Can You Say DE-FLATION?

I can! and so can the housing market!

Let me remind you WHY housing prices are so darn high to begin with!

REALITY can only be masked for so long before it sears through the ILLUSION.

If Given A Choice Between A DRAFT And ECONOMIC SLAVERY...

I would choose a DRAFT.

At least with a DRAFT, war will be a LAST RESORT; not a pre-emptive experiment using expendable lives.

Those with choices WILL REFUSE to fight in WAR; unless it's ABSOLUTELY NECESSARY.

The 13th Amendment of our Constitution PROHIBITS involuntary servitude. THEY CANNOT FORCE US to be AGGRESSORS;

No one needs to be forced to defend themselves. So, they will HAVE TO make a STRONG case for war; or fight themselves.

As it is, the government PREYS on those whose only other choice is to remain a civilian in POVERTY;

because the government isn't in the business of financing LIFE; just WAR;

these people have NO meaningful CHOICE.

This is ECONOMIC EXPLOITATION at its WORST.

It is CRUEL AND MURDEROUS to force people to choose between needlessly killing other human beings and needlessly dying in POVERTY.

This must stop.

At least a DRAFT will make it painfully clear who the REAL ENEMY is.

6 EASY STEPS to Burying America's Students In Debt

STEP 1: CONTROL the money supply;

STEP 2: charge interest on EVERY DOLLAR circulating;

Make everyone (including the government!) PAY for the benefit of using money that the government issues ONLY by authority FROM THE PEOPLE!

STEP 3: promise that if they LEARN more; they’ll EARN more. (note: no guarantees)

STEP 4: make education SO EXPENSIVE that in order to LEARN students must BURY themselves in DEBT (Repeat STEP 2)

STEP 5: Once buried, they must FIRST live their lives for YOU;

STEP 6: Then, and only then, can they live their lives for themselves and their families.

TOO BAD (SUCKERS!), we each have only one life to live!

PLEASE, think about it, long and hard.

He who controls the money supply, calls the shots.

He who calls the shots; decides who lives and who dies.

Time is Money; Or, Is It?

How much money is your time worth?

The bankers who manufactured this grotesque system KNOW that the only way they can make themselves filthy rich is off the backs of others.

Think about it; a banker has only 24 hours in his day--JUST LIKE every other human being.

But, somehow his hour is worth millions, while the average laborer's hour is worth 7 bucks.

Why?

Bankers insist that INTEREST represents "the time value of money."

But you and I know that money does not have time, only people do.

I challenge anyone to bury a dollar, come back in a week and see if it's not still a dollar!

So, what gives?

By gaining control of the MONEY SUPPLY and convincing people that money has a TIME value, central bankers (through interest) effortlessly collect unto themselves the value of millions of hours of other people's time, the equivalent of RENT on all MONEY in circulation, leaving those who borrow MONEY with only a fraction of their TIME! (i.e., wealth) Voila!

The value of a central banker's hour is now worth millions of hours OF OTHER PEOPLE'S TIME!!!

Among men, some will be able to see clearly what others must struggle to understand.

If you see clearly, then please, help someone else to understand because we can only change this together.

REALITY check

"The financial markets are humming and life is good."

Illusions are appealing.

They give us a sense of security.

TOO BAD they're not REAL!

And when REALITY checks in, illusions come crashing down.

***

The problem springs from man's abilty to dominate others through ILLUSIONS.

A selfish greedy few employ ILLUSIONS to control and command the many without regard for sustainability.

This is a recipe for DISASTER.

INTEREST is nothing but an ILLUSION sustained only by False Accounting.

Nothing but an accurate account of REALITY can correct the systemic problems we face.

Accounting for EVERY externality, in determining the value of conduct, is the bottomline to a sustainable existence in REALITY--the only place in which REAL people can exist.

Instead, a selfish greedy few have been allowed to run amok with INTEREST, ruthlessly ignoring the costs, until its true nature can no longer be concealed.

At some point, the ILLUSION runs up against REALITY and simply CANNOT get around it.

Interest is never ISSUED; it is only CHARGED.

It is an ever-growing NEGATIVE force on our economy.

It is ever-growing because selfish unfettered greed is INSATIABLE.

If left unabated, it will continue until the devastation and destruction is so pervasive and severe that our civilization collapses.

But, there is HOPE.

In THREE EASY STEPS, we can correct the mass destruction that INTEREST has visited upon us.

STEP 1: wrest control of the money supply from the selfish greedy lunatics that are currently at the helm

STEP 2: establish a decentralized, interest-free, nonprofit banking system.

STEP 3: channel ALL our wealth into rebuilding our lives and communities, WITHOUT diverting massive amounts through interest to those not entitled to it.

For now, mine may be just a DREAM, but unlike illusions, my dream is firmly grounded in REALITY.

So, I will continue trying to set the record straight, for those who care to listen.

The American Economy Has Left The Building

Richard Sauder's reaction to the announcement of GM's layoffs is almost identical to my own. I have emphasized in bold italics the portions that are particularly important.

"The news of the 30,000 jobs that General Motors recently announced it plans to cut caught my attention like a searing brand plunged deep into my mind."

"[T}he United States ... is rapidly deindustrializing, in large degree as a consequence of ... so-called Free Trade agreements ... such as NAFTA, CAFTA and the WTO which have made capital and entire industries very portable internationally, to the considerable detriment of workers at home and abroad."

"[S]ociopaths are running most of the major governments of the world, and most of the major industries and financial institutions, and sociopaths are not much interested in mutual uplift and global benefit for the great bulk of the human race . . . [they] are primarily interested in war, plunder, destruction, cruel domination, violent subjugation, and ruthless social control."

"Essentially, the entire nation is in hock. We've been pawned."

"We are already exporting astronomical quantities of American currency, and millions of jobs to go with the big bucks. The printing presses are running madly 24/7 the year around. The American government, allied with the high finance sector of the economy, has conspired to sell us out to the highest bidders"

"[T]he United States is positively awash in a tsunami of imported merchandise...the captains of American industry destroy the country from within, ransacking the economy, plundering entire industries and communities as they loot the productive base of the country for their own personal enrichment, without the slightest thought for the well-being of anyone else at all. . . the psychopaths and sociopaths in the ... government and in high finance ... liquidate the country from under our feet..."

"Their behavior is like that of madmen ... who heat the house in the cruel depths of a bone-chilling ... winter by stripping the insulation out of the walls and using it to stoke the furnace! As the flames leap higher they strip the shingles and plywood off the roof and fling them into the furnace!! ... they fling back the blankets ... rip the paneling off of the walls, tear up the floor boards and take an axe to the furniture and feed it all to the devouring flames in the furnace."

They belittled [Ross Perot's] warning that the "sucking sound" they were about to hear would be the sound of ... capital and jobs [being] leached out of the American economy...but [they] didn't like him ... so they tossed him aside. So much to plunder; so much to loot -- and so little time!!

"The American economy, like Elvis, has left the building...the bleeding of jobs, money and industries just goes on and on. We are living in a country in steep and rapid decline.

I rest my case. We can't both be wrong in our assessment of what's happening. But, I would argue that underneath the surface of those trade agreements fractional reserve financing at INTEREST is primarily to blame for the multi-national economic devastation that we are witnessing today, along with a number of corrupt greedy dictators willing to sell their people for a paltry price.

Brief Hiatus...

I am taking a brief hiatus to prepare for final exams. In all likelihood, I will not be posting new entries until the end of December (unless I positively can't resist).

For those visitors who have stopped by a number of times, thank you for your time and please don't forget me! I still fight the good fight offline and as long as blood courses through my veins, God willing, I will be back to share my impressions and my knowledge with you.

For those who are visiting for the first time, thank you for coming and I hope that you browse through previous posts and join those I addressed above in visiting again and again.

If, like me, you believe that equal opportunity for ALL men and women begins not at the university or in the job market, but from THE minute that we are born, then stay with me on this journey to find out how many people it takes to change the world.

If, unlike me, you believe that 'this is how life is supposed to be' and that 'interest is a fact of life,' then let me remind you that the money that's earned through interest comes from the blood and sweat of LABOR and that those who rely on interest for their livelihoods DEPEND on those who work for a living--NOT the other way around.

Simply, WE DON'T NEED YOU.

The Problem With Our Monetary System--In A Nutshell

In a democratic republic that proclaims that all men are created equal the monetary system must accord with this proclamation.

A monetary system is supposed to be designed to facilitate the exchange of labor among ALL men and women, not just among the rich.

If it does not, then it is oppressive and unjust and breaches the trust of the people who agreed to be bound by the social compact that brought them together.

In order to promote their own individual welfare, men and women agree to join together as a nation and be governed by uniform rules and standards (e.g., money) that protect and promote the general welfare.

The government breaches this contract when it gives a privileged few both the means to manufacture need among their fellow countrymen (control of the money supply) AND the instrument by which they can proceed to fully exploit that need (interest).

Having said that, there is no practical way that a government can abolish charging interest on money loaned since there will always be those who are ready to exploit another's need and those that are desperate for money because they cannot acquire it through legitimate means.

However, it is a completely different story for our government to transform generation after generation of us into defenseless captives, subject to the mercy, or lack thereof, of a privileged few that control the money supply. This is what happened when the government handed the reigns of the monetary system to private banks two hundred years ago.

There is no such thing as a FREE LUNCH, and I do not advocate that there should be. BUT, giving people equal access to capital either as interest-free loans or in the form of equity capital IS NOT a free lunch. Everyone would remain responsible for paying back their loans, or for using their best efforts to put equity investments to productive and profitable use.

And of course, the hundreds of thousands of people who depend on the financial sector for their livelihoods must contine to have the opportunity to maintain that livelihood. EVERYONE has a RIGHT to OPPORTUNITY!

But, the central banking system MUST NOT be for-profit or privately owned because there is too much danger in allowing others to profit from the public trust. Having said that, branch banks can and should be run as non-profit organizations at the local level, charging fees for the administrative costs and financial analysis required to circulate "the public trust" (money), prudently.

There could still be privately owned for-profit equity investment banks if it's desirable, but they would not be in the business of lending at interest simply because there would be plenty of access to interest-free loans through non-profit lending institutions.

Poverty can result from a number of factors. But, it is obvious that there is something terribly wrong with our monetary system when poverty is this severe and this pervavise in a country that has more than enough resources for everyone to survive and thrive comfortably.

My estimate is neither naive nor idealistic, nor does it require a communist or socialist regime to decide who should get what and how much.

This outcome is entirely possible in a free market, capitalist economy provided that there is interest-free public capital accessible to EVERY man and woman who has the desire, will, and ability to make PRODUCTIVE use of it.

The True Purpose of Money

MONEY is a uniform standard of exchange that has value only insofar as it is accepted by enough people such that it can effectively serve its purpose--to facilitate exchange of people's labor and the fruits of people's labor.

How many people is enough? A self sustaining economy has enough people. In other words, a community (however small or large) has enough people if collectively it produces everything its individual constituents need to survive and thrive.

Thanksgiving and Truth

No Thanks to Thanksgiving is an excellent article by Robert Jensen!

Fabulously well-written;

excellent historical perspective;

truly moving and enlightening! I applaud his effort!!!

I differ with him on only one thing (towards the end):

the truth does set you free;

it sets your mind free, and the rest, as they say, is history!

A Tribute To JFK

" A Revolution is coming- a revolution which will be peaceful if we are wise enough: compassionate if we care enough ; successful if we are fortunate enough- but a revolution is coming whether we will it or not. We can affect it's character, we cannot alter it's inevitability."--JFK 1963

43 years ago today, JFK was assassinated. From what I understand, JFK signed an executive order about one month before he was assassinated that would have allowed the US Treasury to print its own notes instead of issuing bonds as the Federal Reserve would've had it do. But, don't take my word for it; do the research.

He was an honest man, who cared about hardworking people and he paid for his compassion and his integrity with his life.

I salute his courage and integrity and I implore all of you good folks not to give up because JFK was NOT the last of America's great leaders.

Our great leaders ARE out there;

We just have to educate them.

If You've Lost Hope...

then you're talking to the wrong people.

If you talk until you're blue, and nothing changes; and

you know you're right, yet nothing changes; and

all the people you know, know you're right, but still nothing changes...

then it's time to take what you know to those who don't know...

talk to people on the bus and on the street...

in the store and at the park, where ever they will listen...

young, old, black, white, rich, poor; it doesn't matter

you will be surprised at how much they will learn and how much they will thank you...

and it will give you hope that something is about to change

because knowledge is power and communication is key

the solution lies in our abilitiy to understand and communicate the truth and our power NOT to spend THEIR dollars.

A Deficit Keeps The Economy Growing?!!

This is true, to a degree.

After all, when you print money off the press, it has not yet been earned; so in a sense, it is a deficit; but it's needed for the economy to grow; so, it's necessary.

BUT, I have news for you, OURS is no ordinary deficit!

OURs is a deficit on STERIODS!

Ours is a deficit with INTEREST!!!

a deficit with the potential for unlimited growth!

and unlimited growth is unsustainable!!!

If you were in a hospital, they'd call it CANCER!!!

The government simply CANNOT continue issuing bonds AND continue paying interest on those bonds indefinitely!

Remember, the government does not print or issue interest, it only prints PRINCIPAL; and the federal reserve system only circulates that principal AT INTEREST!

The way it is structured, there is NO WAY OUT OF THIS CYCLE OF DEBT and IT KEEPS GROWING!

Judgment day will have to come and in the meantime we are all being gathered for the slaughter!

I believe in natural food and preserving the environment as much as the next guy!

But, if you want to preserve the natural purity of the earth and the food that grows on it, you must start with a pure monetary system--not a corrupted, debased one!

I know you don't like to talk about money, but guess what? You need MONEY to live!!!

So, before you talk about the environment, abortion, evolution, etc., LOOK AT OUR MONETARY SYSTEM!

Our money supply is the blood supply that can make our Nation either prosper or wither, and there is something terribly wrong with it.

Don't be afraid to learn the truth because it will set you free.

Words of Wisdom From A Former President

"Equality of talents, of education, or of wealth can not be produced by human institutions. In the full enjoyment of the gifts of Heaven and the fruits of superior industry, economy, and virtue, every man is equally entitled to protection by law;..."

i.e., redistributing wealth is a bad idea; I agree.

"...but when the laws undertake to add to these natural and just advantages artificial distinctions, to grant titles, gratuities, and exclusive privileges, to make the rich richer and the potent more powerful, the humble members of society the farmers, mechanics, and laborers who have neither the time nor the means of securing like favors to themselves, have a right to complain of the injustice of their Government..."

i.e., handing out monopolies is a bad idea; I agree.

"There are no necessary evils in government. Its evils exist only in its abuses. If it would confine itself to equal protection, and, as Heaven does its rains, shower its favors alike on the high and the low, the rich and the poor, it would be an unqualified blessing. In the act before me there seems to be a wide and unnecessary departure from these just principles.

Andrew Jackson was referring to a bill before him to renew the exclusive charter of the central bank of the United States of America which he rightfully vetoed. Read the excerpt where I got these quotes, and the full text of his letter, if you care to know the truth.

And for those of you who despise communism and socialism because they involve redistribution of wealth; well, through a centralized interest-based monetary system our money is being redistributed BEFORE it ever gets to us!

Mises Blog: Libertarian In Name Only

It looks like its official. My comments have been BLOCKED from the Mises Economics Blog!

I was trying to post a comment to Our Money Madness by Lew Rockwell and I received a notice that I was not allowed to post.

So, much for libertarians!

I was right the first time, libertarian is merely a cheap catch phrase on that site.

If you care to read Lew's article, my comment to it would have been:

As glorious as a return to hard currency would be for libertarians, the costs of producing and handling that money would detract from its value to the economy as a whole as the energies and resources expended in maintaining the curreny might be better used elsewhere in the economy. That is one of the reasons it was abandoned, in the first place.

In contrast, in an interest-free economy, the barriers created by hard currency against the abuses of printing too much of it would not be as sorely needed as it is in today's interest-ridden economy. A uniform paper money could be printed as needed in each state at the local level, where abuses can be more easily contained, and money production in all the states can be coordinated and adjusted at the federal level to ensure balanced economic growth. Because money is interest-free, accounting and economic analysis is much simpler than if it was encumbered with interest.

Now, I'm not an economist. But, it seems to me that the wild fluctuations in the value of our money throughout our nation's history is not just the result of printing too much of it, but also the consequence of the unbridled use of interest at every turn.

If you believe in the freedom to exchange ideas and you have a moment, let the guys at Mises know that it's neither nice, nor consistent with liberty, to suppress opinions just because you don't agree with them!

Thanks!

Human Nature

You can't fight human nature. If you try, you're a fool.

But, you can contain it.

You can structure things so that human qualities that are harmful (e.g., SELFISH greed) are not allowed to run amok.

Now, this is what you DO NOT do:

You DO NOT give one entity control of the money supply;

allow it to corrupt that supply with an accounting fraud called interest; and

then expect it to control itself!

Selfish people do not control their own greed. It is either contained, OR it will consume all else.

* * *

Selfish People Do ANYTHING They Can Get Away With

* * *

Take for example, our monetary system, which is controlled by extremely selfish people.

The US Treasury does not print interest; banks do not extend interest; both issue only PRINCIPAL.

Nevertheless, interest has the magical power to collect A LOT OF MONEY!!!

And, the only way that MONEY can be paid is by tapping into the principal that's supposed to be used to fuel the economy, and so on and so forth, until all the money that's printed or issued is concentrated into a few hands.

It's that simple.

Once the money is consolidated, the FEW command the MANY and the rest is history.

Abortion and The Theory of Relativity

Everything is relative.

When a mother decides to have an abortion she concludes that her life is relatively more important to HER than the life of her fetus.

The mother CONTROLS the blood supply to the fetus; the fetus is helpless. Without a blood supply the fetus will die.

There is a lesson to be learned here.

Set aside the moral argument over abortion; it is a go-no-where-fast discussion, similar to the one on the origin of man.

The real lesson is that the person in control of that which is needed for survival gets to decide who lives and who dies.

So, maybe it's high time to ask who controls our money supply AND why?!!

Evolution vs. Intelligent Design

Who gives a hoot?!!

Do you care what I believe? No.

Do I care what you believe? No.

Then why is everyone harping about it?!!

While the 'educated' masses sit and ponder which theory of the origin of man we should teach our children in school the country is being RAVAGED by interest!

GM's about to cut 30,000 jobs!

Ford's about to cut 4000!

Our economy is collapsing and Americans are tugging rope over a non-issue; most people learn about one theory or another some time in their lives and simply choose to believe one. Who gives a crap?!!

What about the economy? How will we keep our jobs? And if we can't keep our jobs, how will we live?

How will we feed ourselves and our families?!!

This is serious, folks. I don't mean to offend your senses; only to arouse them.

If we don't act soon, we may all be ripe for the slaughter.

Vote For Bill Scheurer!

Below is an email correspondence between me and Bill Scheurer, who's running for Congress and who pledges to fight against debt.

If any of you are from his district, or know anyone in his district, then he's the one to vote for!!!

-----------------------------------------------

From: "Bill Scheurer"
To: "heartbeat"
Subject: Re: Balance the Budget
Date: Mon, 21 Nov 2005 14:12:14 -0600

Thanks!

I agree. In fact, my pledge is to not vote for any deficit budget, OR any debt extension (which is where the bonds come in).

Please spread the word about our campaign!

Bill

www.WinWithBill.com

----- Original Message -----
From: heartbeat
To: Campaign@WinWithBill.com
Sent: Monday, November 21, 2005 12:12 PM
Subject: Balance the Budget


Dear Bill,

I saw your post on Alternet, and I like your ideas.

I want to recommend that you begin your struggle to balance the budget by eliminating government bonds and ending the practice of interest.

My recommendation is backed up by sound reasoning and it's available online at http://wakeupfromyourslumber.blogspot.com/2005/11/why-would-you-loan-money-to-someone-if_09.html

Interest is gutting America's physical economy. Look at every company that's cutting jobs today and see how much they spend on interest. Look at what the federal government spends on interest.

Then ask where does the money come from to pay all this interest? The only place it can come from--principal--the people's principal, a.k.a., our hides. The government doesn't issue interest; it only issues prinicipal.

Thanks for your time. God bless you and good luck in your endeavors.

qrswave

Where Do Your Tax Dollars Go?

To illustrate my point about interest with figures that are closer to home, this link shows state and city break downs of how your federal tax dollars are spent.

For example, the average household in NY paid $7044 in federal income tax, of which $1310 went to pay interest on government debts.

Wow! That's a lot!

But as usual, there is more truth in what is NOT said than what is said.

What these fact sheets DON'T say is what portion of money spent on every other item on the list goes to pay interest on someone else's debts!

Huh? What are you talking about qrs?!!

Yes, folks. A big chunk of the $1428 per average NY household that pays for healthcare, pays for interest on debt held by hospitals and other health care providers. The same goes with 'defense' manufacturers that pay interest on their debts, and public housing complexes that pay interest on mortgages, etc., etc., etc.

And that's not all, folks!

Many hospitals are tax-exempt non-profit organizations. So, interest paid on their bonds is tax-exempt!

This is what happens when the source of our money is centralized, AND not a single dollar circulates without interest being attached to it.

Something's gotta change, or something's gonna give.

Gathering Sheep For The Slaughter

America's heartland is being abandoned.

If you bother to consider why, the answer will alarm you.

People go where there's money; and money is where those who control the money want it to be.

It follows then, that those with money can control where people go.

So, they are responsible for the mass migration of Americans from the heartland to our already overpopulated cities.

Why do they want all of us to live in cramped blighted cities when America is so vast?

In order to Economize!

If all the people are in a small area, then the government doesn't have to spend as much to maintain roads and all the other necessities that make up the infrastructure of civilized communities!

And as an added bonus, demand for real estate rises in the blighted cities, prices get astronomically high and mortgage bankers get richer than they already are!!!

Hel-looo! This is how you treat sheep, not people.

If you're a person, then ask questions, please, because we need to save our skins!

GM Ups The Ante To 30,000 Job Cuts

These people are ruthless!

"the plan is aimed at saving $7 billion a year by the end of 2006."

But, who gets the savings?

"If we've learned anything in the last five years, it's that there's no guarantees in this business or any other business."

Of course business is VERY RISKY!!!

Because you've given all the GUARANTEES to moneylenders!!!

That which is given must come from somewhere.

Interest based lending has evolved into a practically NO RISK activity.

It is, simply, un-NATURAL.

Risk is inherent in life. You cannot eliminate risk;

you can only transfer it--from lenders to equity investors and workers!

Restore the balance of risk and equity investing will no longer be as risky as it is now and workers can keep their jobs and benefits!

Creditors Intend to Gut General Motors

GM plans to announce sweeping job cuts and plant closures.

"GM's previously announced plan, to slash up to 25,000 jobs over three years, is likely to accelerate in talks with the United Auto Workers, analysts say, so GM can shutter plants before GM's national union contract expires in 2007."

This is CATASTROPHIC! Tens of thousands of people will be thrown into despair!

There is no time to waste.

Eliminating interest must be the first thing on everyone's lips before the new year dawns.

Remember the guy at the Tribune? "[t]he main costs for newspapers are paper and people."

Well, the guy at GM would say "the main costs for GM are factories and people."

You think I hallucinate?

Then how come "debt markets [are] worried about GM's future?"

"There is absolutely no plan, strategy or intention for GM to file for bankruptcy," Rick Wagoner, Chairman of GM.

Sound familiar?

"I did not have sexual relations with that woman." Bill Clinton, President of the United States.

Folks, it's either US or INTEREST!

For What Noble Cause Do We Kill And Get Killed?

A Corrupted Debased, Devalued, and just about Worthless Dollar!

Courtesy of Interest

Ford Announces 4000 White-Collar Job Cuts In 2006

Ford intends to cut 4000 white-collar jobs in 2006.

Hmmm. Let's see. Sounds familiar.

GM's at the brink;

Disney's consumer profits are sluggish;

the Tribune and others are looking to cut costs;

veterans can't find work;

Wallace & Gromit are just not performing stateside.

Heck, even the government has to cut costs!

All are suffering similar financial woes.

I wonder why? [qrswave scratches head]

What do they all have in common?

Keep Looking At The Back Door

And you won't see what's right under your nose!

To whom exactly are these tax dollars going?

Take Your Cheap Rhetoric And...

...keep the change. :)

A proponent of interest recently asked me:

"Why don't you just come right out and say to which particular ideology you subscribe to... Socialist? Anarchy? Anarcho-Capitalist? Communist?"

He and others like him would like to peg me as 'socialist' or 'communist,' or what have you, so that they can dismiss me out of hand.

But, I am not.

If you don't like my views on interest, then debunk my argument, if you can.

Think Out of The Box!

Asking why would people lend their money if they could not charge interest is like looking at a defenseless, skinny donkey tied up to a rickety old wagon and asking why would his big fat nasty owner feed him if he doesn't pull the wagon!

Ask the WRONG question and you'll get the WRONG answer!

Try asking why is the donkey tied up? And why does the big fat nasty man hold the reins?

Similarly, try asking why does our government BORROW money? why are WE stuck with the bill? And why do bankers control our money supply?!!

The truth will set you free!

Life Is Risky; But Lending Isn't!

Thanks goes to Bill whose comment to credit ratings evoked in me a new mental picture of interest.

Here's how it happened.

Billfaster (aka Anonymous) said:

"I simply don't follow the logic behind your argument...How would a non-interest based economy work? If the banks are unwilling to asses interest charges, then where is the incentive to lend the money - through equity participation?

How long do you think it would take for the money supply to dry up if each lender had to take an equity stake in your car or home, for example. Their capital would be indefinitely tied up.

Where does the new liquidity come from? Obviously not you or me as what incentive would we have to put money in the bank if they are not paying us interest to do so.

Where do the risk averse investors turn? What about the elderly and retirees who feel comfortable with CD, money market and Treasury returns? The democratic platform against private social security accounts runs contrary to your very argument as they claim that equity participation is much too risky..."

My reply:

Thanks, Bill, for your thoughtful comment.

Your concerns are valid. Circulation is the whole point of introducing currency into an economy.

"Where is the incentive to lend the money?" The only wholesome place it can be, from the profits of equity investing.

"How long...would [it] take for the money supply to dry up if each lender had to take an equity stake in your car or home... Their capital would be indefinitely tied up." By definition, capital is invariably "tied up" once it’s invested in an asset like a home or a car. The only thing interest accomplishes is it transfers an excess portion of the borrower's earned income (which is not "tied up") to the lender, and so on and so forth, to infinity.

And, what do you think the lender does with all the interest that's collected? Most of it the lender can't even spend! It is just too much money!!! So, he lends it to others and others, etc., etc...

Where does the new liquidity come from? Where it’s supposed to come from when there is an increase in a nation's productive capacity--the government press! That's why it's created. The government need only make sure it does not print too much, which is easier to do when there’s no interest than when you have to keep track of principal AND interest.

Where do the risk averse investors turn? I know it is difficult to imagine now because we live in an interest laden society. But, risk averse lenders will invest their money in the ways that are available to them, just as they do now. Only interest bearing loans won't be one of them. Margrit Kennedy presents some creative suggestions to give people incentive to circulate their cash.

Finally, of course equity participation is very risky!!! That which is taken must come from somewhere.

Interest based lending has evolved into a little to NO RISK activity. Simply, it is unnatural.

Risk is inherent in life. You cannot eliminate risk, you can only transfer it--from lenders to equity investors!

Restore the balance and equity investing will no longer be as risky as it is now.

Thanks a lot, Bill! I didn't think about it this way until you asked me!

Thank God for the internet, and thank God for people like you who are ready to talk!

There Are No Free Lunches!

Nothing is free.

My time is worth everything in the world to me, and if not everything then a whole lot to my family and friends!

Remember, everything is relative.

And, money does not have time--ONLY PEOPLE DO!

Why Am I Doing This?

What's in it for me?

(It's not cash, I'll tell you that!)

Why does anyone do anything "for free?"

Because they BELIEVE in something.

I love my family; I love my friends; and I love all the hard working, honest and decent people in the world who, no matter how wrongheaded they can be sometimes, care about someone other than themselves and have something POSITIVE to contribute to this world.

I believe that there is more kindness and generosity in this world than there is selfish greed, but that selfish greed has the upper hand right now.

That upper hand is INTEREST, and it is subjugating the rest of us to its will.

I believe that knowledge can help good people make the right choices--choices that will enable us all to live in harmony and enjoy the blessings of this world.

I believe in miracles.

But, I believe that God helps those who help themselves and I cannot do it alone.

Please, spread the knowledge.

Give someone the FREEDOM to choose whether they want to remain part of the problem OR become part of the solution.

Because, only the TRUTH can set us free.

Moneylenders Profit Most By Exploiting Others' Need For Money

Moneylenders that take title to cash-strapped customers' cars for short-term loans charge up to 300% APR and take advantage of weak state laws and loopholes.

These guys take NO RISK.

"Title lenders typically target 'captive' borrowers who cannot afford a house or qualify for credit cards, but suddenly confront a cash crisis."

No creativity or productivity required; pure exploitation.

"That's what happened to Sharon Jones. [She] paid $1,365 toward her $500 title loan [that's some ROI, with no risk!!!] because her disability check only covers interest payments."

This is standard operating procedure for moneylenders who profit by charging interest.

"But title-loan industry executives testified that tougher laws will put them out of business and deny cash-strapped Georgians like Jones access to their lender of last resort."

Typical, the old "without us, how will these needy people survive?" I have a novel idea: how's about the government terminates bankers' monopoly on our money supply and lends interest-free money directly to citizens? Then no one will need their magnamious services!

"'The military's an especially ripe target' because of the rank-and-file's relative youth, lack of financial sophistication and concern that money problems could cost them advancement..."

What they fail to admit is that anyone who is vulnerable is a target. And all of us are one step removed from vulnerability.

"Lending money at what amounts to [350% APR] or more should not be tolerated: If the payday and car-title loan industry wants to maintain that such exorbitant rates are necessary to do business, it is business that is not worth doing,"

While these types of loans are particularly egregious because of their extremely high interest rates, even the most modest amounts of interest can transform borrowers into slaves.

Take a look at NYC's MTA. All its bonds are issued at around 4-5%APR and they pay over $1.2BILLION annually in interest on their bonds! So, much of our tolls, fares and taxes go to paying interest on outstanding bonds while we wait in the street for broken down transit!

When will enough be ENOUGH to end this madness?

The Flea Tells The Dog To Roll Over And Die

FIRST, they give moneylenders an exclusive license to CONTROL our money supply, and suck up our wealth through that fictional instrument called INTEREST (i.e., mortgages, car loans, credit cards, etc.).

THEN, instead of printing money directly, they BORROW it from bankers and give them yet another way to suck up our wealth a la INTEREST (i.e., taxes, all sorts; tolls, fares, etc.).

NOW, they intend to cut off the food supply to those who need it most!

I have only one question: What will the flea do when the dog dies?!!

A Media Monster Is Eating The Dems

That's life. Big fish eat little fish.

But, wait! Our monetary system isn't a naturally occuring phenomenon!

It was designed by a few men supposedly for the benefit of ALL men.

So, why do big fish keep getting bigger, while small fish can barely buy feed?

Merit? Yeah, right. Try INTEREST.

Without control of the money supply coupled with that ingenious accounting instrument called INTEREST, these folks would have never been able to BUY UP ALL THAT MEDIA.

When it gets this bad, you have to question your assumptions. I did. And what I discovered is not pretty.

We've been had, and continue to be had, at a price tag of over ONE BILLION DOLLARS a day in interest on government bonds. And that's just the tip of the iceberg. Every city and state government in this country is up to its eyeballs in interest payments.

Learn about the monetary system; a debt-based system is the instrument by which money is consolidated into the hands of a few.

Once the money's consolidated--the sky's the limit!!!

Interest: The Unnatural Disaster

Emma Dixon writes about the role institutionalized racism played in the unnecessary losses suffered by African Americans both during and after hurricane Katrina and there's much truth to what she says.

But, you must look beyond skin to understand the whole truth behind the looming economic disaster we all face today.

There is no doubt that African Americans suffer disproportionately from poverty and lack of education in America.

But, this results from historical economic inequities that were not only never compensated as they should have been, but more importantly have been systematically exploited by our monetary system until this day.

We are easily divided by the color of our skins, which makes it an easy vice to target; racism is almost universally deplored.

But, classism is not. The rich get richer and the poor get poorer. Isn't that the way it's always been?

Isn't that the way it's supposed to be?

NO; absolutely not; not if you have a just monetary system.

A just monetary system does NOT give exclusive control of the money supply to a few entities and allow them to exploit everyone else's need for money by charging them INTEREST on its use.

That is economic discrimination at its worst. We must end it in order to save our children.

Iraq Cannot Be Won; But We Can Beat Our Corrupt Monetary System!

Representative John Murtha of Pennsylvania made this speech on October 17 to the Democratic caucus.

Hoorah, for Murtha!!!

Now, let's see who'll listen to him.

IMHO, Murtha and others like him should focus on the war that can be won; the one against the enemy that's eating our physical economy alive--INTEREST.

"Our deficit is growing out of control; Our deficit is growing out of control;Our deficit is growing..."

"The director of the Congressional Budget Office recently admitted to being terrified about the deficit in the coming decades."

The war in Iraq is a catastrophe, no doubt. But, think about it. What's the engine that drives this catastrophe?

Our monetary system.

If warmongers didn't have this much money rolling out of OUR pockets and into THEIR coffers, then they would not be so politically powerful, and we would not be so politically weak and the US would not have gone to war.

And don't fool yourself, defense contractors are not the only folks getting BUSHloads of money. Bondholders of every persuasion collect BUSHloads of our tax money every day through interest.

If you've seen my posts before, then by now you might think 'what is it with this person? why this obsession about interest and the monetary system?'

Well, think about it. Up until August 31, the government had spent over $335 BILLION on INTEREST on US Treasury Bonds in 2005. That was only $100 BILLION less than they spent on the Department of Defense during the same period and almost $300 BILLION more than they spent on the nation's education.

Think about it and if you think that there's something wrong with that picture, then do something about it.

Murtha said what had to be said, but his words fall on deaf ears. As long as the warmongers wield the CASH, the rest of us will be forced to follow.

Checkmate.

This story is essential reading.

The tax system is one of the pillars that can bring the whole system down.

This brave man is storming the castle singlehandedly. I urge you to read it and pass it on.

We must stand beside him.

Website Logistics...

I am no tech guru. So, when I do things on my site, I don't always anticipate the technical conseqeunces.

For example, when I update my What's New page, any comments made on that page get lost. So, if you're looking for your comments. Look here.

And please only post comments on the page to which your comment relates.

Thanks!!!

In An Interest-Free Economy Money Would Not Deviate In Value

Daysman said...

We both envision a banking system that is not allowed to charge interest determined by the market. Your voice is strong for a non-interest, not-for-profit money system; reminiscent of the Teutonic knights money structure. It is very rigid but it does retain value, I would even say that there would be no need for Congress to set the value of a dollar, money would not deviate in value. Wages would be king in such a system but bankruptcies could be brutal; there was no credit in the Teutonic knights' money system, credit came about with the advent of commerce and the industrial age.

We are in complete agreement that imparting a monopoly on the currency was a bad idea. For America to write a bond... in essence America takes out a loan, hence the bank is loaning "bank money" to America... instead of America issuing her own Constitutional money is bizarre and fantastically corrupt. Not only do we owe interest on those bonds, we owe the principal. When America issues her own money the nation is enriched. When America instead borrows money from the Federal Reserve the nation is indebted. The IRS then collects that debt from every American household and deposits it in the Federal Reserve. The Federal Reserve is a banking scam, pure and simple.

I think you tend to roll together fractional banking, currency speculation, bond money, compound interest loans; both corporate and mortgages, and simple interest (yes there still are simple interest loans; auto financing is simple interest) in your mind and label the whole evil beast as "interest". Nothing incorrect in your view, but understand that my view is that we need to stop everything except the simple interest loans. Banks can function as simple savings and loans to the benefit of free society.

Either one of our views would require the hand of God to execute... I personally hold fast to the hope that Jesus will return in the near future and clean the stinking planet up. I can't imagine a grass roots effort acquiring the momentum needed to overthrow the elite ruling class that has held the world in it's grip for centuries. In today's world, those rulers are bankers.

qrswave said...

Thanks, Daysman.

I understand your point. Simple interest is far better than all this crap. But, it is nearly impossible to turn the current tide. If we're going to go through all that trouble we must not settle for anything less than equal access FOR ALL to the benefits of our monetary system. That is not possible with interest.

And to your last point, God works through people.

Let's pray and work hard. God will do the rest.

Five Minutes With Paul Krugman; And A Minute With Me

I've heard a lot of good things about Paul Krugman that appear to be true. This is the first time I've read his perspective.

He seems to be facing in the right direction. But. let's examine what is really wrong with "[cutting] taxes on capital income, as opposed to earned income."

Capital income=money making money, a.k.a., INTEREST. Earned income=money earned from labor, a.k.a, blood and sweat.

This new tax break for capital gains is just another in a long line of economic policies that accelerates the job that INTEREST is designed to do: transfer wealth from those who have only labor and time to those who have access to more money through the formers' need for it.

This reduction in capital gains tax plugs one of the only mechanisms that threatens to slow that transfer down. If capital gains tax were allowed to stay in place, the interest they earned would just go to pay the interest they're charging!

INTEREST is the biggest hoover-matic money sucking machine the world has ever seen.

Why Are So Many Newspapers Cutting Jobs?

Les Visible could not have been more correct; what you see is not what you get.

AP asks: Why are so many newspapers cutting jobs?

True, they are definitely losing business to the internet. But, to stop there would be to stop short of the more important truth.

"One of the biggest problems facing the industry is slower growth in advertising sales, which makes up some three-quarters of their revenues."

How do they make the remaining quarter of their revenues?

"[t]he main costs for newspapers are paper and people. Costs for employee benefits like health care have been rising steadily, and newsprint expenses are up some 10 percent to 15 percent this year."

That's easy, let's get rid of all the paper. And if that's not enough, let's get rid of all the people!

Or, maybe that's not such a good idea. Who will we collect money from? Okay. Let's look at our other expenses.

How much do we spend on INTEREST to capitalize all those printing presses we run?

But wait, "newspapers owned by publicly held companies earned an average of 20.5 cents on the dollar in 2004, a very healthy margin for any business. By comparison, companies in the blue-chip Standard & Poor's 500 Index of large U.S. companies made an average of 11.4 cents on the dollar in 2004."

So, why all the fuss?

"Investors are mainly concerned about what a company will make in the future, not what it's making right now." Well heck, that makes sense.

"And that goes for bond investors as well as stock investors."

Whoah!!! Wait a minute; these newspapers have bondholders? And they collect interest? Exactly how much interest are these folks collecting?

Maybe that's where the budget cuts need to start, because there are only so many jobs you can cut.

I mean, employees are the same folks who buy the product; who are you going to sell news to, even if it's all digital?!!!

Folks can't afford laptops and internet connections if they don't have jobs!!!

Disney Making Less From Consumer Products Than Parks And Resorts

Disney's not performing so well these days.

"Parks and Resorts profit rose 10 percent to $309 million, while the consumer products division profit fell 10 percent to $132 million."

Let's see. Generally, it