclusion.

The fact of the matter is: many are still enthralled with the ‘magnificent edifice of international finance’, as Rothschild mouthpiece the Economist once called it.

It is unfortunate that there is still widespread misunderstanding about both money and our real problem with it.

People do not yet understand how pervasive the enslavement through interest really is.

That’s why they fall for the notion that Gold will solve our problems. But what does it matter whether we pay all this interest for Gold or for paper based credit? The Money Power owns both and all the interest will end up in the same place.

The mind control of the rich, the social conditioning to accept the current order and its despicable ‘morality’, to defend it at the cost of oneself and one’s loved ones is very profound and pervasive in our beliefs. They are not easily uprooted, not even by the ‘Internet Reformation’.

In the mean time we are ignoring the real solution: interest free money. Either debt free, in the form of Social Credit, which would work out like a ‘Citizens Dividend‘.
Or interest free credit, through Mutual Credit.

These solutions are real and we can implement them today.

We would no longer pay interest on a mortgage, which would also mean much lower rent.

While paying 45% less for what we need, because there would be no longer any cost for capital included in prices.  World Government would be dead and Big Business would face the competition of well funded small business.

The reason we are not doing this is not only because Washington and Brussels are owned by the Money Power in the City of London.

The main reason is we don’t see the problem and therefore we miss out on the solution.

Fight Back!
We don’t need to wait for reform on a national level. We can create our own currencies. High powered currencies, not just the simple barter units that are now starting to float everywhere in the world. We can create extremely effective, interest free credit based units, convertible to dollar or euro. In effect providing us with a printing press with which we can back the world interest free.

But these will take time to build up. Meanwhile, isn’t it the obvious thing to pull our money out of the banks?

How is it possible that this is being resisted by many well meaning people in the Alternative Media? Is there really anybody out there who still believes the banks will mend their ways? That they somehow will stop being the psychopathic enslavers that they are?

We should not have one dime in that system. Every dollar we put in the banking system gives them a dollar income per year. Remember that. The system, through fractional reserve banking, multiplies your dollar by ten and takes interest over each of them. Real interest (including credit cards) are probably close to 10% and that means they make a dollar per year over every dollar you have in your account.

Remember that 40 years ago nobody had a bank account. Before then there were no computers and the banks couldn’t have handled the administration.
You don’t need a bank to keep your money. The whole idea is insane! Nowhere is your money more prone to abuse and risk than in a bank.

And you can maintain an account for monthly payments, just keep its balance at almost zero. Pay your bills and take out the rest.

Force the FED and ECB to print ever more for bailouts.

Pay cash only. Don’t support their cashless society. Liquidate all your paper assets, both to blow up the system and to minimize your own exposure to the implosion. Let them squirm and lie ever more transparently with every new bailout that they need to force upon us. Let them show their hand. We’re not going to ‘repay’ odious debt.

We’re not afraid. We don’t need them.

Let them eat cake.

The Swiss WIR, or: How to Defeat the Money Pow
Mutual Credit, the Astonishingly Simple Truth about Money Creation
Understand that the Banking System is One
On Interest

Budget of an Interest Slave

This is an abridged version of Financial Warfare 2012: Boycott All Banks

  1. You can buy OPEC oil only with US dollars.
    How can you get US dollars if Americans doesn’t need/buy anything from you?

  2. BleahTheyWon permalink

    If you have more than 10,000 dollars in cash at any given time, the police can(will) steal it and tell you it was going to be used to buy drugs. Also, using all cash puts you at risk of showing up on a terrorist watch list.

  3. Finally, an article that made total sense. I’ve been wondering for years why nobody seemed to be talking about this solution. Its so obvious that the answer is to stop feeding the beast (banks) that is trying to kill and hunt you down. Banks literally create money then charge you interest for the privilege of letting you use that cash. The system is rigged from the start, you are not ment to get ahead in the money game because they loan you debt not money.

    Thank you also for pointing out that precious metals like gold is not the answer either because those who control the banks also own the precious metals. After all, they have had an entire century now to buy them all up. This is why I cannot support Ron Paul, what he offers is a new system but the same masters. Banksters are predatory people who seek to enslave humans through the use of their favorite tool – money.

    I would love to chat over tea with you someday. Thank you for helping get this message out. Much love to you for this article.

  4. MAR permalink

    Hi Anthony,

    Just come across your blog…really enjoying the articles…You make it so simple to understand the issues…thank you.

    I would like your comment on a blog at

    His basic premise is not a gold standard as such but the separation of the functions of ‘money’…(i.e. store of value, medium of exchange and unit of account)…He states that the store of value function will exclusively go to to gold making it the asset that will absorb all the transferred value from the debt that is created by the bankers. Gold will become ‘freegold’ and will float in its ‘buying power’ in terms of the currencies of the world. So if the economy is strong its buying power will decrease and if the economy is creating a lot of debt, gold will increase in buying power in that country.

    The $ will lose its reserve status and ‘store of value function’.

    All currencies will be relegated to medium of exchange function and unit of account respectively for their countries.

    The euro will be a premiere currency since it marks to market the value of its gold and hence its reserves have been increasing over time. The euro is free from the ‘store of value’ function so unlike the $ you do not need to suppress the value of gold to maintain its buying power.

    I understand from your articles how this fits in with decreasing the strength of the US by relegating the $ from its reserve status, transferring wealth to the east from the west, making Europe the center again together with asia will make the largest trading zone. (see engdhal’s articles).

    My question is this the ultimate method or the process that the money power is playing in order to enable all the above?

    Also I think FOFOA is relys on the insights of two anonymous posters on the internet around 1998 to 2002 by ‘FOA’ and ‘Another’ who were presumably central bankers. I think FOFOA is stuck in the assumption that the debt is the problem.

    The insight you gave me is that Germany does not allow the ECB is not allowed to buy the debt of the PIIGS whilst the Fed is allowed to. FOFOA never mentions this fact anywhere in his blog.

    Please could you give an insight into the flaw in his argument apart from the obvious that he has an assumption that usury is not a problem and is needed. FOFOA seems genuine in his analysis because you state also that gold will become very expensive if the money power has its way and therefore buying ‘physical gold’ in your own possession is the only way to protect yourself for the the transfer that he states is inevitable.

    I would appreciate your opinion on his blog



  5. KPRyan permalink

    Hello Anthony,

    I read your article on Makow’s website and must say: “TRUTH!!”

    What is amazing about the idea (and it is an idea that has been around for some time now) is that it is SO FREAKIN’ EASY!!!! Anyone can do it (and EVERYONE should do it!!).

    Pull every single investment out of whatever national bank it is you use (that uses you).

    Instead, find a smaller credit union. They will often have agreements with banks and other credit unions which allow you to use other ATM’s with no fee. For instance, my credit union has a number of agreements with both banks and credit unions that allows me to both withdraw money and make deposits without having to drive to my credit union’s branch (for those of us who live outside of cities, this is important).

    If you don’t want a credit union, choose a small, independent, local bank. The town where my business is located has an independent bank (with 4 total locations) and happens to be the oldest bank in Oregon. I do all my business banking with it. For personal finances I use a local credit union. It’s bad enough that I have to take credit cards at my business, which puts $$$ in the Bankster’s pockets. However at least I don’t have my personal or business accounts with them.

    As you say, Let Them Eat Cake (and choke to a miserable death!!)

  6. Very useful article. Thank you very much. I am looking forward to more articles.
    Great blog.

  7. ericencina2011 permalink
    SOCIAL CREDIT MONETARY REFORM – The Real And The Only Key to Economic And Monetary Justice in the Philippines SOCIAL CREDIT MONETARY REFORM – The Real And The Only Key to Economic And Monetary Justice in the Philippines By Eric V. Encina “There is no calamity greater than lavish desires, no greater guilt than discontentment and no greater disaster than greed (of the bankers)”. – Lao Tzu Chinese Philosopher “There is enough for everyone’s need, but not for everyone’s greed”. – Gandhi “THE PRIVILEGE OF CREATING AND ISSUING MONEY IS NOT ONLY THE SUPREME PREROGATIVE OF GOVERNMENT, BUT IS THE GOVERNMENT’S GREATEST CREATIVE OPPORTUNITY ”. U.S. Pres. Abraham Lincoln “THE PRIORITY IN THE NATIONAL AGENDA IS THE LOOMING FISCAL CRISIS FUELED BY OUR GARGATUAN PUBLIC DEBT, PARTICULARLY THE INSATIABLE INTEREST PAYMENTS ON THE PRINCIPAL AMOUNTS OF FOREIGN DEBTS”. Philippine Sen. Miriam Defensor-Santiago BACKGROUND: What is money? Why do most people never have enough for their needs? Why do a small minority (the rich, tycoons, lucky individuals) have far more than they need, or could ever use on personal needs? Extravagant wealth and widespread poverty exist side by side in the world, worse off in the third world! Does it have to be this way? And is the prevailing Monetary System in any way a cause of inequity, chronic social diseases, and dreadful poverty? This article explores how the current financial and monetary system, as the heart of a profit-driven economic order, ensures that the rich become richer and the poor poorer and even dying. For most, the scarcity of money is a self-evident phenomenon. Almost everyone as consumer needs or wants more than they have. Producers on the other hand are desperate for sales. In major great cities in the country and in the rich nations, cars stand unsold in lots, goods pile up in shops, agricultural products are stockpiled and even dumped. Producers are so desperate all the time to sell that they spend vast amounts of money on persuading consumers to buy their products even at bargain prices. In USA , marketing accounts for 18% of all economic activity is hardly economical. It certainly doesn’t produce anything useful, while shaping desires and consciousness in a highly questionable direction, and constituting massive cultural pollution. But then in the current situation, production is not for people but for PROFIT, so it hardly matters what this 18% of the US economy produces, or what the consequences are, so long as there is profit in it. This is the most desperate situation in most nations in their economic activities, purely because of the lack of money or in some cases, the absence of money. Athe same time there is spare industrial, agricultural, and labour capacity, and even greater potential for increasing capacity. Modern technologies and management techniques enable the production of ever more with less, and certainly enough to meet the basic needs of everyone. Why is this not possible within the so-called free market system? Quite simply, there is insufficient demand, and producers cannot and will not produce or supply what they cannot sell. The problem is not one of production, but lack of demand and equitable distribution. AND LACK OF DEMAND IS SIMPLY A LACK OF MONEY, PARTICULARLY AMONG THE POOR IN THE THIRD WORLD. We are conditioned to believe in the inevitable shortage/lack of money. But this situation is not really true, is not true for all! There is a global elite who can afford to, and do create a demand for the production of extravagant and often excessively priced luxury products, including military armaments. The price tag itself becomes a status symbol. On the one hand ‘the market’ will produce the most extraordinary, unnecessary and even entirely customized single product if someone or some organizations can afford it, or can afford to borrow to buy it. On the other, it will produce bread for the starving, shelter for the homeless, or medicines and nutrition for the dying, unless they can afford it. And all too often they obviously can’t. The 1992 UN Human Development Report showed that the richest one one fifth of the world’s population received 82.7% of total world income, leaving 17.3% for the other four fifths, with the bottom three fifths getting only 5.6% having risen to 86% of the total. The picture is one of a great and increasing excess for the few who are abusive to the wealth of the earth, and a corresponding shortage and deprivation of money for the great majority. We could easily produce all that the poor need to live modestly decent lives, but we don’t! Why? Because they lack the money to create demand. Why is this? Because they are unemployed in underpaid jobs, or engaged in marginal small enterprises or dependent on rare donation, grant or aid. So we have a classic catch 22 situation. THE POOR REMAIN POOR BECAUSE THEY ARE TOO POOR TO CREATE THE DEMAND THAT WOULD CREATE THE EMPLOYMENT THAT WOULD PROVIDE THEM WITH THE MONEY TO PURCHASE THE FRUITS OF THEIR OWN LABOR, AND THUS ENABLE THEM TO MEET THEIR OWN BASIC NEEDS AND ESSENTIALS AND STOP BEING POOR. At the current, technology-driven phenomenon of jobless growth makes the prospect of jobs for all even less likely. HOW THEN THE PROBLEM OF POVERTY TO BE EFFECTIVELY ADDRESSED? According to the dominant neo liberal free market ideology – which is anti-life and discriminately treating the poor and the penniless, the market will provide for all, if only it is sufficiently free, but reality refutes this, particularly for poorer countries like Philippines and Africa . The very truth that the UN research reveals is quite the opposite. ((Is UN playing a game) This is however confirmed by the results of a study by the Washington based Center For Economic and Policy Research. Comparing 1960-80 with the 1980-2000 period that has seen increasing marker liberalization, if found that 89 countries including Philippines experienced a fall of 5% of more in real per capita growth rates, while only 14 countries (13%) saw per capita growth increase by as much. IT CLEARLY SHOWS HERE THAT THE GLOBAL ECONOMY AND MONETARY SYTEM SUCKS UP WEALTH FASTER THAN IT TRICKES DOWN. It is the fact that in the free market, money confers power, freedom, and material well-being only for few, for the influential and only for those who have access to material and monetary wealth, but LACK OF MONEY condemns millions of poor Filipinos and other third world poor populations to powerlessness, dependence on foreign aid with so many conditions oftentimes anti-life/family and anti-faith and morality and anti-culture as well, material suffering and deprivation, criminality, perpetual financial hemorrhage and even in the savage cruelty of death. Free markets by no means provide real freedom on an equitable basis. No wonder money is so desired and sought after even to the point of committing sins, violence, immoralities and all kinds of lies. Free market might only work very well if only everyone has enough money, has financial security guaranteed. Is this really that impossible? WHAT IS MONEY? Money in any form is simply a right to acquire whatever you need or want, via payment in some form. If I enter a grocery with 5,000 Pesos(or $100), I have the right to leave with 5,000 Pesos (or $100) worth of goods and products. If I do so without giving over the money (or my bank doing so via cheque based-transfer, then I am stealing, I have no right to what I am taking. The amount of money anyone has tells us the extent of their right to claim and acquire what others have produced, or have, for example land. This shows that money is literally a substantive right, a socially sanctioned entitlement. Money = Substantive Rights (SRs). The term “legal tender” points to the true nature of money, not as a commodity but as a right or entitlement to and for all. In most democratic societies, citizens have equal human rights, but have very UNEQUAL FINANCIAL OR MONETARY RIGHTS. The concept of economic justice calls for the recognition of the true nature of money, that is, not simply as a neural means of exchange or a commodity to be traded for gain, as in the trading of currencies. Money is indeed a right needed by every human being in the world in sufficient measure, if they are to have an existence or survival worthy with dignity as human beings. This is principle is the basis for the proposal for a dividend for everyone’ or supplementary basic income or a Citizen income – payable to each individual as a right of citizenship. A dividend for everyone without discrimination as a share of the abundance of the God-given wealth of the earth. It is the right of everyone to have a share of the wealth of earth because everyone is a co-heir and co-contributor of the country’s progress or of the world’s progress. But the problem is how can we obtain this under the pernicious debt money system in the world? The seemingly common sense view, endorsed by the Protestant work ethic, is that if you want money, you have to work for it. If you don’t have enough it’s your own fault – you didn’t work or work hard enough, so you don’t deserve any (though this is hardly a charitable or Christian view). On the western world frontier, this may have been true, and may still contain an element of truth but still several millions of people in the first world are working and yet they still find themselves in huge debts. In today’s truly complex economy, work ethics is not a fair response to the millions of desperate job seekers or unemployed in the Philippines and in the world, who will do anything to get work. It is not laziness, but society under the DEBT BASED MONEY SYSTEM and of nasty-muddy politics of corruptions, scams and racketeering that condemn the poor and the unemployed to idleness, immoralities, criminalities and wickedness, and in our country denies them of their BASIC FINANCIAL RIGHTS as a result. There is however already the widespread practice of giving of money by both individuals and the state, to children, the aged, disabled and unemployed, but mostly existing in first world nations or rich nations but there are still many defects and conditions. The separation of work and income is an increasing reality, which technology makes both possible and necessary. But there are also other ways of acquiring money without working that need to be recognized, that are less altruistic, and certainly less beneficial. IT IS CRUEL THAT UNDER THE PRESENT MONEY SYSTEM, THE RICH AND THOSE PEOPLE WITH FINANCIAL ACCESS AND POLITICAL INFLUENCES ARE OFTEN QUICK TO BLAME THE POOR FOR THEIR POVERTY, ATTRIBUTED TO A FAILURE TO WORK (which is not always the case, not always true) BUT BEING BLIND TO THE ROOT-CAUSES OF POVERTY AND AT THE SAME TIME THEY CONVENIENTLY FORGET THEIR OWN OMMISSIONS, FAULTS, PARTICIPATIONS TO THE TRAGEDY OF POVERTY OF MANY AND FORGET THE VARIOUS METHODS WHEREBY THEY THEMSELVES MAKE MONEY (SCAMS, RACKETEERINGS, CORRUPTIONS, IMMORALITIES, ETC.) WITHOUT WORKING. Many rich people are hypocrite and liar. MAKING MONEY OUT OF MONEY: Other ways of acquiring money include inheritance, the selling of assets, investment and speculative trading of all kinds, borrowing, or receiving interest on loans and deposits or by donation or grant from charitable individuals or agencies. These are available to the degree (excluding donations and grants) that one has already money, or assets that can be converted into money. The current money system clearly allows for the multiplication of one’s legally sanctioned money without limit, though this is clearly not without consequences. These options enable the rich to get richer, but exclude the poor, apart from limited borrowing, which usually further impoverishes them. The great global example of this is the often hopeless situation of most highly indebted poor nations on earth. The overall debt of developing nations has escalated from under $70 Billion in 1970 to over US$ 5 TRILLION today – and in 30 years third world debt has multiplied 30 times. Apart from work, the options for the poor are now largely and ironically limited to BEGGING, (as the demand for charity, including government grants, international development aid and corporate social investment, etc.), stealing (and other forms of crime, e.g. the pestiferous drug trade), or starving. Due to this tremendous advantage the rich have over the poor, governments have to acquire MONEY via taxation (the bitter fruit of the present financial system), and distribute them to the poor via expenditure and grants, including development aid, simply to keep millions from extinction. But this distribution is mostly done in the rich nations and too seldom in the third world because the foreign aid, that is, from rich nations does not feed down to the poor and use rather for artificial population control programmes where abortion-the killing of the innocent unborn children include. And this is the situation in the Philippines . However, it seems that redistribution of money is appropriate and necessary to counter-balance the highly inequitable distribution within the current economic system, that is something than nothing at all. But in the point of view of the Monetary or money reformers and the Social Crediters, it is not enough and even a heretical financial formula to help the poor. It is quite clear that those who have money can make more money by means of mostly involve very little if any work. If one has sufficient money it is easy to set one’s money to work to make more money. It is possible to multiply one’s money to the extent that one already has an excess of it. To the extent that one has too few money, this is not possible within the current financial-economic system. In most rich nations and even in the Philippines , the most common mechanism for this multiplication of money is by investment, which is really just SPECULATIVE PUCHASING. Profit depends on selling for more than one buys. There are only four things that can be done with money, you can keep it, purchase with it, lend it, or give it away. The corresponding or reciprocal actions or conditions are to do without, receive payment or share capital, borrow, (that is to receive credit or a loan), or receive a gift, donation or grant. The poor by definition are unable to save, invest, or to lend, and are forced to sell their labour, that is, those who are fortunate enough to be able to do so. In doing so, they work largely to satisfy the needs and wants of the rich, whose share of money translates into upward 86% of demand in the global market place. This explains why in the world, we have numerous motor vehicle manufacturers like in Japan , Germany , USA , UK and in EU only serving a small percentage of the global population, but probably no one bicycle manufacturer, though it is far easier to produce a bicycle than BMW or Mercedes Benz, and the potential market for bicycles is far greater. THE INEQUITABLE DISTRIBUTION OF MONEY LEADS TO HIGHLY DISTORTED MARKETS AND PRODUCTION, WHICH SATISFY AN EXTRAORDINARY RANGE OF WANTS AND WHIMS OF RICH AND WEALTHY (the greed and avarice, and the colossal waste of money), BUT NOT FOR THE BASIC NEEDS OF THE POOR. One way of acquiring money when you do not have enough is by borrowing. And lending can be seen as a worthy social function, even a sacrifice – one worked hard, saved to pay interest, and lent the excess one did not require to others to employ, largely as capital for enterprise development that then benefited society as a whole with enhanced production. But today there is overproduction (age of plenty) relative to the market where demand is largely the demand of the ‘haves’, and even the middle class clearly do not have enough money to purchase all that they need and want or that is already being produced. Clear evidence of this is the boom in the consumer credit most particularly in USA/UK/Japan, and EU. More and more people who have reasonable incomes live increasingly on credit and in DEBT, and there is no more obvious indicator than this of the INHERENT SHORTAGE OF MONEY, for all but the very few. That is the few who have no need of credit because they have a surplus to invest and lend. MOST LENDING ACTIVITES AND INVESTMENTS TODAY ARE PURELY SPECULATIVE OR EVEN RACKETEERING IN STRUCTURE, AS THEY ARE FAR EASIER AND QUICKER TO MAKE MONEY IN SUCH WAYS THAN BY REAL PRODUCTIVE INVESTMENT LIKE ORGANIC FARMING OR ANIMAL RAISING. AS IF THE ADVANTAGES OF THE WEALTHY WERE NOT SUFFICIENT, THERE IS ANOTHER SIGNIFICANT BUT LITTLE KNOWN OR RECOGNISED MEANS OF MAKING MONEY, NOT OUT OF MONEY, BUT OUT OF NOTHING, BY ACTUALLY CREATING AND ISSUING MONEY. How is this done, and who actually benefits? MAKING MONEY OUT OF NOTHING, AND LENDING IT AT INTEREST ‘The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleigh of hand that was ever invented.’ – Lord Josiah Stamp, Director of the Bank of England, 1937 Most people still see money as something physical and probably believe that governments do create it, which is true of physical money. But this cash component of the money supply amounts in modern economies to no more than 5%. The rest, 95% of all money is only FIGURES in bank accounts in the bank computers or ledgers, and is created by commercial banks via the issuing of loans and credit. Today banks do not lend either their actual reserves or deposits, but make loans. In addition, loans and credit, accounted as bank assets, plus other assets and reserves cannot amount to more than deposits, accounted as the bank’s liabilities. However, when a bank is short of reserves, it borrows these from the Central Bank or from other commercial, multilateral or bilateral banking institutions or so-called international or global banks. So the fractional reserve requirement is only a very small obstacle to creating credit. But what of the total deposits as a limit? When a bank issues a loan, this is usually paid soon to the account of the seller of the car, house, etc. thus creating a new and additional deposits in the banking system as a whole. In this way, every loan creates a deposit which increases the total of deposits and the money stock, thus enabling a further loan, which creates a further deposit which enable a further loan, and so on. The limit of deposits is thus no limit at all for the banking system as a whole with regard to the creation of money via issuing of loans. The universally accepted principle of Fractional Reserve Banking, and a required reserved ratio of 2.5%, 5%, 7% or 8% enables our banking system to multiply US$100 Million or Philippine Peso 100 Million borrowed from the Central Bank into US$3,900 Million or Philippine Peso 3,100 Million of credit, created out of nothing. The most significant limit to borrowing is the capacity of the borrowers to afford the loans, and this is why INTEREST RATES (USURY) are so crucial in controlling the amount of money created, and thereby inflation. There can be really nothing wrong with creating money out of nothing, as it is nothing, actually. Nothing, that is but figures at the banks – a gigantic set of accounts tracking money for society, or rather those ‘on the books’. The issue is: who really creates money, and who benefits. Today approximately 95% of all new or additional money that exists only as numbers or figures in bank accounts/computers, is loaned into existence, not by governments but by commercial banks, with the sanction of the Central or Reserve Banks and or international banks, with the sanction of the Bank of the International Settlements-the central bank of all central banks. And that 95% of money, created via the issuing of loans or credit, all has to be repaid, with interest, to its creators—the bankers. The greater or lesser figure with a minus in front of it is entered against the borrower’s name will have to be repaid, often doubly over time, for example on a mortgage. And while the repayment of capital cancels the debt, the interest paid remains as an asset of the bank. Banks and their shareholders /owners and depositors thus benefit from an ever-increasing stream of interest repayment, based on the creation of new and additional money. As the dreadful consequences of the above method of money creation, most new/additional money is ‘born’ bearing a burden of debt, and over time the entire money stock becomes burdened with debt. The banks that create money have tremendous advantage, even though they cannot spend it directly, but lend it, and reap the profit via interest over time. The special profits being gained in this way are indeed enormous with billions of dollars or peso annually in any country and in the whole world and amount to a private tax or tribute extracted by the banks from society as a whole. The hidden profits of and subsidy to the banking system would amount of large percentage of annual tax revenues. The real tragedy is that this could be and or should be an annual budget debt free from the government(s) to give to its more needy citizens, created out of nothing, at no cost to anybody but those who currently profit by its creation. Traditionally, lending was acceptable, as a means of helping others in need, still it is very good for all of us, but most religions including the Christianity forbade usury, that is the practice of lending for profit by charging interest on loans, Islam still forbids the practice of usury. In lending for profit, self-interest rather than a social motive is obviously involved. This may seem of little significance in the individual instance, but on a collective basis, and where large sums are involved, the consequences are both enormous and pernicious. The consequence is a money system that sucks money out of the pockets of those who have too little and are forced to borrow, and deposits if in the accounts of those who too much. The indebted, the workers they employ, and the consumers who buy their products have to work twice as hard to pay back both capital and interest, while the wealthy need not to work at all, as they live on the interest paid by the labor of others. DEBT SLAVERY However, there are other terrible consequences of banks creating money via lending. Firstly, over time the almost the entire money supply become burdened by gargantuan debt. This can be verified by the relevant statistics to most nations on earth. Most nations are suffering the shortage of money where total debts (private and corporate) are skyrocketing than the total money stock. Most nations are bankrupt by debts. Billions in the red! Many nations have less than no money due the fact that their currency denominated debts are also held overseas. And if the banks do their sums and cancel all the credit with all the debit, they will discover the awful truth of debt and misery. There is scaringly less than no money with which to purchase and trade all the very real and obvious wealth in terms of goods and property and services it possesses! SUCH IS THE ABSURD SITUATION TO WHICH A DEBT BASED MONEY SYSTEM REDUCES MANY NATIONS EVEN THE WEALTHY NATIONS LIKE UK, USA, CANADA, AUSTRALIA AND SOME EU NATIONS (and the others are all in a similar situation)! The banks do not care as they just keep loaning or lending money at usury, and naturally they keep on profiting by this kind of racket. A second terrible consequence is that, usurious banks are forced to keep on lending, or the additional money needed to pay the interest on all the debt created. This method of money creation requires the continuous and accelerating growth of the money supply, simply to repay on debts that over time amount to virtually the entire money supply, or even exceed it. There is undoubtedly increasing money supply in the governments, in the world, not because governments create money but because banks lend money at interest. The great tragedy is that this enormous increase of money supply has been so unjustly and inequitably shared, is so pressured by the DEBT THAT IT BEARS, and is so misused by corruptions relative to the real needs of the poorer majority of the population. Debt based money creation leads to the absurd situation, where many are heavily indebted to the few who benefit by the constant bloody stream of interest generated by these odious-racket-scam-based debts, and the many minuses cancel out the fewer and often very large sum pluses. Societies as a whole are in constant financial hemorrhage, financially bankrupt and in the savage cruelty of penury according to the accounting of a debt based monetary system, and have to produce ever more money to pay the interest on the debt that is bankrupting them. But the more money the banks create to enable the debts to be serviced, the more debt they create, because they create additional money by issuing credit, and issuing credit equals issuing debt. The effect for the economy as a whole is equivalent to trying to compete in athletic events shackled by a ball and chain. But no-one notices, and it is considered quite normal, because of the other desperate competitors are likewise handicapped by their burden of debt—almost collapsing to suicide! Naturally the real winners: the BANKERS, THE WEALTHY – WHO COMPETE WITHOUT THE BONDAGE OF DEBT, AND IN ADDITION PROFIT GREATLY AND MUNIFICENTLY BY THE DEBT OF OTHERS. A further consequence is that ownership of assets is increasingly transferred to banks. This is terrible. This means that people have to borrow ever more money and pay off on bonds for longer, before they actually own houses. Government properties and corporations because of debts and interest are privatized and surrendered to the banks. Annually, in every nation and to all nations increasing ownership of assets are cruelly or forcefully transferred to the commercial banks. And very soon, all nations which are deeply in debt to the international banks, and their innocent populations and their assets will be transferred to these transnational controllers of money. The reason for the all-pervasive shortage of money and consequent lack of demand is now no longer a mystery – it is the inevitable consequence of money creation for private profit via the issuing of bank credit or interest-bearing loan. Over time this leads to virtually the entire money supply becoming burdened by an equivalent debt, which means that a significant proportion of the money that individuals, companies and governments earn or otherwise raise must be devoted to interest and debt repayment. The effect is that incomes are depressed often more than halved, which depresses demand, which also depresses production, which also creates unemployment, which further depresses consumer demand in a vicious cycle, and also creates and promotes violence, crimes, insurgency, rebellion and leads others to do scams, rackets and other underground money making and immoral activities. At the same time corporate debt repayments must be paid from sales income, which increases prices, which also depresses purchasing, employment, etc. The vice closes from both directions, as debt increases incomes and increases prices. Debt insures that total wages must always lag way behind the total of prices, so with a system of debt based money creation there will always be serviced by higher taxes, which again lessens disposable income. Small wonder that economies like PHILIPPINES AND OTHER THIRD WORLD NATIONS do not grow or appropriately, are not permitted to grow because of the bondage of debt of the defective financial economic system. And sadly, even in the developed countries like UK, USA, Canada and others – the only way to prevent recession is to constantly pump more debt based money into the economy, or suck money out of other countries by selling products, weapons, chemicals oftentimes detrimental to human life, environment, to culture, and to moral and spiritual life, and in this era, by triumphing in ruthlessly competitive global economic and military warfare. This enforced competition and ruthless, unsustainable growth are further inevitable consequences of the pernicious and damned debt based system of money creation. The imperative for companies is increasingly to grow and profit at any price or go under, and the relentless quest for new markets and profits is what drives GLOBALISATION OF WTO – AGAIN FOR PROFITS OF THE RAPACIOUS AND VORACIOUS BANKERS, AND SOME POLITICIANS. Though the governments do not create and issue most money, they do control the rate at which it is issued, and thus inflation (the most pernicious root-cause of inflation is Government Debt), via central banks setting interest rates, which confirms that money comes into circulation via bank credit. Raising interest rates (which could be criminal and immoral) indeed discourages borrowing and the issuing of credit for investment and consumption. This naturally slows economic growth and gives rise to recession (as what is painfully happening in the Philippines ). Interest rates are therefore lowered, which increases borrowing which increases the money supply, which stimulates economic growth. But because of the lag between the issuing of credit and the creation of equivalent real value, inflation starts up again and interest rates are raised again. Thus the so called business cycle is set up. At this point some may argue that much of the money concerned is not new, or additional money, but the lending or putting into circulation of already existing money, and that no new money is necessarily involved. At face value this appears to be at least partly true, but the rapid and constant increase in the money supply does not come from nowhere, and the bulk of it is certainly not provided by governments and central banks as it should be. The question is: do banks ever lend actual deposits, or do they lend only against deposits? In other words, is there at least a portion of bank lending that is real lending, where for example the bank’s, or Mr. X’ deposited money is lent to Mr. Y? Is any depositor ever told that their balance has been reduced or is nil, because their money has been lent to someone else? This simply never occurs. Banks issue credit without touching or altering the positive balances of depositors or their own reserves, which means that all bank credit involves the creation of new or additional money, and equivalent new debt. But every loan created out of nothing or out of thin air must be repaid with interest by borrowers, to the moneyed elite of wealthy rapacious lenders/bankers/financiers and bank shareholders (there are some religious institutions as shareholders or stakeholders of some commercial banks) who live by usury and worse – the plain fraud of officially sanctioned counterfeiting of money, that is substantive rights, and lending these at interest or usury. There are also significant social consequences that result from anonymous bank based lending and broker managed investment via the markets. The real and traditional connections between borrowers and lenders, and between companies and investors as shareholders and real partners is severed, and with this, human concerns and considerations. In the anonymous and abstract markets where human connections are lacking, consciousness and responsibility diminish, and profit becomes the only measure and motive. The system promotes and indeed institutionalizes the principle of greed, while at the same time disguising its practice. SPECULATIVE TRADING – A CANCER IN THE GLOBAL CASINO The monetary advantage of the wealthy elite based on usury and what amounts to counterfeiting is doubly compounded by their ownership of assets including vast property and corporations via share holding, and the speculative trading of these assets, together with currencies themselves, on world markets. It is estimated that of the over $5 Trillion volume of market exchange each day, less than 5% is only related to real trade or investment that adds real value to the world economy. The rest constantly flows around the globe reaping speculative profit where nothing has been sown or contributed. Speculative currency trading mostly US$ dollars is the most obvious example of this, but by no means the only one. This amounts to a speculative trading of the usurped money of the poor for profit. The effect is the enormous enrichment of the moneyed hypocrite, sarcastic and bureaucratic elite men and women, often at the cost of ruining many smaller investors, and even the whole nations and regional economies, and increasing and deadly poverty for the most poor and vulnerable. Through speculative trading of assets, per se, by currencies, there are around 7.5 MILLIONAIRES TO BILLIONAIRES GLOBALLY with the FANTASTIC COLLECTIVE ASSETS OF US$25 TRILLION and reportedly reaching this year 2004 to US$44.9 TRILLION. The racketeering system of the bank is making them millionaires and billionaires at the cost of the suffering of the poor. The global financial system has become in large measure a virtual or speculative economy, in effect a great global casino in which the elite gamble for profit, power, pleasure, using as chips the substantive money which are the stolen birthright of the majority of humanity, and the very bread which should feed the poor especially the millions of children suffering hunger, malnutrition, poverty and diseases in the third world. This amounts to a economic and moral CANCER of barely conceivable proportions, which has the real potential to cripple and crash the entire world economy. The present financial-economic system is the main cause of crippled Philippine economy, NOT POPULATION GROWTH. In addition, the really big ‘players’ are able to ‘play’ the markets to their own very advantage, both by manipulating perceptions and actual values and trends in the markets. This enables them to predict and profit by both ‘bulls and bears’, and booms and recessions, because they have a hand in creating them. By investing they drive up values, other investors follow, and the company, country, or region becomes over-valued, the big players then sell when they going is good, and precipitate a crash and losses for the rest, while walking away with vast profits. They then buy up the undervalued assets at fire sale prices, as a sure basis for further future profit. Such activity amounts to ruthless exploitation, and it usually attended by real human suffering, particularly on the part of the most poor, marginalized and vulnerable. The policies of WTO and other neo-liberal institutions of elite globalization amount to the legalization and enforcement of the exploitative economic rule of a predatory elite on a world wide basis. Governments that do not submit to this new world order are threatened with economic ruin and consequent social catastrophe. All speculative activity of any kind has the effect of creating fictitious value and illegitimate wealth, which however justifies and drives the creation of real additional credit, loans, debts and deposits in the banking system. This money has no corresponding increase in real value, and it thus inflates both the money supply and the proportion of it held by the tiny, already super wealthy elite. For example, the combined wealth of the world’s 3 richest men (that is, the money they have appropriated), is estimated to be greater than the combined total national wealth of the world’s 40 poorest countries and their entire populations. Though it is clearly in the interests of the elite that people believe that such wealth and poverty have little to do with one another, this is hardly a credible notion at this stage. THE JUBILEE 2000 COALITION ESTIMATES THAT 7 MILLION CHILDREN DIE EACH YEAR BECAUSE MONEY IS SPENT ON DEBT REPAYMENTS INSTEAD OF HEALTH, NUTRITION AND CLEAR WATER. HOARDING THE FLOW OF MONEY An additional consequences of a debt-based money system is that it slows the overall velocity of money, or the speed with which it circulates in the real economy. Because money can make money via interest or usury, everyone holds onto it in order to gain. Debtors pay creditors as late as possible, and people hoard money rather than spend or give it away, though inflation usually erodes what little they gain in this way. This makes the circulation of money much slower than it could be, which is of greater but little recognized significance. A simple exercise shows why. Make two groups of say 10 people each. Give one group $100 and the other $1, and each person in both groups some object to trade. Tell the individuals in the rich group that they must aim to get as much money as possible, and that for every 10 seconds they have the $100 they can get $10 in interest, and in the poor group that they should aim to exchange as many goods as possible as the $1 loses 10% of its value for every 10 seconds you keep it. In the rich group people will be tempted to sit on the $100 and collect perhaps another $100 in interest and so emerge as the ‘winners’, while the rest of their group sits idle and obviously loses out, possibly even trading nothing at all. In the poor group the single $1 will circulate rapidly around the group in a flurry of buying and selling, with transactions of over $100 in value in a space of a few minutes – all accomplished by the same single Dollar! While the idle $100 impoverished all but one in the rich group, the rapidly circulating $1 accomplished the miracles of ensuring that the whole poor group became well off via hundreds of Dollars worth of transactions, though they had and still have only $1. The same limited amount of money can serve more people far more often, simply by flowing faster. In fact, as can be demonstrated with the above exercise, more people can be added to the prosperous but poor group without them being any worse off, as long as the $1 keeps moving fast enough! Without increasing the current stock or volume of money, all of the poor could be fully included at the level of a basic decent existence in the country if sufficient money simply flowed through their hands, as long as the money kept flowing fast enough! No one would be any poorer, as the exercise demonstrates. Such is the potential power of a money system based on the principles of sharing and giving to enrich all, (even the reciprocal and not purely altruistic), as opposed to a system based on taking and greed, which impoverishes the multitudes. This simple structural exercise, while not a perfect simulation of the complexity of a modern economy, nevertheless demonstrates the importance and power of the velocity of money, or of reciprocal giving and receiving (real trade) as opposed to greed (making money out of nothing). Unfortunately the wealthy also make use of this principle for their own gain, by extremely rapid speculative trading in the virtual economy of the world markets, thus continually increasing their share of overall wealth. INSTITUTIONALISED MARGINALISATION But for the poor there is yet a further problem. They are already severely marginalized in terms of power relations and the dynamic of the global monetary system that governs the issuing, distribution and exchange of money. Bu this marginalization is made absolute by another often overlooked fact. In most economies there is a limit to the proportion of the total money supply to which the poor have access, and this limit is generally under 5% of the total, irrespective of whether the poor be 5, 10, 30 or 80% of the population. This is because today on average the percentage of the total money supply that exists in physical form as cash is less than 5%, and this is the only money the poor have access to. The other 95% of the total money supply exists only as numbers in bank computer, the money that is imply transferred from one account to another with the greater majority of purchases, loans and gifts in a modern economy. And this is invisible, intangible money is not available to anyone without a bank account. The poor cannot get their hands on it, they are simply excluded from participation in the main stream of the money flow, because they only have access to the 5% trickle of physical money. In the Philippines , it is estimated that 60-70% of the population is either under-banked or un-banked, that is having no bank account or cannot maintain their bank account at the required deposit cash maintenance. And this 60-70% of the population have to survive on less than 5% of our money stock. From the above it is evident that the function of the entire banking system is in one respect nothing but the book keeping system for 95% of a society’s money, and for a far smaller percentage of citizens in poor countries, i.e. those that have bank accounts. It keeps track of how many substantive right (money) units each person with a bank account has, and how these increase or decrease as we use our units for purchasing, lending or giving. It records as in a gigantic ledger all the transactions of those who are ‘on the books’, and ignores those who are not. Thus the masses of poor people, who most need additional money, are prevented from accessing more than 5% of all money available to society as a whole, irrespective of what proportion of the population they constitute. This institutionalizes, financial-economic injustice, inherent inequality and poverty as structural characteristics of the system. And if money is mostly simply figures in bank computers why should there ever be SHORTAGE OF MONEY? Creating more money is as easy as keying in higher numbers (as banks well know). If there is shortage of money why isn’t this done? In fact it is, and on a continuous basis by banks, but it goes as loans to who can afford to repay debt, and via the interest to the banks, their wealthy depositors and owner. The magicians who have the power to create money in this way naturally do so for their own benefit and not for the common good or to meet the needs of the poor. THE PROFIT MOTIVE IS SIMPLY A EUPHEMISM FOR GREED, A WEAKNESS OF THE HUMAN SPIRIT, WHOSE TRUE REALISATION AND DEVELOPMENT LIES IN GIVING RATHER THAN TAKING. The debt-based money system thus results in a relentless pressure for economic growth and profit, attended by an endemic and chronic shortage of money. It works to prevent altruism, justice, charity and solidarity, and creates ruthless competition, violence, greed and avarice and a primitive Darwinian struggle for economic survival on the part of individuals, corporations and nations. Even the winners are bound to work ever harder and under increasing pressure just in order to stay ahead or at least keep going. Under this system where all must struggle to gain as much as possible for themselves just in order to survive, there is little room for altruism, for giving to and supporting others. The system clearly benefits the very rich and powerful few who occupy the commanding heights of economic/money power, but has massive disadvantages for the majority of humanity and particularly the poorest of the poor. It results in extremes of inequitable distribution of money, with incredible wealth for the few, and inevitable and often dire and dreadful poverty for the many and most vulnerable human beings. It clearly both creates and perpetuates the shameful scandal of inhuman poverty in the paradox of the age of global plenty. Why don’t democratically elected governments in the Philippines , in USA , in UK , in the world challenge the economic new world order? Why don’t they challenge the IMF & WB policies? In the world today, politics and the power of governments takes second place unfortunately to the power of the transnational corporations (TNCs) and the global mega-bankers and global moneyed elite. Politicians who are not already members or minions are quickly co-opted. The ‘money masters’ are the puppet masters behind the world politics, and they rule the world via the power of ‘their’ vast and illegitimately acquired wealth – in reality the money which should be more equitably shared among the whole of humanity. AN ALTERNATIVE PARADIGM OR SOLUTION – DEBT FREE MONEY The main or essential proposal of all Social Crediters/money or monetary reformers and economic/monetary justice activists in the world is and has always been that governments should issue money in whatever form, debt free to their citizens, and that is indeed their duty and responsibility to do so. The issuing of debt-free money will not do away with lending, debt and interest totally, but their overall volume will be greatly reduced, as well as compensated for, when the entire money supply is not debt burdened at source in the act of its creation. This will not reduce the possibilities of making money out of money (unfortunately), but it will stop its creation via debt and the issuing of money as credit by banks. The money system and money are, as A. Lincoln, C.H. Douglas, L. Even, G. Mercier, J.G. Stuart, P. Challen, Eric de Mare, Melvin Sickler and other monetary reformers and Social Crediters in the world well understood the implementation of debt free money, the right functions of the healthy economy through debt free money system. Money and the money system should and can serve the common good and not private greed. This was traditionally recognized that only kings and governments were allowed to issue coins and notes as legal tender. But as money increasingly took the form of credit balances in the computers of commercial banks, so bank lending become the mechanism whereby new, but debt-burdened, money was created. As a result, the power to create new money has shifted from public to private control and has resulted in private gain for the wealthy and exaggerated inequity. SOCIAL CREDIT MONEY REFORM POLICY ENTAILS ONE CENTRAL PROPOSAL, THE REVERSAL OF THIS UNJUST AND HIGHLY DAMAGING AND LIFE-KILLING METHOD OF MONEY CREATION. Therefore, the democratically-elected governments should: Reclaim their rightful power of issuing money (that is all additional or new money in whatever form) from commercial banks. Issue this money free of debt for the benefits of all citizens, particularly for the poor and the needy. Give or distribute this money equitably to all citizens in the form dividend scheme or supplementary basic income or citizen’s income (for taxpayers their tax rebate can be their citizens income) as a guaranteed economic or monetary security from the cradle to the grave. Use the debt free money to fund government expenditures for private and public development without any debt to any commercial bank. Prevent commercial banks from creating money via issuing credit. Require that central or reserve banks – as transparent and accountable public institutions create and regulate the volume of the creation of new money and its issue to the public treasury. Require banks to make loans only of already existing money, either their own , or borrowed from depositors or from Reserve Banks, or elsewhere. These reforms will realistically have to be implemented over a period of time, so that money creation is progressively shifted from banks to governments, which will result in a corresponding decrease in the proportion of debt based and burdened money and the elimination of many of its destructive and life-damaging-killing consequences. As current loans are repaid, debt based money will disappear from circulation. This is not to say that loans will not continue to be made, particularly by banks, but they will all be real loans, of already existing money. If this results in insufficient money available for borrowing, more will have to be created, but not by the banks. However, as the proportion of debt free money increases, the overall level of indebtedness in society and nations should be logically decrease. The positive results of a complete transition to debt free creation of money governments / Central Banks should include: Greatly increased public revenue from a free source Greatly increase public expenditure and social support for the poor and the needy Poverty reduction, prevention and eradication Greater social stability and less crime and violence or terrorism Lower individual and corporate taxes No more or greatly reduced need for government domestic and foreign borrowings No more of true or non-odious public debt Decreasing levels of overall debt More equitable distribution of money Closing of the gap between wages and prices Increased disposable income and demand for real and necessary goods and services Healthy, demand-driven and real economic growth and increasingly broad-based prosperity funded by debt free money Less pressure to compete and greater economic cooperation in the national interest Peaceful society and environment No monetary pressure to destroy the environment Promotion of justice Good family relations Peaceful neighborhoods More charity and solidarity among people, family and neighbors Less or eradication of immoral activities Less or eradication of prostitution or trade flesh Less migration or immigration to other countries Less illegal or eradication of illegal drugs and activities Less scams and racketeering in private and public areas Less graft and corruptions Less unemployment because people can use dividend money for home-based employment The eradication of hunger and starvation in the villages, countryside Less or eradication or homelessness Less or no more use of artificial contraceptives, abortifacients or complete eradication Less or complete eradication of abortion Peace of mind of the general population Economic security for all from the cradle to the grave More religious life and devotions More prayers and good works for the glory of God With economic security, people may be less in the state of mortal sins Lessening or eradication of abortion industry Defeat of the culture of death Stop population control programs (No need of controlling pregnancy and childbearing in married and family life because we are in the age of plenty under the Social Credit Debt Free Money System. We have more than enough for all human beings. Less labor problems and abuses Less bankruptcy or eradication of bankruptcy Less work/poverty/unemployment/low wage/salary-related SUICIDE CASES And there are many other good things to come if our money system is corrected according to monetary reform proposals. Naturally those who currently benefit from bank issued debt based money, the wealthy, super-rich and corporate predators, are going to have to ‘suffer’ a relative decline in their cash flows and overall share of wealth/money. But SOCIAL JUSTICE demands this, and their ‘hardship’ will hardly rate high in the annals of human sufferings, particularly as their other significant advantages will remain. The issuing of debt-free money and other funded benefits to the poor by government will directly increase demand, production and employment at the lower, basic needs related end of the market. There may well be a corresponding contraction in demand, production and employment at the upper end of the market related luxuries, expensive assets and speculative investments. For example there should be a boom in low cost housing development, while the top end of the housing market should suffer a recession, with relatively more money available to the poor, and less to the rich. However, the overall effect of the increasing circulation of debt free money should have a beneficial and stimulating effect on the entire economy, so that by far the majority, including the middle class should also become secured and better off. INCLUDING THE POOR An additional reform needed in poor and developing countries is to increase the ratio of cash to non cash money and / or to rapidly bring the poor into the credit based financial system. Government could issue debt free money via a Citizen’s or Basic Income Grant (BIG), or increased social grants to the needy, either as cash dividend or via supplementary basic income or any other form of unconditional payment. For the latter to work and all to have reasonable access would require the extension of infrastructure, but what better way to invest bank profits rather than in opulent sky scrapers? Ideally banks, whose function is to keep the money accounts of society, should be for public interest, non-profit organizations, else the poor who cannot pay for this service are likely to be excluded as always like that. If the banks cannot be persuaded, or required via legislation, it may be necessary to redevelop the post office network in rural areas, and realize its potential as a public interest institution. This can be naturally funded with debt free money created out of nothing by government. All this flies in the face of a key neo-liberal prescription, i.e. that of privatization which would result in the closing of all unprofitable branches in poor and rural areas, where they are most needed. Of course where the poor stand to profit, this is not considered as profit but economic justice or a share of the material wealth of the nation(s) or of the earth as freely given by the Creator to all. Another strategy would be to ensure that sufficient local rural stores have basic income payment facilities, etc. What better way to support rural small businesses than by giving their customers money as debt free credit, and enabling them to spend it wisely and freely? It is only a small step from this to that of being able to access cash from the store if necessary, as is already possible in certain supermarkets. The store would simply provide the cash and debit the account of the purchaser, just as for a bank account. WHY NOT? This paper-article does not actually attempt to deal with the technicalities of instituting monetary reform, but these are usually among the reasons given as to why it can’t or won’t work. Nor are there the principle or moral legitimacy of monetary reform pronounced as its major defects. However, a change as fundamental as this inevitably threatens vested interests and will naturally be opposed by those currently holding all the cards in terms of monetary or financial power. Money or monetary reform will be dismissed as based on faulty understanding of the present monetary system, and as misguided, unworkable, or dangerous in terms of tampering with the present banking system, which works (works for whom is the issue), in spite of imperfections. But there may be well be risks, unforeseen obstacles or negative consequences, and hence any objections do need to be seriously considered. A notable objection is that monetary reform may be a good idea, but is not possible, as any country attempting it alone in the context of a global debt based economy exists ruin. Investment and particularly investment based on borrowing will decline, domestic capital will flee even faster, and a serious recession if not a full-scale depression will be inevitable. Various components of and variables within this scenario could be developed. But the basic motif is that the rich will be offended and will stop supporting an economy that constrains their ability to profit and grow richer, and that given their economic power, they will be able to do serious damage, if only by taking their money elsewhere. There are a number of effective responses to this argument, and measures that can be taken to counter its predictions. The first response is that monetary reform will be implemented as an incremental process which should demonstrate during a well monitored and controlled transition that its overall positive effects and benefits outweigh its costs. Demand led growth at the lower end of the market should generate sufficient profit and capital for reinvestment in incremental development of needs focused productive capacity. A major benefit of a sustainable, needs-focused local / national economic development strategy will be that of decreasing social instability and crime rates, which are the biggest deterrents to both foreign investment and tourism. Tourism is without question our potential big and easy and most appropriate earner of foreign exchange, being a low tech, low skills and labor intensive service industry. Social Credit Monetary Reform will only come about as a result of a courageous political decision and strong public opinion, which is very critical and unlikely without significant popular support and even pressure, though it is possible for it to be driven by enlightened, benevolent and committed political leadership consistently committed to public welfare. And thorough research and economic modeling is needed as a basic for marketing the proposed reform and its planned benefits, as psychological factors increasingly affect economic decisions and trends. Monetary reformers must continue their activities, lobbying efforts, petition letters, writing and publicity to create pressure to implement monetary reform. (We need prayers and good examples so that we have the credibility of our own to fight against the greatest monetary justice of the centuries and cause a real reform for the benefit of all). Exactly the same reform could either succeed or fail depending upon on the degree of support or opposition it attracts from the leaders, particularly in the business and commercial sectors. In this regard, Philippines is in a very critical level as many of the Filipino people are indeed confused what to support and millions are still in utter ignorance about the major root-cause of poverty, about money creation despite of long years of promoting and disseminating Social Credit Monetary Reform generously supported by the overseas-based Social Crediters/monetary reformers or money reformers and from other Social Credit and monetary reform references. Many Filipino business and political leaders are not prepared for a major change nor to think and act in support of the common good through Social Credit monetary reform. The wealthy, the privileged and the influential should be the one to make voluntary economic sacrifices for the common good to cure poverty, for the sake of a more healthy, equitable and stable society, for the survival of the Filipino population especially our children and the generations yet unborn. Government, political, business and even Church leaders and the wealthy elite in general must be in unity to address the main cause of poverty and realize that Social Credit is the only alternative (THE ONLY SOLUTION) to directly cure poverty problem in the country. Philippine situation is deadly and is ticking social and economic time bomb. If and when it explodes, it will take the whole economy down (as U.K. EU, Canada , USA , and other rich countries are struggling in the verge of economic collapse because of debt money system) as has been dreadfully happening in Africa and in other nations. Without a real money reform, the greed will certainly destroy the nation and the people, while Social Credit will create a society in which the common good is realized for the security of all from the cradle to the grave. To implement Social Credit Monetary Reform, Philippines (and all governments) must have to stand up against the prevailing global capitalism and paradigm, and must reject its sham and deceptive and insane economic or financial prescriptions. It could be more highly advantageous if a coalition of the G-8 nations and or a coalition of G77 nations could be convinced to do this collectively, but this would seem to be too difficult, unless one country has shown the way, the model and the benefits, as Malaysia started to do so. In particular it might well be necessary to protect our economy from total capital flight, and cheap imports (as the EU and G-8 nations do, contrary to their words to the third world nations – mostly empty promises in a mirage) and peg our exchange rate to prevent continuing or total devaluation of our currency. Diminishing foreign exchange and a resulting balance of payments deficit in billions of dollars and indeed a real problem that must be addressed critically by the government. Malaysian government has been able to tackle this matter by disobeying the prescriptions of the international money masters. It is very cruel that Philippine government and the economy is saddled into gargantuan domestic and foreign debts with the impossibility of repayment in the present and future situations unless there will be a complete reform in the banking system. Philippines was deceptively made to grow on borrowed foreign money particularly on expensive US Dollars, rather than creating Philippine debt free money. Philippines is sleeping in a nightmare and likely is not going to wake up soon. Its people being severely strained in extreme monetary and material poverty in constant and seemed to be in perpetual hemorrhage, being terribly degraded and pauperized and being skinned alive by the harsh realities of life in its defective economic system and terrorized by the carnage of global economic capitalism, standing on the globe begging for work overseas or with begging bowl extended appealing for mercy. Philippine government is begging too for loans, foreign investments just to survive. But the money goes to the pocket of the corrupt officials. Government leaders religiously obey the IMF-WB prescriptions the economic fundamentals which oftentimes against the interest of the Filipino people and against the mandates of the Philippine Constitution. Millions of Filipinos are unemployed, under-employed, resulting to significantly increased poverty for the millions despite of the fact that many are struggling to professional employments. There is also a massive outflow of local capital and depreciation or devaluation of Philippine currency. And these, by following the prescriptions of the IMF and WB have given to negative results, particularly marginalizing the poorest of the poor. Holding out the begging bowl for foreign investment is more wishful thinking. The monetary predators, dinosaurs, racketeers, scammers, fraudsters and thieves only swoop WHERE THEY SMELL PROFIT, though cheap assets are also tempting, and certainly available due to the ongoing devaluation of currency. But the luster of our assets (being privatized) is tarnished by a world-beating crime crate and the prospect of further social and economic instability as happening to other debt-ridden countries. In conclusion, Philippines can be better off if the Filipino people will completely go against the prescriptions of the global capitalism, of the international bankers. This will essentially involve protecting our economy, industries and currency, and our poor citizens from predatorial financial power. It is indispensable to consider Social Credit Monetary Reform Policy as an aspect of a major strategy for a real change. Monetary reform is the only key to the financial-economic security of the Philippines and the citizens. Sources are taken from the combined Social Credit-monetary reform ideas, proposals, suggestions and articles of foreign-based Monetary Reformers and our actual situation in the Philippines. “… there can be no independence without financial independence…” Sir Robert Menzies Comments, suggestions, criticism and correction are always welcome. Eric V. Encina Filipino Social Crediter/Monetary Reformer

      You cannot reform anything, including money – nothing can be reformed – The Protestant Reformation is living proof of this. All you can do is completely scrap the present system and start afresh with government or the people’s printed money just as Lincoln did and Kennedy attempted to do. Usury based systems are the problem, that’s all. If the nations of the world united in this aim then the banksters would be screwed.

    • It’s rather hopeless in the USA because the parties that everyone look toward as being true reformers, Ron Paul (rep) and the Gary Johnson (Libertarians) have exactly this presupposition for all of economic and monetary programs:


      The democrats (Obama) operate under his assumption in practice but disguise it with populaced lies and rhetoric. Rarely to they castigate the real source of theft as a result of unproductive labor — e.g., usurous banking and its various manifestations in speculation.

      Like Al Thompson said below, people that have stepped foward into the limelight with real solutions that you have outlined in superabundance, have been completely ignored, persecuted and murdered. I suppose if millions rose up a once, there might be too many to dispatch in this way; but too many are still asleep and mesmerized by establishment propaganda.

  8. ericencina2011 permalink

    The aim of the economic and financial system is the service of man. The goal of an economic system should be the satisfaction of human needs, the production of goods (the role of the producing system) and the distribution of goods so that they may reach the people who need them (the role of the financial system). Social Credit proposes a technique that would make the production and financial systems serve their purpose.

  9. Anthony,

    Your ideas are good, but the problem in the USA is that anyone who tries to establish alternate currencies usually get murdered or put in prison. John Kennedy tried to establish US Treasury notes which were debt free. Another man tried to establish the “Liberty Dollar” only be have his coins confiscated and he’s now trying to stay out of prison.

    It isn’t like no one has tried in the USA, but they are simply killed or put in jail if they do it.

    • I still think its possible to introduce a debt free currency without having its existence dependent upon the welfare of its creator. I have in mind a currency like bitcoin that could gain an autonomous and unstoppable life of its own once enough people started using it.

      Or perhaps, a outbreak of many different local debt free currencies simultaneously in different parts of the global economy along the ideas of Anthony Michgels could work as well. It would have to happen on a large and diverse scale to work imo.

    • No, not really Al. There are the Berkshares: a regional currency circulating a few million. No problem there. If you try to take over teh system, like Kennedy did, yes then there will be mayhem. But a few thousand private currencies would be very, very difficult to stop.

  10. ericencina2011 permalink


    By Eric V. Encina

    “It’s all bullshits/ bollocks in the world of money control, scarcity and endless miseries” – Eric V. Encina

    1. The inevitable and almost total restriction of money is a bullshit!

    2. The actual lack or in many cases absence of money is all a bullshit!

    3. The eventual and inevitable indebtedness of peoples, businesses, families and the government (also most nations) with skyrocketing interest payments at the expense of the poor populations already in utter agony are all a bullshit forever!

    4. The continual unjust increase of taxes, penalties and charges is all a damned bullshit!

    5. The continuing inflationary pressures being played like a toy is all a bullshit!

    6. The frequent devaluation of Philippine Peso currency versus other currencies is all a bullshit!

    7. The unjust and unfair daily fluctuation of currencies is all a bullshit!

    8. The frequent, unjust and unfair increase of prices of basic needs, prime commodities, bills and services such as transportation is all a bullshit!

    9. The calamitous increase of material and monetary poverty to most inhabitants in most impoverished region, provinces and villages in the Philippines is all a bullshit!

    10. The calamitous cases of pitiful hunger and malnutrition of innocent children and diseases despite of the age of global plenty is a damned bullshit than ever!

    11. The increase of heinous crimes and violence – the increase of prisoners daily at overcrowded jails and prison houses is all a bullshit!

    12. The deteriorating and devastating breakdown of the family and of the community is a hell-like bullshit!

    13. The increasing massive problems of unemployment, under-employment or under-ground employment involved in criminal operations is all a damned bullshit!

    14. THE PROBLEMS OF BRAIN DRAIN IN THE PHILIPPINES where around 5,000 to 6,000 up to 10,000 Filipinos particularly among women, mothers leaving behind their family members and children, and leaving the country daily to overseas nations for work, employment, migration, immigration, practically for survival is all a damned pestilence bullshit!

    15. The increase of slavery, child-hard labor, abuses and prostitution or transactional sex, drug, liquor and cigarette addictions to numb their poverty and sufferings is a hell-like satanic damned bullshit!

    16. The massive destruction of the environment and the eco-systems is a bullshit!
    17. The increasing rebellion, insurrection of the masses is a damned hell of bloody battles and massacres-bullshit!

    18. The shocking increase of suicide cases in the Philippines around reportedly 1,000 daily in the countryside and increasing is always a bullshit!

    19. The increase of mental illnesses is a bullshit!

    20. The increase of murdering the innocent unborn children by abortion in the wombs because of money and poverty problems is all bullshit!

    21. Despair, and Loss of Faith in God is all a bullshit!

    22. The division of peoples and endless political animosity, crisis and bickering of parties and factions is all a bullshit!

    23. The poor education or mal-education of peoples is all a bullshit!

    24. The homelessness of many poor families in the slum and squatter areas. The eviction of tenants and the poor families due to increasing rents, the loss of income, etc IS ALL A DAMNED BULLSHIT!

    25. The increase of both man-made and natural calamities. Oftentimes, calamities are well-designed by man-made technologies of evil men in control. Calamities by nature and by God can’t be questioned are all damned hell-like bullshits!

    26. The transgression of God laws and commandments, and hatred of peoples to each other is all a hell-like satanic bullshit!
    27. The increase of corruptions in the public life without any shame is all a curse bullshits!

    28. The behavioral changes of peoples either criminal and suicidal are a damned bullshits!

    29. The increase immoral manners of peoples destroying moral life and become disastrous to humanity are all a damned bullshits!

    30. The lack or loss of interest to live and the loss of meaning of life is a run away bullshit!

    31. The increasing cases of millions of Filipino families suffering hunger and starvation in the countryside because of the lack of money, income is an eternal hell of bullshits!


    Eric V. Encina
    Filipino Social Credit/Monetary Reform/Economic/Monetary Justice Campaigner
    Usury-Free Currency/ Money Campaigner

  11. youmma permalink

    Why not invest in precious metals Anthony?

    • Two reasons: the gold just sits in your back yard, not being productive in teh community.
      Second: you unwittingly support the movement towards gold as currency with all it’s dangerous implications (see the faux economics page)

      • youmma permalink

        But what will be do when there is hyperinflation? I mean I understand how you think but we need to survive also.

  12. so what do you do with all the money withdrawn? put it in a safe deposit box? buy precious metals?

    • these are options, although I don’t support hoarding the means of exchange, nore in a bank, nor cash. Money is not meant as a store of value.

      Pay off debt, pay some suppliers up front, invest in cost cutting measures, give it or some of it to people who need it more, invest in local businesses, businesses of your own, of people you know.

      I guess get the picture.

  13. Good to be aware of the opposition

    Alex Jones calls for Occupy Bilderberg
    05-02-2012 •
    On May 31, the annual Bilderberg conference will take place in Chantilly, Virgina. Every year the world’s elites meet to make decisions that could potentially have an affect on millions around the

    • One wonders how much AJ’s got sitting in his bank accounts………..

    • I wonder if Alex Jones’ good friend and recipient of 2.7 millions from the Bilerburgers, Ron Paul, will be there.

      If he was really opposed to the Bilderburgers he would have not supported Paul for this reason, not to mention many others such as Paul being a high degreed Rosecrucian.

  14. Simon Barber permalink

    Don’t use a bank for anything – use a credit union instead. These are non profit, so they are not legally obliged to make as much money from you as possible.

    • They certainly are a lot less nefarious than the Wall Street vipers. But they still are part of the same system. I’d take my money out of them too.

      we need to get rid of the interest bearing banking system altogether.

    • Anthony is right, i won’t argue with him on monetary issues. However, putting their money in a credit union prevents them directly from using it to enrich themselves at your expense (they still can tax it by inflation). It also gives you a little more protection against outright confiscation as with what happened at MF Global. It’s not the best way to fight them, but imo at least its not a step in the wrong direction. To find a National Credit Union Assoc. insured credit union in the USA just type in your zip code here

      My idea of a credit union was like that of a small community business in which everyone pooled their money for the benefit of themselves and the community. All interests on loans went directly to themselves. But i guess if your using the banksters usurous property, this benefit is irreparably compromised from the start.

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