Young people are beginning to talk about monetary reform . . .
Martin Luther King said, ”Our lives begin to end the day we become silent about the things that matter”.
The perception is that everything is going to be all right, that the global financial situation will be resolved by politicians and financiers. In my opinion, nothing could be further from the truth.
They are the perpetrators of this deception, not the remedy. I believe politicians and financiers are pulling the wool over our eyes blinding us from the truth. The reason? The truth would cause anger, civil disobedience and the overthrow of the present Keynesian economic order. Fear and public anxiety are great motivators for politicians to hide the truth.
Those who have spoken out about these injustices have been silenced by the system – true New Zealand patriots that I respect such as John A. Lee Labour MP, Michael Joseph Savage Labour Prime Minister, Gordon Coates National Prime Minister, and Bruce Beetham Social Credit MP.
A great example is Greece which can’t pay the interest on its debt. The European Union’s way to resolve this is to loan Greece’s banks more money. This is the debt finance system. Is the way to pay off debt, more debt? So why can’t Greece just print money? Many people believe that Governments do this, and that’s how money enters circulation. The truth is that less than 2% of the money in this country’s economy is in the form of notes and coins.
The bulk of money created is created by banks. For every one dollar deposited in a bank the bank can lend out in excess of nine dollars. Banks create money and these new dollars enter the economy as debt. In New Zealand the Government doesn’t regulate hanks, they regulate themselves.
To review: banks are mainly foreign owned businesses, they took $4.5 billion profit out of the country last year. The banks control the availability of money in our economy, not the Government. Banks create money, you get interest on your one dollar deposit, they get interest at a higher rate on the nine dollars that they create and lend out. Banks lend not on what will help our economy grow but rather what will earn them the most return.
Banks caused the global credit crisis or recession in 2008 and governments all over the world bailed out trading banks with taxpayers’ money, and gave them government guarantees. Recently we have seen the Barclays bank scandal with Bob Diamond, who colluded with other banks to hold interest on deposits down to gain profit. Things haven’t changed much since Christ’s time and I quote, ‘Jesus kicked the money changers out of the temple’ in John 2:13-16.
Our country is importing more than we export. Every man woman and child owes $112,000 to date to overseas interests. If we want to change this we need money to go into promoting exports. The Reserve Bank should be able to create credit to loan money for l public works and infrastructure to assist councils, and to encourage industry to boost our exports. Michael Joseph Savage did just that in1935-38 for the creation of public housing.
If the Reserve Bank lends money in this way any interest the government receives will go towards a public dividend. This would be seen in a reduction in tax, money for the superannuation scheme and payment of national debt. By kick-starting industry unemployment would disappear along with poverty and crime – giving hope for the disenfranchised.
Governments must remember that they are here to serve the people and to look after our interests, and trading banks shouldn’t have the monopoly on the creation of money. We are slaves to the present economic system and the government must save us from the eternal treadmill of debt. I quote from Bruce Beetham: ‘We must be freed from the manipulation, exploitation, control and domination of man by man’. We are being held back from reaching our true potential as human beings.
In conclusion, there have been two Royal Commissions into the banking system initiated by right and left governments, both found the system wanting. However no change has been made. Money, in my opinion, is a means of exchange not a commodity to be bought and sold. When you borrow money you borrow against your own ability to earn. These are my philosophies and I feel that if we are to move forward as a nation and utilise the vast resources we have at our disposal, they must be heard.
Callum is a 14 year-old student. He delivered this address at his school speech contest.