Tuesday, February 02, 2010 5:58 PM
People have to start understanting how money is put in circulation I have put an article by a person called Byron Dale (it's american but still applicable to us) that may prompt people to start questioning and researching our debt based money system
"The government should create, issue, and circulate all the currency and credits needed to satisfy the spending power of the government and the buying power of consumers. By the adoption of these principles, the taxpayers will be saved immense sums of interest. The privilege of creating and issuing money is not only the supreme prerogative of government, but it is the government's greatest creative opportunity"
Abraham Lincoln
"Until the control and issue of currency and credit is restored to government and recognized as its most conspicuous and sacred responsibility, all talk of sovereignty of Parliment and of democracy is idle and futile.....Once a nation parts with control of its credit, it matters not who makes the nation's laws... Usury once in control will wreck any nation".
William Lyon Mackenzie King - Prime Minister of Canada who nationalized the Bank of Canada
OUR FLAWED MONEY SYSTEM IS FAILING
Economists, bankers and most government leaders choose not to discuss a very significant mathematical flaw in our present money system. The flaw is that under our present money system all money is created by the banking system and put into circulation as interest-bearing loans. This process makes it mathematically impossible to repay the loaned principal plus the incurred interest because when all the money is created as loans, only the principal is created-never the interest. There is simply no way to create the additional money needed to pay the interest incurred by the loan. Money does not grow.
Only the principal is created by the loan. The principal is uncreated when it is
repaid. When the interest comes due, the debt becomes greater than the money supply! A SHORTAGE OF MONEY IS CREATED THAT CONSTANTLY GROWS. Time and Interest always makes the debt grow but neither makes the money supply grow! Money does not grow. The money supply only increases with more loan creation. This ‘SHORTFALL’ between the money created and the debt owed creates a constant and growing spread between the prices of raw products and the prices of finished products. It causes ever-growing pressure to reduce the cost of wages paid to workers. Interest is always a cost of doing business. It must be paid or the bank forecloses on the loan and takes your business away from you. Therefore the cost of interest must be added to the price of finished goods, or you must find a way to cut your wage expenses or the cost of your raw materials. This ‘SHORTFALL’ is the reason that we have ever growing debts by government, business and individuals even though everything is produced as an asset.
This shortfall is not a sign of bad management; it is simply mathematically
impossible to pay both the principal and the interest, because under our present money system there is no way to create the money need to pay the interest. That is why the total debt constantly grows. The interest can only be paid with property through foreclosure.
HOW DOES THIS AFFECT YOUR LIFE
Our current money system affects us in very subtle but negative ways. It deceives us into living a life of illusion. We are taught that we must all gain a monetary profit from our business and our labor and that we must save some of that monetary profit for the future or invest it to earn more monetary profit. It’s obvious from the facts that everything is produced as wealth, yet in producing all wealth we are more than $40 trillion in monetary
debt! That makes it impossible to collectively have a monetary profit and savings. Imagine that we start with no money. 10 people borrow $100 each creating a total money supply of $1000. How can each save $10 and pay back $110 each, a total of $1200 when the money supply is still only $1000? How can each of the 10 people gain a monetary profit of $10 on their borrowed 100? Doing so would mean that each person would have
$110 or a total of $1100 with a total money supply only $1000! This could only be made possible with an increase in the money supply. But, the money supply is only increased by more borrowing at interest! It’s mathematically impossible for all to save and profit. A few can, but only at the expensive of many. Would like to live in a world where you could only have a family if some one else lost their family? This how our money world
works! It’s hard to imagine how a few in the Banking system have deceived so many of our Nation’s people. Thanks to illusion deceptively sold to the people over decades and the cost of interest and taxes, Americans now live under a constantly rising cost-of-living and a constantly growing fear that they may lose their job to some one who can be hired for lower wages.
A Credit money system ensures that the cost-of-living will rise to nmanageable levels
for greater numbers of people. The switch to a Credit money system created the need for a safety net like Social Security and other costly, unworkable tax funded social programs. Our Credit money system insures that most, if not all businesses will sooner or later fail or be forced to restructure. Our Credit money system forces us use products of lower and lower quality or forces us to pay to very high prices for good quality products. In a monetary system where money is created and put into circulation as interest-bearing loans only the principal is created-never the interest. The principal is debt and can be used as a medium-of-exchange. Interest is debt but it is never created. It cannot be used as a medium-of-exchange. When the principal is repaid it is extinguished. It no longer
exists until another loan is created. Currently, all money is debt but not all debt is money. Once a spends what he has borrowed, he must capture someone else’s loan principal in the process of commerce to repay the loan plus the interest on the loan. This causes an EXPONENTIAL GROW OF DEBT THAT WILL NOT STOP UNTIL WE AGAIN START PUTTING ALL NEW MONEY INTO CIRCULATION DEBT FREE.Americans have a collective total debt of more than $40 Trillion. The MI money supply is less than $1.5 Trillion. At just 6 A.P.R., the debt by 2016 will have grown to the point
that the annual interest due will be more than the total consumer income! The interest on this unpaid debt continues to grow and gets added to the costs of living.
It is our hope that you will join the growing movement to once again have all new money put into circulation debt-free and demand the Reform of Our Money System.