Once you understand the credit system you can’t help but be enraged at the quack remedies the elites are offering

April 22, 2012 § Leave a comment

By Dick Eastman

All of our money comes to us as bank loans and when it
leaves us it drags compound interest with it  — only there
is no extra money provided to pay the interest, so
Big Finance takes the collateral. 
That’s how it comes about that  B.F. owns the entire country
now and the people are reduced to dispossessed
debt-slaves/tax-slaves living in one big debtors prison slum 
well removed from  the creditor class’s Eliteworld paradise.
Why They Love Deflation and how the very structure of our financial system forces deflation upon us.
Holding mountains of dollars as a speculative investment, is betting on more deflation.  And betting on deflation is more profitable and a “surer thing” than investing in American production weaker as purchasing power is drained away.  Dollars are the preferred speculative asset these days because they appreciate in value as foreclosed properties sell for less and less as long as the deflationary bust continues.  And the theives who arranged this deflationary system blame the innocent borrowers for “wreckless borrowing” as they take possesion of the collateral.  etc.
The arrows represent flow of purchasing power.  I find it most helpful to think
in terms of total checking deposits and how fast they are being transferred
from account to account.   That is,  from buyers’ accounts to sellers’
accounts, and  from employers’ accounts to employees’ accounts, and
from household and business accounts to the financial sector or to
government and then from government to the financial sector.  The view
is essentially “monetarist” and derives from Irving Fisher, Arthur Kitson,
C.H. Douglas and Frederick Soddy.  Fisher wrote of “MV”, which is the 
“quantity of money” in circulation times the “velocity” of spending.  Or just
think of the arrows as representing “flow of dollars.”
The reall killer, is Lie #4, shown below.  There is a huge debt.  We borrowed on our home
equity because finance was not putting money back into the domestic economy.  That
gave us money to buy food and hire employees, but that money must all be paid back
plus interest — so eventually we have less money than we did before we borrowed on
our equity.  So it is inevitable that there will be a certain amount of default to cover the
difference between the loan money we got and the principal plus interest we are obligated
to give up.  You lose you house.  The state of Washington “privatizes” its state liquer
stores. Chicago sells its parking meters.  Companies go bankrupt, their assets
going to corporations.  Small banks with “toxic loans”  are swallowed by bigger banks.
And they tell you that these CUTS will somehow cleanse the economy of its “toxicity.” 
That liquidation and austerity and “cut cut cut” is health.  They say “get rid of all the
bubbles” when what they really  mean is transfer all that built up wealth to the creditors. 
Rather than a bubble bursting, what is really happening is that an airship is crashing for
want of reflation.  While the public debate is not on the horror of such a monstrous
machine of plunder and how to get rid of it, but rather on the question of which
sector — household consumption, public goods or domestic production gives up
its “pound of flesh.”
Lie # 5:  That a gold standard would somehow help us.  Gold is not money.  Money is
simply exchange mediation tokens that are additive.  At certain  little favor gets $3,
a somewhat bigger favor gets $3,000, a bigger favor, for example, providing a new
building, gets $3 million etc.  What a gold system does is requires that you pay
tribute to Rothschild for each transaction you make.  How does Rothschild exact
this tribute.  It is very simple.  They monopolize a certain chemical element, since
elements cannot be produced by man (or, these days, it can be produced, but
at a prohibitive cost) – and then require that all money in circulation be “backed”
by holdings of this tribute metal.  Not having so much tribute metal to back
a given number of exchange tokens is an economic crime, punishable by
the closing of a bank for insolvency — or the immediate borrowing at
high interest to supply the metalic backing that is wanting. 
The gold system enforces DEFLATION.  It is an unnecessary expense
 that society imposes on itself merely to allow private interests to profit
as an intruding third party on every transaction between buyer and seller.
 
The Gold Standard does not prevent inflation. — Gold monopolists can
cause monetary expansion simply by depositing some of their personal
hoard of gold in the banks to form fresh reserves.  What gold really does
is make the gold monopoly the private central banker in control of the
money system.
A country in a depression cannot reflate its economy, because to reflate
requires Rothschild’s gold.  Gold is a constraint put on an economy simply
to give tribute to Rothschild.  It is a transactions tax on the human race.
Money should be costless and thus “frictionless.”   The quantity of money
in circulation should be set by disinterested public servants — and THAT
requres a different monetary and credit system.  Such a system
requires that expansions of the  number of exchange mediation tokens be
effected in such a way that everyone gets the same amount of new
money when new money is created.  If three billion dollars is needed
to provide optimum aggregate demand,  then 300,000,000 people
should each get $10 in a national credit dividend check — do spend
as they choose without having to pay it back.  It’s that simple.  That
is all that was needed to prevent the current economic crises when
purchasing power, hiring power and debt-paying power began to
lag due to net interest drain.  And it is all that is needed to reflate
our economic airship today.
Dick Eastman
Yakima, Washington
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