Secret of Oz - Bank of England Act - The Great Reckoning has arrived - the temple and the money changers -solution time

Source: Secret of Oz

The Proposed Bank of England Act

Sunday, 09 May 2010

This is from a British friend of mine -- who was probably the main author -- who, for the time being, prefers to remain nameless. He is an academic and I will include comments of his in a future edit of "The Secret of Oz".

WHO ARE WE?

We're a group of economists, lawyers, engineers, former civil servants, university academics and business people who have realised that the root of the instability in the world economy, and huge burden of debt in every country, is due to the fundamental design of the banking system.

This is the only reform that could prevent a future financial crisis, clear the national debt, and restart the economy.

It cures the sickness in our economy and financial system by tackling the root cause of the problem, rather than just the symptoms.

It would make the 'inevitable' cuts in public services completely unnecessary, reduce the tax burden by up to 30% and allow us to clear the national debt. It takes control over the UK's money supply out of the hands of the commercial banking sector and restores it to the state, where it can be used to benefit the economy, rather than providing a £200 billion annual subsidy to the banking sector.

WHAT'S THE PROBLEM?

When money is created by the state, it is added to government revenue and reduces the amount of taxes that businesses and families need to pay. However, most money now is no longer created by the state. Instead, thanks to the rules governing banking, it is created by commercial, profit-seeking banks every time they issue a loan or mortgage. Rather than going to reduce the taxes that we have to pay, it is used to generate huge profits for the banking sector. This effectively provides a subsidy to the banking sector of up to £200billion each year – a subsidy that costs each of us over £4,000 every year.

It also makes the economy hugely unstable. Each time the bank makes a loan, it actually creates new money to fund new loans. The more the banks lend, the more money they have available to lend, but as soon as they stop lending, the economy is starved of new money and grinds to a halt.

This process – the creation of money by commercial banks - was the real root of the financial crisis, and if we allow banks to continue creating the nation’s money, then we will soon be facing a crisis even more severe than the last.

WHAT'S THE SOLUTION?

The solution is simply to:

-- prevent banks from creating the nation’s money supply (through a few small changes to the rules governing bank accounts)
-- restore the right to create the nation’s money to a public agency of the state (the Bank of England under the direction of the Monetary Policy Committee)
-- use the newly created money to reduce taxes, fund better public services and reduce the national debt.

These simple changes will withdraw the hidden subsidy that the banking sector has enjoyed for the last few hundred years. The banking sector will then need to generate profits by creating wealth, rather than simply extracting it from the rest of the economy by charging interest on 97.5% of the money in existence.

The benefits to the wider economy, businesses and families of the UK far outweigh the costs to the banking sector.

To read the simple language of the Act, please go to:
http://www.bankofenglandact.co.uk/act/



Oz Economics

How important is this issue worldwide? Having private banks create money is the root cause of all world poverty, hunger, disease and misery. And until we fix it, we will never be able to make a dent in these other issues.

We can fix this. We can fix it in a matter of months -- a year at most. We can make our government the most financially sound in the world -- nearly overnight. The government can loan out all the money any state needs to build roads or schools or hospitals – interest free. Approximately half of a state’s infrastructure cost is from interest on borrowed money! When the money is repaid by the states it will all come back to the federal government, preventing inflation. All we have to do is to take back the power to control the quantity of money and put that power into the hands of the federal officials closest to the voting public -- namely the Congress of the United States.



Some say, “Well, those crooks in Congress will create too much money once they get the money power.” But Congress now “creates” all the money it wants! It just creates it as DEBT, which never gets paid back, and which we the people have to continually pay interest on. Instead of creating bonds -- or debt -- the government could and should be creating DOLLARS, interest-free.

More money for people

Others will say Congress isn’t responsive to the people as it is.

Well of course not. Politicians are responsive to those with the power. Right now, the banks have the power. We have to take back the ultimate power of any nation – the power over its money. With the power of banks diminished, politicians will become responsive to the voters once again.

Do you know that only one zip code in this country provides nearly half of all the lobbying money to Congress? Guess what that zip code is? It’s 10028, the upper east side of Manhattan – the Golden Ghetto. That’s where the Mayor of New York lives. That’s where the Wall Street bankers live. They control the money, they control Congress.

Some will say that these solutions are something radical like socialism or worse. They are not. This is the most basic historic struggle for human freedom running back to the beginnings of time.

If we value the Founding Father’s dream of freedom -- an escape from serfdom by political self-determination --we have to conclude that creating our money is too important a function to be put into private hands. History has shown time and time again that that leads to nothing but plutocracy – rule by the rich – and ultimately slavery.

This privately-owned debt-money system has gotten so far out of control at this point that probably only a Biblical Jubilee year will save civilization from collapse.

Imagine in your own world. What if tomorrow you were told that all your mortgage debt and credit card debt was canceled. That would certainly be more money for people, less money for banks. After the Jubilee, then we could take the money power away from the banks and change the Constitution to put it permanently into the hands of Congress.

But what about the banks? They are already failing? Let them fail. Government can issue it’s own money and credit. We don’t need their hyper-expensive compounding interest system. Banks or banking won’t go away. Everyone will still need loans and checking accounts. Some one will step in and provide those services. You’ll still go down to your corner bank to deposit your check. Your bank will still be there. Only the guts – the bank’s accounting system – the part you never see anyway – will change.

Jesus chased the moneychangers from the temple in his day. We should certainly do the same in our day.

Is that fair? Come on, big banks already own every large building in every city in the world. That should be sufficient! Let the people of the world have some money for a change. Give us some incentive to build a better world.

There is hope, especially here in America. History has shown that America has fought to create it’s own money for the last 300 years. In fact, in no other nation on earth has the population fought for it as successfully and with such determination over the centuries as America. All we need in the face of this oncoming first depression of the 21st century is a little education. We can make this the new civil rights movement – the new human rights movement. The big bankers now stand more exposed than ever before. Let’s use history to guide our path today.

This hasn’t been an issue since the time L. Frank Baum wrote the Wonderful Wizard of Oz. Why? Because after the William Jennings Bryan era, the bankers learned that in order to put the lid on this issue they had to buy up the nation’s press. And they did. But this won’t work in the Internet age. Television commentators are now asking just what is the Federal Reserve and where does their money come from? The answer is they make the money up out of thin air and then have the audacity to loan it to us. The interest that the government has to pay is where our income taxes go. That was the deal the Fed made with the government when the Federal Reserve Act was rammed through Congress on Dec. 23, 1913.

And what about the principal? The principle is never repaid, but the interest just keeps compounding. And it’s that interest that’s killing us. We’ll never be able to repay it. No nation ever has been able to do so – except for President Jackson in 1836.

The Money Masters