Anarchopedia - User contributions [en]

Monetary system

2007-12-31T04:18:52Z

Mfm: spreadsheet to explain D / M > 1

[[Image:100 kyrgyzstan notes.jpeg|thumb|right|Banknotes of [[Kyrgyzstan]]]]

The '''monetary system''' is the system of exchange of [[service]]s for some commonly accepted token. Usually, forms of [[property]] for [[currency]] created by a [[bank]].

== Today's reality ==

Most of what ordinary people and activists believe about the monetary system is wrong.

In reality, banks have special powers to [[create money]] by putting funds "on deposit", and to accept currency from others as well, thus having sufficient [[credit]] with the '''central bank''' to satisfy that central bank's demands for [[fractional reserves]] (historically) or [[capital adequacy]] (the system more typically used today).

The way that the central bank and [[accountant]]s assess the value of various kinds of [[capital]] determines how much '''financial capital''' each is determined to be "worth" for purposes of adequacy assessment. Criticisms of various theories of this tend to say that different kinds are undervalued. For instance, [[Paul Hawken]] claims [[natural capital]] is undervalued while [[Amartya Sen]] says [[individual capital]] is. A great many critics of [[debt]] argue that undervaluing actual productive capital is inevitable as long as [[debt interest]] exists, since it is effectively payment for keeping money liquid. However, in reality, it is the underperforming loans being called in that are causing productive capital to change hands. Only if the new people receiving new loans were doing less social good with them than the people whose loans were being called in, would there be much problem. The real issue is that bankers decided who goes bankrupt.

Under [[dollar hegemony]], the [[United States]] [[Federal Reserve]] effectively sets the value of all money in the world relative to oil, since only dollars can buy oil - ''this is changing, see [[Iran Oil Bourse]].'' This situation has persisted since 1970 when the US violated the [[Bretton Woods]] agreement that forced the US to [[redeem currency in gold]]. The institutions set up under that agreement (the [[IMF]], [[BIS]] and [[World Bank]]) all persisted but with new agendas controlled by the US government. Collectively, these institutions decide which countries go bankrupt! A new institution, the [[WTO]], was added to limit the power of rival [[trade bloc]]s and ensure that there was a means to punish countries which wished to limit access to their resources or market.

http://mfm5.250free.com/MFM_TD1.png

[[http://mfm5.250free.com/MFM_TD1.fig | editable xfig format]]

Note that debt is always much greater than circulating money PLUS time deposits combined ! Here is why D/M > 1 : http://mfm5.250free.com/Debt_Money_ratio.xls

* cyan: the economy needs money for the transactions. Banks pay no interest on this. The amount could be lowered by higher velocity of money
* yellow: banks allow savings and time deposits, that is temporarily withdrawing money from circulation. To make up for this amount, others will have to get new loans with a higher accompanying debt behind it. Banks pay interest on these savings
* red: the DEBT is much (depending on the average status of loans and interest, usually appr 2x, in USA 3x times) greater than the circulating money PLUS time deposits combined. Banks take interest on the debt.

As you see, the impression that banks loan out their depositors money is false. Banks take interest on the debt, that is far more than all money in the system, yet the savings+time deposits that banks pay interest for.

'''Green''': most economies have '''a very small amount of debt-free money''' This is usually negligible part of the money supply, eg. in USA, the coins that is a small fraction of paper money that is a small fraction of the total amount of deposits. Banks prefer this stays small, so the debt stays huge. Because green is negligable, it is mathematically impossible to pay off debt: the money supply would drain up !

'''GETTING DEBT-FREE MONEY INTO CIRCULATION''' - the ONLY way to pay off debt

'''It would be reasonable to dwell the debt-free part of the money supply'''. Electronic markets, using auditable, cryptography based systems will allow this. Even very smooth interfacing to our USD (GBP, EUR, ... or your government's currency) system will be possible. Imagine a debit card which can be used to pay anywhere, without a significant cash-deposit behind. The necessary cashflow can be maintained with a very small amount of money in the system, by accumulating many accounts, and non-fraud money based transactions in the background. For example when you pay in Walmart, USD is transferred to Walmart, but what decreases from your account (when there was no USD on it) ? Gold, some share, or whatever sell-strategy you instruct your electronic agent, the same way you do on the stock-market. The stock-market shows how such market can be integrated into the law-systems. Bewarned that stock-market is heavily manipulated, most significantly by tulipomania effect (elevated prices).

People must learn a lot to understand savings. '''In any case, without getting debt-free money into circulation, the debt is growing unbearable, this effects taxes and prices. WE CAN GET DEBT-FREE MONEY INTO CIRCULATION'''. Computing guys, lawyers, join your forces.

The current system where people use money created by private banks (in a way most people do not understand - yet) automatically transfers ALL wealth of the world to those hands. People (falsely) believe they are able to keep their wealth by producing more. In reality they are losing all their wealth (and influence), until they realize this is a monetary problem that cannot be cured by fiscal methods. See [[Monetary Fraud Model]]

==History==
In a [[barter system]] people exchange thing on the basis of the worth of the particular product to each party. However, as the deskilling of the population began to take hold some people began to make only one set of products, this proved to be not very productive, since if you are making [[airplane]]s, you won't be able to exchange them for [[bread]], since nobody would grow enough to pay you. Therefore, some communities began to use some commodity that most everybody used (some used [[gold]], some [[salt]] (hence the word [[salary]]), in [[Hitchhikers Guide to the Gallaxy]] a community used [[leaf|leaves]]).

Then when [[bank]]s began to open up people would receive a note from the bank stating that they could redeem a certain amount of currency from that bank, and some communities began using those notes. Soon bankers have realised that most notes will never be redeemed, and they have began publishing notes without having the currency to back those notes up. Today's monetary system is based on trusting banks to loan only to those who will generate more money, and pulling back other loans from those who fail to do so. If the [[money supply]] is always expanding, then, this will result in roughly as many losers as winners. When the money supply is not expanding, however, it results in what is commonly called a [[depression]] or [[recession]].

==Alternatives==
The list of alternatives to the monetary system:
# [[gift economy]]
# [[barter]] (not a very good alternative)
# wake up and force '''reserve ratio requirements up''', and more debt-free money to be created for public benefit and less (or 0) debt-money for private profit
# '''Monetary reform movement is catching up:''' http://www.moneyreformparty.org.uk/
# New monetary system is born. Technology helps: http://www.p2pfoundation.net/Category:Money

==See also==
* [[gold standard]]
* [[wage labour]]
* [[Money Quiz]] - test your knowledge about money, and teach others

[[Category:Economics]]

Monetary system

2007-12-25T15:03:50Z

Mfm: DEBT money and debt-free money

[[Image:100 kyrgyzstan notes.jpeg|thumb|right|Banknotes of [[Kyrgyzstan]]]]

The '''monetary system''' is the system of exchange of [[service]]s for some commonly accepted token. Usually, forms of [[property]] for [[currency]] created by a [[bank]].

== Today's reality ==

Most of what ordinary people and activists believe about the monetary system is wrong.

In reality, banks have special powers to [[create money]] by putting funds "on deposit", and to accept currency from others as well, thus having sufficient [[credit]] with the '''central bank''' to satisfy that central bank's demands for [[fractional reserves]] (historically) or [[capital adequacy]] (the system more typically used today).

The way that the central bank and [[accountant]]s assess the value of various kinds of [[capital]] determines how much '''financial capital''' each is determined to be "worth" for purposes of adequacy assessment. Criticisms of various theories of this tend to say that different kinds are undervalued. For instance, [[Paul Hawken]] claims [[natural capital]] is undervalued while [[Amartya Sen]] says [[individual capital]] is. A great many critics of [[debt]] argue that undervaluing actual productive capital is inevitable as long as [[debt interest]] exists, since it is effectively payment for keeping money liquid. However, in reality, it is the underperforming loans being called in that are causing productive capital to change hands. Only if the new people receiving new loans were doing less social good with them than the people whose loans were being called in, would there be much problem. The real issue is that bankers decided who goes bankrupt.

Under [[dollar hegemony]], the [[United States]] [[Federal Reserve]] effectively sets the value of all money in the world relative to oil, since only dollars can buy oil - ''this is changing, see [[Iran Oil Bourse]].'' This situation has persisted since 1970 when the US violated the [[Bretton Woods]] agreement that forced the US to [[redeem currency in gold]]. The institutions set up under that agreement (the [[IMF]], [[BIS]] and [[World Bank]]) all persisted but with new agendas controlled by the US government. Collectively, these institutions decide which countries go bankrupt! A new institution, the [[WTO]], was added to limit the power of rival [[trade bloc]]s and ensure that there was a means to punish countries which wished to limit access to their resources or market.

http://mfm5.250free.com/MFM_TD1.png

[[http://mfm5.250free.com/MFM_TD1.fig | editable xfig format]]

Not that debt is much greater than circulating money PLUS time deposits combined !

* cyan: the economy needs money for the transactions. Banks pay no interest on this. The amount could be lowered by higher velocity of money
* yellow: banks allow time deposits, that is temporarily withdrawing money from circulation. To make up for this amount, others will have to get new loans which results in higher Banks pay interest on these deposits
* red: the DEBT is much (depending on the average status of loans and interest, usually appr 2x, in USA 3x times) greater than the circulating money PLUS time deposits combined. Banks take interest on the debt.

As you see, the impression that banks loan out their depositors money is false. Banks take interest on the debt, that is far greater than all money in the system, yet the time deposits that banks pay interest for.

'''Green''': most economies have '''a very small amount of debt-free money''' This is usually negligible part of the money supply, eg. in USA, the coins that is a small fraction of paper money that is a small fraction of the total amount of deposits. Banks prefer this stays small, so the debt stays huge. Because green is negligable, it is mathematically impossible to pay off debt: the money supply would drain up !

'''GETTING DEBT-FREE MONEY INTO CIRCULATION''' - the ONLY way to pay off debt

'''It would be reasonable to dwell the debt-free part of the money supply'''. Electronic markets, using auditable, cryptography based systems will allow this. Even very smooth interfacing to our USD (GBP, EUR, ... or your government's currency) system will be possible. Imagine a debit card which can be used to pay anywhere, without a significant cash-deposit behind. The necessary cashflow can be maintained with a very small amount of money in the system, by accumulating many accounts, and non-fraud money based transactions in the background. For example when you pay in Walmart, USD is transferred to Walmart, but what decreases from your account (when there was no USD on it) ? Gold, some share, or whatever sell-strategy you instruct your electronic agent, the same way you do on the stock-market. The stock-market shows how such market can be integrated into the law-systems. Bewarned that stock-market is heavily manipulated, most significantly by tulipomania effect (elevated prices).

People must learn a lot to understand savings. '''In any case, without getting debt-free money into circulation, the debt is growing unbearable, this effects taxes and prices. WE CAN GET DEBT-FREE MONEY INTO CIRCULATION'''. Computing guys, lawyers, join your forces.

The current system where people use money created by private banks (in a way most people do not understand - yet) automatically transfers ALL wealth of the world to those hands. People (falsely) believe they are able to keep their wealth by producing more. In reality they are losing all their wealth (and influence), until they realize this is a monetary problem that cannot be cured by fiscal methods. See [[Monetary Fraud Model]]

==History==
In a [[barter system]] people exchange thing on the basis of the worth of the particular product to each party. However, as the deskilling of the population began to take hold some people began to make only one set of products, this proved to be not very productive, since if you are making [[airplane]]s, you won't be able to exchange them for [[bread]], since nobody would grow enough to pay you. Therefore, some communities began to use some commodity that most everybody used (some used [[gold]], some [[salt]] (hence the word [[salary]]), in [[Hitchhikers Guide to the Gallaxy]] a community used [[leaf|leaves]]).

Then when [[bank]]s began to open up people would receive a note from the bank stating that they could redeem a certain amount of currency from that bank, and some communities began using those notes. Soon bankers have realised that most notes will never be redeemed, and they have began publishing notes without having the currency to back those notes up. Today's monetary system is based on trusting banks to loan only to those who will generate more money, and pulling back other loans from those who fail to do so. If the [[money supply]] is always expanding, then, this will result in roughly as many losers as winners. When the money supply is not expanding, however, it results in what is commonly called a [[depression]] or [[recession]].

==Alternatives==
The list of alternatives to the monetary system:
# [[gift economy]]
# [[barter]] (not a very good alternative)
# wake up and force '''reserve ratio requirements up''', and more debt-free money to be created for public benefit and less (or 0) debt-money for private profit
# '''Monetary reform movement is catching up:''' http://www.moneyreformparty.org.uk/
# New monetary system is born. Technology helps: http://www.p2pfoundation.net/Category:Money

==See also==
* [[gold standard]]
* [[wage labour]]
* [[Money Quiz]] - test your knowledge about money, and teach others
* We're Not Gonna Take It '''Anymore'''. If you understand the fraud in the debt based loan-created (for private benefit) "fractional reserve" money, time to read some Twisted Sister lyrics before you join coding (the new system): http://www.lyricsondemand.com/onehitwonders/werenotgonnatakeitlyrics.html

[[Category:Economics]]

Monetary system

2007-12-25T15:00:59Z

Mfm: DEBT money and debt-free money

[[Image:100 kyrgyzstan notes.jpeg|thumb|right|Banknotes of [[Kyrgyzstan]]]]

The '''monetary system''' is the system of exchange of [[service]]s for some commonly accepted token. Usually, forms of [[property]] for [[currency]] created by a [[bank]].

== Today's reality ==

Most of what ordinary people and activists believe about the monetary system is wrong.

In reality, banks have special powers to [[create money]] by putting funds "on deposit", and to accept currency from others as well, thus having sufficient [[credit]] with the '''central bank''' to satisfy that central bank's demands for [[fractional reserves]] (historically) or [[capital adequacy]] (the system more typically used today).

The way that the central bank and [[accountant]]s assess the value of various kinds of [[capital]] determines how much '''financial capital''' each is determined to be "worth" for purposes of adequacy assessment. Criticisms of various theories of this tend to say that different kinds are undervalued. For instance, [[Paul Hawken]] claims [[natural capital]] is undervalued while [[Amartya Sen]] says [[individual capital]] is. A great many critics of [[debt]] argue that undervaluing actual productive capital is inevitable as long as [[debt interest]] exists, since it is effectively payment for keeping money liquid. However, in reality, it is the underperforming loans being called in that are causing productive capital to change hands. Only if the new people receiving new loans were doing less social good with them than the people whose loans were being called in, would there be much problem. The real issue is that bankers decided who goes bankrupt.

Under [[dollar hegemony]], the [[United States]] [[Federal Reserve]] effectively sets the value of all money in the world relative to oil, since only dollars can buy oil - ''this is changing, see [[Iran Oil Bourse]].'' This situation has persisted since 1970 when the US violated the [[Bretton Woods]] agreement that forced the US to [[redeem currency in gold]]. The institutions set up under that agreement (the [[IMF]], [[BIS]] and [[World Bank]]) all persisted but with new agendas controlled by the US government. Collectively, these institutions decide which countries go bankrupt! A new institution, the [[WTO]], was added to limit the power of rival [[trade bloc]]s and ensure that there was a means to punish countries which wished to limit access to their resources or market.

[[Image:http://mfm5.250free.com/MFM_TD1.png|Debt is much greater than circulating money PLUS time deposits combined]]

* cyan: the economy needs money for the transactions. Banks pay no interest on this. The amount could be lowered by higher velocity of money
* yellow: banks allow time deposits, that is temporarily withdrawing money from circulation. To make up for this amount, others will have to get new loans which results in higher Banks pay interest on these deposits
* red: the DEBT is much (depending on the average status of loans and interest, usually appr 2x, in USA 3x times) greater than the circulating money PLUS time deposits combined. Banks take interest on the debt.

As you see, the impression that banks loan out their depositors money is false. Banks take interest on the debt, that is far greater than all money in the system, yet the time deposits that banks pay interest for.

'''Green''': most economies have '''a very small amount of debt-free money''' This is usually negligible part of the money supply, eg. in USA, the coins that is a small fraction of paper money that is a small fraction of the total amount of deposits. Banks prefer this stays small, so the debt stays huge. Because green is negligable, it is mathematically impossible to pay off debt: the money supply would drain up !

'''GETTING DEBT-FREE MONEY INTO CIRCULATION''' - the ONLY way to pay off debt

'''It would be reasonable to dwell the debt-free part of the money supply'''. Electronic markets, using auditable, cryptography based systems will allow this. Even very smooth interfacing to our USD (GBP, EUR, ... or your government's currency) system will be possible. Imagine a debit card which can be used to pay anywhere, without a significant cash-deposit behind. The necessary cashflow can be maintained with a very small amount of money in the system, by accumulating many accounts, and non-fraud money based transactions in the background. For example when you pay in Walmart, USD is transferred to Walmart, but what decreases from your account (when there was no USD on it) ? Gold, some share, or whatever sell-strategy you instruct your electronic agent, the same way you do on the stock-market. The stock-market shows how such market can be integrated into the law-systems. Bewarned that stock-market is heavily manipulated, most significantly by tulipomania effect (elevated prices).

People must learn a lot to understand savings. '''In any case, without getting debt-free money into circulation, the debt is growing unbearable, this effects taxes and prices. WE CAN GET DEBT-FREE MONEY INTO CIRCULATION'''. Computing guys, lawyers, join your forces.

The current system where people use money created by private banks (in a way most people do not understand - yet) automatically transfers ALL wealth of the world to those hands. People (falsely) believe they are able to keep their wealth by producing more. In reality they are losing all their wealth (and influence), until they realize this is a monetary problem that cannot be cured by fiscal methods. See [[Monetary Fraud Model]]

==History==
In a [[barter system]] people exchange thing on the basis of the worth of the particular product to each party. However, as the deskilling of the population began to take hold some people began to make only one set of products, this proved to be not very productive, since if you are making [[airplane]]s, you won't be able to exchange them for [[bread]], since nobody would grow enough to pay you. Therefore, some communities began to use some commodity that most everybody used (some used [[gold]], some [[salt]] (hence the word [[salary]]), in [[Hitchhikers Guide to the Gallaxy]] a community used [[leaf|leaves]]).

Then when [[bank]]s began to open up people would receive a note from the bank stating that they could redeem a certain amount of currency from that bank, and some communities began using those notes. Soon bankers have realised that most notes will never be redeemed, and they have began publishing notes without having the currency to back those notes up. Today's monetary system is based on trusting banks to loan only to those who will generate more money, and pulling back other loans from those who fail to do so. If the [[money supply]] is always expanding, then, this will result in roughly as many losers as winners. When the money supply is not expanding, however, it results in what is commonly called a [[depression]] or [[recession]].

==Alternatives==
The list of alternatives to the monetary system:
# [[gift economy]]
# [[barter]] (not a very good alternative)
# wake up and force '''reserve ratio requirements up''', and more debt-free money to be created for public benefit and less (or 0) debt-money for private profit
# '''Monetary reform movement is catching up:''' http://www.moneyreformparty.org.uk/
# New monetary system is born. Technology helps: http://www.p2pfoundation.net/Category:Money

==See also==
* [[gold standard]]
* [[wage labour]]
* [[Money Quiz]] - test your knowledge about money, and teach others
* We're Not Gonna Take It '''Anymore'''. If you understand the fraud in the debt based loan-created (for private benefit) "fractional reserve" money, time to read some Twisted Sister lyrics before you join coding (the new system): http://www.lyricsondemand.com/onehitwonders/werenotgonnatakeitlyrics.html

[[Category:Economics]]

monetary fraud

2007-12-10T00:31:18Z

Mfm: spreadsheet example

== MFM: Monetary Fraud Model ==

Currently, almost all money is created by private banks, worldwide.
Only a small fraction (because of the low Reserve Ratio Requirements) of money is created by central banks (private in the USA [[Federal Reserve]], state-owned in UK and most other countries ).
Money is created as debt in a way that cannot be paid off. Without debt toward private banks (that create most of the money in circulation), the money supply would drain up. All money would disappear from the system. This forces people to get new loans, escalating the unescapable debt-spiral.

The method for money creation is the money multiplication process that you can read about in wikipedia or other sources. It is just the case that '''most sources do NOT explain how this system transfers ALL WEALTH OF THE WORLD to the private beneficiaries of money creation'''.

If this sounds too farfetched (as it likely does, to most people), try to show how this can be prevented without important changes (that are certainly not impossible, but not going to happen without our intervention): see [[Monetary Fraud Model Award]]. That way you can either reject the MFM model (substitute with a better model) or you can understand the problem and get a better picture of the direction society should progress into.

'''People (falsely) believe they are able to keep their wealth by producing more. In reality they are losing all their wealth (and influence), until they realise this monetary problem cannot be cured by fiscal methods.'''

To '''understand, how wealth is transferred''', we need to consider that
* a part of world wealth is already owned by the beneficiaries of private money creation ("banks"): '''Bwealth'''
* the remaining wealth is owned by the rest: '''NonBwealth'''

http://img2.freeimagehosting.net/uploads/11e64c534b.png

There is no distinguished line around wealth: for example a shareholding company can be partially Bwealth and partially NonBwealth. This is no problem.
So ... what happens ?

* wealth suffers some amortization
* wealth is used to produce new wealth

Nothing special so far: the ratio of Bwealth and NonBwealth is unchanged.
However, the money all over the world, that is used in transactions are created by B group. Companies and individuals pay interest (a kind of a tax for loaning the money into existance).

* While '''interest payment related to production involving Bwealth is just from one pocket to the other''' of the same owner)
* '''interest payment (to B !) related to production involving NonBwealth reduces NonBwealth and contributes to Bwealth'''

This inevitably transfers all wealth to Bwealth. Try to make a model that prevents this !

A spreadsheet that shows the effect of nonBwealth being transferred to Bwealth as years pass by:
http://mfm5.250free.com/MFM_trap.xls (click download)

* how much money should be in the system ?
* interest rates ?
* how much to produce ? GDP, NDP ?
* what percentage of GDP should be spent on debt pay-off ?

You can start from it (and tweak values) or make your own model, you can '''use ANY numbers you think appropriate'''.

You can tune this or create your own model, more complex if you like (eg. add multiple currencies and import-export).
Just a guess, Bwealth was probably around 20% of world wealth on 1913 December 23d (when most congressmen left for xmas and the corrupt minority voted yes on the Federal Reserve Act crime). Bwealth is probably 80% now, although the example assumes it is 60% at this time. You can change it to start from 0%, it does not matter: the final result is the same !

You can make the model more complex if you like.
* The laws, most notably related to taxes and government spendings are biased to aid this wealth transfer (Bwealth actually benefits more from government spendings, and taxes less, eg. using offshore).
* The efforts (biasing laws) behind NonBwealth are not near as efficient as those behind Bwealth: the proof is the existance of this fraudulent monetary (and tax) system

The interest is payed:
* in taxes (essentially growing, due to national debt)
* and market-prices (corporations build their costs into prices: this includes interests)
* so even if someone is not willing to loan money, he is unable to protect his wealth: it will become Bwealth

At a '''macro level, producing more does not help pushing down the debt AT ALL'''. As an example, let's say more chairs are produced.
* if the extra quantity of chairs cannot be sold, it's just a waste of resources
* if the excess chairs can be sold, those who buy it will have somewhat less money, those who sold the chair have somewhat more money.

The total amount of money to pay off debt is unchanged: the debt continuously grows, people losing all their wealth and control, as long as people insist on this fraud money (USD, GBP, EUR, ...).

Wealth is actually distributed unevenly. By producing more we might be able to keep our wealth a bit further (by helping others get ripped of their wealth earlier): we are likely to find ourselves in a very nasty situation:
* most people, desperate, working hard, have lost all their wealth and also in huge debt they finally realize can never be paid off
* we - being smarter - still have some wealth

All the desperate people will not be able to find the high-criminals behind Bwealth (enough wealth to efficiently protect, access to personal identities, etc..). They will be able to find us though, and they will be very angry. They will not think straight, because we haven't taught them how to think straight. Don't wait until it is too late.

NonBwealth is actually transferred faster than the MFM model predicts:
* the interest paid related to NonBwealth is relatively higher than for Bwealth
** because NonBwealth is more fragmented, including small-medium enterprises and household wealth. Essentially much higher liquidity ratio than the more concentrated Bwealth (large monopolies and high cash-flow => low relative liquidity).

Unfortunately you cannot join the B group by purchasing banking shares. Banks route their profit through (often international) investments that small shareholders don't benefit much from. This is quite obvious, natural behaviour, to reduce taxes.

----
'''What is the solution ?'''

* if people start to use their brain and wake up: private creation of money must cease! Reserve Ratio Requirements must be fixed
** "starting thinking" is by no means easy. It has technological side, like censorship resistant sharing like [[http://www.gnunet.org]] and reputation systems. It has its mental side: be very critical about information that penetrates our brain: judge according to its relation with reality (natural and legal system laws, observations), not according to how widespread it is
* tax laws must change:
** instead of taxing the poor (with income tax and stupid corporate taxes) transferring wealth from poor to the wealthy,
** company shares must be debased by the goverment, distributing a small part of the wealth every year among the people. This is necessary, because even without private money creation, there is a (much slower) concentration of wealth that must be balanced
* crypto-anarchy will be a huge help to those who understand the problem first: even if most of the population stays brainwashed. This unavoidably happens during the evolution towards the next system
* btw, complete lack of hierarchy (==anarchy) also benefits the extremely rich and powerful. Collectivism also. There is a window in the middle for a reasonable government with lightweight budget, but important tasks. It is law that got perverse by today (while we were not watching carefully). Not the idea of a government that enforces the law.

----
See
* [[Money Quiz]] for how money is created
* '''Monetary reform movement is catching up:''' http://www.moneyreformparty.org.uk/
* New monetary system is born. Technology helps: http://www.p2pfoundation.net/Category:Money
* [monetary system]

[[Category:Economics]]

monetary fraud

2007-12-09T10:24:56Z

Mfm: embedded image for visualization

== MFM: Monetary Fraud Model ==

Currently, almost all money is created by private banks, worldwide.
Only a small fraction (because of the low Reserve Ratio Requirements) of money is created by central banks (private in the USA [[Federal Reserve]], state-owned in UK and most other countries ).
Money is created as debt in a way that cannot be paid off. Without debt toward private banks (that created most of the money in circulation), the money supply would drain up. All money would disappear from the system. This forces people to get new loans, escalating the unescapable debt-spiral.

The method for money creation is the money multiplication process that you can read about in wikipedia or other sources. It is just the case that '''most sources do NOT explain how this system transfers ALL WEALTH OF THE WORLD to the private beneficiaries of money creation'''.

If this sounds too farfetched (as it likely does, to most people), try to show how this can be prevented without important changes (that are certainly not impossible, but not going to happen either, without our intervention): see [[Monetary Fraud Model Award]]. That way you can either reject the MFM model (substitute with a better model) or you can understand the problem and get a better picture of the direction society should progress into.

'''People (falsely) believe they are able to keep their wealth by producing more. In reality they are losing all their wealth (and influence), until they realise this monetary problem cannot be cured by fiscal methods.'''

To '''understand, how wealth is transferred''', we need to consider that
* a part of world wealth is already owned by the beneficiaries of private money creation ("banks"): '''Bwealth'''
* the remaining wealth is owned by the rest: '''NonBwealth'''

http://img2.freeimagehosting.net/uploads/11e64c534b.png

There is no distinguished line around wealth: for example a shareholding company can be partially Bwealth and partially NonBwealth. This is no problem.
So ... what happens ?

* wealth suffers some amortization
* wealth is used to produce new wealth

Nothing special so far: the ratio of Bwealth and NonBwealth is unchanged.
However, the money all over the world, that is used in transactions are created by B group. Companies and individuals pay interest (a kind of a tax for loaning the money into existance).

* While '''interest payment related to production involving Bwealth is just from one pocket to the other''' of the same owner)
* '''interest payment (to B !) related to production involving NonBwealth reduces NonBwealth and contributes to Bwealth'''

This inevitably transfers all wealth to Bwealth. Try to make a model that prevents this ! You can '''use ANY numbers you think appropriate'''.
* how much money should be in the system ?
* how much to produce ? GDP, NDP ?
* how much percentage of GDP should we spend on interest on money created as loans by B ?

TODO: example spreadsheet to see how wealth is transferred.
You can tune this or create your own model. Bwealth was probably around 20% of world wealth on 1913 December 23d (when most congressmen left for xmas and the corrupt minority voted yes on the Federal Reserve Act crime). Bwealth is probably 80% now, although the example starts a bit more optimistic. It does not matter: the final result is the same !

You can make the model more complex if you like.
* The laws, most notably related to taxes and government spendings are biased to aid this wealth transfer (Bwealth actually benefits more from government spendings, and taxes less, eg. using offshore).
* The efforts (biasing laws) behind NonBwealth are not near as efficient as those behind Bwealth: the proof is the existance of this fraudulent money (and tax) system

The interest is payed:
* in taxes (essentially growing, due to national debt)
* and market-prices (corporations build their costs into prices: this includes interests)
* so even if someone is not willing to loan money, he is unable to protect his wealth: it will become Bwealth

At a '''macro level, producing more does not help pushing down the debt AT ALL'''. As an example, let's say more chairs are produced.
* if the extra quantity of chairs cannot be sold, it's just a waste of resources
* if the excess chairs can be sold, those who buy it will have somewhat less money, those who sold the chair have somewhat more money.

The total amount of money to pay off debt is unchanged: the debt continuously grows, people losing all their wealth and control, as long as people insist on this fraud money (USD, GBP, EUR, ...).

Wealth is actually distributed unevenly. By producing more we might be able to keep our wealth a bit further (by helping others get ripped of their wealth earlier): we are likely to find ourselves in a very nasty situation:
* most people, desperate, working hard, have lost all their wealth and also in huge debt they finally realize can never be paid off
* we - being smarter - still have some wealth

All the desperate people will not be able to find the high-criminals behind Bwealth (enough wealth to efficiently protect, access to personal identities, etc..). They will be able to find us though, and they will be very angry. They will not think straight, because we haven't taught them how to think straight. Don't wait until it is too late.

NonBwealth is actually transferred faster than the MFM model predicts:
* the interest paid related to NonBwealth is relatively higher than for Bwealth
** because NonBwealth is more fragmented, including small-medium enterprises and household wealth. Essentially much higher liquidity ratio than the more concentrated Bwealth (large monopolies and high cash-flow => low relative liquidity).

Unfortunately you cannot join the B group by purchasing banking shares. Banks route their profit through (often international) investments that small shareholders don't benefit much from. This is quite obvious, natural behaviour, to reduce taxes.

----
'''What is the solution ?'''

* if people start to use their brain and wake up: private creation of money must cease! Reserve Ratio Requirements must be fixed
** "starting thinking" is by no means easy. It has technological side, like censorship resistant sharing like [[http://www.gnunet.org]] and reputation systems. It has its mental side: be very critical about information that penetrates our brain: judge according to its relation with reality (natural and legal system laws, observations), not according to how widespread it is
* tax laws must change:
** instead of taxing the poor (with income tax and stupid corporate taxes) transferring wealth from poor to the wealthy,
** company shares must be debased by the goverment, distributing a small part of the wealth every year among the people. This is necessary, because even without private money creation, there is a (much slower) concentration of wealth that must be balanced
* crypto-anarchy will be a huge help to those who understand the problem first: even if most of the population stays brainwashed. This unavoidably happens during the evolution towards the next system
* btw, complete lack of hierarchy (==anarchy) also benefits the extremely rich and powerful. Collectivism also. There is a window in the middle for a reasonable government with lightweight budget, but important tasks. It is law that got perverse by today (while we were not watching carefully). Not the idea of a government that enforces the law.

----
See
* [[Money Quiz]] for how money is created
* '''Monetary reform movement is catching up:''' http://www.moneyreformparty.org.uk/
* New monetary system is born. Technology helps: http://www.p2pfoundation.net/Category:Money
* [monetary system]

[[Category:Economics]]

monetary fraud

2007-12-09T10:24:47Z

Mfm: embedded image for visualization

== MFM: Monetary Fraud Model ==

Currently, almost all money is created by private banks, worldwide.
Only a small fraction (because of the low Reserve Ratio Requirements) of money is created by central banks (private in the USA [[Federal Reserve]], state-owned in UK and most other countries ).
Money is created as debt in a way that cannot be paid off. Without debt toward private banks (that created most of the money in circulation), the money supply would drain up. All money would disappear from the system. This forces people to get new loans, escalating the unescapable debt-spiral.

The method for money creation is the money multiplication process that you can read about in wikipedia or other sources. It is just the case that '''most sources do NOT explain how this system transfers ALL WEALTH OF THE WORLD to the private beneficiaries of money creation'''.

If this sounds too farfetched (as it likely does, to most people), try to show how this can be prevented without important changes (that are certainly not impossible, but not going to happen either, without our intervention): see [[Monetary Fraud Model Award]]. That way you can either reject the MFM model (substitute with a better model) or you can understand the problem and get a better picture of the direction society should progress into.

'''People (falsely) believe they are able to keep their wealth by producing more. In reality they are losing all their wealth (and influence), until they realise this monetary problem cannot be cured by fiscal methods.'''

To '''understand, how wealth is transferred''', we need to consider that
* a part of world wealth is already owned by the beneficiaries of private money creation ("banks"): '''Bwealth'''
* the remaining wealth is owned by the rest: '''NonBwealth'''

img:http://img2.freeimagehosting.net/uploads/11e64c534b.png

There is no distinguished line around wealth: for example a shareholding company can be partially Bwealth and partially NonBwealth. This is no problem.
So ... what happens ?

* wealth suffers some amortization
* wealth is used to produce new wealth

Nothing special so far: the ratio of Bwealth and NonBwealth is unchanged.
However, the money all over the world, that is used in transactions are created by B group. Companies and individuals pay interest (a kind of a tax for loaning the money into existance).

* While '''interest payment related to production involving Bwealth is just from one pocket to the other''' of the same owner)
* '''interest payment (to B !) related to production involving NonBwealth reduces NonBwealth and contributes to Bwealth'''

This inevitably transfers all wealth to Bwealth. Try to make a model that prevents this ! You can '''use ANY numbers you think appropriate'''.
* how much money should be in the system ?
* how much to produce ? GDP, NDP ?
* how much percentage of GDP should we spend on interest on money created as loans by B ?

TODO: example spreadsheet to see how wealth is transferred.
You can tune this or create your own model. Bwealth was probably around 20% of world wealth on 1913 December 23d (when most congressmen left for xmas and the corrupt minority voted yes on the Federal Reserve Act crime). Bwealth is probably 80% now, although the example starts a bit more optimistic. It does not matter: the final result is the same !

You can make the model more complex if you like.
* The laws, most notably related to taxes and government spendings are biased to aid this wealth transfer (Bwealth actually benefits more from government spendings, and taxes less, eg. using offshore).
* The efforts (biasing laws) behind NonBwealth are not near as efficient as those behind Bwealth: the proof is the existance of this fraudulent money (and tax) system

The interest is payed:
* in taxes (essentially growing, due to national debt)
* and market-prices (corporations build their costs into prices: this includes interests)
* so even if someone is not willing to loan money, he is unable to protect his wealth: it will become Bwealth

At a '''macro level, producing more does not help pushing down the debt AT ALL'''. As an example, let's say more chairs are produced.
* if the extra quantity of chairs cannot be sold, it's just a waste of resources
* if the excess chairs can be sold, those who buy it will have somewhat less money, those who sold the chair have somewhat more money.

The total amount of money to pay off debt is unchanged: the debt continuously grows, people losing all their wealth and control, as long as people insist on this fraud money (USD, GBP, EUR, ...).

Wealth is actually distributed unevenly. By producing more we might be able to keep our wealth a bit further (by helping others get ripped of their wealth earlier): we are likely to find ourselves in a very nasty situation:
* most people, desperate, working hard, have lost all their wealth and also in huge debt they finally realize can never be paid off
* we - being smarter - still have some wealth

All the desperate people will not be able to find the high-criminals behind Bwealth (enough wealth to efficiently protect, access to personal identities, etc..). They will be able to find us though, and they will be very angry. They will not think straight, because we haven't taught them how to think straight. Don't wait until it is too late.

NonBwealth is actually transferred faster than the MFM model predicts:
* the interest paid related to NonBwealth is relatively higher than for Bwealth
** because NonBwealth is more fragmented, including small-medium enterprises and household wealth. Essentially much higher liquidity ratio than the more concentrated Bwealth (large monopolies and high cash-flow => low relative liquidity).

Unfortunately you cannot join the B group by purchasing banking shares. Banks route their profit through (often international) investments that small shareholders don't benefit much from. This is quite obvious, natural behaviour, to reduce taxes.

----
'''What is the solution ?'''

* if people start to use their brain and wake up: private creation of money must cease! Reserve Ratio Requirements must be fixed
** "starting thinking" is by no means easy. It has technological side, like censorship resistant sharing like [[http://www.gnunet.org]] and reputation systems. It has its mental side: be very critical about information that penetrates our brain: judge according to its relation with reality (natural and legal system laws, observations), not according to how widespread it is
* tax laws must change:
** instead of taxing the poor (with income tax and stupid corporate taxes) transferring wealth from poor to the wealthy,
** company shares must be debased by the goverment, distributing a small part of the wealth every year among the people. This is necessary, because even without private money creation, there is a (much slower) concentration of wealth that must be balanced
* crypto-anarchy will be a huge help to those who understand the problem first: even if most of the population stays brainwashed. This unavoidably happens during the evolution towards the next system
* btw, complete lack of hierarchy (==anarchy) also benefits the extremely rich and powerful. Collectivism also. There is a window in the middle for a reasonable government with lightweight budget, but important tasks. It is law that got perverse by today (while we were not watching carefully). Not the idea of a government that enforces the law.

----
See
* [[Money Quiz]] for how money is created
* '''Monetary reform movement is catching up:''' http://www.moneyreformparty.org.uk/
* New monetary system is born. Technology helps: http://www.p2pfoundation.net/Category:Money
* [monetary system]

[[Category:Economics]]

monetary fraud

2007-12-09T10:15:59Z

Mfm: visualization

== MFM: Monetary Fraud Model ==

Currently, almost all money is created by private banks, worldwide.
Only a small fraction (because of the low Reserve Ratio Requirements) of money is created by central banks (private in the USA [[Federal Reserve]], state-owned in UK and most other countries ).
Money is created as debt in a way that cannot be paid off. Without debt toward private banks (that created most of the money in circulation), the money supply would drain up. All money would disappear from the system. This forces people to get new loans, escalating the unescapable debt-spiral.

The method for money creation is the money multiplication process that you can read about in wikipedia or other sources. It is just the case that '''most sources do NOT explain how this system transfers ALL WEALTH OF THE WORLD to the private beneficiaries of money creation'''.

If this sounds too farfetched (as it likely does, to most people), try to show how this can be prevented without important changes (that are certainly not impossible, but not going to happen either, without our intervention): see [[Monetary Fraud Model Award]]. That way you can either reject the MFM model (substitute with a better model) or you can understand the problem and get a better picture of the direction society should progress into.

'''People (falsely) believe they are able to keep their wealth by producing more. In reality they are losing all their wealth (and influence), until they realise this monetary problem cannot be cured by fiscal methods.'''

To '''understand, how wealth is transferred''', we need to consider that
* a part of world wealth is already owned by the beneficiaries of private money creation ("banks"): '''Bwealth'''
* the remaining wealth is owned by the rest: '''NonBwealth'''

[[img:http://img2.freeimagehosting.net/uploads/11e64c534b.png]]

There is no distinguished line around wealth: for example a shareholding company can be partially Bwealth and partially NonBwealth. This is no problem.
So ... what happens ?

* wealth suffers some amortization
* wealth is used to produce new wealth

Nothing special so far: the ratio of Bwealth and NonBwealth is unchanged.
However, the money all over the world, that is used in transactions are created by B group. Companies and individuals pay interest (a kind of a tax for loaning the money into existance).

* While '''interest payment related to production involving Bwealth is just from one pocket to the other''' of the same owner)
* '''interest payment (to B !) related to production involving NonBwealth reduces NonBwealth and contributes to Bwealth'''

This inevitably transfers all wealth to Bwealth. Try to make a model that prevents this ! You can '''use ANY numbers you think appropriate'''.
* how much money should be in the system ?
* how much to produce ? GDP, NDP ?
* how much percentage of GDP should we spend on interest on money created as loans by B ?

TODO: example spreadsheet to see how wealth is transferred.
You can tune this or create your own model. Bwealth was probably around 20% of world wealth on 1913 December 23d (when most congressmen left for xmas and the corrupt minority voted yes on the Federal Reserve Act crime). Bwealth is probably 80% now, although the example starts a bit more optimistic. It does not matter: the final result is the same !

You can make the model more complex if you like.
* The laws, most notably related to taxes and government spendings are biased to aid this wealth transfer (Bwealth actually benefits more from government spendings, and taxes less, eg. using offshore).
* The efforts (biasing laws) behind NonBwealth are not near as efficient as those behind Bwealth: the proof is the existance of this fraudulent money (and tax) system

The interest is payed:
* in taxes (essentially growing, due to national debt)
* and market-prices (corporations build their costs into prices: this includes interests)
* so even if someone is not willing to loan money, he is unable to protect his wealth: it will become Bwealth

At a '''macro level, producing more does not help pushing down the debt AT ALL'''. As an example, let's say more chairs are produced.
* if the extra quantity of chairs cannot be sold, it's just a waste of resources
* if the excess chairs can be sold, those who buy it will have somewhat less money, those who sold the chair have somewhat more money.

The total amount of money to pay off debt is unchanged: the debt continuously grows, people losing all their wealth and control, as long as people insist on this fraud money (USD, GBP, EUR, ...).

Wealth is actually distributed unevenly. By producing more we might be able to keep our wealth a bit further (by helping others get ripped of their wealth earlier): we are likely to find ourselves in a very nasty situation:
* most people, desperate, working hard, have lost all their wealth and also in huge debt they finally realize can never be paid off
* we - being smarter - still have some wealth

All the desperate people will not be able to find the high-criminals behind Bwealth (enough wealth to efficiently protect, access to personal identities, etc..). They will be able to find us though, and they will be very angry. They will not think straight, because we haven't taught them how to think straight. Don't wait until it is too late.

NonBwealth is actually transferred faster than the MFM model predicts:
* the interest paid related to NonBwealth is relatively higher than for Bwealth
** because NonBwealth is more fragmented, including small-medium enterprises and household wealth. Essentially much higher liquidity ratio than the more concentrated Bwealth (large monopolies and high cash-flow => low relative liquidity).

Unfortunately you cannot join the B group by purchasing banking shares. Banks route their profit through (often international) investments that small shareholders don't benefit much from. This is quite obvious, natural behaviour, to reduce taxes.

----
'''What is the solution ?'''

* if people start to use their brain and wake up: private creation of money must cease! Reserve Ratio Requirements must be fixed
** "starting thinking" is by no means easy. It has technological side, like censorship resistant sharing like [[http://www.gnunet.org]] and reputation systems. It has its mental side: be very critical about information that penetrates our brain: judge according to its relation with reality (natural and legal system laws, observations), not according to how widespread it is
* tax laws must change:
** instead of taxing the poor (with income tax and stupid corporate taxes) transferring wealth from poor to the wealthy,
** company shares must be debased by the goverment, distributing a small part of the wealth every year among the people. This is necessary, because even without private money creation, there is a (much slower) concentration of wealth that must be balanced
* crypto-anarchy will be a huge help to those who understand the problem first: even if most of the population stays brainwashed. This unavoidably happens during the evolution towards the next system
* btw, complete lack of hierarchy (==anarchy) also benefits the extremely rich and powerful. Collectivism also. There is a window in the middle for a reasonable government with lightweight budget, but important tasks. It is law that got perverse by today (while we were not watching carefully). Not the idea of a government that enforces the law.

----
See
* [[Money Quiz]] for how money is created
* '''Monetary reform movement is catching up:''' http://www.moneyreformparty.org.uk/
* New monetary system is born. Technology helps: http://www.p2pfoundation.net/Category:Money
* [monetary system]

[[Category:Economics]]

monetary fraud

2007-12-06T21:45:50Z

Mfm: MFM Award link and minor changes

== MFM: Monetary Fraud Model ==

Currently, almost all money is created by private banks, worldwide.
Only a small fraction (because of the low Reserve Ratio Requirements) of money is created by central banks (private in the USA [[Federal Reserve]], state-owned in UK and most other countries ).
Money is created as debt in a way that cannot be paid off. Without debt toward private banks (that created most of the money in circulation), the money supply would drain up. All money would disappear from the system. This forces people to get new loans, escalating the unescapable debt-spiral.

The method for money creation is the money multiplication process that you can read about in wikipedia or other sources. It is just the case that '''most sources do NOT explain how this system transfers ALL WEALTH OF THE WORLD to the private beneficiaries of money creation'''.

If this sounds too farfetched (as it likely does, to most people), try to show how this can be prevented without important changes (that are certainly not impossible, but not going to happen either, without our intervention): see [[Monetary Fraud Model Award]]. That way you can either reject the MFM model (substitute with a better model) or you can understand the problem and get a better picture of the direction society should progress into.

'''People (falsely) believe they are able to keep their wealth by producing more. In reality they are losing all their wealth (and influence), until they realise this monetary problem cannot be cured by fiscal methods.'''

To '''understand, how wealth is transferred''', we need to consider that
* a part of world wealth is already owned by the beneficiaries of private money creation ("banks"): '''Bwealth'''
* the remaining wealth is owned by the rest: '''NonBwealth'''

There is no distinguished line around wealth: for example a shareholding company can be partially Bwealth and partially NonBwealth. This is no problem.
So ... what happens ?

* wealth suffers some amortization
* wealth is used to produce new wealth

Nothing special so far: the ratio of Bwealth and NonBwealth is unchanged.
However, the money all over the world, that is used in transactions are created by B group. Companies and individuals pay interest (a kind of a tax for loaning the money into existance).

* While '''interest payment related to production involving Bwealth is just from one pocket to the other''' of the same owner)
* '''interest payment (to B !) related to production involving NonBwealth reduces NonBwealth and contributes to Bwealth'''

This inevitably transfers all wealth to Bwealth. Try to make a model that prevents this ! You can '''use ANY numbers you think appropriate'''.
* how much money should be in the system ?
* how much to produce ? GDP, NDP ?
* how much percentage of GDP should we spend on interest on money created as loans by B ?

TODO: example spreadsheet to see how wealth is transferred.
You can tune this or create your own model. Bwealth was probably around 20% of world wealth on 1913 December 23d (when most congressmen left for xmas and the corrupt minority voted yes on the Federal Reserve Act crime). Bwealth is probably 80% now, although the example starts a bit more optimistic. It does not matter: the final result is the same !

You can make the model more complex if you like.
* The laws, most notably related to taxes and government spendings are biased to aid this wealth transfer (Bwealth actually benefits more from government spendings, and taxes less, eg. using offshore).
* The efforts (biasing laws) behind NonBwealth are not near as efficient as those behind Bwealth: the proof is the existance of this fraudulent money (and tax) system

The interest is payed:
* in taxes (essentially growing, due to national debt)
* and market-prices (corporations build their costs into prices: this includes interests)
* so even if someone is not willing to loan money, he is unable to protect his wealth: it will become Bwealth

At a '''macro level, producing more does not help pushing down the debt AT ALL'''. As an example, let's say more chairs are produced.
* if the extra quantity of chairs cannot be sold, it's just a waste of resources
* if the excess chairs can be sold, those who buy it will have somewhat less money, those who sold the chair have somewhat more money.

The total amount of money to pay off debt is unchanged: the debt continuously grows, people losing all their wealth and control, as long as people insist on this fraud money (USD, GBP, EUR, ...).

Wealth is actually distributed unevenly. By producing more we might be able to keep our wealth a bit further (by helping others get ripped of their wealth earlier): we are likely to find ourselves in a very nasty situation:
* most people, desperate, working hard, have lost all their wealth and also in huge debt they finally realize can never be paid off
* we - being smarter - still have some wealth

All the desperate people will not be able to find the high-criminals behind Bwealth (enough wealth to efficiently protect, access to personal identities, etc..). They will be able to find us though, and they will be very angry. They will not think straight, because we haven't taught them how to think straight. Don't wait until it is too late.

NonBwealth is actually transferred faster than the MFM model predicts:
* the interest paid related to NonBwealth is relatively higher than for Bwealth
** because NonBwealth is more fragmented, including small-medium enterprises and household wealth. Essentially much higher liquidity ratio than the more concentrated Bwealth (large monopolies and high cash-flow => low relative liquidity).

Unfortunately you cannot join the B group by purchasing banking shares. Banks route their profit through (often international) investments that small shareholders don't benefit much from. This is quite obvious, natural behaviour, to reduce taxes.

----
'''What is the solution ?'''

* if people start to use their brain and wake up: private creation of money must cease! Reserve Ratio Requirements must be fixed
** "starting thinking" is by no means easy. It has technological side, like censorship resistant sharing like [[http://www.gnunet.org]] and reputation systems. It has its mental side: be very critical about information that penetrates our brain: judge according to its relation with reality (natural and legal system laws, observations), not according to how widespread it is
* tax laws must change:
** instead of taxing the poor (with income tax and stupid corporate taxes) transferring wealth from poor to the wealthy,
** company shares must be debased by the goverment, distributing a small part of the wealth every year among the people. This is necessary, because even without private money creation, there is a (much slower) concentration of wealth that must be balanced
* crypto-anarchy will be a huge help to those who understand the problem first: even if most of the population stays brainwashed. This unavoidably happens during the evolution towards the next system
* btw, complete lack of hierarchy (==anarchy) also benefits the extremely rich and powerful. Collectivism also. There is a window in the middle for a reasonable government with lightweight budget, but important tasks. It is law that got perverse by today (while we were not watching carefully). Not the idea of a government that enforces the law.

----
See
* [[Money Quiz]] for how money is created
* '''Monetary reform movement is catching up:''' http://www.moneyreformparty.org.uk/
* New monetary system is born. Technology helps: http://www.p2pfoundation.net/Category:Money
* [monetary system]

[[Category:Economics]]

monetary fraud

2007-11-25T16:37:05Z

Mfm: Monetary Fraud Model : wealth transfer

== MFM: Monetary Fraud Model ==

Currently, almost all money is created by private banks, worldwide.
Only a small fraction (because of the low Reserve Ratio Requirements) of money is created by central banks (private in the USA [[Federal Reserve]], state-owned in UK and most other countries ).
Money is created as debt in a way that cannot be paid off. Without debt toward private banks (that created most of the money in circulation), the money supply would drain up. All money would disappear from the system. This forces people to get new loans, escalating the unescapable debt-spiral.

The method for money creation is the money multiplication process that you can read about in wikipedia or other sources. It is just the case that '''most sources do NOT explain how this system transfers ALL WEALTH OF THE WORLD to the private beneficiaries of money creation'''.

'''People (falsely) think they are able to keep their wealth by producing more. In reality they are losing all their wealth (and influence), until they realise this monetary problem cannot be cured by fiscal methods.'''

To '''understand, how wealth is transferred''', we need to consider that
* a part of world wealth is already owned by the beneficiaries of private money creation ("banks"): '''Bwealth'''
* the remaining wealth is owned by the rest: '''NonBwealth'''

There is no distinguished line around wealth: for example a shareholding company can be partially Bwealth and partially NonBwealth. This is no problem.
So ... what happens ?

* wealth suffers some amortization
* wealth is used to produce new wealth

Nothing special so far: the ratio of Bwealth and NonBwealth is unchanged.
However, the money all over the world, that is used in transactions are created by B group. Companies and individuals pay interest (a kind of a tax for loaning the money into existance).

* While '''interest payment related to production involving Bwealth is just from one pocket to the other''' of the same owner)
* '''interest payment (to B !) related to production involving NonBwealth reduces NonBwealth and contributes to Bwealth'''

This inevitably transfers all wealth to Bwealth. Try to make a model that prevents this ! You can '''use ANY numbers you think appropriate'''.
* how much money should be in the system
* how much to produce ? GDP, NDP ?
* how much percentage of GDP should we spend on interest on money created as loans by B ?

TODO: example spreadsheet to see how wealth is transferred.
You can tune this or create your own model. Bwealth was probably around 20% of world wealth on 1913 December 23d (when most congressmen left for xmas and the corrupt minority voted yes on the Federal Reserve Act crime). Bwealth is probably 80% now, although the example starts a bit more optimistic. It does not matter: the final result is the same !

You can make the model more complex if you like.
* The laws, most notably related to taxes and government spendings are biased to aid this wealth transfer (Bwealth actually benefits more from government spendings, and taxes less, eg. using offshore).
* The efforts (biasing laws) behind NonBwealth are not near as efficient as those behind Bwealth: the proof is the existance of this fraudulent money (and tax) system

The interest is payed:
* in taxes (essentially growing, due to national debt)
* and market-prices (corporations build their costs into prices: this includes interests)
* so even if someone is not willing to loan money, he is unable to protect his wealth: it will become Bwealth

At a '''macro level, producing more does not help pushing down the debt AT ALL'''. As an example, let's say more chairs are produced.
* if the extra quantity of chairs cannot be sold, it's just a waste of resources
* if the excess chairs can be sold, those who buy it will have somewhat less money, those who sold the chair have somewhat more money.

The total amount of money to pay off debt is unchanged: the debt continuously grows, people losing all their wealth and control, as long as people insist on this freud money (USD, GBP, EUR, ...).

Wealth is actually distributed unevenly. We, by produce more might be able to keep our wealth a bit further (by helping others get ripped of their wealth earlier): we are likely to find ourselves in a very nasty situation:
* most people, desperate, working hard, have lost all their wealth and also in huge debt they finally realize can never be paid off
* we - being smarter - still have some wealth

All the desperate people will not be able to find the high-criminals behind Bwealth (enough wealth to efficiently protect, access to personal identities, etc..). They will be able to find us though, and they will be very angry. They will not think straight, because we haven't taught them how to think straight. Don't wait until it is too late.

NonBwealth is actually transferred faster than the MFM model predicts:
* the interest paid related to NonBwealth is relatively higher than for Bwealth
** because NonBwealth is more fragmented, including small-medium enterprises and household wealth. Essentially much higher liquidity ratio than the more concentrated Bwealth (large monopolies and high cash-flow => low relative liquidity).

Unfortunately you cannot join the B group by purchasing banking shares. Banks route their profit through (often international) investments that small shareholders don't benefit much from.

----
'''What is the solution ?'''

* if people start to use their brain and wake up: private creation of money must cease! Reserve Ratio Requirements must be fixed
* tax laws must change:
** instead of taxing the poor (with income tax and stupid corporate taxes) transferring wealth from poor to the wealthy,
** company shares must be debased by the goverment, distributing a small part of the wealth every year among the people. This is necessary, because even without private money creation, there is a (much slower) concentration of wealth that must be balanced
* crypto-anarchy will be a huge help to those who understand the problem first: even if most of the population stays brainwashed

----
See
* [[Money Quiz]] for how money is created
* '''Monetary reform movement is catching up:''' http://www.moneyreformparty.org.uk/
* New monetary system is born. Technology helps: http://www.p2pfoundation.net/Category:Money
* [monetary system]

[[Category:Economics]]

Monetary system

2007-11-25T15:05:46Z

Mfm: Monetary Fraud Model