My email to letters.editor@ft.com

Sir,

Regarding your letter and comment Common sense and history both suggest a pause in QE and Essential to keep QE available, I am writing as the Organiser of the Forum for Stable Currencies which has been presenting meetings at the House of Lords and Commons since 1998. See our archive site.

I am also writing as a mathematician and systems analyst formerly at CERN, i.e. I have analysed not only the statistics of the Bank of England but also what “money” is and how it is created. Hence I cannot concur with Quantitative easing explained by the FT.

On Money as Debt also Known as Credit, I have published “Quantitative easing” to camouflage “printing credit” which is possibly the best explanation of what QE really is:

• The printing of “money as Credit” by the Bank of England or any other central bank.

The reason why QE can’t work is obvious to me:

• if the Treasury were to supply money, it would be free of interest (M0); therefore “printing money” would work
  • see our submission to the Treasury Select Committee in response to the Stern review Green Credit for Green Purposes and Green Taxation vs Green Funding
• “printing Credit” (M4) can’t work
  • 97% of the money supply consists of Credit
  • nobody creates the interest necessary to pay for Credit

• the Credit share in the total money supply is increased yet more
  • the Cash : Credit ratio gets worse and worse.

Unfortunately, policy seems to be determined by the City and not by Westminster, i.e. the Bank of England and other central banks determine what happens to the global economy. For an excellent overview, you may want to view The Global Financial Crisis by professor of economics Michel Chossudovsky.

Should you be interested in reading more about “economics from a system analytical perspective”, here are a few of my links re quantitative easing:

• Four ways of “net credit creation”
• Quantitative easing for investors abroad
• Quantitative Easing in Wikipedia, or the Politics of Information and Contexts
• Common sense and history both suggest a pause in QE
• Money supply is in the air of the FT.

Since April I am looking after my mum “left of Berlin”. Thus I am now publishing in German what I learned in Westminster: www.NationaleSchulden.eu

Sighingly yours,

Sabine

________

Organiser, Forum for Stable Currencies, advocating Economic Democracy through Freedom from National Debt

Blogging on behalf of Voters and Taxpayers:

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Stop the Crash Crumble to Equalize the Credit Crunch: 226 signatures and > 9,600 page views

Financial Fairness for Voters and Taxpayers, please! 43 signatures and > 2,000 page views

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Money as Debt also known as Credit – blog about our core concerns – with > 9,100 views

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Common sense and history both suggest a pause in QE

QE means Quantitative Easing. It means Central Banks printing money. But their kind of money is Credit Money, i.e. somebody receives interest payments, and taxpayers pay via the Government’s share in the budget of “public debt interest payments”.

This letter in the FT prompted me to spell it out, once again:

When Governments print money, it’s “Cash Money” which is not only free of interest, but also gives them seigniorage as income.

However, creating money electronically out of thin air would not justify seignorage. But why do Governments hand their power of creating money over to their Central Banks?

Your guess about politicians and central bankers is as good as mine…

My response to Mr George Taferner is this:

Dishonest Money

A second edition of Dishonest Money has become available and tells us in yet another way how fraudulent the creation of money is. Everbody needs to earn, borrow or steal money.

But the Federal Reserve is a banking cartell and they are the writers and implementers of the monetary policy of the US.

Since the dollar is the reserve currency of the world, it effects the whole world.

The author calls himself Joe Plummer and is simply appalled by the power of the monopoly of creating money. He is also aware of the fact that “they” plan to issue a global currency that will be required to pay for oil.

And thus we keep chipping away at “public opinion”, one opinion at a time!…

A radio interview is available here.

Liberia sued by Vulture Funds in London

This article, published by EURODAD, the European Network on Debt & Development, illustrates a degree of abuse that Western banksters can get up to: registered as an anonymous company in a tax haven, they are using lawyers in London to take poor countries to court.

Both the UK and the US are preparing for legislation, but nobody challenges DEBT and national debts as the origin of such disasters.

Debts in the Name of the Nation

This petition to save the canal properties of Waterways stirred me to put as succinctly as possible why the National or Public Debt has reached its most heinous peak of abusing “public” for private enrichment. The sell-off of “Government assets” is in the news: BBC, Mail Online, the Telegraph and more.

The National or “Public” Debt in a Nutshell

A Mechanism for the Oppression of Their Majesties’ Subjects

The first National Debt of £1.2 million at 8% interest was created with the Bank of England Act 1694 – when the Corporation was founded with the intention not to oppress Their Majesties’ subjects.  See Enforcement of Bank of England Act 1694.

This graph shows the exponential rise of the debt (red) in £ billion and the percentage of GDP (blue).

During history, the National Debt was at times annulled, because it was not repayable.

The national debt between 1855 and 2002, published by the Debt Management Office, has unfortunately not been accessible since it was downloaded.

Peak Everything

Money is a debt token. What excellent description in a superb letter to the Belfast Telegraph: Never mind oil, we are approaching peak everything.

Ecuador declares foreign debt illegitimate

Something’s gotta give if enough honest people try hard enough!

* Ecuador Declares Foreign Debt Illegitimate *

IN TOP 25 CENSORED STORIES FOR 2010

In November 2008, Ecuador became the first country to undertake an examination of the legitimacy and structure of its foreign debt. An independent debt audit commissioned by the government of Ecuador documented hundreds of allegations of irregularity, illegality, and illegitimacy in contracts of debt to predatory international lenders. The loans, according to the report, violated Ecuador’s domestic laws, US Securities and Exchange Commission regulations, and general principles of international law. Ecuador’s use of legitimacy as a legal argument for defaulting set a major precedent; indeed, the formation of a debt auditing commission sets a precedent.

http://groups.google.com/group/newslog/t/b34071e65bf7417c?hl=en

Anne Belsey’s Money Reform Party

This is the latest story by most admirable Anne Belsey who applies her creative spirit to tireless campaigning which includes talking to 25 – 40 strangers a day:

Money Reform Party

e-Newsletter September 2009

Dear Money Reformers,

I write to you in the middle of the political conference season, mindful that the Bromsgrove conference is less than a week away. I regret that I shall not be there this year, so I thought to update you with news of my own activities.

Knocking on doors

I now spend a big part of each day knocking on people’s doors. This takes place in either the historic cathedral city of Canterbury (Motto: Ave Mater Angliae), the picturesque harbour town of Whitstable or one of the surrounding villages set in deepest rural Kent.

Four ways of “net credit creation”

Professor Richard A. Werner is a professor of economics at the University of Southampton. His letter to the FT explains that he coined the term “quantitative easing” and its true meaning: four ways of creating credit:

1. increasing BANK credit
2. increasing TRADE credit
3. increasing CENTRAL BANK credit
4. increasing credit created by the GOVERNMENT.

We’ve been advocating the last as “public credit for public purposes” through “Early Day Motions” since 2002.

Green Credit for Green Purposes was a submission to the Treasury Select Committee in response to the Stern enquiry.

“Slaves to Debt” in “The International”

Last night I watched a main stream action film starring Clive Owen called ‘The International’ – http://en.wikipedia.org/wiki/The_International_(film). Wikipedia summarises the plot well:
“Interpol agent Louis Salinger (Clive Owen) and Manhattan Assistant District Attorney Eleanor Whitman (Naomi Watts) are determined to bring to justice one of the world’s most powerful banks, the International Bank of Business and Credit which funds terrorist activities. Uncovering illegal activities including money laundering, arms trading, and the destabilization of governments, Salinger’s and Whitman’s investigation takes them from Berlin to Milan, where the IBBC assassinates an Italian prime ministerial candidate (Calvini)”

There is one exchange of dialogue in this film that I found remarkable in its level of truth for a mainstream action movie. This occurs 33:20 minutes into the film when the two agents interview Calvini – who has amassed his fortune in arms dealings:
DA Whitman: Mr. Calvini, we’d like to know why the IBBC, a bank would be purchasing hundreds of millions of dollars worth of missile guidance and control systems from your company?
Calvini: The IBBC has purchased billions of dollars worth of Silkworm missiles from the People’s Republic of China which they have presold to clients in the Middle East. Contingent upon the missiles being equipped with VOLCON guidance systems. My company is one of only two in the world which produce the VOLCON.
DA: But why is the bank committing so much of its capital and resources to the sale of these missiles?
Calvini: It’s a test. Small arms are the only weapons used in 99% of the world’s conflicts and no one has the capacity to manufacture them faster and cheaper than China. What Skarssen (IBBC CEO) is attempting to do is to make the IBBC the exclusive broker of Chinese small arms to the Third World. And the missile deal is the gateway transaction.
Lou: Yeah, but billions of dollars invested simply to be a broker? There can’t be that much profit for them.
Calvini: No. This is not about making a profit from weapon sales. It’s about control.
DA: Control the flow of weapons, control the conflict.
Calvini: No, no. The IBBC is a bank. Their objective isn’t to control the conflict; it’s to control the debt that the conflict produces. You see, the real value of a conflict, the true value is in the debt that it creates. You control the debt, you control everything. You find this upsetting, yes? But this is the very essence of the banking industry, to make us all, whether we be nations or individuals slaves to debt.
You can watch the clip on youtube for the moment. http://www.youtube.com/watch?v=XDxNtpMEEZM&feature=PlayList&p=659CB4853D9ABCB7&index=2 (3:15 into this clip). Better be quick, before they remove it for copyright infringement.
Best regards
Craig