Monday, August 31, 2009

Rebuilding the UK

by Mike Robinson

… lets consider how money is created in the UK.

The Treasury is the ultimate source of all money in the UK. It places an order with the Royal Mint (for coins) or the Bank of England (for notes), which is sold to the commercial banks at face value. So – and read this carefully folks – when the Treasury issues money in this way, it makes a profit of the face value of the cash, minus the manufacturing costs (paper and ink, or some inexpensive metal).

Sounds great, doesn’t it?

Sadly, though, that’s where the greatness ends, because it’s also where the commercial banks come in.

Commercial banks still need cash, even in the 21st century. They’re doing their level best to not need cash any more, but for now they do. So when they need some more, the Treasury creates it, and sells it to the commercial banks in return for a cheque. Once the banks get their hands on the cash, they are allowed to create even more new money by issuing loans and mortgages.

In Britain, unlike other countries, there is no hard rule about how much money banks need to keep in reserve. It’s absolutely voluntary. So, whereas in the US, banks are required to keep reserves of 10%, on average our banks hold a reserve of only 3%. That’s the average.

So for every £1m of new cash that the Treasury creates debt free, the commercial banks will, under normal circumstances, create out of nothing a further £32m or so, which then carries interest. Compound interest at that. Usury.

Here you see, in all is stinking glory, the core of the scam imposed on us by our monetary financial system:

When the banks need money, they get it debt free from the Treasury. Yet, when the government, businesses, or we need money, we all have to go cap in hand and beg for the right to pay a commercial bank some usurious interest. Is this not our national, sovereign, currency?

Network Rail will lay off its 1800 staff. It will beg and fawn to the government for a mere £35 billion over 25 years for a project it won’t be able to complete in 50, because there’ll be no-one alive by then with the skills to build it. In the meantime, 40 million of us will be dead, killed by the policies derived from the Optimum Population Trust’s recommendations – through collapsing nutrition, health care, street violence and the weight of the forthcoming carbon tax.

All because we allowed the bankers to define government policy.

Well, here’s my policy:

  • Abolish the Bank of England. What does it do that’s of value?
  • Build a very high wall around the City of London. Let the City within a city become just that. They’re costing us too much. Seal it off and leave them to it.
  • Abolish fractional reserve banking.
  • All national currency is to be issued by the Treasury, and entered into the economy by spending it on projects which keep people alive, educate them, train them and employ them.
  • Build our nation.

All national currency to be issued by the Treasury? All of it? Debt free? Maybe we can afford to build a nation after all. The bankers won’t like that, of course. Where will they get the money for that new Porche?

And that last part – the nation building part – its not so hard now that we know where the money is coming from. We just need to get excited about the future. We need to stop following the news agenda imposed by our politicians and the media – the one which would have us jumping off a cliff like a bunch of stupid lemmings.

Instead we need to imagine our country as we were promised by Tomorrow’s World. Why not have the capability of getting to Glasgow in one hour? Why not get white vans off the streets? How about clean air in our cities? How about, at long last, we deal with our energy problem?

Every society in history, bar none, has grown up through using the highest technology available to them at the time, applying it to their surroundings, while at the same time striving for ever higher technologies which make that growth more efficient. We must relearn that approach, relearn to look fifty or a hundred years into the future and imagine how we want it to be.

Every society in history that forgot that approach, collapsed into a dark age of war, famine and disease.

Britain is in a state of collapse. Politicians won’t fix it. Only we can do that. If it were me, I’d print out some copies of this article. I’d head down to my local job centre. I’d hand it out to some unemployed young people, and say to them, “get organised, join us in Lawful Rebellion, our future depends on it.”

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