Category Archives: Australian Bankers Association
Treasurer Josh Frydenberg is a bald faced liar. So too is his Assistant Treasurer Michael Sukkar and Prime Minister Scott Morrison.
All three have claimed on national television the $330 billion created by the Reserve Bank was borrowed and taxpayers are liable to pay it back.
The ABC broadcast this interview with Treasury officials who have stated categorically the Covid 19 bail-out Jobseeker fund to assist business maintain employee remuneration was created by adding extra noughts in Treasury computers. The ABC has rolled over yet again, under orders from Frydenberg, ignoring their previous radio interview about Treasury credit creation.
ABC reporter David Taylor naively claimed this was the first time Treasury had created credit. He is totally wrong- it has been doing it since the early 1900’s.
There is nothing new about credit creation by banks. Early bankers of the 17th and 18th centuries accepted gold as a deposit then issued notes against the gold held in their vaults. The value of the notes often exceeded the value of the gold in their vaults. These were the first bank notes used in every day transactions then and now. Except for the world’s greatest Treasurer, Liberal Peter Costello who sold most of our physical gold reserves to ‘balance the books’ and replace it with government paper.
Peter Costello agreed to sell most of our gold holdings in 1997.
The decision prompted cries of betrayal from the gold industry and, with the benefit of hindsight, was incredibly poorly timed. Since the sale of 167 tonnes of gold for $2.4 billion, or just over $400 an ounce, gold in Australian terms has rallied to record highs. The price peaked last July at $1819.44 an ounce, at which point the gold Australia sold for $2.4bn would have been worth $10.7bn.
In a vault deep in the basement of the Reserve Bank’s Martin Place headquarters in Sydney today sits a hoard of gold bars worth about $US500,000 each — all four of them.
The RBA now holds almost the entirety of the nation’s gold in vaults administered by the Bank of England.
Credit creation as espoused by social credit crusader Major CH Douglas before and after WW 2 has been around for centuries.
Charged with rebuilding a destroyed Japan after WW2, General Douglas MacArthur rebuilt its economy without borrowing external funds. He created the credit needed by issuing paper as do the central banks of every country. Japan turned into a powerhouse economy and led the industrialised world with manufacturing for decades.
Just as the Australian Treasury and the the Commonwealth Bank did for a century. Taxpayers should not be slugged to pay back the Jobseeker fund particularly as Frydenberg, a member of the Jewish fraternity, admitted $60 billion was created unnecessarily due to a book keeping error and not needed after the sums were done correctly.
This credit does not exist as legal tender, that is notes and coins, but as a blip in the Treasury computer.
He could use these created funds to complete construction of the Bradfield Scheme to water inland Australia, high speed rail and new generation, coal-fired, base power stations thus creating tens of thousands of meaningful jobs.
Bob Katter, MHR said ‘big brother’ was getting more and more powerful after a Senate inquiry recommended a Bill banning cash payments over $10,000.
“This would be absolutely disastrous for the senate to pass this at a time when people are trying desperately to get their money out of the banks and financial institutions,” said Mr Katter.
“If this passes and you want to get your money out of the banks you simply won’t be able to.”
Mr Katter said the Bill would have dire implications for small businesses during natural disasters when people are unable to use Eftpos due to power and internet outages.
“If you are running even a very small business, $10,000 a week is not an unreasonable figure. During Cyclone Larry Eftpos was down for more than a week,” Mr Katter said.
“It is extraordinary that the Government would consider such an intrusion and destruction of basic human rights and privacy.
“The Parliament has sold the entire nation off to foreign corporations, they’ve bankrupted agriculture and now this is the next step.
“In China there is one CCTV camera for every three people and they are now incorporating facial recognition. In Australia the only people who have guns are the people in uniforms.
“In the famous novels A Brave New World and 1984 they had two way cameras in every household. Well, now we aren’t too far off from that.”
Queensland Katter MP, Nick Dametto said the limit on cash payments would be another assault on Australians’ freedom to be able to conduct legitimate business in a manner of their own choosing.
“This has been sold to us as a way for the Federal Government to control tax evasion but in reality all it does is give way to more control from the major banking corporations,” said the Member for Hinchinbrook.
“Australian currency is owned by the people, not the banks, and it should not be up to the Federal Government to decide how you spend it.”
Ten years ago Australia had five car manufacturers, Ford, GMH, Toyota, Nissan and Mitsubishi.
Now we have none. All gone overseas and the reason given? Costs were to high. Funny in that the cars we are now importing (Malaysia etc) are no cheaper.
I remember back in 1968 living in Brisbane, when the 3 major cities back then were Sydney, Melbourne & Adelaide a nd Adelaide was the Industrial City.
Adelaide – South Australia, was where you went to work in the Iron Ore Industry, or where you could get a job making railway tracks for B.H.P.
You could get a job building ships, submarines, cars, washing machines, fridges, TV’s, Hills hoists, Victa Lawn Mowers or make tyres at Bridgestone tyres.
Lightburn Washing Machine Company even made a car called a Zeta. It was not much of a car, but at least it was Australian and we built it. I worked at Stanvac where we made our own Petrol, Diesel, Kerosene and Oil. We had Oil Rigs in Bass Straight, North West Shelf and the Timor Sea. We even had Australian owned Service Stations like (H.C. Sleigh) Golden Fleece and many of us young wanna-be mechanics back then worked as a driveway attendant. (Just like Stanley).
I remember catching a train from the city to Gawler and then on to Freeling, Hamley Bridge, Stockport, Riverton, up to Clare, Gladstone, Laura etc. And all these towns were bustling with activity, and on the weekends they were all open for business. Our shops were filled on every shelf with food and products all proudly made or grown, in Australia. Our fridge was full of Lamb Chops and Steaks because it was cheap as we were a huge Lamb and Beef growing Nation. And once a month Mum would make us all a delicacy! It was called a Sunday Roast Chicken.
I remember when we all had trade skills and high quality tools that would last and last. But most of all we had Mates. We as Australians watched each other’s backs even if we had not met yet, and we all said G’Day to everyone with a smile. Our kids could go anywhere they liked on their bikes, just as long as they were home before dark.
Australia was pretty safe back then. Yes, Australia was once a self supporting nation that had it all. It had Farms that produced our dairy, fruit & vegies and meats etc. And Politicians back then were known as Statesmen and they were voted by the people, for the people, on behalf of the people and did what the people wanted.
We had public utilities owned by us the people, that guaranteed our Electricity, Water and Sewage forever.
No one knew how much the Snowy Mountain Scheme cost, we just built it.
No one knew how much the Sydney Harbour Bridge or the Indian-Pacific railway cost!
WE JUST BUILT IT!
Then came CORPORATE GREED.
Now everything above has GONE.
Now we don’t watch each other’s backs anymore but watch each other through security bars, burglar alarms, and security screens.
Now we dob each other in.
Now we import poor quality processed food.
Now we import cheap tools that break just taking them out of the packet they come in.
Now we rely on ships to bring in our fuels.
Now we can’t afford our own Lamb or Beef anymore.
Now we eat steroid pumped chicken just about every day.
Now we import trade skill workers on 457 Visa’s.
Now we have high unemployment as nearly all of our Industry and Manufacturing has gone offshore.
Now we have that many Laws that we have just about outlawed ourselves.
But I guess we need even more laws, so now we will have Sharia Law as well. We now pay for water that falls out of the sky at $3.80 a litre.
Now we have taxes for everything.
Taxes for carbon, taxes for sake of having taxes, (They call them Levy’s).
And don’t forget the newest tax is the ISLAMIC TAX (Halal Certification)
Now here in South Australia in our towns we have Railway Stations and railway tracks, but no trains.
We have Public Bus Stops in our Towns but no buses. We have Hospitals and Clinics but very few Doctors or Nurses.
We all have Mobile Phones, and have little to no reception.
We have Digital TV’s with Bugger all Signal in the country.
And the worst of all, is our once great nation is being sold off, piece by piece to every other country on earth, except us.
Tis very sad but very true! Enjoy whats left while you can?
The Australia we knew when growing up is now STUFFED!!!
-from Gary Matthews
from CEC, Melbourne
After ramming his $10,000 cash ban law through the House of Representatives last week, Scott Morrison is now trying to pretend he has responded to concerns about his cash ban, by releasing a set of “rules” that exempt many activities from the ban.
(This legislation is yet to clear the senate.Ed)
Shane Wright reported in the 28 October Sydney Morning Herald: “The Morrison government has sought to head off internal and crossbench anger over plans to forbid cash payments of $10,000 or more, outlining a string of exclusions it says will protect those who still want to use notes and cents.
“Rules governing new laws around large cash payments make it clear they will exclude gifts, private transactions such as used car sales and situations where people have no other way to pay but via cash.”
It is not true that Morrison is softening the law with these rules. They were always planned to be attached to the law, as a ploy to make the ban initially more acceptable.
The problem is that all the rules providing exemptions to the cash ban are in a separate legislative instrument, and not in the bill itself. This means that the Minister can change the rules at any time, without a vote in Parliament. While the Parliament can disallow the Minister’s changes, it has a strict time limit on doing so, which limits the ability of the public to have a say in the changes and gives the Minister the advantage in making changes.
In other words, the rules are not real protections at all, but exemptions that can be temporary, and easily removed to make the ban more draconian.
The bill itself, which does require a parliamentary vote to change, is an absolute ban on all transactions over $10,000.
Even the ‘myths’ are lies
Demonstrating how disingenuous the government is being over this law, Treasury has issued a “Fact Sheet—addressing the myths about the cash payment limit”.
The so-called “myths” listed in the fact sheet have nothing to do with the main objections to the law.
The Government’s “myths” are:
- Cash cannot be used for everyday transactions.
- Family members cannot give cash gifts.
- Private individuals cannot buy or sell second-hand goods using cash.
- People are required to store money in the bank.
- People are no longer able to deposit or withdraw cash from their bank account.
- The Government can amend the Bill for the cash limit without scrutiny by the Senate.
In denying all these claims, the government fails to mention that they are only false because they are exempted under the rules, which can be changed at any time. They are not exempted in the legislation, which requires a Parliamentary vote to change. As independent researcher Melissa Harrison from exposingtheblackeconomyreport.com asked: “Why is the government not being upfront about this?”
The government’s fact sheet doesn’t address the main objections to the law, because the government cannot answer them. They prove the government’s excuses for this law to be false.
The government claims the cash ban is necessary to eliminate the black economy and reduce tax evasion.
In truth, as proven by studies of the global black economy by Leandro Medina and Friedrich Schneider published by the IMF, Australia doesn’t have a serious black economy problem; the black economy we do have is already shrinking without any cash ban, having halved since 1991; and comparable countries with cash restrictions have much bigger black economies.
As for tax evasion, it is false to blame tax evasion on individuals using cash. Real tax evasion is perpetrated on a massive scale by multinational corporations and banks, and ultra-rich individuals, using the Big Four global accounting firms and the global network of offshore tax havens. This is how Netflix can pay less than $500,000 tax in Australia, on revenue of almost a billion dollars. It is especially outrageous that this cash ban was recommended by a former global boss of one of the Big Four accounting firms, KPMG, which is up to its ears in real tax evasion, and that KPMG is already lobbying to reduce the limit from $10,000 to $2,000.
It is now proven that the real reason for the cash ban, which the government doesn’t want to acknowledge, is not a “conspiracy theory”, but is a recommendation from the IMF which can be read in black and white: cash must be restricted to make negative interest rates work. Countries all over the world are either at negative interest rates or close to, and the IMF has recommended cash restrictions to trap people in banks so they are forced to pay the banks to look after their money.
Another reason to trap people in banks is so they cannot escape “bail-in”, which is when deposits are seized to prop up failing banks.
Independent MP Andrew Wilkie cited this evidence, including the need to ban cash to make negative interest rates work, in his speech in Parliament on 24 October opposing the cash ban. He also proved that the government is not interested in really eliminating money laundering, as it has ignored Wilkie’s evidence of money laundering at Crown Casino. Most importantly, Wilkie made the point that the government has all the laws it needs to crack down on the real black economy, it just doesn’t enforce them.
The government is trying to dodge the issue because of the huge backlash it has received against this law, which has sparked a mutiny even within its own Liberal Party ranks. We must keep the heat on!
What you can do:
National Farmers Federation, which doesn’t represent family farmers, wants them to make way for China
National Farmers Federation solution is to get rid of the farmers
Farming is an essential service
Barnaby Joyce joins in the chorus to throw farmers off the land
KAP Federal Member for Kennedy, Bob Katter has today slammed the National Farmers Federation (NFF) after they appeared on national television and announced they were lobbying the government to provide financial incentives to drought-affected farmers to leave their land; a campaign which is being echoed by the National Party.
A livid Mr Katter said, “Your solution is to get rid of the farmers. It is in the back of the mind of every intelligent Australian ‘why do you want these people out?’ So your big corporate masters, Chinese investors, prominent amongst them can buy them out and we can have corporate farmers. The city suits and foreign nations will be our farmers and we peasants will be out there working for nothing in little towns that are vanishing. That is the solution by National Farmers Federation.”
The NFF, a farming lobby group, proposed six measures to the Government last week, one of which was an incentive payment to leave the land. Other measures in the proposal were rate relief to help pay local government charges, payments that are the equivalent to Newstart allowance, $2,000 top-up of the Assistance for Isolated Children allowance, two-year interest free government loans and a plan to work with state and territory governments to eradicate feral pigs.
While the NFF has been critical of the ad-hoc response to drought by the Government, Mr Katter believes that exit packages are not the answer.
“The KAP, the political party I belong to, says Reconstruction Bank. It’s just so simple that you’ve got to be curious why they won’t do it.
“The Reconstruction Bank, through the Government, can borrow at, probably, a bit below 2% so it can lend at 1.9%. Where aa farmer now owes an average $1 million, he has to find $54,000 a year to pay to the bank. Under the Reconstruction Bank he’ll now be paying $16,000 to the bank.
“The Reconstruction Bank buys bad ‘in danger’ debts at a discount. The farmer will then owe the Reconstruction Bank not the full $1 million he owed the bank but only $850,000 giving him leeway to buy fodder.”
Mr Katter also took aim at the Government’s sorry attempts at financial assistance for primary producers, “The Federal Government claiming they have done something with the farm and financial assistance grants, that one is one huge whopper. Hungry Jacks would love that one, that’s the biggest whopper of all.
“It was the Rural Action Council of Far North Qld, secured at Wayne Swan and Kevin Rudd’s Drought Summit that gave us that concession. The tragedy is when Rural Action was screaming against former Deputy Prime Minister, John Anderson’s, dreadful comment that “we don’t need 240,000 farmers in Australia we only need 120,000”, well the National Party has achieved its objective, we now have less than 120,000 farmers and of those farmers around one in 10 have been on welfare payments, the Family Assistance Grants, given to us, not by our traditional party, the National Party, but by our traditional enemies the ALP.”
“If the KAP gets a commanding position in the Parliament, as Knuth, Katter and Dametto have said again and again, they will immediately reintroduce the reconstruction bank which was successfully run for over 100 years in Queensland.
“We have already lost half of our farmers in the last 20 years. Clearly it is the intention of the NFF, and their political wing, the National Party, to get rid of another half. The farmers are doing it tough? Their solution: get rid of the farmers.”
KAP Leader and Federal Member for Kennedy Bob Katter has slammed a Federal Government Bill which will control how much cash people are allowed to spend as being a danger to the Australian freedoms; a danger which he thinks is greater than the danger to our lives through a terrorism event being carried out in Australia; which the bill sells as being able to reduce.
The Federal Government snuck through and tabled The Currency (Restrictions on the Use of Cash) Bill 2019 on Friday afternoon of the last parliamentary sitting while the House had risen and all Members and their staff were returning home.
The bill carries a punishment of significant fines and jail time of up to two years if a person is caught spending or accepting a cash payment over $10,000. If passed, the bill will come into effect from 1 January 2020.
“The danger here to our freedom is greater than the danger to our lives through terrorism,’’ Mr Katter said.
“Clearly there are a thousand reasons why people like to hide a little bit of wealth; and have access to cash.”
Mr Katter quoted George Orwell in his dystopian novel ‘1984’ saying “Big Brother is watching” and that a person’s right to privacy with some of their wealth is one of the most important rights that Australians have.
“I’m told that for every 10 people in China there is one camera watching. Now whether that’s accurate or not, in most police cases that have caught my interest, I notice that the first thing they go to is the security cameras and people have no idea to what degree they are being watched on a daily basis.”
The Federal Government’s key selling point of the bill is better control of the ‘black economy’; arguing that it will reduce money laundering and the purchasing of weapons on the black market, but Mr Katter warned that an increase in going digital will result in an increase in cyber-hacking and that the bill’s passing will open the flood gates on further restriction of freedoms.
“The Government promotes the bill as a measure to combat funded international and homegrown terrorism yet with the ever-rising digital theft and threat of international cyber hacking I wouldn’t be trusting my bank account or the authorities to protect it, nor should they be controlling it.
“The Government will argue that this is the one and only initiative that they will implement to eliminate the black economy however, once the bill is introduced and passed, they will have the flexibility to dictate many more amendments to the law. It will give the police the power to control your cash over $10,000.
“Once the legislation is in place, they have opened the doors to regulate and change as they see fit.
“The assumption that our cash transactions are due to unsavoury activity allows for the prosecution of the potentially innocent, it has always been innocent until proven guilty?
“I’m sure the Government and policing authorities’ intentions are good but the only people allowed to have guns in our society are the people in uniforms.
“So we have lost the right to protect ourselves and now our right to privacy has been taken away with this bill. Are the Government and authorities going to act responsibly? Yes, most of the time. All the time? No.
“All I see here is the undermining of the great principles of Magna Carta in the rule of law. Through insidious increments, ‘The means that is argued justifies the end’.”
THE Morrison government is attempting to sneak legislation through Parliament to virtually criminalise cash as part of an International Monetary Fund (IMF) drive to bring in negative interest rates, allegedly to “fight recession”.
Negative interest rates mean you pay the bank to hold your money, but cash in hand incurs no such charge.
It means governments will exercise even tighter control over money than they and the central banking system already have.
Draft legislation about to be pushed through Parliament by the Morrison Liberals will outlaw cash payments above $10k under the guise of tax efficiency and combating “the black economy”.
But the Australian lobby group Interests of the People (IOTP) says the real agenda is all about the imposition of the IMF’s extreme global monetary policy in the form of negative interest rates.
“This represents a significant curtailment of civil liberties, and more,” says IOTP.
Australians have less than two weeks to respond and mainstream media appears to have ignored it.
IOTP spokesman John Adams says the Australian Treasury has released draft legislation which was initially announced in the May 2018 Budget by then-Treasurer Scott Morrison.
Nothing was done last year, but the legislation now proposes introduction on January 1, 2020.
“I was skeptical that this ban on (cash) transactions would come in but now that the Coalition has been re-elected, the Coalition with ScoMo and (Treasurer Josh) Frydenberg have decided to push this initiative forward,” Mr Adams said on IOTP’s YouTube channel (“Red Alert: ScoMo declares war on the Australian people”).
Adams says the government is claiming it’s to deal with tax revenue and the black economy but if this was the case, why didn’t they do it a decade ago when the GST was brought in as a way of eliminating the black economy.
“They could have easily introduced certain bans on transactions at that point, but they never did. So why now?
“It’s because not of tax revenue, it’s about interest rates. It’s about the International Monetary Fund. They’ve written a series of technical papers … about how to make negative interest rates work.”
Adams says the IMF wants to make interest rates “deeply negative” e.g. negative 3 to 5 percent, something never done before in human history.
And this would allow the central banks to implement controls on money and people never before implemented in history.
Adams says this will be sold as an initiative to stop the black economy, but in reality it is the first of a series of stages to eliminate cash.
The Treasury announcement came out at 5:12pm on Friday, July 28, in an attempt to limit exposure of it. Mainstream media do not appear to have reported on the plans.
The consultation period ends on August 12th, which points to an attempt by the government to limit exposure of the plans, while allowing them to say “consultation was sought”.
The full interview can be seen at https://www.youtube.com/watch?v=770M2s6ZD8Y&feature=youtu.be&fbclid=IwAR2vEHSudRzJHl7ppoGhm5I8Y3zwR2eqjkD3u5vYyqe13ZyDPkYVzfGMGMg
from CEC, Melbourne
The fight against “bail-in” is on! The Morrison government has released for consultation a new law that bans cash transactions over $10,000. The pretext for this law is to crack down on money laundering and tax evasion in the “black economy”. This is a shameless lie! The formal recommendation to ban cash comes from “big four” global accounting firm KPMG, which is an accomplice of the world’s biggest money launderers and tax evaders. The real purpose for the cash ban is to trap Australians in the banking system, so they cannot escape negative interest rates or having their bank deposits “bailed in”.
Scott Morrison first announced this measure in the 2018 budget, originally to come into force this month, but now scheduled for January 2020. It was recommended in the October 2017 Black Economy Taskforce Report by Michael Andrew AO (who died last month), a former chief of global accounting giant KPMG. The report revealed that the strategy is to: “Move people and businesses out of cash and into the banking system, which makes economic activity more visible, auditable and efficient.” (Emphasis added.) It gives the game away by noting that it may benefit “financial stability and the effectiveness of monetary policy”—code for policies like bail-in and negative interest rates. To achieve this it recommended: “Moving to a near cash free economy. A $10,000 economy-wide cash limit should be introduced.” But $10,000 is just the beginning: in June 2018, just after Morrison announced it, KPMG was already lobbying Treasury to lower the limit to $5,000 or even $2,000.
Deception and stealth
When Morrison released the exposure draft of his bail-in law in 2017, he did so on a Friday afternoon when there would be no media attention. Only a sharp-eyed CEC staffer spotted it and recognised it as bail-in, enabling the CEC to mobilise a massive nationwide campaign against it which continues to this day. The government is being equally sneaky with this law. Treasurer Josh Frydenberg quietly released the exposure draft of the legislation, called the Currency (Restrictions on the Use of Cash) Bill 2019, last Friday afternoon, 26 July, and has allowed only two weeks for public comment.
The exposure draft of the bill has two notable features:
- It bans ALL cash transactions over $10,000, enforced with a penalty of two years jail;
- Division 2 is blank, containing only the words “To be inserted”.
What is the government hiding by releasing an incomplete draft, on a Friday afternoon, and allowing only two weeks for public consultation?
The deception doesn’t end there. In its explanation of the law, the government has sought to make it palatable by emphasising that there will be exemptions to the cash ban, including depositing and withdrawing cash in banks, and, curiously, most consumer-to-consumer transactions, such as for a second-hand car. However, the exemptions are not in the legislation. They are in a separate regulatory instrument to be issued by the Minister after the legislation is passed. This means that they are not permanent, but that in the future, the Minister will be able to scrap the exemptions without requiring new legislation. This is the “salami tactic”: first pass the law in a form that is politically palatable, and then slice off key changes. In a bail-in scenario, for instance, under the current regulation people fearing bail-in may withdraw all of their money from the bank, but the Minister will be able to issue a new regulation that suddenly stops people from withdrawing more than $10,000.
Not about money laundering
This law is emphatically not about controlling money laundering and the black economy. The vast majority of money laundering and tax evasion is done by banks and corporations, not individuals. And who helps banks and corporations do it? The big four global accounting firms, including KPMG, whose boss Michael Andrew recommended this cash ban! The big four literally write the tax laws that enable corporations to evade tax, and dominate the offshore tax havens like the Cayman Islands that exist for tax evasion and money laundering. When Michael Andrew was the global boss of KPMG—the only Australian ever to lead the worldwide operations of a big four firm—two of KPMG’s biggest clients, British banks HSBC and Standard Chartered, were caught in 2012 by US authorities in massive money laundering operations. In other words, KPMG assisted its clients to launder money, but is using money laundering as the excuse to take away the rights of Australians to use cash!
The real reason: bail-in and negative interest rates
Money laundering and tax evasion are nothing new, that they would suddenly require this “solution”. What is new is the plunge in the public’s confidence in the banks, especially since the global financial crisis. But instead of properly reforming the banks to restore the public’s confidence, through policies such as Glass-Steagall, which separates normal banking from the financial gambling that causes crises, authorities around the world have resorted to insane and in fact criminal measures that further destroy confidence in the banks.
The two most egregious measures are the criminal bail-in policy and the insane move to negative interest rates; bail-in steals deposits to prop up failing banks, while negative interest rates force customers to pay to keep their money in the bank. Both are coming to Australia. Morrison snuck his bail-in law through the Senate in February 2018 with only eight senators present in the chamber and no recorded vote. The Reserve Bank of Australia has aggressively slashed interest rates to 1 per cent, and in the banking crisis that is brewing right now they will feel compelled to follow countries like Japan and Switzerland down past zero and into negative territory, as the International Monetary Fund is recommending.
Both bail-in and negative interest rates destroy confidence in the security of bank deposits, which motivates people to take their money out of the bank and hold it in cash. This is the experience in Japan and Europe. So like some European countries, Australia is banning cash to force people to use the banking system so they cannot escape these policies, under threat of two years jail.
Fascism is the use of state power to benefit private corporations; by definition, this is a fascist assault on the freedom of Australians to use cash and not private banks. The CEC is calling on all concerned Australians to demand the government scrap this law and reform the banking system instead!
What you can do
The government has allowed only two weeks for submissions, in order to avoid scrutiny. Don’t let them get away with it! We have until 12 August to swamp Treasury with letters and emails, demanding they drop this law. Write an email or letter today to the Treasury: state your objection to any law that removes your right to use cash, and demand the government restore confidence in the banking system by properly reforming the system, not by trapping people in the system so they can’t escape policies like bail-in.
Email: email@example.com with the subject line:
Submission: Exposure Draft—Currency (Restrictions on the Use of Cash) Bill 2019
Address written submissions to:
Black Economy Division
Parkes ACT 2600
from CEC, Coburg
Sensational information has surfaced that an Australian Treasury delegation travelled to Europe in February for discreet meetings with European countries on how they handled their banking crises.
Former Coalition economics advisor John Adams made the revelation in a 31 March discussion with Martin North posted on their Interests Of The People YouTube channel, entitled “Scandal – Australian Officials Caught In Covert Banking Meetings”.
Adams attributed the information to an unnamed source, who spoke with both him and Martin North.
This information emerged following news.com.au on 19 March reporting Adams and North for their explosive analysis that Australia’s plunging property market could trigger a banking crisis that could spread overseas, “Australia could be ‘first domino to fall’ in next GFC”, in which they compared Australia’s housing market and banking system to that of Ireland before its crash in 2008. Adams followed this up with a top-rating appearance on Peter Switzer’s Money Talks program on 25 March to debate establishment economist Chris Joye on “Is Australia facing a house price collapse?”, in which he also made the comparison to the banking crises in Europe.
The Citizens Electoral Council can attest that Treasury has consistently denied the likelihood of an Australian banking crisis, despite the growing number of signs. Treasury’s claim that a banking crisis is “unlikely” is one of its excuses for opposing the need for a Glass-Steagall separation of banks.
So why would a Treasury delegation be holding covert meetings in Europe to consult on how to handle precisely such a crisis?
Don’t tell the passengers the Titanic is sinking!
As noted on the latest episode of the CEC Report, the Australian government has a policy of not telling the truth about the economy. Their logic is they don’t want to “spook” the market, or “talk down the economy”. John Adams has reported that government MPs have asked him not to speak out about the economy.
More to the point, according to Adams, one MP admitted they are anticipating a crisis, but hope it would be triggered by an international financial shock, so the government can have plausible deniability and not have to admit that their domestic economic policies, centred on inflating the biggest housing and debt bubble in Australian history, caused the crash.
This amounts to: “If we don’t tell the passengers that the Titanic is sinking, maybe they won’t blame us.” The regulators are even worse. Their attitude is: “If we don’t find out whether the Titanic is sinking, maybe it will stay afloat”! This is evident in Reserve Bank of Australia (RBA) deputy governor Guy Debelle’s statement in December 2018 that when it comes to assessing Australia’s record debt, “there is little to form a strong conclusion about how much is too much”. It is also evident in the recent revelation by analysts at Deutsche Bank that the Australian Prudential Regulation Authority (APRA), the bank watchdog, has understated mortgage debt by as much as 40 per cent! This is not incompetence from APRA, but a result of its see-no-evil, speak-no-evil approach to regulation, even to the point of ignoring systemic threats. APRA in 2007 suppressed an internal report by its research department that warned lowered mortgage lending standards by banks had created a bubble, in which defaults were rising and were on track to cause a banking crisis and recession. In 2010 APRA went one step further and disbanded its research department.
Two possible explanations for the Treasury meetings in Europe are: 1) a genuine desire to learn from their experience so they can spot a crisis coming and take action to avert it—unlikely; 2) an opportunity to assess the “bail-in” system that is in force across all EU member states, the Bank Recovery and Resolution Directive (BRRD), which authorises financial authorities to contain a future financial crisis by seizing savings deposits to prop up failing banks, so they don’t set off a chain-reaction collapse.
In his 2018 budget Scott Morrison announced a ban on cash transactions over $10,000, originally to come into force in July 2019, but now January 2020.
With this measure, Australia has joined what outspoken former Liberal Party economics advisor John Adams, who is forecasting an impending economic Armageddon, calls the “war on cash”—nations deliberately moving to a cashless society.
Going cashless is commonly promoted as an efficiency measure driven by technology, but it coincides with the global push for “bail-in”—the policy of averting bank failures by seizing the savings and investment funds of depositors and other classes of creditors.
Bail-in is one of a number of sinister developments in the international financial system, including negative interest rates, which drive people to keep their money in cash.
If it’s not in the bank, it can’t be bailed in.
And you can’t be charged for having it there, which is how negative interest rates work.
Morrison snuck a bail-in law through Parliament in February last year, the Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Act 2018, with only a handful of MPs and Senators present when it passed and no recorded vote.
It authorises the “conversion or write-off”, a.k.a. bail-in, of so-called hybrid securities which are better known as bail-in bonds, which have been sold to hundreds of thousands of unsuspecting mum and dad investors and self-funded retirees. They are at risk of losing, collectively, more than $40 billion.
But the law included a massive loophole that the Citizens Electoral Council’s legal experts, as well as John Adams, Digital Finance Analytics Principal Martin North, and former APRA Principal Researcher Dr Wilson Sy, identified could be used to conduct a back door bail-in of deposits by stealth.
When Pauline Hanson’s One Nation senators notified the government they intended to close this loophole with an amendment that explicitly excluded deposits from any bail-in, the government and Labor Party opposition rushed the bill through the Senate when the One Nation senators weren’t present in the chamber.
Now, as the CEC revealed 4 March, the International Monetary Fund is saying that the 2018 law isn’t enough, and is demanding the government enact a full statutory bail-in regime that explicitly includes deposits. Moreover, the IMF is demanding that the government scrap all democratic safeguards over the bank regulator APRA, by which the Treasurer can give APRA directions and the Parliament can disallow an APRA policy. The IMF wants these safeguards scrapped, so that in the event that APRA orders a bail in of bank deposits in a future crisis, the government will not be able to block the order to protect the public.
This bail-in policy is guaranteed to destroy the public’s confidence that their banks will keep their money safe, and will drive people to take their money out and hoard it in physical cash or other forms.
So what are we seeing around the world coinciding with the rollout of a global bail-in regime? A massive and draconian crackdown on the freedom to use cash.
This is most obvious across the European Union, where the EU bail-in system called the Bank Recovery and Resolution Directive (BRRD) came into force in January 2016.
According to a 25 February 2019 post by John Adams on his website entitled “The New Global Push for Negative Nominal Interest Rates”:
- France has legally prohibited cash transactions above €1,000;
- Spain has legally prohibited cash transactions above €2,500;
- Italy has legally prohibited cash transactions above €3,000;
- the European Central Bank ended the production and issuance of its €500 note at the end of 2018.
Also, the government of India eliminated 86 per cent of all physical cash throughout the Indian economy in 2016 by banning popular denominations of the currency. This created a political uproar in India, and fuelled suspicion of India’s bail-in law which was introduced the following year, the same time as Australia’s. The backlash was so great that the Indian government was forced to withdraw its bail-in law—the first time that has happened.
Sweden is 95 per cent cashless, and Vietnam has a plan to become 90 per cent cashless by 2020.
Another common justification for the war on cash is the need to crack down on the black economy, which is the Morrison government’s excuse. But this isn’t genuine. There are adequate measures in place to track cash-based criminality, which CBA and other banks have ignored, and the same Morrison government shamelessly protects those banks from real scrutiny and real consequences.
The fact remains that limits on cash trap people in banks where they can’t escape bail-in.
Join the CEC’s fight to defeat bail-in and force Parliament to pass the Separation of Banks bill that Senator Pauline Hanson introduced on 12 February, for a Glass-Steagall separation of banking from speculation, which will fully protect deposits from financial dangers and bail-in, and restore confidence in the banking system.
What you can do—fight for the Separation of Banks bill to stop bail-in
- Make a submission to the current Senate Economics Legislation Committee inquiry in support of the Separation of Banks bill. The submissions deadline is 12 April, but do it straight away. Click here for instructions on making a submission.
- Call the chairman and deputy chairman of the Senate Economics Legislation Committee to demand they hold public hearings on the Separation of Banks bill, so that the inquiry is transparent and they can get a proper understanding of the need for bank separation from real experts who are not beholden to the banks.
Chairman: Senator Jane Hume – Liberal
(03) 9428 1773
Deputy chairman: Senator Chris Ketter – ALP
(07) 3881 3710
Veteran political commentator and conspiracy researcher David Icke, 66, has been refused entry to Australia to conduct a speaking tour.
Already the left wing of the ABC and terrified Liberal and Labor politicians have thanked the quisling Liberal Home Affairs Minister David Coleman for banning entry to Icke.
Dvir Abramovich, the chairman of the Jewish Anti-Defamation Commission who launched the campaign to revoke Mr Icke’s visa, praised the Government for “declaring in a loud voice that anti-semites and Holocaust deniers will never find a home in Australia.”
Labor’s immigration spokesman Shayne Neumann, favourably regarded as an intellectual pygmy, said the Government has made the right decision in this case.
Never mind the ALP and Liberals have admitted into the county thousands of Islamists with allegiance to Allah as well as being adherents of extreme Sharia law which permits polygamy and child sex.
Minister Coleman obviously prefers this type of immigrant whose culture is incompatible with this nation and is nothing new to the Jews.
Icke blew the whistle on Israeli secret service Mossad’s involvement in 9/11 along with US intelligence agencies and the Bush family.
Labor too is terrified Icke could tie their home-grown Marxists and socialists to the Communist Chinese party and reveal illegal union donations of millions of dollars to some pollies.
What a motley, ragtag bunch of unintelligent politicians we have in charge of our government. Is it any wonder Australia has become the laughing stock of the world?