Debt-based Money: A guarantee to destroy the planet.

April 1, 2008
Debt-based Money: A guarantee to destroy the planet.
Filed under: Uncategorized — gilliganscorner @ 10:02 am

I want to take a moment to explain how money is created and destroyed in our debt based money supply. Environmentalists don’t often look for, let alone see the relationship.

The simplest way is via an example:

1) You go into a bank for a mortgage of 300K. Let’s say that the mortgage is fixed at 6% for 25 years, payable monthly. You will make no early pre-payments or double up your monthly payments. Very simple.

This means at the end of your mortgage (after 300 monthly payments = 25 years). According to this calculator here, this means that you will pay $1,919.00 a month. You will pay back the amount you borrowed (300K) + the interest – a whopping $275,826.00 – almost double the amount you borrowed.

2) The bank puts you through some preliminary hoops to see if they are going to make money off of you. I.e. you have a job, your credit is not maxed out, etc.

3) The bank creates 300K out of thin air. They do NOT take that money from their depositor’s accounts to give to you. Because of the fractional reserve requirements, they only have to keep a very small amount of “money” in the vault to back that loan. I say “money” because that is easier for most of us to understand, rather than the term “capital instruments”.

So if the Fed requires the bank have a reserve requirement of 10%, this means that they have to have $30,000.00 dollars of “money” in the vault. Here in Canada, the reserve requirements for our private chartered banks is 0%. That is not a typo. Our banks, in reality DO keep reserves, but there is no law that requires them to do so.

4) You pay the seller of the house. Be it the builder or the owner, they take that money and (a) pay for all the labour and materials used to build the house and keep a profit, or (b) the owner of the house takes that money and buys a yacht or another house or whatever. That new “money” you borrowed (the 300K) makes its way out into the economy. In otherwords, by you willing to shackle yourself to debt, you allowed the bank to add 300K to the money supply.

By a simple accounting trick, the bank records the loan in two columns in the ledger book. The mortgage goes in the asset column as it is an interest bearing financial instrument. It ALSO goes in the liability column as someone will deposit it into an account and start writing checks against that account. Thus, the books balance.

5) You work for 25 years to pay that back, paying your $1,919 a month.

6) Around year 13 of your 300K mortgage, you would have paid the principle back. You still have 12 years to go to pay the $275K in interest back. Question. Where did the money come from to pay back the interest? What created the $275K and added it to the money supply in order for you to obtain it by working to pay the bank?

Do you see at this point? The bank loan actually reduces the amount of money in circulation over its lifetime! It transfers wealth out of the economy and gives it to the bank for the bank’s unearned work (their right to mint “checkbook money”)! Normally, this system would collapse!

But our system hasn’t collapsed. So what gives?

The answer is simple.

The money comes from people who borrowed AFTER you. They borrowed the money via the same mechanism from their private banks, dumping their newly minted “money” into overall money supply.

7) To sustain the money supply, we need to attract new borrowers into the system as old loans are being paid off. Rate of money created = rate of money disappearing = stable money supply.

If the rate of money creation is higher than the money being destroyed, we are told it is economic “growth” and possibly inflation, which rewards producers/spenders, but hurts consumers.

If the rate of money creation is lower, we have the opposite effect. The money being retired, we are told we have a “recession” and possibly deflation, which rewards consumers, but hurts producers.

8) This is where the Fed (or any central bank) comes in. These central banks (or cartels of government agents and banking interests) look at a pool of economic data, have the power to artificially raise or lower interest rates. If they see the economy getting “hot” and inflation rising, they raise the interest rates.

This deters people from lining up for new loans. The money supply begins to contract. The economy slows down.

If the economy gets too slow, they lower interest rates, thus enticing people to line up at the loan window of the banks. New money is dumped into the economy. It heats up again.

In other words, the Fed is always looking for the sweet spot where banks can maximize its members profits of the backs of slaves (run as fast as you can on the old hamster wheel = keep up payments), but not kill them (i.e fall off the hamster wheel = bankruptcy). What’s that old saying? “You can’t beat a dead horse.”

9) The bank, believe it or not, does NOT want to foreclose on your house. They hate that. Now they have a non-paper asset they have to pay taxes and maintenance on. They might have to sell it into a market where there is a glut of foreclosed homes on the market = lower prices. They hate that. They just want your payments.

10) That money you paid back to the bank does NOT stay in the bank. Banks record the interest as profit. From that profit, they pay their employees, taxes, shareholders, capital/operational costs, finance business growth, and of course, the obscene bonuses to the CxO’s. Since shareholders are making a profit, they cheer the bank on! Employees are grateful for their jobs! Government relishes the tax revenue!

But all of these people who work at the banks/government/shareholders have loans they have to pay back too.

Since the money is backed by debt and issued by the bank, it’s ultimate destination is always back to the bank.

11) You can see where this is all going right?

Because we have a money supply that demands new loans to be created to keep the money supply stable, this means that we MUST have infinite economic growth.

This is not sustainable. The economy is 100% driven from whatever we can fish out of the sea, farm off the land, or dig out of the earth. It can’t go on forever. The planet will collapse into a smoking hole. I am not a big truther on global warming, but it would be insanity to ignore ALL arguments. The earth is flashing warning signs at us.

And we bicker without understanding the nature of the problem. Their can be no environmental sustainability unless the money supply issue is fixed. We need to have a non-debt based money where we can prosper in a zero-growth economy. This concept is usually pretty foreign to most people.

And as the earth declines, it will be the banking industry and their debt based money standing on our corpses, before they are killed too. All their power won’t save them.

Man (and Woman)

What is the purpose of our existence? The existence of Death seems to make all of life futile. Some of us are healthy, rich and well fed, others are ill, poor and hungry. We the well fed fear the loss of our wealth and health, some of us may help the poor as a means of improving our own condition, or to assuage the guilt we feel. Some despise the poor and see them as unworthy of life, they will even advocate mass starvation (i.e. Thomas Malthus).

In truth this world is an amazing place. We see all these contrasts and we are all heading towards our inevitable death…this should lead us to question the purpose of everything we do. What is the meaning of it?

Atheists declare that they are free, but it seems they are not, they have debts, and mortgages. They toil and labor. They feel regret that they have not got the good job, the big house, the recognition they deserve. Some immerse themselves into acquiring these things.

Life is a journey, here we display our true characters and souls for us to bear witness to and for others to see who we are. The recognition of death allows us to make sense of life and to know that the unpleasant things we feel are in fact given to us by Allah the Exalted as a gift. It is the soul recognizing that this is not our home, and that we should occupy ourselves with our eternal home, purify our souls by following the Shariah and to hopefully find eternal grace in the Company of Allah the Exalted the, the highest Angels, Prophets and Messengers and their best of followers.

The Sharia is a revealed path, at once the road and a scale (to measure oneself against) which when applied leads to Allah the Exalted, Eternity and the purification of the heart. Shariah is a gift, it can also be misused by man, to impose it on others and to cause tyranny of course.

Oceana

The Contrasting Media Treatment of Israeli and Islamic Death Threats

JANUARY/FEBRUARY 1995, Pages 17, 88

Special Report
The Contrasting Media Treatment of Israeli and Islamic Death Threats
By Victor Ostrovsky

14 Structural Engineers Now Publicly Challenge Government’s Explanation for Destruction of the World Trade Center

14 structural engineers now publicly challenge the government’s account of the destruction of the

Theadore Herzl on Zionism

Theadore Herzl, the founder of the Zionist movement, stated in his diary:

“It is essential that the sufferings of Jews. . . become worse. . . this will assist in realization of our plans. . .I have an excellent idea. . . I shall induce anti-Semites to liquidate Jewish wealth. . . The anti-Semites will assist us thereby in that they will strengthen the persecution and oppression of Jews. The anti-Semites shall be our best friends”. (From his Diary, Part I, pp. 16)

In 1950, a wave of anti Semitism and terrorism in Iraq made Naeim Giladi, 21, join the Zionist underground.

Giladi was imprisoned, tortured and sentenced to death by Iraqi authorities. He escaped and fled to Israel only to discover that the anti Semitism and bombings had been engineered by his fellow Zionists to dupe Iraqi Jews into going to Israel.

Giladi’s family was part of a Jewish community that settled and prospered in Babylon 2600 years ago, 600 years before Christianity, 1200 years before Islam.

Then in the late 1940’s, the Prime Minister Nouri-el-Said fired Jewish government employees, denied permits to Jewish merchants, and finally, in March 1950, deprived Jews of their citizenship. Still they did not leave.

A month later, a series of terrorist bombings started the wave of emigration. By January 1951 when a bomb thrown at a synagogue killed three and wounded 30, the exodus of frightened Jews jumped to 600-700 per day.

When Giladi’s father discovered his son had joined the Zionists, he was sceptical. “You’ll come home with your tail between your legs,” he said.

But Giladi was young and idealistic. Jews were being killed and Zionism represented a chance to build a national home. “I was a true believer,” he writes.

In an essay “The Jews of Iraq”, which is on line, Giladi describes his bitter realization that Zionists were behind the anti Semitism and bombings.

Unknown to Giladi, two members of the Zionist Underground had been arrested and confessed that they had carried out the terrorist attacks.

A book, “Venom of the Zionist Viper,” by an Iraqi investigator names Zionist “emissary” Mordecai Ben-Porat as the organizer. The book was banned in Israel.

Iraqi Prime Minister Said was a British pawn. He met Israeli PM David Ben Gurion in Vienna in 1948 and agreed to transfer the Iraqi Jews to Israel as part of the elite geopolitical program.

This and other Zionist crimes against Jews are documented in Giladi’s book, “Ben Gurion’s Scandals: How the Mossad and the Haganah Eliminated Jews,”(1992) which will be republished by Dandelion Books this spring.

By January 1952, all but 6,000 of 125,000 Iraqi Jews had fled to Israel where as “Arab Jews,” they were treated as second-class citizens. Israel wanted them to perform the menial jobs vacated by the Palestinians. Between the Iraqi and Israeli governments, the Iraqi Jews lost much of their wealth.

Of his people, Giladi concludes: “An ancient, cultured prosperous community had been uprooted and its people transplanted to a land dominated by East European Jews, whose culture was not only foreign but entirely hateful to them.”

Their fate was typical of all 500,000 Jews from Arab countries. This belies the Zionist argument that these Jews were expelled from Muslim countries and make up for displaced Palestinians.

Giladi discovered that Israel had spurned many sincere Arab peace overtures because of its expansionist plans. He met Prime Minister Ben Gurion and asked him why Israel didn’t have a constitution.

‘If we had a constitution, we’d have to have a border, and this is not our border,” Ben Gurion told him. “Where the army conquers, that will be our border.’

Giladi became an activist and fought in the 1967 and 1973 wars. But after the Israeli invasion of Lebanon in 1982, he renounced his Israeli citizenship and moved to New York City.

The Clash…

From here (racist but good)

“The clash of civilizations,” …..is supposed to be the confrontation between Islam and the free world. That helps sell newspapers and has the enormous advantage of furnishing a simple explanation of the world’s complexity, one easily accepted by a movement looking more for conspiracy theories than political or geopolitical thought.

Now, ideas must be put back in their historical context. The source of the “clash of civilizations” theory goes back to 1990. The Soviet Bloc’s collapse took away the U.S.’s role of defender of the free world; there was danger for the U.S. in the multipolar world which they saw replacing the bipolar one. Therefore a replacement adversary was needed so that America could continue in its role as world policeman. The office of U.S. Secretary of State switched therefore from its “red” theme, namely, Moscow is orchestrating a worldwide terror network consisting of Third-World revolutionary Marxist groups, to its “green” theme, namely, there is a worldwide terror network consisting of revolutionary Islamist groups. At the same time, the U.S. Secretary of State adopted the Lake doctrine of “rogue nations,” the majority of which, as if by some strange coincidence, are Moslem.

All of that has to be ideologically justified, brought down to the level of the ordinary citizen of Western countries in simple, intelligible form. Therefore the system’s house intellectuals must make theories about the proposals, which are then adopted by popularizers, by agents of influence, by the media, etc., until Joe Sixpack caught in a mass of assertions all saying the same thing is convinced of these propositions. As for these intellectuals who have theorized about the “clash of civilizations,” you know them both: it’s Bernard Lewis and Samuel Huntington. Both insist on the importance of the Zionist Entity to the West’s resistance. And that introduces a second level of understanding of the anti-Islamist phenomenon, i.e. supporters of the Zionist Entity have grafted their struggle onto that of the American Party. By developing a gigantic amalgam of Islam/Islamism/violence-in-North-African-neighorhoods/obscurantism/attacks-on-women, etc., they try to make ordinary Frenchmen believe that in Paris as in Tel Aviv the troublemaker, the killer, the terrorist, the one favoring a return to the Middle Ages is the same: the Arab and the Moslem.

(And of course the US/Zionist machine needs a dialectic to proceed to its end game, and, wars, profiteering, monopoly, bigger government, more control and power to the Police, are all steps along the way to the Global Zionist utopia, where they run and own everything and the rest of us are their slaves, after all they ‘are chosen’ and it is their destiny is the myth they believe in)

Zionist Dictionary

To be GOVERNED

To be GOVERENED

To be GOVERNED is to be watched, inspected, spied upon, directed, law-driven, numbered, regulated, enrolled, indoctrinated, preached at, controlled, checked, estimated, valued, censured, commanded, by creatures who have neither the right nor the wisdom nor the virtue to do so. To be GOVERNED is to be at every operation, at every transaction noted, registered, counted, taxed, stamped, measured, numbered, assessed, licensed, authorized, admonished, prevented, forbidden, reformed, corrected, punished. It is, under pretext of public utility, and in the name of the general interest, to be placed under contribution, drilled, fleeced, exploited, monopolized, extorted from, squeezed, hoaxed, robbed; then, at the slightest resistance, the first word of complaint, to be repressed, fined, vilified, harassed, hunted down, abused, clubbed, disarmed, bound, choked, imprisoned, judged, condemned, shot, deported, sacrificed, sold, betrayed; and to crown all, mocked, ridiculed, derided, outraged, dishonored. That is government; that is its justice; that is its morality –

Pierre Joseph Proudhon (General Idea of the Revolution in the Nineteenth Century)

George Kennan, secret U.S. State Department memo, 1948

“We have about 50% of the world’s wealth but only 6.3% of its population…. Our real task in the coming period is to devise a pattern of relationships which will permit us to maintain this position of disparity without positive detriment to our national security. To do so, we will have to dispense with all sentimentality and daydreaming, and our attention will have to be concentrated everywhere on our immediate national objectives. We need not deceive ourselves that we can afford today the luxury of altruism and world benefaction…. We should cease to talk about vague and unreal objectives such as human rights, the raising of the living standards, and democratization. The day is not far off when we are going to have to deal in straight power concepts. The less we are then hampered by idealistic slogans, the better.”
George Kennan, secret U.S. State Department memo, 1948

9/11: Total Proof That Bombs Were Planted In The Buildings!

Zionists and Jews

I believe there is a hardcore Zionist group, but most Jews do not support it. Some pay lip service to it due to the threats they might receive from Zionists. The hardcore Zionists themselves are probably in cahoots with other global elitist powers who use Zionism as well as other groups and peoples (ideas) to further their own global domination and One world State.

These people could not really careless about the Jews they simply want power and the Jews and Zionism are a vehicle for them to achieve these ends.

The power group is already very powerful but it becomes more powerful through the process of Problem/Reaction/Solution and they use various groups and philosophies against each other to do this. Many of the power group pose as Jews but they are only Jewish because it affords them a cover, keeps them associated with a minority group which has been persecuted and so shields them from criticism. Anyone who might come close to criticizing them can be easily deflected through accusations of anti Jewish racism, and genuinely worried and innocent Jews within the Jewish Community may become anxious at the threat against them. This will motivate them to the would be identifier of the inner power group. In this way the power group maintains its power and consolidates it through the creation of wars, conflict, hostility…create a Problem (real or false)….tell everyone and broadcast the problem very widely, ascribe it to an opposing group and give them crazy ideas…..propose a Reaction to the Problem and its Solution. When we reach the Solution phase they have achieved their real goal of Power and consolidation…and the cycles will keep coming until at last they have gained total control with no resistance offered by anyone. An Iron Fist in a Totalitarian World State, where all resistance is crushed, everyone is watched and everyone works night and day just to have the basics of food, shelter and drink…while their masters keep them to the grindstone.

The Secret Rulers of the World – Present/Past

Zionists How to know them?

They will never agree that Israel is a criminal State.

They will always bring other people into it. They are a mind disease, incapable of reason or logic. They will jump at the chance to create conflict and bloodshed amongst people. They will mis-interpret any statement to give it a spin all their own from their warped agenda and mind sets. The more I see them in action, the more it becomes apparent that they have nothing but contempt for non Zionists.

Intellect

Why did Allah the Exalted give human beings an Intellect and the faculty of Reason? Is Reason and Intellect the perfect guide?

Many things in the Sharia of Sunni Islam, make sense to Reason, other things make no sense at all. Muslims are taught to use their Intellect with regard to Knowledge it can master and apprehend, and in areas where it is blind, it must submit to the Sharia.

The Sharia as a whole when examined by the Intellect can only see goodness in the Laws and a source of benefit for all Creatures, human and non human, individuals as well as societies. It is from Allah, by Allah, to Allah. When examined in detail we notice some things the intellect cannot grasp, for instance the most famous example is the Wudu (ritual ablutions Muslims perform daily), the last act is to wash the feet three times. However the Sharia ruling is that if someone is wearing leather socks, they only need to wipe the top of the sock with wet hands for the Wudu to be valid. Rationally this makes no sense, as dirt accumulates at the bottom of the sock, yet we are being asked to wipe the top. In such cases the Muslim submits and declares ‘we hear and we obey’.

This is not some irrational tendency because we have already examined the whole of the Sharia with the Intellect and worked out that it is good for all. That some details may not make sense to some Intellects is purposefully placed in the Sharia by Allah the Exalted in order to make man submit his Intellect to Allah. Allah knows Best, He is the Most Wise.

Nasheeds (Songs)

Dawud Warnsby

The world is a prison for the believers. It seems that the stronger your love for Allah becomes, the less interested you are in the earth’s delights.

All Human beings love something, they love themselves, their families, their nation, celebrities. They love things or ways that they feel will enhance their lives, their jobs, money, a nice house a nice car. Humans love to gaze upon the things they love. If they see a nice car or house they feel a yearning for it. We live in materialistic times, where if someone has the big house, nice car, good high paying job, they are ‘a success’. Those who do not have these things want them and strive for them. Indeed school gives this lesson to the kids.

However looking at the world with the eye of wisdom reveals that life is mostly made up of pain, even the things we find pleasurable can disappear. In fact while we are gazing at the nice car or the nice house there is a twinge of pain because we cannot have it, we cannot afford it. We have our health, but that can go, we age and gradually lose our independence. All this should lead us to question the purpose of our lives. Some of us avoid the truth and escape into fantasy, TV, Films, trivia. Some of us do not want to confront the truth.

Muslims are taught that this world is temporary and this world and all its apparent beauty is a place of delusion. The world of nature, the oceans, rivers, trees, flowers, the sky and the earth are a beauty which reflect the Power and Beauty of Allah. However the world (dunya) as amassing wealth, prestige, status is a place of delusions, it makes us forget that this world is temporary. Muslims do not feel pain when this world leaves their hands, they are glad with what Allah has Willed for them, patient and grateful, worshiping Allah and Submitting to His Will.

Non Muslims by contrast especially those who have little spiritual practice and those who love the dunya (the world as delusion), feel nothing but pain. In the midst of their pleasures they have to avoid the gnawing truth that ‘it will end and they will die’. Or they have regrets at having missed out on something which others seem to have. Their lives are spent trying to amass the world but never actually having the time to enjoy it amidst their close friends and family, everyone is too busy, even conversations are superficial. It feels like this world is a punishment for them and their lack of belief in Allah the Exalted and life after death makes it all seem futile.

This World and Pain

In Islamic terminology, the Arabic word dunya (دُنْيا) means this world — and its earthly concerns and possessions — as opposed to more spiritual realms, or the hereafter.

WHAT DOES AZ-ZUHD MEAN?
Az-Zuhd is, “The opposite of being eager and concerned about the Dunya (the life of this world).”

Az-Zuhd resides in the heart, and it can be achieved by ridding the heart of the slave from the love and the eagerness for this life. This way, the Dunya will be in one’s hand, not in his heart, where the love for Allah subhanahu wa ta’ala and the Hereafter will and should reside. Az-Zuhd does not entail abandoning the Dunya altogether. The Messenger of Allah sallallaahu ‘alayhi wa sallam was the leader of all those who practiced Az-Zuhd. Yet, he married nine times. Also, Prophet Dawood (AS) and Sulayman (AS) were kings as Allah subhanahu wa ta’ala has described them. Yet, they were also among the Zuhhad (those who observe Zuhd). The companions of the Messenger of Allah sallallaahu ‘alayhi wa sallam were also among the Zuhhad. Yet, they all had wives, children and material possessions.

Imam Ahmad divided Az-Zuhd into three parts:

1. Avoiding the prohibitions, and this is the Zuhd of the commoners. Ibn Al-Qayyim stated that this type is an obligation.

2. Abandoning what is not a necessity among the Halal matters. This type is the Zuhd of the distinguished people.

3. Abandoning what will busy one from the remembrance of Allah subhanahu wa ta’ala. This is the Zuhd of those who have knowledge in the religion.

The Messenger of Allah sallallaahu ‘alayhi wa sallam said,

“Perform Zuhd in the Dunya.”

There are many Texts in the Quran and the Sunnah that encourage being a Zahid in the Dunya. These Texts demonstrate the little significance that the Dunya has and point out its briefness and quick demise. These Texts also strengthen the eagerness in the Last Life, which joy is eternal. Allah subhanahu wa ta’ala says,

“Whatever is with you, will be exhausted, and whatever with Allah (of good deeds) will remain.” (An-Nahl 16:96)

“Know that the life of this world is only play and amusement, pomp and mutual boasting among you, and rivalry in respect of wealth and children, as the likeness of vegetation after rain, thereof the growth is pleasing to the tiller; afterwards it dries up and you see it turning yellow; then it becomes straw. But in the Hereafter (there is) a severe torment (for the believers, evildoers), and (there is) Forgiveness of Allah and (His) Good Pleasure (for the believers, gooddoers), whereas the life of this world is only a deceiving enjoyment.” (Al-Hadid 57:20)

The Dunya, therefore, is brief and is bound to end sometime soon. Therefore, the slave ought not busy himself with its affairs, nor forget the affair of the Last Life which will never end.

Terrorism Is not Allowed

The Prophet Muhammad Peace and Blessings be upon him said:

“Whoever fights under the banner of a people whose cause is not clear, who gets flared up with family pride, calls (people) to fight in the cause of their family honour or fights to support his kith and kin, and is killed (for this cause), then he dies in a state of jahiliyyah (i.e. pre-Islamic ignorance). Whoever indiscriminately attacks my ummah (i.e. community of Muslims), killing the righteous and the wicked among them, sparing not (even) those firm in faith and fulfilling not a pledge made with whoever (from the non-Muslims) was given a promise of security (to travel or reside in Muslim lands), has nothing to do with me and I have nothing to do with him.”

Recorded in Saheeh Muslim

Double Standards

The rich always demand the “freedom” to exploit the poor. Liars always assert the freedom of speech as if it were an excuse to lie and degrade, while concurrently demanding that those who tell the truth be silenced.

Such is the nature of double standards. Advantage to the privileged in order to maintain their privilege. Injustice to the subverted in order to maintain and increase their weakness.

Fox News Bias against Palestinians

Karl Marx

Other Ahadeeth regarding Dajjal (anti Christ) inform us that:

He will emerge between Syria and Iraq, and his emergence will become known when he is in Isfahan (Iran) at a place called Yahudea (Jewish neighborhoud of Isfahan, Iran)

Below is what Karl wrote in a letter:

“The Jewish people as a whole will become its own Messiah. It will attain world dominion by the dissolution of other races, by the abolition of frontiers, the annihilation of monarchy and by the establishment of a world republic in which the Jews will everywhere exercise the privilege of citizenship.

In this New World Order the children of Israel will furnish all the leaders without encountering opposition. The Governments of the different peoples forming the world republic will fall without difficulty into the hands of the Jews. It will then be possible for the Jewish rulers to abolish private property and everywhere to make use of the resources of the state. Thus will the promise of the Talmud be fulfilled, in which is said that when the Messianic time is come, the Jews will have all the property of the whole world in their hands.”

— Baruch Levy, Letter to Karl Marx, ‘La Revue de Paris’, p.574, June 1, 1928