Taken from the RBA website (emphasis mine):
The Reserve Bank of Australia (RBA) is responsible for formulating and implementing monetary policy. The Board's obligations with respect to monetary policy are laid out in the Reserve Bank Act 1959. Section 10(2) of the Act, which is often referred to as the Bank's 'charter', says:
"It is the duty of the Reserve Bank Board, within the limits of its powers, to ensure that the monetary and banking policy of the Bank is directed to the greatest advantage of the people of Australia and that the powers of the Bank ... are exercised in such a manner as, in the opinion of the Reserve Bank Board, will best contribute to:
(a) the stability of the currency of Australia;
(b) the maintenance of full employment in Australia; and
(c) the economic prosperity and welfare of the people of Australia."
____________________________________________________
Ref: www.rba.gov.au/MonetaryPolicy/about_monetary_policy.html
The greatest advantage to the people of Australia would be their right to distribute their own goods and services without any charge to do so.
However, the current system prevents any distribution without compound interest being returned to the bank (for no other purpose than for the bank's profit).
This is direct and irrefutable evidence that the Reserve Bank is NOT working to the greatest advantage of the people of Australia and therefore is in direct violation of its charter as quoted above.
When the central bank of a country requires more money back than it has issued (interest), the extra funds for the repayment must either come out of circulation at the expense of another entity in the country (usually a smaller business) or will force someone in the country to borrow more from the bank to honour its payments.
Thus, the charging of interest is the main CAUSE of inflation, and raising the rate merely adds fuel to the fire - increasing the cost of production, and demanding higher wages to maintain the same standard of living.
The desire for a 'favourable balance of international trade' is just another marginal attempt at filling the gap between the price of local production and the available money to buy it.
The job of the modern economist (who is taught to confine his efforts WITHIN the current system) is to minimise the negative impact of the charging of interest.
The policy stated in article (b) above; "the maintenance of full employment in Australia" reveals a chronic missunderstanding in the science of economics.
Employment is a means, not an end.
Along with the obvious contribution to production, it is also the means by which the consumer aquires his/her purchasing power so that he/she may live comfortably. Employment is not an end in itself.
In this age of automation and technology, we don't need a policy of "full employment". The problem these days is not scarcity of goods and services, it is the fair distribution of these goods and services to the citizens.
The ONLY reason that full employment is seen as a benefit is because wages, salaries and dividends make up the ONLY source of purchasing power for the majority of consumers. The reality though, is that this total amount of purchasing power is never enough to distribute all the goods and services to all the consumers (labour is only part of the cost of production).
So, we over-produce, we invent new unneccessary jobs, and we send both parents out to work to attempt to fill the gap. This one thing alone creates a whole industry providing day-care because few families can afford to live off a single income.
So much effort is expended in many areas of life - attending to symptoms without addressing the underlying causes, and this is the main issue in economics today.
So, what is the solution?
... To address the underlying cause of inflation which is the issuing of money into circulation ONLY as a debt to be repaid with interest.
An example of the result of these policies is that over half of our taxes now go towards paying off the interest of our government's debt to the banks.
Just by abolishing the charging of interest, our taxes would be cut in half - with no penalty to anyone (except to reduce the profit margin of the banks).
As to the policy in artice (a) above; "the stability of the Australian currency"; no interest means for the most part, no inflation.
You can't get much more stability than that! If my savings are sufficient to buy the same value of goods in 10 years as they are today - I don't need interest to [attempt to] compensate for the devaluing of the Dollar. As for foreign trade, no country would fail to see the benefits of trading with one of the most stable currencies in the world! We would not be forced into exporting any more than our surplus (or over-produce so that we can bring more money into the country), and we could import whatever we fancy.
In order for common sense to regain a foothold in finance, it will require our government to take back its control over monetary policy which can be done either by careful revision of the Reserve Bank Act, or abolishing the bank if it fails to rectify the obvious errors.
Responsibility
The responsibility of the resources of Australia and the wellbeing of its citizens, are vested in our representative, democratic Government.
Australia should belong to the Australian people - the "Common-weath" as it was constituted.
Tuesday, February 5, 2008
Wednesday, January 23, 2008
Rudd, and the power of government over Inflation & Interest Rates
Kevin Rudd has recently expressed his concerns regarding the current social and economic conditions and promises to do whatever is within his power to curb inflation and to keep the interest rates under control.
But the inability of the government to influence inflation and interest rates, is becoming more and more obvious.
We see it in the rising costs and the fall in the standard of living, and we even hear our government confessing it:
For instance, at the time of one of the recent Interest rate rises, John Howard apologised about this 'unfortunate' event and was sad for those who might lose their homes due to mortgage foreclosures, but he confessed that there was nothing he could do about it.
The Government, far from having control in these matters, is at the whim of the financial system which it works within, but dares not challenge the system itself.
Rudd, for instance, had a private meeting with the Federal Reserve last week.
He knows now what he can do and what he can't, what he is allowed to do and what he is not. He has been given his orders.
His five-point plan, although admirable in some respects, addresses no underlying causes. It focuses on ways to cope with the current 'inevitable' conditions.
These conditions are NOT inevitable.
Under the current financial system, it is true - that Government can do little about our declining standard of living.
The Government and all its economic experts and advisors develop marginal strategies to stabilise the situation.
All their expertise, and subsequently all their proposed strategies deal with how to maintain stability within the current system, as if that system itself were unchangeable.
Systems, I propose, were made for people, not people for systems!
There is no effort to rectify the errors of the current system, or to develop alternatives. Indeed this is a no-go zone, as dictated by the financial elite who are protecting their monopoly.
In most of the countries of the world, the situation is the same.
An interesting fact, and one which gives us a clue to what's going on, is that all the 'richest' countries in the world are those countries with the highest debt.
Who are they in debt to? ... The International Banks. And why? Because there is something fundamentally wrong with the system, that no-one is willing to approach.
In fact, the start of the rot can be traced back to the establishment of Private Central Banks, and their control over the issue of money.
THEY dictate how much money is available in every country. And by this power, THEY dictate our standard of living. THEY dictate the flow of production and the distribution of goods between the producer and the consumer. THEY dictate Government policy.
In this age of technology, we no longer have a production problem, but a distribution problem.
There is plenty enough food and materials to feed and shelter the whole world, but MONEY, which enables the distribution of these goods and services, is being artificially restricted, and is only available through the workforce - hence the rediculous push for full employment in a world of technology which should be making things easier, not harder!
We have, in the 21st Century, a condition of poverty amidst plenty.
Just like the Great Deppression of the 1920's and 30's, the ONLY thing which is in short supply is MONEY - and money is the oil that helps everything turn.
So, under the current financial monopoly, it is true - the Government cannot do much about our standard of living.
But this is only because the Government has abandoned its responsibility to control the issue and value of money and have given this responsibility over to Private Banks who no longer distribute the wealth of the country, but only lend the means by which it is distributed (money) as if they owned the wealth itself! Not only do they expect this money to be returned, but returned with Interest!
This is a terrible reversal of logic, and we have all succumbed to this trick - governments included.
There are many charitable efforts out there - attempting to "Make Poverty History".
I respect them greatly for it, and I honour their efforts ...
But, as Josiah Stamp, the Director of The Bank of England once said-
"The bankers own the earth. Take it away from them, but leave them the power to create money, and with the flick of the pen they will create enough deposits to buy it back again."
So, it is of the utmost importance to make a few fundamental changes to the way our economies run. And the first is for our governments to take back the control of money which is their constitutional and moral responsibility, and is the first step towards a truly sustainable economy which serves the people - all the people of the world, and protects our environment from the exploitation of the ever expanding industrial monster.
But the inability of the government to influence inflation and interest rates, is becoming more and more obvious.
We see it in the rising costs and the fall in the standard of living, and we even hear our government confessing it:
For instance, at the time of one of the recent Interest rate rises, John Howard apologised about this 'unfortunate' event and was sad for those who might lose their homes due to mortgage foreclosures, but he confessed that there was nothing he could do about it.
The Government, far from having control in these matters, is at the whim of the financial system which it works within, but dares not challenge the system itself.
Rudd, for instance, had a private meeting with the Federal Reserve last week.
He knows now what he can do and what he can't, what he is allowed to do and what he is not. He has been given his orders.
His five-point plan, although admirable in some respects, addresses no underlying causes. It focuses on ways to cope with the current 'inevitable' conditions.
These conditions are NOT inevitable.
Under the current financial system, it is true - that Government can do little about our declining standard of living.
The Government and all its economic experts and advisors develop marginal strategies to stabilise the situation.
All their expertise, and subsequently all their proposed strategies deal with how to maintain stability within the current system, as if that system itself were unchangeable.
Systems, I propose, were made for people, not people for systems!
There is no effort to rectify the errors of the current system, or to develop alternatives. Indeed this is a no-go zone, as dictated by the financial elite who are protecting their monopoly.
In most of the countries of the world, the situation is the same.
An interesting fact, and one which gives us a clue to what's going on, is that all the 'richest' countries in the world are those countries with the highest debt.
Who are they in debt to? ... The International Banks. And why? Because there is something fundamentally wrong with the system, that no-one is willing to approach.
In fact, the start of the rot can be traced back to the establishment of Private Central Banks, and their control over the issue of money.
THEY dictate how much money is available in every country. And by this power, THEY dictate our standard of living. THEY dictate the flow of production and the distribution of goods between the producer and the consumer. THEY dictate Government policy.
In this age of technology, we no longer have a production problem, but a distribution problem.
There is plenty enough food and materials to feed and shelter the whole world, but MONEY, which enables the distribution of these goods and services, is being artificially restricted, and is only available through the workforce - hence the rediculous push for full employment in a world of technology which should be making things easier, not harder!
We have, in the 21st Century, a condition of poverty amidst plenty.
Just like the Great Deppression of the 1920's and 30's, the ONLY thing which is in short supply is MONEY - and money is the oil that helps everything turn.
So, under the current financial monopoly, it is true - the Government cannot do much about our standard of living.
But this is only because the Government has abandoned its responsibility to control the issue and value of money and have given this responsibility over to Private Banks who no longer distribute the wealth of the country, but only lend the means by which it is distributed (money) as if they owned the wealth itself! Not only do they expect this money to be returned, but returned with Interest!
This is a terrible reversal of logic, and we have all succumbed to this trick - governments included.
There are many charitable efforts out there - attempting to "Make Poverty History".
I respect them greatly for it, and I honour their efforts ...
But, as Josiah Stamp, the Director of The Bank of England once said-
"The bankers own the earth. Take it away from them, but leave them the power to create money, and with the flick of the pen they will create enough deposits to buy it back again."
So, it is of the utmost importance to make a few fundamental changes to the way our economies run. And the first is for our governments to take back the control of money which is their constitutional and moral responsibility, and is the first step towards a truly sustainable economy which serves the people - all the people of the world, and protects our environment from the exploitation of the ever expanding industrial monster.
Sunday, August 5, 2007
Media Bias
Today I entered into a discussion group on the Australian ABC forum.
The discussion was about Howard vs Rudd.
I complained about the fight of personalities, and said that it was merely a fight about which dictator you wanted to elect!
I suggested that the entire political party system was the real issue and that both major parties - even though their methods may differ slightly - were heading in the same collectivist direction. The whole political vote mechanism is designed to detract our attention from the real issues - to make us believe that we are involved in a democracy.
I said that it was the central banks that determined interest rates and that the government were powerless to influence their masters. I made notification that 11% of our wages (about one third of our taxes) go to pay the interest bills on international debts which were loaned to Australia - money made out of thin air! I suggested that the Australian government should re-claim its responsibility of issuing currency (rather than borrowing it from a bottomless pit of "financial fraud") and look after Australia first, before we look at surplus stock and foreign aid.
My comments were not published!
Ironically, any amount of slandering between these two party politicians gets published, but when the real issue is addressed - well, that is taboo!
The discussion was about Howard vs Rudd.
I complained about the fight of personalities, and said that it was merely a fight about which dictator you wanted to elect!
I suggested that the entire political party system was the real issue and that both major parties - even though their methods may differ slightly - were heading in the same collectivist direction. The whole political vote mechanism is designed to detract our attention from the real issues - to make us believe that we are involved in a democracy.
I said that it was the central banks that determined interest rates and that the government were powerless to influence their masters. I made notification that 11% of our wages (about one third of our taxes) go to pay the interest bills on international debts which were loaned to Australia - money made out of thin air! I suggested that the Australian government should re-claim its responsibility of issuing currency (rather than borrowing it from a bottomless pit of "financial fraud") and look after Australia first, before we look at surplus stock and foreign aid.
My comments were not published!
Ironically, any amount of slandering between these two party politicians gets published, but when the real issue is addressed - well, that is taboo!
Wednesday, July 25, 2007
Subjects up for discussion in coming posts:
The following areas I believe, are areas in which reality (the truth) has been largely obscured:
(many of these areas are inter-related of course)
Economics
Cultural Heritage
Employment & Technology
Finance
The nature and control of money
Education
Beyond equal opportunity to equal outcomes
History
(written by the victors?, "the first casualty of war is the truth")
Media
Adult education - the forming of public opinion (Democracy?)
Medical Industry
Fluoride - involuntary mass medication of a toxic indusry waste product.
Focus of Research - on symptoms not causes: Cancer, Diabetes, etc.
Psychiatry
Immunization
Politics
Democracy
Globalization
War, Environmental Crisis & Poverty
National Sovereignty
(many of these areas are inter-related of course)
Economics
Cultural Heritage
Employment & Technology
Finance
The nature and control of money
Education
Beyond equal opportunity to equal outcomes
History
(written by the victors?, "the first casualty of war is the truth")
Media
Adult education - the forming of public opinion (Democracy?)
Medical Industry
Fluoride - involuntary mass medication of a toxic indusry waste product.
Focus of Research - on symptoms not causes: Cancer, Diabetes, etc.
Psychiatry
Immunization
Politics
Democracy
Globalization
War, Environmental Crisis & Poverty
National Sovereignty
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