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Though the video relates to Canada, it applies to any nation that is part of the global Reserve Banking system. Australia also had a national people's Bank, the appropriately named 'Commonwealth Bank' -- which was PRIVATISED by Labor Prime Minister, Paul Keating, who also dutifully floated our sovereign currency on Wall Street, thereby enslaving the nation to FOREIGN Big money interests!
Today, Australia's currency is a speculators dream and Australia is in enormous debt to PRIVATE Banks though Transnational Corporations make hundreds of billions of dollars in profits yearly from our very FINITE mineral resources.
You don't have to be a genius to work out the Carbon Tax was designed by Bankers (Goldman Sachs) and that undemocratic Juliar Gillard is another treasonous, elite serving Labor Prime Minister.
The solution is very simple, Australia; boycott all major (owned) political parties and install REPRESENTATIVE INDEPENDENTS to high office. Tax Transnational corporations according to the obscene profits they make and regulate or nationalise the Banks.
Return Oz and its wealth to the people and hang all clearly traitorous politicians that oppose the democratic will of the people and implement Banker and Corporatist policies (Carbon Tax) for the elite few -- you reading this Keating and Gillard, you treasonous scum?
It is that EASY to regain control of our nation again!
The YouTube video of 12-year-old Victoria Grant speaking at the Public Banking in America conference last month has gone viral, topping a million views on various web sites.
Monetary reform - the contention that governments, not banks, should create and lend a nation's money - has rarely even made the news, so this is a first. Either the times they are a-changin', or Victoria managed to frame the message in a way that was so simple and clear that even a child could understand it.
Basically, her message was that banks create money "out of thin air" and lend it to people and governments at interest. If governments borrowed from their own banks, they could keep the interest and save a lot of money for the taxpayers.
She said her own country of Canada actually did this, from 1939 to 1974. During that time, the government's debt was low and sustainable and it funded all sorts of remarkable things. Only when the government switched to borrowing privately did it acquire a crippling national debt.
Borrowing privately means selling bonds at market rates of interest (which in Canada quickly shot up to 22 percent), and the money for these bonds is ultimately created by private banks. For the latter point, Victoria quoted Graham Towers, head of the Bank of Canada for the first twenty years of its history. He said:
Each and every time a bank makes a loan, new bank credit is created - new deposits - brand new money. Broadly speaking, all new money comes out of a Bank in the form of loans. As loans are debts, then under the present system all money is debt.
Towers was asked, "Will you tell me why a government with power to create money, should give that power away to a private monopoly and then borrow that which Parliament can create itself, back at interest, to the point of national bankruptcy?" He replied, "If Parliament wants to change the form of operating the banking system, then certainly that is within the power of Parliament."
In other words, said Victoria, "If the Canadian government needs money, they can borrow it directly from the Bank of Canada. The people would then pay fair taxes to repay the Bank of Canada. This tax money would in turn get injected back into the economic infrastructure and the debt would be wiped out. Canadians would again prosper with real money as the foundation of our economic structure and not debt money. Regarding the debt money owed to the private banks such as the Royal Bank, we would simply have the Bank of Canada print the money owing, hand it over to the private banks and then clear the debt to the Bank of Canada."
Problem solved; case closed.
But critics said, "Not so fast." Victoria might be charming, but she was naïve.
One critic was William Watson, writing in the Canadian newspaper The National Post in an article titled "No, Victoria, There Is No Money Monster." Interestingly, he did not deny Victoria's contention that "When you take out a mortgage, the bank creates the money by clicking on a key and generating 'fake money out of thin air.'" Watson acknowledged:
Well, yes, that's true of any "fractional-reserve" banking system. Even before they were regulated, even before there was a Bank of Canada, banks understood they didn't have to keep reserves equal to the total amount of money they'd lent out: They could count on most depositors most of the time not showing up to take out their money all at once. Which means, as any introduction to monetary economics will tell you, banks can indeed "create" money.
What he disputed was that the Canadian government's monster debt was the result of paying high interest rates to banks. Rather, he said:
We have a big public debt because, starting in the early 1970s and continuing for three full decades, our governments spent more on all sorts of things, including interest, than they collected in taxes.... The problem was the idea, still widely popular, from the Greek parliament to the streets of Montreal, that governments needn't pay their bills.
That contention is countered, however, by the Canadian government's own auditor general (the nation's top accountant, who reviews the government's books). In 1993, the auditor general noted in his annual report:
[The] cost of borrowing and its compounding effect have a significant impact on Canada's annual deficits. From Confederation up to 1991-92, the federal government accumulated a net debt of $423 billion. Of this, $37 billion represents the accumulated shortfall in meeting the cost of government programs since Confederation. The remainder, $386 billion, represents the amount the government has borrowed to service the debt created by previous annual shortfalls.
In other words, 91 percent of the debt consists of compounded interest charges. Subtract those and the government would have a debt of only C$37 billion, very low and sustainable, just as it was before 1974.
Mr. Watson's final argument was that borrowing from the government's own bank would be inflationary. He wrote:
Victoria's solution is that instead of paying market rates the government should borrow directly from the Bank of Canada and pay only token rates of interest. Because the government owns the bank, the tax revenues it raises in order to pay that interest would then somehow be injected directly back into the economy. In other words, money literally printed to cover the government's deficit would be put into circulation. But how is that not inflationary?
Let's see. The government can borrow money that ultimately comes from private banks, which admittedly create it out of thin air and soak the taxpayers for a whopping interest bill; or it can borrow from its own bank, which also creates the money out of thin air and avoid the interest.
Even a 12-year-old can see how this argument is going to come out.
What's Greece got to do with Oz dollar -- any excuse for Wall St to speculate!
The ASX 200 index tumbled 2.4 per cent yesterday - its worst trading session this year - with $80 billion now wiped from the value of Australia's leading companies this month.
Resources stocks led the market down on a day of broad declines.
It came as market watchers warned such outbreaks of volatility would be commonplace during the next 18 months as Europe staggered from crisis to bailout plan without a permanent solution in sight.
Key European share indices fell a further 1 per cent in early trading last night following a horror session the previous day.
The latest outbreak has been sparked by fears Greece will be evicted from the eurozone as European leaders scramble to stop the spread of the crisis.
As anxiety gripped investors around the globe, the Australian dollar tumbled to a six-month low of US98.7c.
Investors are paring back their exposure to risky assets as concerns grow the Greek tragedy will spread to Spain - the continent's fourth biggest economy - and engulf its banking system.
Westpac chief economist Bill Evans warned the next 18 months were likely to be punctuated by a series of mini-crises in Europe followed by bailouts.
"This is going to be a major roller-coaster ride for investor confidence," Mr Evans said. "The fundamental problems run deep."
This is the third year in succession that global stock markets have climbed early in the calendar year, only to slump in April and May.
AMP Capital Investors chief economist Shane Oliver said that while it might feel like "groundhog day for investors", there were some key differences.
"A stronger US economy, global monetary easing and cheaper share markets hopefully should help limit the downside in shares and help result in a better year end," Dr Oliver said.
"But further downside is possible for shares."
He warned Spain was becoming a far bigger worry.
The yield for 10-year Spanish government bonds was 6.34 per cent last night - just below the 7 per cent mark where Portugal, Ireland and Greece sought a bailout.
ANZ chief executive Mike Smith yesterday said the break-up of the eurozone was likely in the coming months.
"It is the uncertainty and the unknown that is creating a lack of confidence in the market," he told Bloomberg.
That theme has been illustrated by the flight of capital out of Greek banks, with The Wall Street Journal reporting that depositors pulled out $900 million on Monday.
According to its central bank, Greeks have withdrawn an estimated $4 billion a month in savings since the end of 2009.
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