Tomorrow: a Blueprint
The economy continues to splutter like an old banger with kerosene in the gas tank. Our government has done some cosmetic tinkering that has made us poorer in the name of “reducing the debt,” while making scarcely a dent in the debt.
Unfortunately, in trying to sell the people on the idea of adopting “Austerity Measures” so as to “reduce our debts” your government somehow forgot to mention one tiny detail: the existence of money is BASED ON the existence of debt. In other words, as it reduces debt even a little bit, government creates a money scarcity which we know as recession. I explained briefly how this scam works in an earlier article.
This is precisely what is happening in the UK, Greece and just about every country that allows banks to create their money supply and then get it onto circulation by lending it at interest. It is a rigged game and you are being lied to cynically and continually.
The Austerity Measures we hear so much about are designed, NO MATTER WHAT THE SOCIAL COST TO ENTIRE NATIONS, to ensure that the banking interests get paid back at interest money they created out of nothing in the first place. Such measures exist for no other purpose than to ensure banking interests make vast amounts of money for which they have produced nothing in exchange.
I find it staggering that our governments, men whose decisions affect millions of people, don’t know this or are so irresponsible as to have not even bothered to find out how their own money system works. The negligence beggars belief and it is bringing their own people to ruin. So far as those interests are concerned, do not kid yourself that our well being matters in the slightest. To them, we are cattle.
I am not therefore surprised that the Greek people and others are getting upset. Their governments are bending over backwards to ensure their pals in banking accumulate wealth they have not earned, while steadfastly ignoring the underlying flaw that is causing increasing hardship to their citizens.
The "promised land" of European Union has proven to be no answer. Surrendering our national sovereignty to Brussels and ultimately to a central bank in Germany, layering another level of stifling bureaucracy (and tax and debt) over the idiocy (and tax and debt) that already exists, merely consolidates banking power and further protects the great banking hoax that so efficiently siphons off the wealth of nations. In other words, it is a stronger dose of the poison that was already killing us.
If something got you into trouble, doing more of it and then more of it still is not going to get you OUT of trouble: it will inevitably get you into deeper trouble and it just might be a good idea to stop doing it.
In actual fact, the current economic troubles are not that difficult to remedy, PROVIDED one has a government with the actual will to remedy it, as opposed to perpetuating a scam that makes its pals richer.
Here, very briefly, is an outline of what government could do if it cared about the fate of its people – and what we should be instructing our government to do, or else.
1.) Immediately remove from private banking institutions the right to CREATE money. Banks can retain the right to LEND money but may only lend money they actually HAVE and may NOT create money in order to lend it.
2.) Immediately restore to government - and to democratically elected government only - the right to create money according to the economy's need for money so as to ensure and facilitate the smooth exchange between producer and consumer of goods and services.
3.) Immediately set up an autonomous Agency, whose sole right and duty is to calculate the economy's need for money. Charge the Agency with the duty of correctly calculating money supply - and the yardstick by which that correctness is measured is: KEEP THE PURCHASING POWER OF THE CURRENCY STABLE. Stability of spending power of the currency is vital for confidence and the ability of all citizens to plan and predict.
4.) The above mentioned Agency must NOT have the power to spend new money. Its sole function must be that of CALCULATING how much new money must be created and then instructing the Mint to create it and credit it to the government’s account.
5.) The above Agency must be protected by law from ANY influence or interference by ANY person or agencies, including government, with stringent penalties for violation of such laws and the removal from office of any official or politician who violates those laws.
6.) The deliberations, conferences, calculations and conclusions of the Agency and recording thereof must, by law, be open to full scrutiny by any citizen of the nation at any time.
7.) Government must be obliged and bound by law to spend into circulation the new money created by the above mentioned agency. The Agency may NOT instruct government as to what government spends the money on.
8.) Government may spend the new money on roads, schools, pensions, subsidies and so forth, whatever it decides to spend it on according to the priorities, policies and promises enshrined in the mandate upon which it was elected to office.
9.) Government must spend the aforementioned money INTO ITS HOME ECONOMY so as to ensure it enters circulation in the economy. For example, if it wishes to spend a £10 billion into circulation by building a new bridge, it must hire indigenous labour and buy indigenous materials. Thus, through the purchase of materials and the payment of wages, new money will enter the home economy WITHOUT A DEBT BEHIND IT and will then circulate. This will greatly help the employment and prosperity of indigenous people and businesses.
10.) New money spent into circulation by government can and should be used to reduce the tax burden of the citizen because the creation and expenditure of new money will become a new, additional source of revenue for government in its effort to serve the people.
The reduction of the tax burden will of itself stimulate production.
As economic production increases, so does the requirement for the creation of new money. Therefore, in order to increase its revenues, government will have an incentive to remove all material, bureaucratic and taxational obstacles from, and actively assist the people in, the business of wealth creation.
11.) Immediately abolish all taxation (income tax, VAT, death duty, stamp duty, road tax, tax on fuel and so forth.) I say again, ALL existing taxes of any kind. Replace the currently unwieldy and expensive-to-administer tax system (whose complexity has the sole purpose of hiding from the people exactly how much tax they are paying) with a SINGLE PURCHASE TAX.
12.) The levying of just one tax on purchases will enable the people to know as they pay it exactly how much they are paying. Whether the level of purchase tax be set at 25% or 10% by government or raised or lowered by government, it will be impossible for government to hide taxes or its own incompetence, overspending or economic mismanagement.
Thus, consumption will be taxed but all production will NOT be taxed anywhere at any time. All wages and profits will be received FREE OF ANY TAX and the citizen or business will pay his tax as and when he buys goods and services.
Moreover, the system will be simple. It will require only that a percentage be added to purchase prices and only points of sale will be required to present tax accounts. Therefore, the administrative cost of tax collection will be vastly reduced and the majority of citizens may never need to be involved with tax authorities at all. Those who, being points of sale, are required to deal with tax authorities will find a much greater simplicity than the current system of tax returns.
The iniquitous burden of the income tax in particular will be removed from all the people forever.
The spending of new money into the economy discussed above will vastly reduce the overall tax burden (and perhaps enable taxation to be abolished altogether) and this, combined with levying as a purchase tax any taxation that remains, will remove from the citizen those inhibitions that have stifled his efforts to prosper.
Banks will return to their primary function of safeguarding and investing money of their savers and the provision of loans for the purchase of large consumer items such as houses (although houses, given the economic measures above will become relatively cheaper, obviating the need of the citizen to take on a lifetime of debt so as to have a home).
Thus the unfair and idiotic power of one private group of people over the lives and livelihoods of all other citizens will end.
It should be noted that the current system REQUIRES escalating levels of borrowing in order to sustain a money supply. The new system will see a vast reduction in the need of the citizen to borrow; the pressure placed upon him to borrow will be vastly reduced.
There are of course other ills in our society that also need to be corrected and the above measures to remove the needless tax and debt burdens will not of themselves bring about a Utopia.
But removing the distractions and inhibitions of economic constraint and debt slavery from our road will make it far easier for us to address with success the many other issues requiring our attention.
Acknowledgements:
I am indebted to the late Dr Edward Hamlyn for introducing me to the principles of monetary reform, the economist Michael Rowbotham and his masterful and enlightened work Grip of Death, and to Abraham Lincoln for his Monetary Policy.
Stephen Cook is a professional copywriter http://ablecopywriting.blogspot.com