“The rich rule over the poor, and the borrower is servant to the lender.” Proverbs 22.7
“Let me issue and control a Nation’s money and I care not who makes its laws”. Amsel Rothschild, 1838
“The few who could understand the system will either be so interested in its profits, or so dependent on its favours, that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.” The Rothschild brothers, London, 1863
“Terrorism, War & Bankruptcy are caused by the privatization of money, issued as a debt and compounded by interest.” Napoleon Bonaparte
2007-08 saw the largest financial crash since the great depression. While nations, business and individuals suffered the following year gave Goldman Sachs record profits. The Securities and Exchange Commission accused Goldman of defrauding investors of more than $1bn by wilfully mis-marketing toxic sub-prime mortgage-related securities through speculation on obscure derivatives. Goldman settled for $550 million, the largest fine ever paid to the SEC and a humiliation for Goldman Sachs.
The financial world has out-stripped the real world:
Total volume of global foreign currency transaction in 2010: $955 trillion
Off-exchange trading of financial derivatives in 2010: $601 trillion
Value of all goods and services produced in 2010: $63 trillion
In the 20thC, as the world became richer, the unelected cabal of the World Bank and the International Monetary Fund dictated social policies and austerity measures to poor countries. In the 21stC, as the world becomes still richer, the cabal, joined by the European Central Bank and the European Commission, has started to dictate austerity measures and to control the internal policies of European countries. When one country, in November 2011, had the temerity to suggest that its people be consulted all hell was let loose and its prime minister was called to Frankfurt for a dressing down. He was immediately replaced by a former vice-president of the European Central Bank. The net tightens.
The ability of banks and financial institutions to bully elected governments everywhere is because governments allowed them to create the money needed to oil the wheels of a modern economy – “to issue and control a Nation’s money” as Amsel Rothschild said. Banks create money by making loans to those who are short of money, and charging interest so, inevitably, banks get richer while the rest get poorer. The end is collapse, revolution or war.
In order to repossess democratic power, governments would only need to pass legislation making it illegal for banks to create money. States should themselves create all the money a country needs, and their governments should decide how to spend, not lend, it into circulation. Until recently, governments could not contemplate doing this because of the ability of financial markets to create chaos. Since there is already chaos with the bank-created money system collapsing, things have changed. We are presented with a unique opportunity for governments to take back power from the banks.
Fluctuating national currencies provide feedback on countries’ economic performance, and allow the value of their currency to adjust to suit the comparative advantages of their industry and business. It is the loss of this financial mechanism that has crippled outlying countries in the eurozone.
A crisis is too good an opportunity to miss since it allows radical action to be taken:
– European countries should default on their bond debts to banks.
– The Euro should be abandoned.
– Each nation should issue its own currency within a limit that does not cause inflation.
– It should be made illegal for banks to create money.
– Financial speculation not directly related to goods and services should be outlawed.
[email protected] 11 November 2011
Featured image: “Economy Crash 2”. Author: Sanja Gjenero. Source: http://www.sxc.hu/photo/1157866
Note: Feasta is a forum for exchanging ideas. By posting on its site Feasta agrees that the ideas expressed by authors are worthy of consideration. However, there is no one ‘Feasta line’. The views of the article do not necessarily represent the views of all Feasta members.
James Bruges was an architect in London, Khartoum and Bristol. He subsequently wrote the Little Earth Book, the Big Earth Book, and The Biochar Debate. With David Friese-Greene he advises the Soil Fertility Project at Social Change and Development an NGO in Tamil Nadu, India, concerning anaerobic digester and biochar production using only waste and invasive materials. He is involved with the Positive Money campaign and a member of Feasta’s Cap and Share group, and is a co-author of Feasta’s book Sharing for Survival. He lives in Bristol.