Positivemoney.com.nz/Marc Joseph: Change Money, Change the World

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Change Money, Change the World

By Marc Joseph

Isn't it frustrating to witness the growing inequality, poverty, homelessness, and suffering that plagues society? The government's efforts to address these ills are feeble and year after year the situation gets worse. We all know well the government's litany of excuses: "we don't have the money, we'd have to raise taxes, we have to be fiscally prudent, we have to service the debt, money doesn't grow on trees." It all boils down to money, doesn't it? But is it true?

No, it's not true. The government's excuses don't stand up to scrutiny, especially when we look at the facts about money. Money comes in two forms, paper (notes and coin) and electronic. The paper part comes from the RBNZ but that portion, about 2%, is insignificant. All the digital money we use is produced by the private banks. It's our national money, yet private institutions have been given the power of producing it for our economy. Think of it. 98% of New Zealand's dollars, which we must have to participate in the economy, is supplied by private institutions.

So what about this digital money? It's produced by tapping a keyboard and making an entry in a database, and this entry is shown on a computer screen. This happens whenever a bank makes a loan. Here, it's important to note that the financial system is based on a lie, the lie that says the private banks act as financial intermediaries between savers and borrowers. They do not. When you borrow from a bank, you borrow new debt-money that is "printed" fresh just for you. No pre-existing money is loaned. The bank creates the debt-money by merely changing the number that appears in your account. This may come as a shock to you, and it should because it's the shocking truth.

There is an important distinction to understand here. This new money is unearned money. You have agreed to repay it, but the only way you can repay it is to go out and earn it. The banking lie has you believing that you are borrowing someone else's hard-earned money and so you abide by the agreement to repay not just the loan but a premium as well. Your relationship with the bank is completely unequal and lacks full disclosure, and the interest is effortless profit for the banks.

So we need to ask ourselves, is this how we want our nation's money to be produced, only as loans? Is it right that the production of our money be in the hands of private institutions that profit so vastly with little or no effort? No way. And this debt has interest attached, which means that the debt grows over time, increasing beyond the capacity of the people to repay it. Indeed, the total debt owed to the private banks today is almost two times greater than the total money supply! This debt cannot and will not ever be repayed. So we work to repay the unrepayable debt to private institutions who have done virtually nothing. How can this be?

The reason is that people just don't know. Somehow, we've been indoctrinated to never question the source of money. The result of this is evident: inequality, poverty, homelessness, environmental degradation, crisis. Are you concerned about the ludicrous prices being paid for housing in Auckland and Wellington? The private banking system, given free rein by the government, is your culprit. For a private bank, the bigger the mortgage, the better.

And consider this. The authority to produce money comes from government, so why is the government in debt? If 98% of New Zealand's money is digitally produced, why doesn't the government do it? Indeed, the government is constantly invoking "financial prudence" when it explains why it can't provide the programs and services we all say we want, so why does the government allow private production of these debt-soaked dollars? How financially prudent is that?

Let's imagine a hypothetical situation. Society wants an end to poverty and homelessness so the government embarks on a brilliant initiative to do just that, mobilising the fabulous expertise and intelligence of the people of NZ. It pays for it by issuing the money straight out of the Treasury. No bonds, no borrowing, no debt. No excuses. Meanwhile, the government passes laws to restrict debt-money production by the private banks.

Of course, now we hear the last resort of the financial fear-mongers: that would be inflationary! they cry. They don't mention that private debt-money production in the last 100 years has decimated the purchasing power of our dollar by 95%. They never admit that interest-bearing debt is the true cause of inflation. And how many financial crises of the last century can we enumerate? They were all caused by their debt-soaked money and no doubt there's another crisis lurking on the horizon. What possible justification can there be for private control of our money supply? Debt-free money is far less inflationary, if at all.

We need money. We don't need debt. Debt distorts the economy. It makes it run inefficiently, squanders natural resources, drives the growth imperative, wastes human potential, and greatly enriches a few at the expense of the many. It's clear that society would reject private production of our money if it understood this brutal regime with its deplorable consequences.

Our challenge is to expose the lie and reveal the truth about the production of money. Once society knows the truth, the private control of our money will end. The people will demand that the government assume control over our money supply and soon the financial solution to our myriad problems will be available. No more debt.

So the truth is that there is no shortage of money. All that is socially desirable is financially possible. The private banking system's effortless profit is a millstone around our necks. It's imperative that government assert its authority over the money supply and properly fund, debt-free, an end to poverty and homelessness.
Money reform is a growing movement but you'll never read about it in the media. Thankfully there are excellent resources on the internet. Is there a more important use of one's time than to get informed about the true nature of the financial regime? We've lived all our lives in debt bondage, is that what we want for our grandchildren too?

So we have to provoke a public outcry. Why? Because the money scam is an outrage. Because poverty and homelessness are guaranteed by the debt-money system, we cannot succeed while it remains in place. It's not a joke, the situation is dire and getting worse. Once people know, poverty will end. Get informed. Tell everyone. Change money, change the world.

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