Not in Australia it wouldn't, "she'll be right mate" !!!!!!!
Economic Security Equals Personal Security.
WHY DO WE HAVE STARVATION IN A LAND OF PLENTY?
As this site is concerned with our Freedoms, our Rights and our
Security, its time to take a broader brush and give a lot of thought to our
Economic Security.
Why do we have an economic system that turns the government into an
end, instead of a means, and the individual into a means instead of an end?
What has happened to the Constitutional demand that all institutions
exist to serve the individual, that the State exists to serve its citizens? Now
it appears that the only reason for individuals to exist, is to serve the
State.
If it moves, tax it. If it keeps moving, regulate it. If it stops
moving, subsidize it. The problem is not that people are taxed too little, the
problem is that government spends too much. —Ronald Reagan.
Real economic security would mean that individuals in society must
have sufficient purchasing power to provide effective demand in order to
consume what they produce. Absolute economic security resides in the possession
of a sufficient income at all times to buy the goods and services without which
their would be no demand, no production and no payments of wages.
We have next to ask, where do wages, and dividends come from? All
incomes as purchasing power are distributed into the hands of consumers through
the operations of productive industry. All real purchasing power arises in
production. It takes the form of wages, salaries and dividends paid directly to
individuals engaged in industry or indirectly from them, through taxation, to
those bureaucrats and beneficiaries who spend the money we produce. With loans
they are spending future income from production. There is no other form of
purchasing power in the Western World system of economics.
Why is there never enough purchasing power in our national economy?
Government doesn’t produce, it only consumes and produces a large
negative effect. Here are some of the reasons we have poverty amongst the
plenty.
In 2015-16 it took $405.4 billion in taxation, but its total expenses
for 2015-16 were $434.5 billion, so the balance was a further debt of 29.1
billion. Just paying the interest on that is taking spending’s from our future
earnings, or the earnings of our children.
In 2012 Australian Households spent a total of $642 billion on
general living costs but in the same year only earned $521.3 billion in
wages and income. So again the balance goes in a $120.7 Billion dollar debt
which has to be paid from our future earning.
The manufacturing industry in Australia has declined from 30% of GDP
in the 1960s to 12% of GDP in 2007. Yet in 2012 we still donated $7.7 billion
in Foreign Aid.
From the figures above we can understand that although Australians
earn over a Trillion dollars annually their government masters, remove over
$400 billion in taxation which is used to pay their governments interest on its
debts. (According to a report released in October 2013, the nation’s poverty
rate increased from 10.2 per cent to 11.8 per cent, from 2000/01 to 2013.)
The above general formula is endemic to most countries in the Western
World, the governments are run in debt to the banks and so to are 90% of there
populations.
There is no single cause operating in the western world today which
is of such importance and is so fraught with the possibility of world disaster,
as is the disparity between purchasing power and prices. The longer it
continues, unchecked the more certain and with more speed approaches
either Depression, or War, or Both.
What causes that disparity, that lack of spending power? It is simply
that when any item is being produced only a part of its final selling price is
the wages and income factor. Say with a packet of .22 ammunition, its production
can be split into
A. The cost of lead, powder and brass,
B. The cost of wages and dividends,
C. Taxation and Interest.
Only the earnings, wages and dividends goes into the economy to allow
income to be spent on purchasing what they produce.
Governments Sell Tomorrow, To Pay For Today.
Taxation and Interest remove money from the economy, so instead of
economic security you have economic slavery. All Government spending is
borrowed from the four major banks, and all of the Taxation (Government Revenue)
goes to pay the Bank interest on the Government Debt. The Governments Principle
Debt just increases annually.
Look at your electricity bill only a part of your payment will go
back into the economy in wages, the rest will be negatived by government
tariffs and interest. Though these costs, representing profits, interest and
depreciation, are all loaded into prices, the money to liquidate them is not
distributed to the public neither as wages, salaries, nor dividends. So to
afford them the public have to borrow from the banks.
Therefore, prices are always greater than the money available to buy
them. In other words, there is always a disparity between the flow in the
generation of purchasing power and the generation of prices in any one
productive period. As can be seen, this is due to accounting all costs into
prices without making provision for liquidating all of them.
This is the flaw in the finance-economic system, and is the main
cause of all the economic troubles in the world. It is directly traceable to
the use of debt for money and to the policies and practices of the monopoly of
credit. Under the present financial system, there is no sound means of bridging
the gap between purchasing power and prices.
Now I am not suggesting that the current position of some of the
people doing well and the majority struggling in debts should be swapped for
socialism.
Margaret Thatcher, Prime Minister of Great Britain from 1979 to 1990,
summed up socialism nicely: “The problem with socialism is that you eventually
run out of other people’s money.”
Socialism takes income away from productive people and gives it to
non-productive people. When a percentage of your hard-earned money is
confiscated, you have fewer choices and a lower standard of living. If a larger
amount of money is confiscated in taxation, you’re a slave and your only reason
for continuing to work is to lessen the depth of the debt.
Socialism is simply a camouflaged Communism.
The once-mighty USSR fell apart in 1989 due to iron-fisted
socialistic policies that destroyed the economy while taking away virtually ALL
freedoms from its citizens.
People who have recently visited Cuba report that it’s like time has
stopped in 1959 when Castro and communism took over. Literally all the cars on
the road were manufactured in, or before, 1959. Cuba today still looks like
1955. Unemployment is 48 percent and 80 percent of those who have jobs work for
the government, making Cuba’s economy a disaster.
Venezuela is a bigger disaster, their hospitals are germ-infested
trash dumps and they’re currently rioting over food. Venezuela’s hospitals are
horrible. In less than 20 years they’ve gone from the most prosperous South
American nation to the poorest, all because it elected a socialistic government
that did away with good economic policies.
North and South Korea are perfect examples of the difference between
a free economy and communism (slavery). In communist North Korea, 2.5 million
people starve each year. In capitalistic South Korea, her GDP is the 10th
largest in the world.
The application of science and technology to production now enables
mankind to ensure a reasonable sufficiency of material needs to all, without
continuing economic servitude. But the existing financial system is
fundamentally flawed. It is endangering the planet through ruthless
exploitation of its limited resources in pursuit of financial profit and its
wish for ever greater power over the people.
Industry, to be successful, must get back from the public in the
prices of its goods more than it pays out to suppliers of materials and labour
involved in their manufacture. Otherwise, it could not make a profit. Then the
GST factor takes a great slice out of the available spending power.
As industry by necessity distributes all incomes as purchasing power,
where does industry, in its turn, get the money for its infrastructure? A brief
examination will show that industry is financed from savings, or from loans or
overdrafts from the banking system.
Let us follow logically the results flowing from the disparity in
which the producers, wage earners, farmers can never find the money or means of
exchange to purchase the goods that they produce and need.
It must be evident at the outset, that in every cycle of production a
proportion of the goods must remain unsold. As further cycles are completed,
the unsold portions must pile up till it is useless and dangerous to produce
more for the time being, so banks restrict credit, production slows down, and
men are laid off.
When workers are laid off, wages cease, purchasing power further
diminishes, less goods are sold, credit is further restricted or called in and
cancelled. There is a rush to sell below cost and bankruptcies occur.
Standards of living now fall rapidly; there is further unemployment;
dole conditions and acute depression appear; governments start relief works,
and the banks readily lend to governments the credit they refuse to industry.
Debt and taxation grow apace. As the spending power decreases much of the
surplus goods remains unsold, and we have starvation and poverty in the midst
of abundance. Goods are wantonly destroyed by oversized banana, oversized pigs
etc. and production is forcibly restricted. With mass unemployment everywhere,
we are told to work harder, save more, and spend less. Saving and spending less
is also a negative.
Parallel with these manifestations is the struggle to find markets
abroad for the goods that cannot be sold at home. As all nations are doing the
same thing, and are in the same economic plight from the same cause, this leads
to commercial hostility, international friction, and finally and inevitably,
to WAR.
Government is not a solution to our problems, government IS the
problem…
Government does not solve problems, it is the root source of the main problem.
Government gives the nations right to create credit, to the four main‘Banks of
Issue’ and allows them to create it and charge us all for the privilege to
borrow it from them.
As a simile imagine that all the oil and gas beneath the land mass of
Australia, which is really the public credit, or wealth of Australia owned in
title by the Commonwealth Government on behalf of all its citizens, was given
away to a private company at no charge, and then every time the government, or
the people wanted some oil and gas the private company lent it to them and then
charged and ever increasing interest rate, plus demanding the full return of
the oil and gas.
Current governments have never dealt with the root problem, the
monopoly of credit creation by the international banking system, they take the
donations from banks into their party election funds and considers themselves
lucky. The first government that ever succeeds to handle this problem might
never be given an election donation by a Bank but would be elected forever by
the people.
The Black Heart of the Problem.
The banks only lend money/credit as a repayable interest-bearing
debt, with number one priority over the assets of the borrower, so it is clear
that the banks entirely control production in this way. In the national economy
of ever increasing disparity between prices and spending power, as loans are
paid back and the credit crossed off, and as the interest is paid the spending
power within the community decreases, and only increases when the Banks create
and issue more debt. The Banks choses who wins and who goes without, who
succeeds and who fails.
We have already seen that the money flowing through industry is the
only source of purchasing power, so it is also clear that the banks, in
controlling production, automatically control consumption as well.
That is to say, the whole economic system is dominated by the banks
and, consequently, they dominate the lives and destinies of the people, and
dictate the policies of governments. History proves this conclusively.
It must be remembered that the banks have discretionary powers to
call in loans and overdrafts even before the goods they brought into existence
have been sold, and they sometimes exercise this power with disastrous effects
on the community. Now let us go still another step further and ask where do the
banks get the money they lend to industry, and which gives them control of the
community.
The answer is again quite simple:
THEY CREATE IT.
In the terse phrase of the English economist, Sir Ralph George Hawtrey, “They
create the means of payment out of nothing.” The money so created is called
bank credit, but it really is the public credit, like the oil and gas under our
feet, it belongs to all of us.
Banks do not lend the money deposited with them by their clients as
most people suppose. Every bank loan or overdraft is an absolute creation of
new credit and this credit functions as money.
When cheques are drawn against this credit, they come back into the
banking system and form deposits. Practically all deposits are created in this
way. Instead of deposits being used by the banks to create loans, as is generally
believed, the loans are book figures, (or electronic) and real money or credit
has to be deposited to write the loan off the books.
The actual creation of bank credit is an almost costless operation as
it consists merely of written entries in bank ledgers or computers, and made
effective by written entries in cheque books, or credit cards. Banking, is
mostly bookkeeping. Finance is mostly accountancy, and money is mostly figures.
Though bank credit is supposed to be issued against the security of
the borrower, it is really issued against the productive capacity and the real
or “social” credit created by the communities wealth as a whole. The banks,
however, treat this community credit as though they are the sole owners, and
are thus in the unique position of being able to lend something they do not
own, and of being well paid for it.
As banks have the sole privilege of creating and issuing money in
this way, they thus constitute a monopoly of credit that functions as money
which keeps the whole community, to whom the credit rightly belongs, in
subjection through debt. This monopoly of credit or money creation is the
greatest power ever vested in any institution in the history of the world.
The economy should exist to provide people, as efficiently as
possible, with the goods and services that they need to survive and flourish.
That is, production exists for the sake of consumption, not for the sake of
money-making, employment, satisfying the creative impulse, or ‘moral’
discipline (considered as ends in themselves). It most certainly does not exist
for the sake of centralizing wealth and power in the hands of a Banking
oligarchic elite.
Ron Owen
The Way Out, and the way to Freedom will be in next months bulletin.
