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THE BANKING ISSUE

by Dr Robert Anderson

 

To:   Lind Clark [RadioNZ]
Cc:   Jeanette Fitzsimons; Michael Cullen
Sent:   Tuesday, December 20, 2005 4:05 AM
Subject:   The banking issue

Dear Linda

As usual, I listened with interest to your guest, Kel Sanderson, discussing banking and the debt issue. I simply cannot understand for the life of me why our media [and the Green Party - R.A.] so often seems reluctant to reveal the truth concerning this age old racket. Is “schizophrenia” the term you would attribute to banks? Do you really know how your bank works, Linda? As one famous quote goes, “The modern banking system creates money out of fresh air. The process is undoubtedly the most astounding piece of sleight of hand that was ever invented and 85 percent of the public are unaware of it.”

For decades banks have been allowed to create money — in the form of debt — from fresh air and charge interest on it, interest which you and I must pay back in real money. Even banking officials admitted the fact yet I am told that universities and schools of accountancy carefully airbrush this from the syllabus. Thus the racket continues to the point that all of us are in ignorance and continue to assume this to be the “norm.” Even our Minister of finance [The greens avoid all of this by not having a spokes person of finance… or anyone else willing to tell the truth ra - R.A.] is keen to avoid the topic. Quite apart from all the complex econo-babble of politicians concerning tight fiscal policies, inflationary tendencies, etc., etc., the fact remains that, as the banks squeeze the life blood from the country, we are left with even our students in huge debt.

In New Zealand, notes and coins now account for only about three percent of our total money supply. The remaining 97 percent is supplied as a debt to the commercial banks on which interest is payable. This interest forms part of their profits. Again, these profits are real money, made from their credit (read debt) creation process and, further, they flow out of the country. Such a pattern is repeated by all foreign-owned banks currently operating in New Zealand: BNZ, ANZ/National, ASB and WESTPAC. In 2005, these banks announced their 2004 annual profits in New Zealand dollars: $611, $566, $382, and $549 million respectively. In total, NZ$2.1 billion was paid in dividends, mostly overseas to foreign shareholders.

The recent Radio NZ interview with Karen Skinner exemplified the sheer greed of banks in trying to use their tellers to sell debt to customers. Even more so by offering a measly 3.75% “barely above inflation” pay rise, considering that they (Westpac) recorded the largest bank profit in NZ last year of $611 million. I find it nauseating when their spokesman, Mark Watts opines that, “…its about achieving the growth that we need to prosper and succeed”. One has to ask, just how much more lending and profit do they require to prosper? The world’s economy is in free-fall. It may not crash tomorrow, or the next day, but it will eventually crash if the current fractional reserve banking system continues to rule our monetary system.

Sincerely
Dr Robert Anderson
Union of Concerned Scientists
www.ucsusa.org

 


 

THE TIDE OF DEBT MADNESS

by Dr Robert Anderson

 

Never a day goes by without we hear from media pundits of our ever growing student debt. If not student debt then national debt. One begins to wonder just what is becoming of society. Do we now measure our success in society by our degree of debt? What exactly should be the aims of a ‘society’ and what should it look like? We should make no mistake, there is a world-wide tyranny that shapes and moulds societies, the like of which most folk are unlikely to ever comprehend.

Having been a long time beekeeper I regard the ‘society’ within a hive as having many ideal parallels with our own, each member doing all that is possible for the betterment of the whole: the kind of society I’m sure Bruce Beetham [Social Credit Party… not the Greens - R.A.] and others worked for. The history of civilization is not the history of art, or politics, or buildings. It is the history of inordinate greed for both money and power. As a direct consequence of such greed we now face a very different set of challenges to those Bruce Beetham confronted.

Our world is facing an impending apocalyptic crisis. People often came to me after a talk asking, “What is the most urgent environmental issue confronting us? Is it climate change, species extinction, deforestation or toxic pollution?” The answer would be that all of these and more are serious ecological issues, but no one knows which one will be responsible for triggering an irreversible and catastrophic collapse of this planet’s life support systems. Unfortunately, few of the public are aware of what connects all of these. The common factor linking these together is the unresolved debt crisis of our world. It is an economically based catastrophe, one in which the whole banking racket is involved. Unless we open our eyes and see the danger of their philosophy we are digging our own graves.

We see on the media, almost nightly, the dying in agony of millions of our fellow human beings. We also see the whole world being torn apart as human beings become more and more frantic to survive. In the Middle East, the underlying cause of the crisis, as any informed person knows, is the oil beneath their feet. Planet Earth at this time, needs oil to survive, or so it we think. We are in the midst of a commercial war that is destroying life on this planet — and it is a war that no one can win. I am hopeful that before I leave this world my grandchildren will not say of me “You could have done more grandpa.”

Any one who has read The Naked Capitalist by W C Skousen would once and for all see the enormous power structure that is operative in our world. Like a huge spider’s web, it encompasses every banking facility of the Western world. Skousen’s book is a summary of the 1300 page work of Professor Carroll Quigley. Written in 1966, it was immediately banned from sale. The book, Tragedy And Hope, stretched to 1300 pages and exposed the dynasty of international banking families behind the world’s most secret power structure. Contrary to popular belief, and amply fuelled by the corporate-compliant media, this is not an idle conspiracy theory, it is well established fact.

I am not being purposefully pessimistic here. I am merely trying to show that unless we use this plight as a wake up call to an entirely new approach to a sustainable economy we are doomed. To get this economy, government leaders must be able to overcome their fear and face the banking racket. From my correspondence with ministers it is my opinion that they, like so many others, have a real fear of monetary reform, a fear which extends to even discussing it. They stubbornly refuse to even lift the curtain on banking practice. This is further exacerbated by their drive for globalisation which, once in place, will make it even harder to establish monetary reform. The fact that globalisation is the embodiment of economic insanity is neither here nor there.

[The Green Party also seem to be big supporters of this system, as I can’t find anything on their website highlighting the issue Robert has bought up in this essay, in fact they seem very pro bank, to the point of using their tax funded accommodation allowance to purchase houses in Wellington - R.A.]

Until we can turn this tide of debt madness this insanity will continue. When bees demonstrate what can be done by working together surely it behoves us all to do the same. The difference here is that the bees know what they should do, people do not. It should be our job to educate them. Social credit offers a radical blueprint for addressing this crisis. This is not an issue of left or right: it is an issue of right versus wrong; of peace versus war. It must be addressed now. We have to throw back this veil of deceit hiding the origins and operations of the corrupt banking plutocracy that owns and rules our world. It is a plutocracy which clandestinely imposes a worldwide tyranny on the rest of mankind. Only when we have achieved our goals will we have time to consider “what society will look like?” Until that time let’s go for it.

Dr Robert Anderson
http://roberta-psrg.tripod.com/