Category Archives: Banks
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.
Today marked one of the most important days in the Australian Parliament’s history with the passage of legislation to support the Morrison Government’s $130 billion JobKeeper Payment.
This unprecedented level of financial support will save millions of jobs and keep families together, businesses in business and preserve the productive capacity of the Australian economy.
The $1,500 per fortnight JobKeeper payment is the equivalent of about 70 per cent of the median wage and represents about 100 per cent of the median wage in some of the most heavily affected sectors, such as retail, hospitality and tourism.
It will be available to full-time and part-time workers, sole traders and casuals who have been with their employer for 12 months or more. Importantly, it will apply to the many Australians working in the not for profit sector.
Combined with the Government’s previous actions, this totals $320 billion or 16.4 per cent of GDP in economic support to Australian businesses, households and individuals affected by the Coronavirus puts Australia in the best possible position to bounce back stronger than ever.
Eligible businesses can apply for the payment online and are able to register their interest via ato.gov.au
Did Trump just nationalise the Federal Reserve?
by Alexandra Bruce
Special Purpose Vehicles (SPV) devised by the Trump Administration will enable the Treasury to finance his $2 trillion Coronavirus stimulus package WITHOUT INTEREST.
Where did Australian Prime Minister Scott Morrison find $130 billion at the drop of a hat to fund the Coronavirus economic stimulus package for struggling Australia?
The video ‘The Goldfish Report’ on forbiddenknowledgetv.net is the most informative yet about the world monetary system.
NESARA, which stands for the National Economic Security and Recovery Act was conceived by Harvey Francis Bernard, who held a doctorate in Systems Theory that he applied to economics.
On his deathbed in 2005, Harvey Bernard heard claims about NESARA and denied NESARA had been enacted into law.
But here’s where it gets REALLY crazy: The title of Bernard’s NESARA proposal is Draining the Swamp: Monetary and Fiscal Policy Reform.
One of Trump’s top three slogans is associated with all of the craziness above – and we are living it now!
Godfather of the Rothschild banking cartel, Mayer Amschel Rothschild said, “Give me control of a nation’s money and I care not who makes the laws.”
In a recent Bloomberg article, ‘The Fed’s Cure Risks Being Worse than the Disease’, Jim Bianco explains what is now happening with the Federal Reserve Bank in their response to the coronavirus. He writes, “This scheme essentially merges the Fed and Treasury into one organization, so meet your new Fed Chairman, Donald J Trump.”
Did President Trump just nationalize the Federal Reserve Bank?
On June 4th, 1963, President John F Kennedy issued Executive Order 11110, which many believe was an effort to transfer power from the Federal Reserve Bank to the United States Department of the Treasury by replacing Federal Reserve notes with silver certificates, thereby taking the power away from the international banking cartels. Less than six months later, President Kennedy was assassinated and his move against the Fed was reversed.
During the Civil War, President Abraham Lincoln printed $400 million worth of Greenbacks, a debt-free, interest-free money, independent of international bank control. In response, the London Times wrote that, “If that mischievous financial policy, which had its origin in the North American Republic should become indurated down to a fixture then that government will furnish its own money without cost. It will pay off debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous beyond precedent in the history of the civilized governments of the world. The brains and the wealth of all countries will go to North America. That government must be destroyed or it will destroy every monarchy on the globe.”
The bankers were not willing to lose power and the Bank of England went on to fund the Confederacy. Weeks prior to Lincoln’s assassination, assassin John Wilkes Booth spent time in Montreal, known as the “Confederate capital of Canada” and was found after the assassination with a banknote from Ontario Bank. Booth’s personal manager, was banker, Joseph Simonds. After Lincoln was killed, power was restored to the international banking cartel.
The National Economic Security and Recovery Act, known as NESARA was a set of proposed economic reforms suggested during the 1990s by Harvey Francis Bernard. Bernard created the NESARA proposal during the late 1980s. He sent copies to members of Congress but was ignored. In 2001, he established the NESARA Institute and published the second edition of his book in 2005, re-titling it, ‘Draining the Swamp: The NESARA Story Monetary and Fiscal Policy Reform’.
The policies included replacing the Income Tax with a National Sales Tax, abolishing compound interest on unsecured loans and returning to a “bimetallic currency” (gold and silver), which he claimed would result in zero percent inflation and a more stable economy.
There is a big buzz on the Internet that President Trump is implementing this plan. There is also speculation that this is part of a huge global economic reset, GESARA to be decided at the international World Court of The Hague. If this is true, certainly this decision has been decided years ago and we are just now feeling the effects.
The Coronavirus scare is beginning to look like a false alarm but the reaction is looking just like a false flag and it seems that when we come out the other end of this the world will be different.
Please go to these videos at forbiddenknowledgetv.net and support the author by hitting the donate button on their site.
Scott Morrison PM gives the banks total control over the population
The Labor Party now owns the cash ban law. They have “Albowed” Morrison and the government aside to take charge of the law that, stripped to its essence, will jail Australians for not using banks.
Australians should call Albo and every Labor MP and Senator and demand to know why.
Labor MPs will scream till they are blue in the face that it’s not their law, it’s Morrison’s, but that’s a cop-out. Labor has the numbers to stop this bill, but instead they have fallen in behind the government to recommend in the final report of the Senate inquiry, released Friday, that Parliament pass the bill.
The most disappointing and dishonest part of Labor supporting the final report, and not issuing a dissenting report as the Greens did (an excellent job), is that it was Labor Senator Kimberley Kitching, who was on the Senate inquiry, who tweeted last Monday, 24 February:
“On the Senate committee looking at this, I was waiting for govt to provide evidence that their #cashban would actually impact current law-breakers (e.g. drug-dealers) rather than just inconvenience the elderly and people who don’t like banks. So far… nothing.”
So how on Earth can Kitching and Labor turn around and support the bill?!
The final report has eight recommendations, most of which are weak. For instance, they recommend reviewing the penalties for one-off as opposed to repeat offenders, but not the draconian jail sentences, which no other country with cash restrictions has. And they recommend moving the exemption for personal and private transactions, i.e. cash gifts to family members and buying a car from a friend, from the regulation, which is easy to change, into the bill, which is hard to change, but they don’t recommend doing the same for withdrawing money from the bank—this exemption is still in the regulation and remains easy for the Minister to drop, effectively trapping people in banks.
The overall problem with these recommendations is they don’t make the bill more effective in combatting the black economy; they are only intended to make the bill slightly more palatable to the Australian public. They can’t make the bill more effective because the government couldn’t provide evidence this law was necessary in the first place, as Labor Senators demonstrated, which is why it should have been rejected outright.
Will Labor insist on the recommendations, or cave?
There is, however, one recommendation that could potentially defeat this policy, but only if Labor insists on it! In the list of eight recommendations, the first is that “the government review existing powers and trends in the digital economy to assess whether the bill is the most effective response to the black economy”. In other words, the government should review whether this law is even necessary, and if it would work.
If implemented, this recommendation would significantly delay the cash ban bill, and possibly even end it altogether, because a genuine review would prove that the claims of KPMG’s Black Economy Taskforce, which recommended the cash ban, were dishonest. That report is a fraud: the late Michael Andrew who chaired the Taskforce—the only Australian to ever rise to global chair of a big four international accounting firm, KPMG, which is notorious for helping its clients in megabanks and multinational corporations evade tax and launder money to the tune of tens and hundreds of billions—had the supreme arrogance and gall to characterise the black economy as a blue-collar problem! His report pinned the blame for tax evasion in the black economy on the likes of tradies, hairdressers, nannies, personal trainers and gardeners, while absolving his former multinational business and its corporate clients. Worse, this report shows that Labor, supposedly the party of blue-collar workers, swallowed it.
It would be shocking to most Australians that this Senate report is not binding on the government, even though it’s from the government’s own committee. And even though Labor politicians signed off on the final report too, the Labor Party is also not bound by it. It is entirely possible for the government to reject the recommendations in the report, and for Labor to cave and support the bill anyway.
The question is: will Labor at least insist on the recommendations, or will they cave, and be responsible for a law that jails Australians for not using banks?
Call Parliament and demand answers
It is crucial that we keep the heat on politicians over this report, and this week flood politicians in Canberra with calls demanding they account for this report. All politicians are in Parliament this week, so the calls people make will be amplified. Here is who must be called:
- Assistant Treasurer Michael Sukkar, who is the Minister responsible for this law. Demand to know what the government’s response to the committee report will be, and whether it will accept all the recommendations. Ph: (02) 6277 7230 Email: Minister.Sukkar@treasury.gov.au
- Labor leader Anthony Albanese. Demand to know:
- Why is it Labor’s policy to jail Australians for not using banks?
- Why is Labor supporting this law even though their own Senators proved there’s no evidence for it?
- Will Labor even insist on all the recommendations, or will it cave and pass it anyway? Ph: (02) 6277 4022 Email: Anthony.Albanese.MP@aph.gov.au
- All Labor Senators and MPs. Ask them the same questions as Albanese, about Labor’s cash ban law to jail Australians for not using banks. Click here for a list of all Senators; click here to search for your MP on Parliament’s website.
Click here for a free copy of the Citizens Party’s financial crisis manual, The next financial crash is certain—End the BoE-BIS-APRA bankers’ dictatorship! Time for Glass-Steagall Banking Separation and a National Bank
Authorised: Robert Barwick‚ 595 Sydney Rd‚ Coburg‚ Vic 3058
Federal Member for Kennedy
Will address the Press Gallery at the
Mural Hall, Parliament House
12 pm Today 05/03/20
The LNP/Labor duopoly strikes again-gone will be your savings under the Bail-in laws as soon as interest rates hit zero. The banks, thanks to new laws passed by the LNP before Christmas can take your savings from your bank accounts to prop up their viability in the upcoming depression enabled and orchestrated by the trojan horse Coronavirus pandemic. Remember the Greek banks stole the deposits of their customers three years ago.
Most intelligent Australians know this $10,000 cash ban has nothing to do with curbing drug dealers’ cash flow. It is all about control. Scomo has been compromised by Hillsong church activities and is simply doing the bidding of the City of London for the New World Order. – Editor
Mr Katter will purchase gold bullion with more than $10,000 cash ($40,000 of gold and cash will change hands); an act that will soon be illegal under proposed laws.
The implementation of the Restriction on Cash Bill, currently before the Senate, significantly abolishes our right to “Legal Tender” – a right enjoyed for a millennium. Property rights and privacy are undermined.
When facing uncertain economic times, as we are now with the Coronavirus, Australians will be restricted from withdrawing their life savings (When such savings are under real threat).
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
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: firstname.lastname@example.org 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.