17 April 2008

There's never enough money.

Up until recently you could get a loan for any amount to buy anything. So why isn't there enough money? Schools have to have 'donations' and money-raising events just to make ends meet. Hospices spend years fund-raising just to get a building, volunteer groups are always scrabbling for the pitiful few dollars available from the huge gambling pool. And now some really basic things are going up in price, while good old wages are still stuck somewhere last century.

So where did the all that dosh come from to buy bigger and more opulent houses, larger and more risky share portfolios? Gather round, my chicks, and I will tell you.

There is no room full of gold anywhere. Cash is created out of thin air (and a computer chip or two) and lent into the economy as new money. There is no limit to the amount that can be created this way, and the real killer is the interest charged on it. We pay through the nose for the right to use thin air dressed up as money. Back in the old days, all the major religions banned charging of interest - called usury - because it caused such misery to so many.

So here we are, working longer and smarter for less, while the profit of our labour - interest - gets sucked off into the pockets of the obscenely rich. You might be feeling that a monumental fraud is being perpetrated world wide by a very few, to grab the hard-earned wealth of the rest of us, and you'd be right. Commercial banks and financial institutions are co-conspirators of this fraud, and governments - knowingly or unknowingly - perpetuate the system to stay in power.

Does it all sound too big to think about? Taking on the world is a bit much, so I suggest we start small, right here in New Zealand. The first and most important step is to take public control of the money supply. The Reserve Bank of New Zealand, instead of clobbering us with high interest rates, could create the money needed for the country's economy, and lend it into the system interest free.

Can you imagine getting an interest free loan for a house? You could pay it off before you die!

Sadly, none of the political parties with a presence in Parliament have any intention of allowing the Reserve Bank to resume this function. Some of them, because if they did their larger contributors would take a hike, but mostly because they still believe "loans come from other people's savings", a myth that is part of the fraud. Even the Greens, bless their little hemp socks, want ever so much done for the environment (who doesn't?), but have no idea how to pay for it.

Democrats for social credit (DSC) is the only political party with the core economic policy to pull New Zealand off the debt treadmill. Check it out at www.democrats.org.nz or go to Deputy Leader John Pemberton's site: www.johnpemberton.co.nz and see for yourself.

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