You're looking well. Stand by for the transition phase.
Thanks muchly for the interesting truth telling article about 'Alternative Currency: Sovereign Money In Sovereign Accounts Of Sovereign Men'.
Humanity must go that way if it is to survive.
Arguably real change will happen once people understand the absurdity of the current scheme for creating money out of thin air, charging interest (usury) on it and pretending that fractional reserve banking is viable.
Ordinarily the Fed (and every Central Bank) sets a nightly cash rate which determines what banks charge as interest (usury) on the fiat debt money they create out of thin air and pretend to provide to borrowers.(1)
The published deliberations and publicly stated reasons for setting the overnight cash rate are gobbledegook designed to enable babbling bankers, economists and commentators to endlessly confuse and indoctrinate the general population with a meme implying that “money” is necessary for societal existence and that monetary policy is a complex, mysterious and highly difficult to grasp subject best left to the high priests of finance and banking.
The real reasons for interest rate decisions are not made public because they are both simple and fraudulent.
Until the Global Financial Crisis in 2008 occurred the stated reason usually given for having and increasing interest rates was that inflation was getting too high and so Central Banks had to charge more for money in order to reduce it.
Sooo, when inflation (ie price increases which indicate a reduction in the purchasing power of fiat debt money) the Fed and Central banks generally, used to reckon the PRICE of money HAD to be increased so that the COST (ie the interest rate charged, on fiat debt money) would (magically) reduce that inflation.
But of course increasing the COST of money actually increases the COST of ALL goods and services provision in the economy, because it has to be factored into the cost of producing all goods and services.
Sooo, the only way increasing interest rates could reduce inflation in the form of increased prices for goods and services was if it soaked up money ordinarily available for goods and services by requiring that it be paid to banks and lenders instead.
That process results in reduced demand for goods and services. When the COST of money is increased substantially, businesses fail and goods and services are sold off, sometimes at a substantial loss.
In effect, PRICES of goods and services then fall due to distress sales and the imposition of slave wages (Think; The Grapes of Wrath by John Steinbeck) as the PRICE of money rises and its supply falls.
As I understand it, the Fed and other Central Banks control the money supply by increasing and decreasing the volume and price of “money” available in the commercial trading bank system by altering the overnight money market cash rate which is the official cash (interest) rate (OCR) charged to banks by the Central Banks for money the commercial banks “borrow” in order to enable them to lend NINE times as much non-existent money under the fractional reserve system.
In other words they borrow from the Fed et al in order to lend to customers nine times as much as they borrow and the process facilitates the lending of non-existent money upon which interest is charged.
Thus, through the regulated use of exchange settlement accounts, the Fed (using the same mechanism used by all Rothschild/BIS controlled Central Banks) is able to adjust interest rates in the US economy.
The OCR cannot be changed by transactions between financial institutions as this does not change the supply of money, only its location. Only transfers between the Fed and an institution can affect the cash rate which is a mechanism for changing the supply of money in the economy.
As banks are made to settle all inter-bank transfers overnight, the Fed can regulate the rate paid for cash by the sale or buy back of bonds and other government issued securities (these are known as domestic market operations).
As the sale or purchase of bonds affects the supply of money, the interest rate will change to reflect its availability.
In practice, the Fed fixes the OCR and the supply of money varies accordingly. Because the US and global financial and banking systems are on their knees, the Fed has ceased to charge a significant overnight cash rate to commercial banks and British and EU banks have followed suit with overnight cash rates at 1% [Ed: 1.25%] or less.
This situation has pertained in Japan for 20 years and in the US for over two years. That signals that the system is in collapse with the Fed et al printing money (virtually) on computers, and giving it to commercial banks which then use the almost interest free money to buy US bonds in a “carry trade” which enables them to earn much more interest on those bonds from the US Treasury than the infinitesimal interest they pay to the Fed for the “money” needed to buy the bonds.
Ordinarily the banks borrow from the Fed in order to ensure an appropriate reserve to maintain their fractional reserve lending.
If the Fed increases the OCR then the banks restrict lending or charge more to borrowers. One of the beauties of this arrangement in the past was that it enabled the Fed to increase the income of the banks – their interest rate income – whenever it increased rates.
Moreover, the real joke was that when the Fed jacked up interest rates the banks increased their interest rates on most outstanding mortgages and loans even if they were arranged many years prior at much lower interest rates.
Sooo, an OCR increase by the Fed increases the COST of most outstanding debt money in the economy and in so doing IT INCREASES COSTS THROUGHOUT THE ECONOMY. Thus the Fed and all Central Banks increase inflation while pretending to reduce it.
By increasing interest rates the Fed also increased the income and profits of banks and most other lenders.
The losers are the general population and the rest of the economy – the businesses and individuals that have outstanding bank mortgages and loans.
This constitutes a wealth transfer from borrowers to lenders. The real joke is the Fed’s pretence that increased interest rates reduced COST increases in the economy.
They do not and they cannot. Moreover, the fact that politicians, economists, commentators and news presenters pretend that inflation is reduced by interest rate hikes, doesn't make it so.
Today, because banks can earn risk free interest income from the US Treasury by buying US bonds using almost"free" Fed bailout funds they are loath to lend to Main Street and so the US economy is depressed.
The only way that prices for goods and services, and wages; can come down as a result of Central Bank interest rate hikes is when those hikes are sooo great that they result in a recession like the recession Paul Keating said Australians 'had to have' in 1990.
On that occasion the local Central Bank increased the OCR to 18.02 percent (compared to 4% today) with the result that mortgages and other loans were COSTING 22-23% or more.
Similar though much less pronounced effects were experienced in the US at that time as the Fed hiked interest rates to around 12%.
The result was a considerable wealth transfer from ordinary people to banks. Of course that was nothing compared to what the banksters did in the Great Depression or what is being done today in the US and most Western economies, although the mechanisms today are different.(2)
Bank Lending is Fraudulent
Of course the reverse effect occurs when Central banks lower the OCR but the underlying joke is that the banks do NOTHING to obtain ANY interest at all on virtual fiat debt money, computer transactions.
As money is or should be just a means of exchange, a facilitator of transactions, arguably NO interest should be paid for money disseminated in society.
Rather, money should be issued interest free by each sovereign community (however described) using its publicly owned, supervised, audited and controlled government institutions, NOT private corporate banks. Bank lending today is a simple computerised book keeping exercise.
A magical sleight of hand whereunder the banks, assisted by their local Central Bank, create money out of thin air (computer strokes on a keyboard) and then charge interest on the fictional capital sums created using the pledged CREDIT of the borrower (not the bank).
In fact the whole bank, money-lending process is fraudulent on at least three counts.
First, the bank does nothing and lends nothing to the borrower and does not even purport to “lend” until the borrower has pledged his/her/its CREDIT by agreeing to pay the bank the fictional sum of money supposedly being lent, AND interest thereon; AND to forfeit to the bank real property and assets if it fails to do so.
Moreover, the borrower must assign his/her/its credit by SIGNING or affixing a corporate seal, to the mortgage or loan agreement BEFORE the bank does anything.
Even then, all the bank does is type into a computer an agreed capital amount which goes into the borrower’s computerised account. Nice money if you can get it!
In effect, these bank mortgages and loans are legally void ab initio for lack of consideration, as well as being unlawful.
The second fraud is that banks unilaterally alter a fundamental term of the CONTRACT without the borrower’s consent every time they change the interest rate charged for the mortgage or loan moneys.
The supposed justification for this is, (you guessed it!) a change in the OCR by the Fed or appropriate local Central Bank. Again, such changes are fundamental breaches of contract law and hence should be held to be void and of no effect. Borrowers consent to them by paying the increases demanded.
The third fraud is that under the current global Rothschilds’ controlled Central Banking system, the commercial trading banks that lend money and charge interest on it, NEVER create or purport to create, ANY money to cover the COST of the said interest payments.
Think about that! It means that in the Rothschild organised global banking system controlled by City of London bankers, the BIS and the Fed, there is ALWAYS a shortage of money built into the process!
Since NO money is ever created to pay interest, and interest compounds year on year, THERE IS ALWAYS A SHORTAGE OF MONEY IN THE ECONOMY WHICH CAN ONLY BE OVERCOME BY THE ISSUANCE OF NEW (fiat debt money) MORTGAGES AND LOANS! This applies even if overnight cash rates are set at as little as, say, 0.25%.
Sooo, in effect, the Rothschilds’ current Central Bank controlled global money supply arrangements – the global monetary system – is a Ponzi scheme that requires ever-increasing borrowing of fiat debt money in order for it to survive.
Once the population has 'maxed' out its ability to pay interest and can no longer borrow any more money without being unable to meet the capital and interest repayments, which results in bankruptcy, the global monetary system and economy must collapse.
As historically NO previous fiat money scheme has lasted more than 70 years and the current fiat money scheme created with the establishment of the Federal Reserve System in the US in 1913 has greatly exceeded that mark, the global monetary system is well overdue for collapse.
In effect our whole world has been screwed by a criminally fraudulent Rothschild controlled, Central Banking, fiat fractional reserve money supply system which is now in terminal collapse mode.
The system must end in a global financial and economic catastrophe which will make the Great Depression look like a picnic.
Absent divine intervention, the end game is inevitable. And China won’t escape unscathed either.
(1) All monies issued by banks under the fractional reserve system are issued as credit tokens at-interest, that is, they are debt-tokens.
First we had goldsmiths issuing credit-at-interest money to individuals. Next we had private banks issuing credit-at-interest money to individuals and the State. Now we have a Credit-Cartel issuing credit-at-interest to the entire world. Today, all wealth – everyone's assets and the Nation's assets - is monetized in this way.
In the US and most countries, 95-97% of “money” (ie all “money” except the notes and coins created and circulated by the government Mint) has been borrowed (OTA) (Out of thin air) into circulation as debt. And that debt exists as bank deposits - digital money on computers.
In the words of Robert Hemphill, for many years credit manager of the US Federal Reserve Bank:
"If all bank loans were paid, no one would have a bank deposit, and there would be not a dollar of currency in circulation.
This is a staggering thought. We are completely dependent on the commercial banks. Someone has to borrow every dollar we have in circulation, cash or credit.
If the banks create amply synthetic money, we are prosperous; if not, we starve.
We are absolutely without a permanent money system.
When one gets a complete grasp upon this picture, the tragic absurdity of our hopeless position is almost incredible—but there it is. It (the money problem) is the most important subject intelligent persons can investigate and reflect upon.
It is so important that our present civilization may collapse unless it is widely understood and the defects remedied very soon."'
(Phoenix Journals ch 22 pp 99-104)
It isn't widely understood and the defects have NOT been remedied globally and hence the current global money meltdown is NOW morphing into a global economic collapse which will, barring divine intervention, result in a Great Global Depression.
(2) Simultaneously every economy in the world that operates under a Central Bank orchestrated fractional reserve banking system is verging on system-wide insoluble debt.
Nowhere can the one thing a central bank can offer, further multiplying debt, save the world from the multiplying debt that soon no nation will be able to afford.
Hence today we have the ludicrous spectacle of the US Treasury committing US citizens to repay some 15 trillion fiat dollars (and counting) created out of thin air and virtually given to US banks and corporations as “bailout” money to create a charade that they are not bankrupt when they obviously are.
The struggle is not a new one. Two hundred and thirty years ago the US founding fathers fought hard, and with temporary success, to free the US colonies from the tentacles of the Bank of England. Thomas Jefferson said at the time that:
'If the American people ever allow the banks to issue their currency, the banks and [bank-owned] corporations which will grow up around them will deprive the people of all property, until their children wake up homeless, on the continent their fathers conquered.'
And so it will be; and IS, in many cases already.
Arguably a monetary system should provide only for citizens to exchange their production equitably. Fractional reserve banking is a grave illness. It must be banished forever.
It is not possible for human society to evolve while under its thrall. The overwhelming indebtedness created by the issuance of fiat debt money has devastating effects on everyone except bank owners and executives and those they favour.
Moreover the poverty, misery and wage slavery of the many on the one hand and the obscene wealth and consumption of the few – the banksters and their puppets and henchmen - on the other, has created fertile ground for corruption, crime, social disintegration and war.