Tag Archives: Bank of England

What’s so dishonest about our money system?

Let me count the ways:

  1. National Governments:
    • borrow according to “Public Borrowing Spending Requirements” (PSBR) and pay interest.
    • Instead, they could issue interest-free Cash into the economy.
    • While ‘creating money’ is the sovereignty of nation states, banks have expanded their ‘habit’ of creating Credit and turning it into ‘financial products’ such that their ‘money’ virtually represents all money in circulation (estimated to be 97%, whereas, in the UK, it used to be 53% at the end of WWII).
    • Governments are supposed to either borrow or tax as their income stream, when, in reality, they should create interest-free Cash (or Green Credit) rather than allow banks to create interest-bearing Credit ad infinitum.
    • For governments to borrow AND to tax is an affront and insult to taxpayers. They should simply create interest-free Cash to spend it into the economy.
    • Taxpayers are made to believe a system of annual budgets, while long term trends show the realities of
      • inflation of prices
      • inflated credit supplies
      • and the continuous growth of Governmental interest payments on national debts.
  2. Central Banks:
    • pose as national banks, when, in reality, they are privately owned, albeit well disguised. See Bank of England Nominees.
    • manipulate gold and currencies internationally – always for the benefit of the ‘financial economy’ and the detriment of the ‘real economy’.
  3. Banks:
    • create Credit from thin air
    • dare to ‘sell’ it for ‘interest’
    • invent ‘financial products’, when they could provide an honest service.
  4. The Camouflage of What Bankers are doing through Teaching Economics:
    • Credit created by banks (and other financial institutions) from thin air, is turned into Cash, as if there was no difference.
    • Creating Cash is the monopoly and privilege of a Nation State.
    • Creating Credit is the monopoly of banks, central banks and other financial institutions.
    • Nobody creates the interest charged for Credit.
    • Ignoring exponential growth of compounding interest on interest and instead, promote the unsustainable notion of ‘economic growth’.
  5. General:
    • The problems associated with ‘money’ depend on whether we talk about it as
      • Cash in our pockets
      • Credit in our bank accounts
      • the Budget of a government
      •  or as the currency of a Nation where Central Banks are the global players.
    • Honest Money is a challenge to banking in the day-to-day dealings of handling money as debt aka as credit
    • We the People are all victims, since Central Bankers have been ruling, since the Bank of England was established in 1694 – albeit with the intention of avoiding the oppression of Their Majesties’ Subjects – which is why we ask for the Enforcement of the Bank of England Act 1694.
    • The myth of Public Debts and their necessity is perpetuated, without spelling out the beneficiaries, teaching the damages or generally being open and transparent.
    • In the UK, the deadly embrace between The City of banksters and Westminster of civil servants and politicians ensures that HM Partnership reigns with immunity to prosecution.
  6. As a result, ‘money’ is ‘toxic’.
  • Healthy ‘mutual credit‘ would enable the flow of goods and skills through society.
  • Healthy money would be like healthy blood in a body and clean water in nature: enabling and enriching.
  • Instead, the issuing of ‘credit’ without issuing the interest required, ‘toxic money’ is oppressive, restrictive and controlling.

If only banks were made responsible or accountable, they could not expand their control, while politicians are already in their pockets.

But, they are entrusted with ‘self-regulation’, just as the legal profession which is equally derailed.

The dishonesty of money is, however, being challenged by the class action of Americans who are suing The Fed.

The book Dishonest Money, published in the US, explains the same principles.

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The best 3-minute video on the “creation of money” from thin air

Perfectly brilliant animated video:

  • on a British site
  • as “Plan B” for the British economy
  • suggesting to cut bonuses and benefits to bankers..

Too much common sense!…

Why Spending Cuts are another variation of “institutionalised white collar crime”

Economist James K Galbraith gave a presentation to the Senate Judiciary Committee in which he speaks of “financial fraud” as the cause for the “crisis”.

But that’s not enough:

  • Central Bankers create “currency” as “public debt” from thin air, charge interest to the Government (in the UK as much as the military budget) and call it “quantitative easing
  • Bankers create “credit” from thin air, charge interest for their sort of “money” and get bailed out by Government
  • The Treasury prints notes and mints coin, as Cash, free of interest, but still believes it has to “borrow” money from the Bank of England

Enter we, the taxpayers:

  • we believe that the Government runs the economy, when, in fact, their budget represents maybe around 40% of the whole money supply
  • we believe that the Bank of England supervises banks and does it for the benefit of the country, when, in fact, it works for the benefits of its shareholders, like all other central banks

And what about taxes?

Before the creation of the Bank of England in 1694, monarchs created money and demanded taxes. However, the first “national debt” consisted of £1.2 million at 8% for the King to fight a war with France.

This pattern continued such that more and more Credit was issued as “money”, while the need for Cash was more and more reduced:

  • since WWII 47% Cash went down to 3% Cash

So the Government colludes in the central bankers’ game of ruling the world with currencies (and the loss of their value) and credit money (and the loss of its value), while the real economy, with its real values is exploited and oppressed.

In theory, neither taxes nor spending cuts are necessary.

In practice, it seems to depend on who influences whom with what kind of knowledge and understanding or beliefs and myths…

In our efforts to stage a Public Inquiry into White Collar Crime, we need to include the creation of “money” as the ultimate institutionalised white collar crime… But who cares???

Justice for All are campaigning against spending cuts regarding legal advice. Maybe they’ll realise where spending cuts fit into the larger picture of creating “credit” from thin air and calling it “money”…

Quantitative Easing: the BoE explains and I comment

Quantitative easing explained the American way on a 6-minute video.

First, I contributed to quantitave easing on Wikipedia.

Now, Ask the Deputy Governor offers the following 16 questions addressed to the Bank of England with their answers.

Aware of the Bank of England Act 1694, I comment not as an economist, but from the perspective of a mathematician, systems analyst and software diagnostician, formerly at CERN, looking at “money” and its purpose:

1. Given inflation has only just fallen below the Government’s 2% target, why is the Bank of England adopting such a large unconventional policy measure?
The effects of monetary policy on prices and real activity only come through after long and somewhat variable lags.

Comment: 2% inflation of consumer prices is only possible when measuring inflation extremely short-term. The Office of National Statistics keeps writing about annual inflation, while also gathering monthly data.

Inflation as “price inflation” is only one aspect. The real inflation is the supply of money as currency for the nation as a whole, which should be called “monetary inflation”.

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Quantitative easing for investors abroad

This article in the Independent is entitled “Bailout money is flowing abroad”. It illustrates how journalists don’t analyse deeply enough and how language has always been used by the bankers and central bankers to make it sound acceptable what they are doing.

For the money that the Bank of England has been “printing” by “quantitative easing” has not been created in the same way as the “bailout money” that the Treasury provided.

By buying government bonds, the Bank of England has bought yet more control over the state. As H M Government, it feels powerless to create money, because its individuals have been ‘bought’, each in their own way, by ‘higher powers’, so that, gradually, the wrong institutions perform and follow the wrong procedures, e.g. the Debt Management Office and the FSA.

Their Majesties’ subjects were meant not to be oppressed by the Corporation, as the Bank of England Act 1694 says.

But Her Majesty’s Senior Correspondence Officer passes my letters to No. 10 where Mr. S. Caine passes them to the Treasury from where I don’t get an answer…

For those who can recognize it, the trend towards more and more concentration of controlling by money, is becoming more and more apparent. But let us trust that the connectivity of the web and between people with good intentions will help us!

Bank of England by far the most secretive major central bank

This article in the Telegraph on January 12, 2008 highlights the fact that the Bank of England is NOT the public institution working for the benefit of the nation as it is believed to be. The article is entitled Reform plan raises fears of Bank secrecy.

What irritates me most, is the use of misleading terms such as quantitative easing and printing money that only camouflage what they are really doing.

Inside the Bank of England

This book was published in 1987 and is quoted on this blog entry The Great Depression of 2009: Who is to Blame?

It is an eye opener to everybody who tries to make sense of the schizophrenia we’re living in: sooo much bailout money available but not enough for health, environment, education, small businesses, home owners… only more credit…