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Must see videos below
How banks create money out of nothing – 7 minutes
Richard Werner a German academic, economist and professor at the University of Southampton
The stupidity of allowing commercial banks to control our money supply – 7 minutes
How banks rob us on a daily basis and the betrayal of governments to allow it – 8 minutes
Economist James Robertson
The parasitic nature of the finance sector and why we must get rid of it – 10 minutes
Michael Hudson is an American economist, professor of economics at the University of Missouri in Kansas City and a researcher at the Levy Economics Institute at Bard College, former Wall Street analyst, political consultant, commentator and journalist.
Professor Michael Hudson explains how bank and bankers are not part of the real economy. They have become parasites, draining our economy rather than supporting it by using the creation of money (debt) to enslave people and governments.
Unsustainable debt and economic collapse – a 5000 year old problem – 10 minutes
“Every society in history for the last 4,000 years has found that the debts grow more rapidly than people can pay,” he says. “The problem is a small oligarchy of 10 percent of the population at the top to whom all of these net debts are owed to. You want to annual the debts to the top 10 percent. That’s what they’re not going to do. The oligarchy is running things. They would rather annul the bottom 90 percent right to live than to annul the money that’s due to them. They would rather strip the planet and shrink the population and be paid rather than give up their claims. That’s the political fight of the 21st century.” – Michael Hudson
The illusion of free markets – 15 minutes
How the modern economy has been perverted to serves the few and screw the rest of us. How “free markets” have become rigged markets.
More relevant videos will be uploaded overtime. Check back for more info.
This is a truly remarkable book. I never imagined that I would read a book on economics, but this book gripped me and I read it from cover to cover. I read it with mounting horror that I had participated in such a damaging economic system all my life, a system authorized by government and founded on a banking scam that is nothing less than legalized robbery.
It was news to me that 97% of the money in circulation today was originally created as a debt to a bank. All the savings in your account are there because someone earlier went into debt. When you apply for a bank loan or a mortgage the bank counterfeits that money into existence out of nothing, types the figure into a computer, and transfers it to your account. It’s called fractional Reserve Banking. The bank will then charge you interest on the debt that was created out of nothing and if you default, will seize your real assets. Clearly this is institutionalized fraud.
Rowbotham explains how the debt money in circulation distorts the whole of the economy in such a way that economics has nothing to do with the needs of people and care for the environment and everything to do with pure money and finance. And so you find it makes financial sense to transport lettuces from Spain when they could be grown right here at home.
From the outset businesses are in debt to the banks and these additional costs over and above manufacturing costs tend to drive up prices of the goods produced and ensure they are of poor quality. Because of huge debts to banks, firms must keep wages down and so there is never enough money circulating to buy the products. So either aggressive exporting must take place or people must go into debt to buy the goods. A pyramid of rising debt is created and there must be economic growth at the top or the whole economic edifice collapses. This is the economic insanity in which we live and move and have our being.
Rowbotham explains that there is an alternative to the current one-sided debt based economics and this involves government itself creating a proportion of debt free money for circulation. The simple balanced system described made sense to me and why no-one ever discusses it is a complete mystery. So our whole economic system is based on a total misunderstanding of how money works. How could it have happened? It has happened because people are totally unconscious of the economic madness in which they participate on a daily basis.
After reading the book I woke up from unconsciousness and realized that in the absence of monetary reform the only realistic vote in any government referendum would be one of `no confidence’. I will never vote again until the promise of monetary reform is on a party manifesto. Read the book and the Truth will set you free.
– Reader’s review (amazon.co.uk)
“This extraordinary book describes “the oligarchic strategy of bankers in what has become a class war against labour and the economy using foreign debt pressure on governments to privatise and un-tax resource rent extraction.” Hudson sums up, “Today’s finance is cannibalizing industrial capital, imposing austerity and shrinking employment while its drive to privatise monopolies increases the cost of living.
Hudson writes, “A realistic model or picture of how the economy operates would require separating the ‘wealthy’ households from the wage earners that live by their own labor rather than on dividends, rents, interest and capital gains.” So it is still the same class struggle between employers and workers to fight for wages, conditions and industry.
Corporation owners borrow vast sums, not to invest but to buy back shares. They then use the companies’ revenues to pay the debts they took out to buy the stocks. They bleed companies dry to give themselves ever-higher profits and dividends.
As Hudson points out, “banks rarely fund new means of production. They prefer to lend for mergers, management buyouts or raids of companies already in place. … Lower interest rates make it easier to borrow and take over companies – and then break them up, bleed them via management fees, and scale back pensions by threatening bankruptcy. … Bank lending focused on trade financing, not capital investment. … industry has become financialised, ‘activist shareholders’ treat corporate industry as a vehicle to produce financial gains. Managers are paid according to how rapidly they can increase their companies’ stock price, which is done most easily by debt leveraging. This has turned the stock market into an arena for asset stripping, using corporate profits for share buybacks and higher dividend payouts instead of for long-term investment. These practices are widely denounced in the financial press, but the trend is not being checked.”
– Reader’s review (amazon.co.uk)
“If people only understood the concepts in this easy to read book, freedom would return to this land. People would be able to keep the profits from their labour. Americans who have been taught to endure hardship simply to earn a living would find that their life-energy has been stolen and would be empowered to take it back. Land would be redistributed and it would be profitable to live lightly on the earth once again. The system described in this book is tried and proven. Many communities are using its example to restore prosperity to their citizens. Small but powerful book. Should be required reading for all high-school students. At least the next generation would taste freedom and prosperity.”
“No need to reinvent the wheel. This book explains how money works for those who already have too much and against those who are really creating the wealth. Then it shows examples of systems tried and shown to be effective in keeping the productivity in the hands of the creators and at the same time allowing the already-rich to keep their security. No guesswork necesary. A complete guide to making changes that are long overdue in this nation and hopefully on this planet. Imagine working your fair share of time and prospering while the earth has a chance to recover from merciless plunder. Don’t dream it: BE it!”
– Reader’s reviews (amazon.co.uk)
2 Guardian articles
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