RE: Ellen Brown's Public Bank
J.Richard Niemela
DAN.A good analysis..as to my comment on administering a loan, even if it is done without interest, if it goes through a channel that has employees performing the work, would they be paid, and by whom..Otherwise, the view that somebody has to work to generate money, is real, so even if money exists, work was done to create it sufficient to be loaned…loaning money is not anti-biblical, and if made to aliens, it appears to have a charge…Dick
From: DANIEL KRYNICKI [mailto:pipefi...@wowway.com]
Sent: Friday, January 31, 2014 6:58 PM
To: social...@googlegroups.com
Subject: Fwd: Ellen Brown's Public Bank
Below you will find analysis, hopefully, that debunks forthrightly and coherently all the bashers of Bible and Puritan economics. But just so you can compare all the facts for yourselves, there is also included an attachment by Munson on Major Douglas’s social credit in which he claims to debunk Biblical and Puritan economics. The five pages in the attachment were later included in his book called Aladdin’s Lamp: The Wealth of the American People. Read either Munson’s or mine first. The themes of both are diametrical opposites of one another. In the final analysis, everyone must and will eventually choose which system they accept. The economic capitalism of today will either evolve into something resembling my own vision; or mankind will self-destruct as evidenced through the sanguinary conflicts of the 20th century and the eventual invention of weapons of mass destruction.
Hello All,
Dick Niemela wrote me a few lines last October (shown below) that I now wish to comment on, now that he has a copy of Hoffman’s Usury in Christendom. It’s not that this fact alone should completely influence his own thinking. But I have found that as more information is learned in any endeavor, it should always produce a better understanding of the subject matter if we are honest. Our own grasp of monetary related studies is indeed the result of how well we have attended to all the various source materials available as well as being able to discern between what is disengenuous and what is truthful. As time has marched on, numerous new sources have emerged on our radar which demonstrate that we have not based our opinions on all the available facts. One of the most important facts I discovered last year is that all money is fiat money. If we base the money that is created on a commodity it still becomes money that is created out of ink and paper, or cyberspace digits. So whenever I read or hear about gold backed currency, I cringe knowing that this is just a euphemism which privately owned usury banks use so they can collect interest on money that they created while their gold always stays locked up in a vault where only they have access; and the only real wealth at risk is the borrowers’ collateral. Bankers today do not have nor did they ever have the money they lend even if people think that gold backed the bankers’ money back in 1935. This was especially true during a period of our modern history in which the phrase ‘fractional reserve banking’ was being used. In a little book by CR Dickey called Is Economic Ruin Inevitable?, Gertrude Coogan reported that under Federal Reserve laws at that time (1935), banks could lend out 33 to 150 times the amount they held in reserves of gold depending on the type of collateral the borrower put up and other factors. So even way back then, banks did not have the money they used to lend. In effect they were and are to this day, money creators of fiat money if you will. And they have complete control over our M1money supply.
Having always believed that Jesus Christ is the Son of God has always given me pause to try and reconcile the Bible’s economic solutions with the massive volumes that are now available from universities all over the world. Surprisingly, observing the simplest of Biblical economic commandments will solve everything that is ailing mankind. We can show this by answering some of the questions Dick previously posed.
The cost of administrating a loan must be considered
The cost of administrating a loan is, in reality, nonsense. The money that is conveyed to a borrower in any bank loan is always brand new money created from nothing. And yet the bank gets to charge administrative fees plus collect interest on the loan. Instead of having banks create money for loans, why not take this authority to create money away from banks and empower the authority to create money to a new institution we should call the National Credit Agency (NCA). Since created money for loans is always based primarily on the collateral a borrower offers, this authority to create money therefore must be vested in an operation funded and controlled by the borrowers. Well, here in the US, the people have already set up a commonwealth that is supposed to be operating in ways to ensure the public weal as enumerated in the Constitution and Unanimous Declaration. Therefore, this National Credit Agency (NCA) set up to create money and lend it interest free would be the simplest of all methods to promote the general welfare. Indeed, it is a Biblical and Apostolic mandate found in Luke 6:35, “Lend, asking for nothing in return”. A small administrative fee could be charged to borrowers without violating the moral law against usury from Luke 6:35. But I ask you honestly, if the National Credit Agency can create money (fiat if you will) out of nothing, why can’t it pay for its expenses to administer loans out of new money creations from this new unit of government established of, for and by the people. I can think of several federal government bureaucracies that can be folded into this new one, especially those which have overlapping duties or purposes. Additionally, some of the existing bureaucracies will become obsolete, such as the Federal Reserve, most of the Treasury Department and most of the IRS. Others folding in will be Social Security, Health and Human Services and a new uniform national pension system. All these responsibilities should be distributed among the various departments within the NCA. The people who will work at all the various divisions of the NCA should be paid out of new money creations. If we did this using our Constitution via the Amendment process as it could and should be done, there would be a mass exodus of bank employees into the NCA. This is the point at which the cost of administrating a loan is seen to be patently inane because money, in today’s world, is always created out of nothing. And the money used to pay for administrative costs does not need to be obtained from taxation. It just has to be created by the NCA and spent into existence.
Moreover, paying for government services, all government services and national infrastructure with new money creations should also be the means by which an M1 money supply will be regulated with only one tax on income that exceeds all living costs. What a relief this would be when citizens are not bilked to pay out of their pockets in excessive taxation for the dire need to keep a criminal justice system in the black financially. The percentage on one’s individual increase tax should never exceed ten percent. But the tax could be lowered in years for which the M1 money supply needs to be increased. This way those whose incomes barely reach the level needed for living expenses will pay no individual increase tax because their estates have not increased in value. Living costs should include shelter (housing, heating, air conditioning, water & sewers, electricity), transportation, clothing, education, food and any others I may have missed. At the same time, there is a need to recognize that there are special needs people for whom we could nationally administer to through our NCA. Some are those who were never given a chance to provide for their own needs from birth like the blind and crippled. Others experience misfortune at some point in their lives through accident or disease. This latter group, if they were productive while working, should also have access to national credit emissions for subsistence.
somebody must “work” to create value that is translated into coin or money, so those who do more work than others, are due more in return
Anybody who argues against this has lost his marbles. In real life, it’s the law of something for something. Biblically, this is law of sowing and reaping which debunks CH Douglas’s social credit dividend from the start. We should therefore reap where we sow. Sluggards never plow, so why should they reap? What exactly do the pushers, users, alcoholics, criminals, shysters and shylocks sow? When unrepentant, they always show themselves to be a burden to various degrees on society. This sort, in the final analysis, will give rise to more problems than will be solved with free money. Besides, we can easily see there is much left undone just from looking at the littered landscapes of our interstate highway system. When anyone gets a check of money, it could easily be designed as something for something rather than something for nothing. Bill Abram’s excellent video The Crime of the Canadian Banking System ably showed that interest free credit emissions from the Bank of Canada during the depression were indeed of the something for something variety, not a Douglas dividend of free money. During the entire 25 minute You Tube video, I never heard one plug for CH Douglas social credit.
Furthermore, many public servants today are not paid wages that are commensurate with their responsibilities, like police, fire, EMS and criminal justice prosecutorial personnel. Paying municipal, state and federal employees what they deserve in wages and pension is the priority, not giving away something for nothing to addicts, pushers, criminals and sluggards. If there is so much abundance available, lighten the real workers’ loads with shorter work weeks and/or earlier retirements.
Translating value into coin or money is the loaded and real issue. For simplicity let’s call it money. No matter what we use, it is used as money. Should it be privately issued? Or should it be publicly issued? Ellen Brown is suggesting right now a Public Banking system solution. If we really thought about it, the usury employed in money creation is indeed a direct syphon off of the value created from labor or property. But her solution could be far better than private bank money creation if and only if free rein is taken away from the banking community to expand and contract the money supply. Bank credit is and has always been their ace in the hole to cause boom or bust cycles. During bust cycles the institutional (banking) community invariably always has taken control of ownership in all the major public utilities and military/defense corporations. This is easily verifiable at Google or Yahoo Finance. In the final analysis, when money is created - whereever, by whomever - it always has its value and basis intrinsically tied to people’s labor and property except for the usury part syphoned off by a parasitic class known as the banker. Its value is in labor when it is paid directly in expenditures and wages in the operation of good government, in property when it is paid directly into national infrastructure, and finally in property again when it is lent interest free to individual citizens and domestic corporations. Notice here that everyone will experience a lowering of retail prices since there will be no interest to figure into the cost of production.
Look at how easy it has been for the US Government to set up national bureaucracies to administer all the various social operations like medicare, social security and welfare. Without usury and without private corporations called banks creating our money with the ability to cause boom and bust cycles, with a National Credit Agency creating money to promote the general welfare, how much better could it get?
And looking beyond even just the federal governent paying for all its operational costs and expenditures, we can also in this way set up an ample M1 money supply by directly funding municipal and state governmental units. We can only venture to estimate how much more could be directly financed by the National Credit Agency. Could it directly fund even local police, fire, criminal justice and EMS services while at the same time enable us to eliminate all property taxation? This is nothing new under the sun. We have an ancient example of alodial property ownership under Mosaic Law in which there were no property taxes; and estates remained in families for generations. The only tax in operation under Mosaic Law was a ten percent tax on the individual’s increase. This is not an individual income tax; it is a tax on individuals’ increase - call it an increase tax. Therefore, only one tax is needed in order to remove excess money in circulation that could be the cause of price inflation. It will be a priority to keep the money supply in balance with GDP. Velocity of money and savings have a direct bearing on that balance. Everything would need to be monitored.
Another advantage gained for the lowering of retail prices usury free domestic corporate loans provides is that corporations will not need to hoard money. Apart form peoples’ savings, there would really be no need to hoard capital for future projects when it can be borrowed interest free. In this way, interest will not show up in retail prices at all. We can also intstitute laws that would penalize corporations that violate just price returns on their products.
Another Mosaic Law clause that will be needed is the Law of Jubilees. A modern version should include debt forgiveness for working class people who experience a debilitating accident or disease which leaves them unable to repay the usury free debt. We could call it disappearing principal.
We could inaugurate the reforms at first without taxing corporations at all. Here again, we should experience another lowering of retail prices. No one can predict if this corporate tax exemption will succeed; but the NCA will need to monitor the money supply closely. One thing is for sure: No solutions have as yet been offered from the political side on how to end financial oppression of the people. We can accomplish this by establishing a National Credit Agency modeled in most ways after the economic requirements in the Mosaic Law as well as the words of Jesus in Luke 6:35. This is a vision very few, if any, are looking at. Imagine that, the solution to all our economic woes is found in ancient documents, the books of the Christian Bible.
Setting up a National Credit Agency would require an array of Constitutional Amendments. To end economic oppression of the people, many believe that most of the Amendments from number eleven on should be stricken null and void. To be sure, many of them have increased oppression rather than preserved the individual’s rights to life, liberty and property and are directly in violation of all the abuses and usurpations enumerated in the Unanimous Declaration.
Here is the stary:
28th Amendment
(Proposed)
Section 1.
Article 1 Section 8 Line 2 will be stricken from the Constitution. It reads, “To borrow Money on the credit of the United States”.
Section 2.
Article 1 Section 8 Line 5 will be stricken from the Constitution. In its stead the amendment will employ a National Credit Agency created in Amendment 30 in which it alone shall have the authority to create the nation’s money. Whether lending to the general public, paying directly for government expenditures or paying for national infrastructure, usury shall from henceforth for any of these purposes be prohibited. This National Credit Agency shall be audited annually by a fourth branch of government with supreme authority called a JURY that shall be selected from among the citizenry
every year. Citizens having dual citizenship shall be prohibited from being selected for this JURY.
Okay, forget the amendment writing for now. It behooves us to be very sure of what we are striving for before we waste time writing amendments. A Software Engineer who lives in Knob Lick, Kentucky named Liam Allone has already written thirteen amendments, almost all of which I have a high regard for. Some people like me are ready to deliberate and modify our Constitution in ways to accomplish the objectives written about above and in most of Mr. Allone’s amendments while keeping the Constitution’s and Declaration’s form intact, especially their parts that enumerate abuses and usurpations as well as insuring that life, liberty and property protections are undisturbed.
I am ready. But you all, with your CH Douglas social credit dividend, will fail the task, most of all because you reject the wisdom of the ages and that which came from the mouth of Jesus Christ.
Daniel S. Krynicki
Saint Clair Shores, Michigan
Convention USA Delegate MI019
Here now is the Munson file:
Jim Schroeder
somebody must “work” to create value that is translated into coin or money, so those who do more work than others, are due more in return
Anybody who argues against this has lost his marbles. In real life, it’s the law of something for something. Biblically, this is law of sowing and reaping which debunks CH Douglas’s social credit dividend from the start. "
What Daniel doesn't understand is that those who work will receive more income than those who don't in a Social Credit society, since the dividend is paid to all whether they are working or not in the exact same amount. So if someone works, they receive their salary + dividend. If they do not work, they will only receive the dividend.
If we were at a point in time where machines were capable of doing all the work, and we insisted that people still had to work for income, then everone would starve because there would be no work. While this is an ideal limit, we are continuously moving towards that limit as machines and technology replace labour in production. As a consequence, we either supplement wages with a form of income not costed in industry, or we find more and more nonsense work for people to do in order to distribute incomes. All this nonsense work translates itself into wasted effort, and the ever filling garbage dumps and polluted water supplies are quite a testament to this wasteful activity.
The truth will set you free, and the truth is that capital and technology are replacing labour in production.
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