Archive for the ‘Debt’ Category

https://www.khanacademy.org/economics-finance-domain/macroeconomics/monetary-system-topic/fractional-reserve-banking-tut/v/overview-of-fractional-reserve-banking

This praiseworthy organisation is known for providing free, all accessible learning for everyone on a range of core topics.

It does a sterling job of condensing hard to understand subjects, into bite size, digestible knowledge

Few areas have escaped its coverage, and I was fascinated to discover a number of sessions on Banking and Money.

The attached video is one of a three part series explaining how money is created by the private banks, something most people still know little about. This touches many key areas such explaining what Money is, how it actually works and raising valid questions about alternatives.

It doesn’t stop there, you can search for further tutorials on more how banks work, and again how they create money, as well as other technical aspects of the money supply, to name one example.

Its always good to see those of understanding laying bare these facts in a plain manner demonstrating just how easy it is to lift the veil which seems to cover these elements of a modern economy.

Too good not to share….you would think the public at large would notice something that big….guess not

Poor countries don’t need charity. They need justice.

Is this another deception with our perception of ‘The World’?

One of the most comprehensive reports into the real financial transfers into and out of the developing world shows that the extraction of wealth from the third world, much of it former colonies, continues apace.

Rich countries aren’t developing poor countries; poor countries are developing rich ones

How Poor Countries Develop Rich Countries

I find the fact that some $4trillion since 1980 is attributed to debt interest repayments fascinating. The scale of this particular transfer is testament to the continued servitude of many nations states.

When many times more is sent back in exchange for every dollar received in aid, does this not sound like a familiar profit making enterprise at work?

Reading the original report, I find this sentence especially on point…

Much improved statistical compilation and reporting is required in order to have a more adequate picture of global financial flows; a task that urgently needs to be undertaken collaboratively by the International Monetary Fund, World Bank, United Nations, Organization of Economic Cooperation and Development, and the Bank for International Settlements.

Is this a list of the usual suspect organisations?

 

This past week, the London School of Economics, hosted an event on the Nature of Money, see details here.

One of the speakers was Dr Waltraud Schelkle, part of the LSE, an Associate Professor of Political Economy.

Please play the audio from time stamp 52.05 for a question put to the panel regarding the fraudulent aspects of the system. Dr Schelkle answers that she disagrees that the system is indeed based on deceit and she points to the ‘success’ of the Capitalist nations….

I think Susan Steed, another panellist, does an excellent job of refuting her shallow argument, without mentioning by name what I think is most key when understanding how the rich became rich…the Transatlantic Slave Trade…

I would also point the Dr to the numerous posts examining this on this blog, and will make an effort to highlight other key counterarguments in future

Fortuitously, this week I received a post from MoneyWeek entitled…”A 92bn Scam

It went on to state;

The $92 billion was income generated on the Federal Reserve’s portfolio of US government bonds. It bought vast numbers of these bonds by expanding its balance sheet and printing money. The government then paid interest on those bonds. That interest is the Federal Reserve’s return. That return is then passed back to the government as an important source of income.

To be clear, this is the state creating money from nothing… to lend to itself… to then pay interest on… and then use that interest as another source of revenue. That’s Deep State financial policy.

Misrepresenting transactions, making it seem as though the government is solvent when it is using a glorified Ponzi scheme…..that’s Fraud in my book.

More absurdity….

Posted: October 9, 2016 in Debt, Monetary System, Paper money
Tags: , , ,

The following extract from a Money Week article, ‘Forever Debt, Forever War’ points to the absurdity which is currently apparent in todays debt ridden world;

Today, you have highly indebted sovereign governments with huge long-term unfunded liabilities contemplating issuing perpetual bonds that would be bought directly by the central bank with money brought into existence from thin air. What could possibly go wrong with that?

By stating the current status in such terms, one wonders how long this irrationality can last

http://moneyweek.com/war-on-cash-forever-debt-forever-war/

 

Something to ponder over….

Has Capitalism (and please be aware of the way this term can be defined) enabled the greatest amount of progress man has ever seen? Or is this all built on the lie that is Debt? Years of booming economies ultimately paved the way for rising debt; consumers discovering credit, nations discovering deficit spending, leaving future generations to foot the bill…and yet the only tonic to a demand slump is to encourage more consumption.

Have we developed, or is the simply arrested development – who knows how far we could go, how much justice there would really be if we had genuine freedom, not an illusion of prosperity

A few of my previous posts have covered attempts by various parties to introduce their own versions of a financing method closer to what is perceived as genuinely riba-free.

To name a couple, Ansar Finance in the UK, Grameen Bank from Mohammed Younus have made an effort to shed light on alternative models which are closer to interest-free financing, in that an interest derived rate is not charged to the customer.

Ofcourse, the wider context of this should not be forgotten – the money itself, the paper (or digits) we use as a means of transaction – is of interest and IS interest itself. Given this fundamental fact, one cannot escape true defined RIBA in any such method outlined in these endeavors.

However, designing alternative models can expose the wider audience to the weaknesses of the mainstream Islamic Banking practices, which are all in name not in spirit, and I find it refreshing and worthwhile to introduce different forms which may be used as a stepping stone to something widely accessible and equitable in future, Insha Allah.

Contributing to this intiative, are LARIBA, a US based institution who have introduced their own version of what they feel is a RIBA-free mechanism. Judge for yourselves weather you feel their method is actually viable, however this company has been established since the late 1980’s and I favour their understanding of the monetary system, even though they still resolve to make use of it. They too understand and are upfront with their clients about the debt enslavement aspects of interest based loans, and also draw attention to the wider Islamic Banking industry which still uses interest rates in their products.

Their website has a number of worthy materials on related topics which I would also like to recommend.

https://www.lariba.com/sitephp/index.php

Allah (SWT) knows best about their intentions and actions.