Human Ecology
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Seven Abstraction Layers of Society
- Religion
- Education
- Politics
- Administration
- Sanctions (rules, agreements, constraints etc)
- Industry
- Finance
First Summary (p81)
- Money for most purposes means bank deposits.
- This money is a bank-created substitute for metallic money.
- Bank deposit money chiefly comes into existence by the actions of the banks themselves, which create it initially as a debt at interest, or ny other processes which are the equivalent.
- The variation in the quantity of bank deposits (and for paper money generally) is controlled by the actions of the central bank.
- In theory the basis of control is the gold reserve of the central bank.
- This gold is purchased costlessly by the central bank.
- The rough ratio of total national bank deposits to total currency is as 4 to 1.
- this ratio is for 1948. The ratio for 2007 is roughly 19 to 1. --Johnwhyte 01:19, 8 May 2009 (UTC)
- Banker's profits are made out of whatever "money" they can create and issue in excess of their liquid reserve assets.
- Banks do not lend their customers' money, when making loans or granting overdrafts. They create or invent the money for the purpose.
- Governments obtain money in three ways:
- by taxation;
- by borrowing genuine savings;
- by the central bank inventing or creating the necessary amount, thereby increasing its obligations to the joint stock banks, which then create new deposits for the purpose.
- The repayment of "national debt" is impossible because it would cancel out an equivalent sum of money and thus leave the community without enough money to carry on with.
- The Bank of England is an organisation whose policy and shareholders are undisclosed. It has the power to asses itself for income tax purposes.
- The banking system is tripartite. The First Part is that of central banking through which money is created; the Second Part is that of commercial banking through which money is distributed; the Third Part is that of the consuming public through which money is utilised. These three functions are, of course, closely interlocked, but an understanding of the three parts is vital to what follows.
Second Summary (p184)
- Money is almost entirely, and, for purposes of industry and government entirely, financial credit.
- Financial credit is bank created.
- It is created as a debt at interest due by the community to the banking system.
- This debt is automatically self-cumulative and irredeemable.
- The total quantity of money thus created in any credit area varies only with the action of the central bank.
- The limitation in the total quantity of money is thus fixed by an organisation whose policy is self-determined.
- This limitation is fixed without respect to the consuming capacity of the public or the producing capacity of industry.
- The quantity of money available and the policy of the banking system are both determined in the last resort by the canon of international finance.
- The canon of international finance is determined by the use of gold as the basis of currency, and by the mechanism of usury.
- The mechanism of usury automatically generates an uncontrollable cycle of financial and hence economic expansion and contraction.
- The mainspring of all European history is the usurious money system.
- The persistence and inviolability of this system is due to the acceptance of false conceptions regarding it.
Third Summary (p367)
- The source of power lies in the financial mechanism which occupies the apex of the present order of society and dominates all beneath.
- The source of illusion lies in false religion and education, which are the basis society rests upon.
- Both power and illusion originate in nescience, which obscures "reality".
- No person or association of persons has consciously constructed or directed the mechanisms of society to their present ends.
Quotes
Unlimited money becomes mysteriously available for war, a phenomenon which has been repeated twice within one generation.
- -page 17
When once the usurer has obtained complete control of monetary creation, the interest mechanism has achieved its purpose, and could then be given up. When the usurer lent the original gold coinage, he created a debt claim and appropriated the interest. When, however, he began to create and lend money, he appropriated both interest and capital. Thus the usurer's (i.e. banker's) wealth and power finally derive from this credit creation, wherein, as Major Douglas puts it, "power comes not from charging interest but in creating new claims and appropriating them."
- - page 127
