samedi 4 avril 2009

Banks Control the Money Supply ( and destruction) ?

.... I've always thought that the banks can create many, many times the money we can borrow by and as a result of the 'fractional reserve' rules. Is that the case?

Yes, it is the case, countries at the top have a 0 ( none) limit, that means they can create as much as they can.....leading to unfair competition, crisis, revolution. slavery... and wars...

Country ↓ Required reserve ratio/% ↓ Note ↓
Australia None
Canada None
Mexico None

Sweden None
United Kingdom None

Other countries have required reserve ratios (or RRRs) that are statutorily enforced (sourced from Lecture 8, Slide 4: Central Banking and the Money Supply, by Dr. Pinar Yesin, University of Zurich (based on 2003 survey of CBC participants at the Study Center Gerzensee[2]):

If concepts are not right, the words are wrong,
and if the words are wrong, works cannot be achieved.


This prophetic mail was sent in April 2008, copy for you

More and more robots and computers will produce most of the goods. less and less human will be necessary to produce what is neccesary to live, the problem is how to distribute the money to buy all goods on the market ?

Do not accept a centralized system, go the swiss way. Small is beautiful.

Say no to more taxes.'s-Up-to-You.gif

Robert A. Heinlein described a Social Credit economy in his first novel, For Us, the Living (published in 2003, but apparently written ca. 1939). (Beyond This Horizon describes a similar system, but in less detail.) The society in the book uses a method to prevent inflation: the government makes a deal with business owners. Instead of increasing prices, they cut prices, and the government (or the Bank of the United States) pays them the difference after seeing their sales receipts. Like the guaranteed income or heritage checks, this money comes out of the inkwell. In the future, the government no longer uses taxation to fund itself. The characters point out that present "fractional reserve" law allows banks to create money (by loaning out many times more money than they have on hand), while in Heinlein's future society only the US government can create US currency.

Robert Anton Wilson proposed another form of Social Credit. His plan aimed to end wage slavery, and began by offering a reward to any worker who designed him-or-herself out of a job. The guaranteed income (or, in the Schrödinger's Cat Trilogy, a lesser reward to all other workers who "lose" their jobs to innovation) would prevent starvation. This income would consist of "trade aids" which would lose numerical value with the passage of time. This official reduction in value would encourage spending and (although Wilson does not state this explicitly) limit price inflation. Elsewhere, Wilson attributed this strategy to Silvio Gesell, who also suggested the government encourage small communities to experiment with alternate economic models. If one of these enclaves seemed especially successful, the country could copy their model in place of Gesell's own plan.

How to apply now Social Credit locally

A simple system to exchange goods and services
How you can open an interest-free bank
with the use of simple cards


In an age where the use of the microchip and the fall of the US $ are becoming real threats, this is certainly a way in which one could exchange goods and services without having to bow down to the use of this microchip and centralism.

A simple bank

I will now just to teach you how to open a local bank using Social Credit principles. It is very easy to do and everyone can do it.

Already in past history, small, local banks in Switzerland were established by farmers. The banker is a farmer, the bank is in a farm house, the customers are farmers, and the owners of the bank were and are farmers. These little banks, put together in Switzerland, make up the third largest Swiss bank actually in operation with the best ratio and the best management because the costs are very low. These little banks can also be found in Austria and some other countries.

The tragedy of debt money

You know that money is created in the form of debts with interest rates, and you know that the theory of Social Credit is true, and that interest kills and put all the stress, all the psychological problems, suicides, alcoholism, drugs, children at home without the parents because the father and the mother are both working.

Now, with our system, you can imagine that a system without interest rates will save a lot of money. It will save at least three hours every day for each one of you, it will cut the prices by half, and it will give the houses 77% more space because the interest rates are taking a lot of productivity in the whole world.

Where to start

Social Credit is the answer to the real needs, the basic needs of these poor countries. After having listened to the people, we tell them that we have something that can help them. It is not a magic wand that will give them paradise on earth, but it is a system that will guarantee each individual an access to the basic necessities of life and allow the poorest countries to make use of their resources to help their own population.

The main thing is to look for the Kingdom of Christ and His justice: "But seek first the Kingdom of God and His righteousness, and all these things will be given you besides." (Matthew 6:33.) This is really what we are doing here with this local exchange system; we are dealing with justice, the justice of God. Work for justice, and everything else will follow!

A Christian coin

I would like to show the 5-franc coin that is currently in circulation in Switzerland. (See picture above.) On one side, one can see the Swiss cross, which represents the Kingdom of Christ, and on the other side, social justice is represented by William Tell, the Swiss national hero and liberator of the poor and of the oppressed. On the edge, one can read these Latin words: "Dominus providebit — God will provide", which specifically refers to the verse of the Gospel of Matthew mentioned above.

In all our meetings to organize local interest-free banks, we need to remind people that God does provide, that He is indeed very generous. In the Philippines, for example, they can raise three crops of corn. If you take one seed of corn, this seed will give you three stalks which will give you around 200 seeds. So if one gives you 200, then ten gives you 2,000; one hundred then gives you 20,000. Three crops per year (20,000 X 3) yields 60,000%. And the banker will probably give you 6%. This means that God is indeed generous.

There are fish in the sea you can fish. With the earth, you can till, and the earth is very generous. You know that the earth could feed many times the world's population. It is not a problem of food but a problem of distribution. Then it is important to remember how the earth is generous and that there is enough room for everybody on this earth.

In Switzerland, as I told you, this system of small banks is working. There is also another system in place: a parallel money called "wir", the German noun signifying "we" in English. see This involves a notion of community. This money has bee in existence since the 1933, created during the crisis, and it is working very well. It is parallel money. Few know about this money. Switzerland, the poorest country in the world as far as natural resources are concerned, is one of the richest countries in the world because of its organization of small banks and this kind of parallel money.

Usury is condemned by the Church

You know too that the Church, the Catholic Church, has always condemned the charging of interest on the loan of money, calling it usury. As a matter of fact, the social doctrine of the Church, which supplies principles of justice to be applied in human activities, is probably, amongst all the teachings of the Church, the part that is the least known. And the least known part of this social doctrine, the best kept secret, is certainly the encyclical letter Vix Pervenit, issued in 1745 by Pope Benedict XIV, and addressed to the Bishops of Italy, about contracts, and in which usury, or money-lending at interest, is clearly condemned. In 1836, Pope Gregory XVI extended this encyclical to the whole Church. The text of this encyclical was destroyed in many countries of the world just to hide this most well-kept secret of the social doctrine of the Church. see

What you need to start a bank

The principle is the same as in the tale of "The Money Myth Exploded": an account is created for each member of the community

To establish a local debt-free bank is very easy. You just need small sheets of paper or small booklets, which we will call the accounts, and a general ledger. In fact, we will do exactly like the five people in the tale of Salvation Island (The Money Myth Exploded), who realized they can create their own money. (See n. 17.)

The following system will therefore allow any community or village to make financially possible what is physically possible in that community, that is to say, to create as much money as they need to exchange goods and services. Just like in the tale of "The Money Myth", you can first use a blackboard and a chalk to explain the system to the people gathered in front of you, who wish to be part of this local bank and exchange system.

Then you distribute to each member of the community a small card, which will be their bank account. (See Figure 1, a blank card.) You can use any bookkeeping card, small enough so it can be put in your pocket, in your purse. This will be the money and, at the same time, the way to create local money without interest. It is very important to state: without interest!

Figure 1 — Blank card

You can write on the card some basic personal information: your name, your address, your card number (which is the same as your bank account number), your birth date and signature. The signature proves that you are the owner of this card; even if you lose it, nobody else can use it, for as you will see later, your signature is required on the cards — yours and that of the person with whom you are exchanging goods or services — every time you make a transaction.

The first thing to do after these cards are distributed is to give numbers to the people. That means that everyone that is in the room should be allocated a number, one after the other. The first row can have the number 1, 2, 3, and so on. Everyone says the next number in sequence and everyone writes his number on his card. One person in charge of the ledger for the community writes all the names in the ledger with the corresponding account number. This will be your bank account number. It is like a football team — you give a number to everyone, and this number matches the name on the card.

Depending of the level of development in the community, you can add your phone number and e-mail address, if applicable. You can also mention your trade (present occupation) and other jobs you could do or services you could offer. This information can be used if one wants to create a catalogue of all the goods and services offered in the community. On the back of the card, there is the address and phone number of the local bank.

Now, in the other columns, you have the date, the reason of the transaction, a column to show the money you spend (money out of your account), the account number and signature of the person with whom you are transacting, and a column for the money coming in to you. You can see that this is very simple.

An illustration

Figure 2 — Tom Smith's card

Now to understand better how it works, we have an example you can look at. (Figure 2, Tom Smith's card.) The first amount written down on your card will be an effective implementation of Social Credit: a social dividend, given periodically (once a month) to every member of the community, representing their common heritage in the wealth of the community (progress, life in society, natural resources). This amount is to be determined by the community, and must cover the basic necessities of life. So, on the first line, you see a date, the reason (a dividend), nothing in the money-out column (you draw a line; it is money that you receive, not money that you spend), the number and signature of the person giving you that money (in this case, the signature of the local bank or its director, and for the sake of the example, the number "0" was allocated to the bank.) And on the last column, money in, $100 is inscribed. The bank has given you a dividend of $100. This transaction has also been inscribed in the ledger of the bank.

Now on the second line, let us suppose that Tom Smith wants to buy from Paul Jones 50 kilos of apples, for a cost of $50. So you have the date of the transaction, the reason (purchase of apples), the amount you spent ($50), the number and signature of Paul Jones who sold you the apples (Paul Jones, for the sake of this example, was allocated account number 2.) Paul Jones signs his name on your card, and you sign your name on his card.

Figure 3 — Paul Jones' card

Every transaction always involves two cards, therefore two signatures. So, a purchase for you on your card, will be a sale for the other person involved in the transaction on the other card. If you look at Paul Jones' card (Figure 3), the reason of the transaction will be "sale of 50 kilos of apples"), and the $50 will be written in the column of the money-in, not the money-out. And Tom Smith's signature will appear at the end of the line.

Now, let us suppose Paul Jones has a chair that needs to be fixed. He knows that Tom Smith is a carpenter. He goes to see him, and Tom Smith agrees to do the job for $10. So you will have on both cards the reason of the transaction (chair fixed), with the amount ($10) written on each card — as money that comes in, on one card, and money that comes out, on the other. And the examples could go on and on.

This system is presented to the people for the first time during the meeting for the foundation of the local bank. The best thing for you now is to train yourself with such a card. When the cards are distributed, you put your name on the card — you do not need to put all the other details. And you make transactions with your neighbours. You buy and you sell. And you will see that you have now in your hand the same money-creation system that the banks have; they do the same in computers and ledger books in accounts in banks, but it is without interest that you do your transactions.

Now train yourself for a while with your neighbours on how to create local money. This period is very important, and you will need to give at least 30 minutes for this training period, until everyone in the room has understood. It is very important! In the Philippines, the young people went to the old people to teach them, some of them not even being able to read or write. But they were able to understand the system because it is only figures. Even if they do not know how to write letters, they know how to write numbers.

You have a contract every time you create money. You have, at the same time, the proof of a contract, a commitment with the signature, and the number to double check the signature.

You are in control

And you control the system. Money creation is under your control and under that of your local community. You know each other and you can create as much money as it is necessary for your needs. So what is physically possible is now financially possible. Your community will never lack money.

This system you have now used is the same system that the banks use to create money, but you control it! And you control it without interest! It is very cheap. It is efficient. You can create any amount of money according to the available production and services. You can exchange any number or kind of goods and services. And you are in control. You own the money-creation system.

And it is even better than a bank note because you have your name on it. If you lose your card, someone will phone you telling you he found your money. And this person who finds your money can do nothing with your money because your signature is needed. It is really your money.

You cannot dispossess someone who has lost his money. If the money (the card) is destroyed by fire or other means, you can reconstruct a card using information from other cards. All cards are consolidated in the local bank ledger. This means that if your bank card is destroyed, you can reconstruct your bank card with the accounts of the others because the other cards have your card number for every operation they did with you. You can rebuild your accounting books and reclaim your assets; an even better method than the actual system with bank notes. And you have, naturally, no interest. This means every transaction will be cheaper in the community because, today, interest rates kill people.

To own a bank

But to be the owner of a bank, this bank needs to have a management. This banks needs to have auditors. Then we now need to have people who are willing and ready to act as managers, and willing and ready to act as auditors. So now I ask you, who will volunteer to act as managers of the bank and auditors of the bank? I need at least three managers (a director, a secretary, and a treasurer) and two auditors (who verify once in a while the bookkeeping of the bank). Now, those who are willing to be and to act as the management of this local bank owned by the local community, please come in front of the room."

It is the community that chooses the people who will be on the board of the bank, people they can trust and who have enough skills to do the job.

To be the bank manager of the local bank is very easy: your only task is to be in charge of the bank ledger and the local creation of money.

The prices

t is now important to put in writing equitable prices for basic goods and services of the area. This is to be decided by the general assembly. It is also extremely important to put in writing how the profits will be divided within the community, because this bank can create money as any other bank and will create money to allocate investments for the production of goods. Thus the people, when they have a lot of pluses (money in) on their cards, can invest those pluses in projects, and those projects will give more abundant production. So it must be put in writing how the profits of this abundance will be distributed. This way, the people will be more eager to share.

When there is no usury, the producers are very happy because, in those countries, usury can climb up to 1,000% per year. That makes 20% a week. And because we now have a local banking system without usury, without interest rates, everybody is happy, and everybody can share more. Now all this money will not go to the usurer who was doing nothing except taking 1,000% per year.

It is the love of money that is the root of all evil, and with this system, there is less the notion of money being in your pocket. This way, you love your money less because it is really just a means to facilitate exchanges. You can exchange any goods, any services. You cannot as easily love a paper which is really just your handwriting and the signatures of the others. It is not as easy to love this piece of paper as bullion of gold or coins or bank notes. It is really a way to avoid this love of money which is the root of all evils.

A ruler to create money

This card, this system also gives you the ruler to create money. Just as you have a ruler to measure meters or feet, you have a ruler now to create the money necessary for local community life. With this system, you can allocate money for the basic needs of the poorest. The dividend has to be accepted by the general assembly. Normally we recommend giving a dividend at least equal to the amount necessary to cover the basic needs for the life of the poorest, the sick, the old people present.

Spread the news

We are looking for people to go all over the world to spread this good news. This good news makes the poorer richer. This also makes local development possible. This too allows the poor to have as much money as they need for the physical needs of the local community. It is really a tool for liberation.

And His Justice needs the spirit of all 5 Jubilees, all 7 days, 7 months, 7 weeks, 7 years and all 7x7 years, ...

plus see Lev. 25: 23 and

Longer article was published in the June-July, 2005 issue of "Michael".

Back to list of articles

Back to the Michael's homepage

Subprime crisis, a systemic crisis : how to reform the whole system before a massive failure of most currencies?

Is really more centralization and more power to less people earning more millions $ at the expanse of more and more poors the solution ?

What are the roots of the problems ?

Do you find good that a few individuals can earn salaries above US $ one billion per year…( sic, with all bonuses, incentives, stock options…), one hundred million, 20 millions and so on, when others are dying of hunger ?

While large financial assets are growing exponentially and in a continuous manner, debts will increase even much more. It is the responsibility of the working population to generate interest and accumulated interest. This creation takes place directly in purchases - Helmut Creutz, estimates that 40% of the price of consumer goods, at least, are
now hidden interests - and in the form of taxes.

The real cost of the interest on public utilities is above 1'000 % ( sic, one thousand per cent)

Even central and local government must provide debt service continuously paying interest and accumulated interest. This development requires an exponential growth of the economy and constantly leads to new crises.

One author, Hermann Kendel from Berlin, describes in detail the propensity to the crisis and the various attempts to moderate. In doing so, he mentioned other consequences of the system of accumulated interest, including the ongoing crisis in the Third World and ecological disaster.

We must work several hours every day to cope with those hidden costs, we have houses 77 % more expansive or smaller, food is twice the price, everything costs too much. 99,9999999 % of the population has to pay those crazy bonuses in New-York to the happy few shylocks…

The US $ has now a value of only 1 swiss franc, from four francs ( 4,47) in 1948, and it will continue to go down. Small is beautiful and Switzerland is very decentralized, we have even the wir system, a private money system. see

What are they offering ? what "solutions" in one year time ?

Remember, the FED is a private organization, created just before Christmas 1913, the 23th December ( most politicians were already gone to buy presents for their families...), to pass discretly a law to rackett the poorer, at a very high cost, human lifes, wars, revolutions, terrorism.

They create the roots of most troubles.

All the economy is based on loans with interests. Created by a few happy at the cost of more and more poors who are dying.

What are the costs of such a system ? Alcool, drug, psy, depressions, cancers, divorces, abortions, wars, crisis, unemployment...

The main points of the Bush administration's plan to change financial regulation is more centralization and higher costs to the poorer:
— Expand the role of the President's Working Group on Financial Markets to include the entire financial sector and not just financial markets. BIG BROTHER WILL WATCH YOU…
— Create a new federal commission at very high costs, the Mortgage Origination Commission, to develop uniform, minimum licensing standards for mortgage market participants.
— Move the Office of Thrift Supervision, which regulates thrift institutions to the Office of the Comptroller of the Currency, which regulates banks.
— Merge the functions of the Commodity Futures Trading Commission into the Securities and Exchange Commission to create one new agency to provide unified oversight of the futures and securities industries at very high centralized costs.
— Establish an Office of National Insurance within the Treasury Department to regulate those in the insurance industry who want to operate under an new optional federal charter, to make more paperwork.
— Divide and conquer centrally. Work to establish as a long-term goal three major regulators: the Federal Reserve as a "market stability regulator"; a "prudential financial regulator" to take over the functions of five separate banking regulators; and a "business conduct regulator" to regulate business conduct and consumer protection.


We need urgently to put a real and true sytem close to the people. We need to recover our responsabilities. The only way is local systems, easy to understand and to control. Act now, join and improve all local initiatives, be the salt of the earth.

How to apply Social Credit locally. François de Siebenthal

We need urgently the revival of the encyclical Vix pervenit to fight against all forms of usury and put Christ in the center of the economy. France has offered a Statue of the Liberty. We launch a general auction to offer a statue of the Responsability to USA, to be built at ground zero for instance.

Kennedy was killed by crooks because he was trying to implement globally this new economy with his order 11110.

Abraham Lincoln and John F. Kennedy. Melvin Sickler

We all need God to help us at a family and local level and we need to accept all five sabbats.

Lev. 25: 23
כג וְהָאָרֶץ, לֹא תִמָּכֵר לִצְמִתֻת--כִּי-לִי, הָאָרֶץ: כִּי-גֵרִים וְתוֹשָׁבִים אַתֶּם, עִמָּדִי. 23 And the land shall not be sold in perpetuity; for the land is Mine; for ye are strangers and settlers with Me.

1 Timothy 6:10

King James Bible

For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows.

More on:

* Margrit Kennedy: Why Do We Need Monetary Innovation? (pdf, 20 Seiten)
* Helmut Creutz: The Money Syndrome
* 2000: Werner Onken: A Market Economy without Capitalism
* 2000: Eiichi Morino: A Story of Robinson Crusoe (by Silvio Gesell) as a Manga
* 1998: Jürgen Probst: Aberrations of an interest-based economy
* 1995: Erhard Glötzl: The How and Why of a New Monetary System
* 1995: Margrit Kennedy: Interest and Inflation Free Money
* 1990: Dieter Suhr: The Neutral Money Network
* 1941: Vincent C. Vickers: Economic Tribulation
* 1934: Michael Unterguggenberger: The End Results of The Woergl Experiment
* 1933: Irving Fisher: Stamp Scrip
* 1920 (?): Silvio Gesell: Natural Economic Order (Link

"Another kind of terrorism: the unjust economic system". Archbishop Concessao

An example of banking philosophy. Louis Even

In Argentina, 50 children die of hunger every day. Th. Tardif

It is urgent to put an end to the scandal of poverty. Alain Pilote

The interest kills children, kills nations. F. de Siebenthal

The banking system: "An impassable barrier", said Cardinal Agre of Ivory Coast

Full stores, empty wallets in Madagascar!. M. Lefebvre

Social Credit

The Money Myth Exploded. Louis Even

Social Credit puts money in its proper place. Louis Even

Money, an instrument of distribution. Louis Even

To solve the problem of poverty. Louis Even

In This Age of Plenty. Louis Even (book with 52 chapters)

A Sound and Effective Financial System. Louis Even (booklet)

What do we mean by real Social Credit? Louis Even (booklet)

Social Credit, for a healthy economy. Louis Even

A few questions and principles on Social Credit. Louis Even

It's time people knew the money trick. Colin Barclay-Smith

What can economic science do to get Social Credit applied? Diane Boucher

The Government Must Create Its Own Money. Alain Pilote

The Government does not create money. Louis Even

The pen that rules the world. Louis Even

For a Better Understanding of Social Credit. Alain Pilote

The Environment — Where Money Is Concerned. A. Pilote

Social Credit, a scientific technique of finance. Gilberte Côté-Mercier

Social Credit: humanism and common sense. Gilberte Côté-Mercier

About Clifford Hugh Douglas, the genius who discovered Social Credit. Louis Even

Social Credit: not Socialism, not a political party. A. Pilote

Our economic liberation through Social Credit. Louis Even

Canada is rich in real wealth, the Canadians are poor. Gilberte Côté-Mercier

Restore to the people the control of their own wealth. Louis Even

A civilization of men financially free. Louis Even

What should be corrected! Louis Even

As the people build, the people get into debt. Louis Even

Unemployment, a condemnation of the financial system. Louis Even

Social Credit and labour problems. Louis Even

The young people want a new financial system. Louis Marie Roy

To make financially possible what is physically possible. Louis Even

A brief outline of Social Credit. Vic Bridger

How to apply Social Credit locally. François de Siebenthal

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