The Problem:
The modern banking model started in 1694 in London. For over three hundred years we have allowed private organisations, namely central banks, create money and issue it into society. They have three ultimate customers; individuals, businesses and governments. We deal with local national banks for our daily commerce, but ultimately they are just agents who are getting their money from the central banks of the world.
The central banks do not have the money to supply to their three customers. They are allowed create it out of thin air by a process known as fractional reserve banking, i.e. they only need a fraction of the money they issue into society on deposit to back up their loans. If a member of the public did this they would be jailed for fraud. In our society it is considered sober and proper finance. However this is far from their most devious action. In performing the sleight of hand of issuing money they do not have into society private central banks have never once created a cent of interest that is payable on our debts to them. Let’s repeat that. Interest, although owed to bankers, is NEVER created by bankers. All of the money in circulation is just the principal owed on our debts, and not the principal plus the interest. Hence there is not enough money in circulation in our world to service our collective debts. It is why our businesses are suffering, why our governments are imposing austerity, why taxes are rising and why people are working harder and harder just to tread water. All three subsets are fighting each continuously for ever more scarce monetary resources. It is a rigged game. We always lose.
Many may doubt that our central banks are privately owned. In 2011 the Federal Reserve in America finally admitted, after much pressure, that it was not a public entity. The same is true of the ECB, the central bank of England, the Irish central bank and indeed the central banks of all but four countries in the world. The proof is in the pudding. If the Irish central bank was a public entity would our governments from the 1940's onwards have allowed a branch of government to give money to the nation state and charge interest that did not exist, when the nation itself was in a permanent recession? Perhaps the reason the state was in a permanent recession was that its government was repaying vast sums of money to a private organisation masquerading as a public entity. Would the hundreds of thousands who emigrated from our shores in the 20th century have had to go if we were not paying erroneous interest to our supposed national central bank?
Since 2008 I think we would all agree we have been living through a collective nightmare. The middle class is shrinking by the day, suicide is rampant due to financial pressures and our sovereignty and sense of security and control is vanishing by the day. We have invested an awful lot of time listening to economic commentators telling us we need to tighten our belts, to get more efficient, to work harder, to accept austerity and then maybe in some hypothetical long term future we may possibly return to some semblance of normality. It is now time to identify the real cause of our problems.
The reason that we are in this nightmare at this moment in history can easily be explained. Even though the central banking model is fundamentally flawed, it worked for three centuries because our population was growing so fast. As an example the worldwide population in 1900 was 1.75 billion people. In 2008 the population was close to 7 billion people. Therefore in just over one century the population of the world quadrupled. Like any good Ponzi scheme there were always more and more participants coming to the table to take on this monetary model. Therefore the scheme thrived, i.e. the rate of monetary creation through new debts being issued exceeded the existing debt plus interest repayments, even though the interest due on old debts had not being created. For an economy to repay its debts it needs a GDP rise per annum of roughly 2-2.5%. In the century just gone the average rate of GDP rise across all countries was approximately 4%, i.e. proof that the flawed system was at least functional. Existing debt could be serviced.
However the system crashed in 2008 because the rate of population growth slowed dramatically. In the next century the population will rise up towards a maximum of 10 billion. That may seem huge but going from 7 to 10 billion is only a 50% rate of population increase. By applying the formulas above we see that this will only yield a GDP rise per year of roughly 0.5%, i.e. far less than the 2-2.5% required to repay our existing debts. Therefore our rigged game has permanently crashed. The only way to return to perceived economic prosperity with our current model is if our worldwide population rose to 28 billion by 2100, i.e. another quadrupling, thus giving us our 4% rise in standards per year. I am sure we would all agree that a population of 28 billion is not desirable, or even possible. As a point of interest Ireland’s GDP rise for the last year has been less than 1%, exactly as predicted by current population growth and far less than we need to repay existing debt obligations.
I think the time has come to say enough is enough. The whole world is in a process of foreclosure. Some are up for the chopping block first, but ultimately everyone will get there. Until economic commentators address this fundamental question of how money is issued into society then nothing else should be up for discussion, most certainly not austerity programs. The time has come to outlaw private central banking and reset our economies. If we allow the system to continue we are heading for a very dark future. If you supply money to people that ultimately they cannot repay, as we have proven above, then eventually the day will come where you seize all their assets, secured against the loans made. That is already happening; examples being one million homes seized in America, Greek national infrastructure up for sale and Ireland being forced down the route of preparing its assets for sale.
Now we can wonder if the private central banks are doing this by design or by accident. If I say they are doing it by design I am labelled a conspiracy theorist and my message gets lost. Therefore I say it doesn’t matter how this system came to pass. The fact is that the system is rigged to take ownership of you, your businesses and your governments. Do we allow it to continue as it is, or do we change the system?
There are many healthy alternatives. I examine some of them very briefly below. Firstly it is much more important to correctly identify the real problem, before the solutions are discussed. Once we do this we will be free in a very short period of time. The world could permanently thrive if we broaden our horizons. The ball is in our court, not theirs. A system can only be implemented on you if you accept it. In our soberness can we continue to accept the model as outline above? I contend the answer is no and that it is time we showed our strength.
Solutions:
- Stay out of fear. If people are afraid they will accept any change that is foisted on them, however inappropriate it may be. Wake up to the fact that our fellow man provides our nurturance and our beautiful earth our sustenance. The economy should never be the absolute center of our lives, as it has become.
- Absolutely refuse any solutions from the private central banks - and/or by extension their corporate and governmental proxies - who got us into this mess. These include, but are not limited to, the following “solutions”; a new global debt backed currency, more centralized political control of the Euro zone countries, a financial transaction tax (guess who pays for that!), selling national infrastructure and most especially any further austerity or taxation
- Wipe out all existing debt to private central banks, on monies that were issued into society through fractional reserve banking and through the issuance of debt where no corresponding interest was created and released. This will see almost all private and public debt wiped out worldwide. This legitimate amnesty and wiping of the slate allows a new system to be birthed into existence that allows a functional and healthy economic model to exist
- Reclaim any real physical assets from these banks that were wrongfully acquired from people, businesses and governments through their fraudulent practices. Use these refunds, especially to governments, as a start up fund for the new public banks
- Set up public central banks that will be controlled by the people through their elected governments. The notion of national debt will become obsolete.
- Ensure all future loans made to people and businesses are backed by real assets.
- Ensure all future loans issued into society also have the interest payable on them issued into society, or else ensure they are issued interest free into society. This will eliminate the scramble to obtain scarce monetary resources from dominating our lives
- Abolish the majority of taxation as it has been proved that it is mostly needed just to pay off governmental debt to private central banks and also to pay the wages of public sector workers and welfare recipients, who in turn need it to pay off their debt commitments to private central banking.
- As a result just one flat tax rate could exist across all society, at a nominal figure of say 15%. The proceeds of this could go to help build public infrastructure and pay much more reduced public wages as the people will not need such high remittances
- Prioritize the real needs of people and define true security. I contend it is to have guaranteed access to home energy, quality food and clean drinking water. Outside of these basics our needs are not necessarily universal, but more personal. Endeavour to build the infrastructure into people’s lives that provides these commodities free from the need to have money to obtain them. Wake up to the fact that nearly 4000 patents around the area of “free” energy and devices that require minimal finance to provide energy are actively being suppressed by the petrochemical industry. If these devices existed we would have no home utility bills or ever need fuel for vehicles again. This is real security. We could also build local permaculture, aqua-phonics and many other food producing models in our communities that would provide high quality, organic and healthy food in perpetuity, free from the need to earn money to obtain them. The same could be done with drilling wells to ensure we always have access to fresh water. With a major wipeout of existing fraudulent debt and a huge surge in building life enhancing infrastructure like above we would suddenly see a mass freeing of humanity
- With this freeing we would see an exponential surge in creativity. People would not be forced to work in jobs they despise when they can find the very real security as above. This creativity would inevitably lead to new discoveries etc. that would benefit mankind.
- We could see true bartering come into fashion, to further free us from the grip of centrally controlled money. This is often denigrated and scorned. However we live in a digital age with electronic accounts dominating our commerce. This notion could be transferred to our daily lives. We could list all the goods and services we could offer a community, however minute the task or menial it may seem. We could have a trading account and engage in commerce with our local community. A steering committee (that rotates) could rank each task on the listings page a value from 1-10 points depending on complexity of task, duration etc… If I need a service I request it. The task is completed by a fellow participant and their account is credited, mine debited. My debt is not to this person but to my account, i.e. my account can not go too far into overdraft. (maybe 20 points or so). I now need to offer my services elsewhere and work off my debt to my account. Similarly one cannot go too much into credit, i.e. it is no use expecting to build up huge credit by offering just one service to a select few people. In this case an upper limit should also exist. This model replicates money, but does exactly what money has failed to do, i.e. it lubricates commerce ensuring we all give and get what is needed, with security for all. To date we have all been so concerned with debt repayments that we clamp money when we get it or do whatever it takes to get it in the first instance.
- In a generation or so we will see our current money become very unimportant. We will quickly realise that it is our beautiful mother earth that provides all of our needs and not some fictional economy. When we are in balance with ourselves, our community and our world all of our needs are met, in perpetuity.
These bullet points are the merest hint of the limitless potential that awaits mankind when we free ourselves from the false tyranny of our debt backed currencies. In each and all cases the points can be vastly expanded upon in greater detail. There are many people who will become the architects of a new and functioning society. The solutions above are but a drop in the ocean of our collective ideas and potential.
Barry Fitzgerald
Author of "Building Cities of Gold"
Available Now From Amazon
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Publishing house: ATTM Press.
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