by Robert J Lee
The mainstream media seems unable to publish any reliable news unless it has a quote from ‘professionals’ who are supposed to know something about the subject which they have been asked to remark.
The media has to ‘tag’ people to enable them to make authoritative statements and any obscure spokesman from any university will do. After all are not uni’s supposed to be esteemed halls of learning? Those which haven’t been overrun by socialist lecturers and others pushing extreme agendas are hard to find.
Take the case of the economy, taxation and the $330 billion created by Treasury for quantitative easing (credit creation with interest) of the loss of income for small business, banks and 750,000 sacked employees due to the coronavirus outbreak. Incredulously, private banks have been propped up by at least $130 billion of these funds.
News Ltd felt obliged to ask Professor Robert Breunig who leads the Australian National University’s tax and transfer policy institute (whatever that might be) to comment.
This professor, if correctly quoted could have been the right hand man of Maynard Keynes, the noted economist who was labelled by Time Magazine in 1999 as one of the most important people of the century because of his economic theory of issuing money as a debt.
Keynes, who died in 1946, was a director of the Bank of England and a promoter of free trade economics in which open market operations, direct taxation and government borrowings would keep a nation’s economic policy flowing nicely.
Nicely flowing right into the pockets of the financial oligarchy.
Keynes’ economic legacy has been lining the private banks’ pockets for 100 years to the detriment of the general population by limiting growth of economies and biting personal taxation to keep up with interest rates on borrowed funds.
ANU economist Professor Robert Breunig has not yet caught on that the Australian Treasury two weeks ago actually issued its own credit out of thin air with no interest attached which has been an enormous boost to the failing economy caused by the lock-down of a nation. However it seems Treasury has attached an interest component for borrowers.
Bruenig believes the older generation, in good old Keynesian style, should shoulder more of the coronavuirus burden by increasing their tax burden.
“The massive government spend of at least $330 bIllion to counter the economic shock of Covid 19 will have to be paid for by young people,” Professor Breunig told News Ltd.
This learned prodigy of the ANU does not understand what Treasury has done. He doesn’t understand basic monetary creation. Treasury has issued funds as a credit not as a debit and to hell with the private bankers. He doesn’t understand that income tax and a consumption tax are bad policies for which there is no need if money was issued by Treasury as a credit backed by the vast, valuable natural assets of this country.
Another famous monetary reformer from the 20th century, Major C H Douglas was diametrically opposed to Keynesian monetary policy and took the fight right up to the oligarchy with his social credit analysis:
“The economy exists 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 an oligarchic elite.”
Treasury, under the Jewish Treasurer Josh Frydenberg, has to a point, beaten central banks at their own game. This created national credit should be given interest free as a ‘Job-Keeper’ wages supplement for small business. Treasury has been playing with the bond market in complicated purchasing and trading of government bonds which in reality is based on smoke and mirrors and not needed to create national credit.
But Frydenberg has required small or large business to pay interest on all other loans under this scheme. This is bad fiscal policy and there should be no interest charged and the loan should be paid back only if the business is capable of doing so, which are the same conditions attached to US President Trump’s US business bail-out.
This crisis was no fault of small business or wage earners.
Trump has beaten the oligarchy at its own game by merging the privately owned Federal Reserve with Treasury. In other words he has nationalised the Federal Reserve and locked out the Rothschild bankers.(and Trump is still alive)
He has just created $2 Trillion for industry bail-out funds interest free.
It seems Frydenberg does not have the intestinal fortitude to defy the private bankers. After all he is a Jew.
There is nothing wrong with the current banking practice apart from the speculative use of the lending, but of more importance, the ignorance of the borrower.
It is the written underwriting of the loan ‘created’ by the borrower that is the source the banks rely on when creating the loan ‘out of thin air.’
The borrower almost always abandons ownership of the note/instrument that he/she created, which suits the banks and the current financial system.
The Federal currency in circulation was backed by gold/silver, but as there is only a finite quantity of such, the financial system is constrained by what metal backs the frn’s.
As the ‘Story of the Commonwealth Bank” points out, the true wealth of a nation is in the resource of its people.
The difference between the banking industry now and the Commonwealth Bank of then is found in the ethics and the use the capital was applied to.
There are only 2 things man creates out of nothing, money and karma, and the connection between the two is strong.
Yes we have the History of the Commonwealth Bank by D J Amos in our library. We also have much about the creation of credit by Major C H Douglas.
When any bank gives a loan to a customer the credit does not exist until the customer draws on it, similar to an overdraft. When the loan is repaid the credit cancels itself out. Bank credit is created by the trading bank just as Treasury does with its funds. Fractional reserve banking methods allows a bank to loan many times its deposit base. Banks have never loaned one cent of their deposits. Has one customer found his account depleted because the bank loaned his deposit to another? Legal tender money supply used to be tied to gold deposits. Now it is tied to the numerical capacity of a computer. Editor
No-one, neither de jure or de facto government, nor government created corporations create money out of thin air.
Natural law decrees that they do not have that capacity.
What they do do is convert pledges and underwritings (which are equitable in nature as they pertain to promised performance) into legal tender by first transforming the pledges and sureties into securities..
It is the capacity of the people to underwrite a debt obligation with their future performance that that allows government and corporations to convert those securities into legal tender.
The legal is derived from the equitable.
There is an interesting little book titled “The Story of the Commonwealth Bank” by Amos that gives the financial history of the early Commonwealth of Australia, how the transcontinental railways was financed, as well as the cost of WWI etc.
This is a shorter version of the explanation by a Professor of economics, wherein he decidedly states that “banks are intermediaries of securities.
https://www.youtube.com/watch?v=EC0G7pY4wRE
The original source of that which is the value represented by the securities is the people, both through notes and instruments bearing their signature, as well as the equitable origin of their Birth Certificates.
The problem lies in people’s ignorance of this, and that government is constituted to serve the will and interests of the people.
There would have to be some mechanism for limiting government lending to the citizenry since the government (ie. the publicly-owned Australian Federal Bank) would create all of the money that it lends so that the money supply increases when it lends. Unrestrained lending would lead to a rapidly increasing money supply and associated inflation of prices.
Citizens would be able to borrow in order to buy a house to live in and possibly a holiday house but they wouldn’t be allowed to borrow in order to buy a house as an investment to rent out in order to earn income. Investment would need to be funded out of SAVINGS, including houses and shares to name just two investments.
The amount that the Australian Federal Bank would lend to any given citizen for any given purpose, such as buying a house to live in, would be limited by factors such as the income of the citizen and the size of the deposit that the citizen has saved towards the purchase, with zero dollars obviously being the minimum possible size of the deposit saved. The Australian Federal Bank would decide upon the multiple of any given citizen’s income (such as 3 times) to lend to them for any given purpose, such as buying a house to live in or buying a motor vehicle.
Hi Editor
I stand corrected. I’m sorry about my mistake. The RBA appears to have created money out of nothing and injected it into the economy by buying government bonds just like you’ve described. Or it plans to. I dunno. I read about this on thenewdaily.com.au after commenting above. They even had a diagram. Here’s the article:
https://thenewdaily.com.au/finance/finance-news/2020/04/10/quantitative-easing-what-is-it/
You’re right that this is all overly-complicated in order to put us on the hook for interest payments and possibly principal repayments too, paid for out of taxation revenue. You know they want to squeeze as much out of the citizenry as possible but I happily concede that the requirement to repay principal may be waived.
They always make it as complicated as possible to hide the financial ramifications of their monetary actions, which invariably mean citizens paying a lot in taxation to pay for these actions, such as the payment of interest and the repayment of principal. They love confusing us. It’s all a big joke to them.
Good on you for raising this very, very important issue. This subject needs to be talked about with a megaphone.
I hope that we can all come to an agreement on a monetary system that is transparent and easy for the citizenry to understand. I don’t like complicated systems whose purpose is to hide the fact that the citizenry is being done over. Citizens need to be able to understand their monetary system in order to have confidence in it. Currently, very few people understand our monetary system. I don’t understand all of it but I know the major ways in which we’re being done over. This is what they’re desperately trying to hide from us. Australians have worked many billions of hours over the past six decades to pay interest on debt (ie. interest on loans from the banks out of their after-tax income and interest on government bonds out of their tax paid) that they should never have had to pay, as well as the principal repayment associated with government bonds out of their tax paid when the government could have just created this principal and spent it into circulation or given it to the citizenry.
You know, it wouldn’t hurt for all of us to just keep harping on this issue until we crack this nut. Andrew Jackson drove the private robber-baron bankers out of the economy in the USA and it was his crowning life’s achievement. It could be our crowning life’s achievement to promote the idea of a publicly-owned Australian Federal Bank and see it come to fruition – a bank which doesn’t charge interest on any loans to the citizenry (except for a rate of less than 1% to cover the incidence of defaults on repayment of loans) and which creates money as needed and spends it into existence in the economy or simply gives it to the citizenry in proportion to the taxation revenue that individual citizens have paid. I’m talking about sound, logical, classical, orthodox economics based on biblical principles, such as the biblical prohibition against usury (ie. charging interest) and based on the natural order evident in God’s creation (whereby the physical resources that we need and use are mostly abundantly available), not the bastardised version of economics that we’re all suffering under and wilting under today.
Hi Andrew keep your eye out for the next article in which Treasury says it “created the funds by adding extra noughts in the computer.” Orthodox economics and its ‘smoke and mirrors’ have been turned on its head, thank God.Editor
Brilliant, absolutely correct. A no interest economy will boom for all people. With Productive not frivolous or rent seeking investment.
It would take a lot to convince me that the Treasury has created $130 billion or $330 billion of Australian currency. It is almost certain that this money has been obtained by the Treasury by issuing/selling government bonds to those lending this money in Australian dollars to the Treasury. Interest is payable on the bonds, which is to be paid for out of taxation revenue, paid by the citizenry. The principal lent to the government in exchange for the bonds is also to be paid for out of taxation revenue, paid by the citizenry.
I don’t believe that this sale of government bonds is “smoke and mirrors” to hide money creation by the Treasury. This is the standard way in which the Federal Government has been doing the citizenry over for years by borrowing money it needs instead of creating it itself and spending it into circulation or giving it to the citizenry in proportion to the amount of taxation that each individual has paid. There should be no interest paid on any debt in an economy run on sound, classical, orthodox economic principles.
If only we did have an economic and monetary system based on the principles expressed in this article, whereby the Federal Government creates the money that it needs and, I would say, controls inflation as needed by reducing the money supply by destroying money received as taxation revenue.
This article addresses one of the MAJOR ways in which the Australian citizenry are getting done over by our current monetary system. This is a VERY important issue which needs to be urgently addressed.
I’ve outlined another major problem with our monetary system here:
http://confabulate.org/this-is-why-the-australian-economy-isnt-working/
3% of the money in circulation (ie. the money supply) is physical notes and coins. The other 97% is debt, being money created when the banks lend.
I hope that we can sort through all of the issues that this article has raised and come to a workable conclusion. These problems needed to be fixed 60 years ago when the Reserve Bank of Australia was established in order to maximize the interest revenue that Australia’s privately-owned banks receive on the money they create out of nothing when they lend.
So there are two major ways in which the Australian citizenry is getting done over.
Firstly, it’s paying interest on money lent to them by the banks, which the banks create out of nothing. Since the citizenry don’t receive anything of value in return for this interest paid to the banks, because the principal lent to them by the banks was created out of nothing, the work that they perform to earn the money needed to pay the interest amounts to slavery. Working without receiving anything of value in return is the essence of slavery.
The second major way in which the Australian citizenry is getting done over is raised by this article. It’s repaying the principal borrowed by the Australian government (when the Australian government issues/sells government bonds) via taxation paid. However the government could just as easily create this money that it needs and spend it into circulation or give it to the citizenry in proportion to the taxation paid by each individual citizen. The Australian citizenry is also paying interest on this principal borrowed by the Australian government, which the citizenry pays via taxation paid to the government. Think $50 billion for submarines or $200 billion for submarines or whatever it was. All of these billions were (or will be) borrowed by the government by issuing/selling government bonds. Working to pay tax to the government in order to repay principal borrowed by the government and to pay interest on this principal borrowed, when the government could just as easily create this money that it needs without requiring it to be repaid and without charging interest on it, sounds a lot like slavery to me. (However, a responsible government wouldn’t create $50 billion or $200 billion to pay for twelve submarines. It would figure out how to build them for a lot less.)
To be precise . Frydenberg is a typical Khazarian-Mafia . Zionist . False . Jew .
their false god is Mammon!
Nor did that condescending quintessentially cocky smartArse, the imperious but traitorous Costello, who endorsed little jewboy ! Good stuff, Robert ! Steve
Sent from my iPhone
>