An Indictment of Our Government
Hans Schroeder, Canada
Most people in this country of ours are suffering under exorbitant interest rates and from inflation. I said MOST and not ALL, because some are able to keep up or even gain with rising costs while a few make enormous profits through the pauperization of the general public.
Either our government is ignorant of the functions money has to perform in commerce and national economics, in which case it is unfit to govern and should resign, or it plays a deliberate part in the theft of our homes through usurious interest rates and in the surrender of our national wealth to international financiers, in which case it should be impeached and courtmartialed for treason.
Now, I can see that the ordinary citizen never gives much more thought to money except how to earn it and to keep his bills paid, to save a little toward the next car or piece of furniture, and to afford a few little luxuries to make life more pleasant. But from a Prime Minister, a Minister of Finance, a Governor of the Bank of Canada with scores of economic advisors, I could not accept a plea of ignorance.
There are thus two possibilities:
1. They are blackmailed into silent toleration and support of the robber barons gnawing at our wealth. In this case they would be cowards for not coming to the people for support in an all-out fight against the forces destroying our nation, or
2. They are willing partners in the theft of our properties and our impoverishment. Government for or against the people?
It is the right of a sovereign nation to coin and issue its own money, and it is its duty to govern the flow of it. Yes, issue money into existence which would be free of interest and which would only cost paper, ink, and labor to print. But, instead, our government borrows money into existence, the how and from whom they never explain. Except for some oil-rich countries, I do not know of any country without staggering national debts, be it the U.S.A., Britain, France, West Germany, or any other country you wish to name. Whom do they owe these billions or trillions? Savings Bond holders? No. They only make up an insignificant fraction of this debt. Lending to each other? Then assets would cancel liabilities and there would be no debt. But also, why lend and then borrow your own money back? There IS something rotten in the State!
The people are educated to ideas that are known to be wrong, the truth is suppressed. The book Money Creators, by Getrud Coogan, is forbidden in Canada; the involvement of international finance in the creation of wars, inflation, depressions, in the assassination of Abraham Lincoln, etc., are conveniently overlooked when teaching history and economics.
Many good books, true books, have been written about money and financial powers, but you will not find them in bookstores or libraries. How many of these so-called economic and financial experts have read them, or even heard of them?
Money and Wealth
Money is not wealth! You cannot eat it, you cannot wear it, and it will not give you shelter in rain or cold. What, then, is money?
Although I could say many things about money and its rightful role in human society, I must of necessity be brief. This, of course, will oversimplify the issue, for which I ask your forgiveness.
Money is the means of exchange of one man’s labor against the labor of others. Not for goods? Yes, for goods themselves are the product of labor. The country’s wealth is equal to the total value of goods available. Wealth, therefore, is a variable. Food is eaten, coats wear out, and houses and cars depreciate. But as goods are consumed they are replenished by new production. The money in circulation must equal the value of goods available for sale. Increased production must be balanced with increased money supply, otherwise the goods sit useless in some warehouse, the factories lay off their workers, and the needs of many people remain unfilled.
Money that makes money is the tool to enslave people. Money has never produced anything, nor has anybody ever seen a dollar bill milking a cow, a five dollar bill laying bricks, a ten sport operating a machine, or a piece of paper marked $100 perform surgery. So why should money make more money?
Since home and mortgage are of prime concern to most of us these days, we shall take a closer look at this subject. The value of a house or other major object far exceeds the value of one week or one month of our labor. We therefore have two choices:
1. To accumulate sufficient value of our labor in the form of money in a savings account to cover the full price of the house, or
2. To pay part in already earned savings (down payment) and the balance in future labor (mortgage).
As we saw before, money does not produce anything and, therefore, should not earn interest either. We should not get interest for our money in the bank, but also should not have to pay interest for the money we borrow, except for a fee (labor) to the institution for safekeeping, making the collections and maintaining these accounts. This concept may sound strange to present philosophy but is nevertheless the only right way. Money sitting in the bank and not borrowed by somebody else represents unsold products, which requires additional labor in the form of handling, building and building upkeep. The products warehoused are subject to loss of value through spoilage (most foods have limited shelf life), obsolescence (change of styles, newer designs, etc.), and damage from various causes. This, of course, does not eliminate the necessity to store food for the winter, maintain spare parts inventories, and to have the stores stocked with merchandise. But, then, we generally do not spend our entire paycheck the minute we get it but have to stretch it until the next pay day.
Although much more could be said about money, interest, the value of the individual’s labor, industry and commerce, I only want to touch on one more subject equally on the mind of most of us: INFLATION.
The inflation we have experienced so far is nothing compared with the inflation that raged in many European countries in 1922/1923. As a rather crude example we may envision the postage on a first class letter climbing from $0.10 to $100,000,000.00 (one hundred million) over a period of 15 months. We must realize that inflation and depressions are not caused by God or nature but are man-made by international money powers who reap huge profits out of the impoverishment of ordinary citizens with their manipulations.
Imagine you sold your home five years ago for $60,000, took a $5,000 downpayment, and gave $55,000 open first mortgage for the balance. Amortized over 25 years, the purchaser has hardly paid $2,000 to $3,000 of the principal. If European style inflation were to hit tomorrow, you could be paid off with the value of a loaf of bread and you could not refuse to accept the payment since it was an open mortgage.
In the present scheme the methods have changed but the players remain the same.
Assuming a country is completely self-sufficient to meet all its citizens’ needs and price is related to labor extended for the respective product, there are some natural reasons why prices could move up or down. Again, we do not look at the individual here, but view things from a wider perspective. Poor weather conditions yield the farmer a smaller crop than the previous year although he may have expended the same or even a greater amount of labor. This must increase the cost of farm products until a better harvest allows the prices to drop back to a more normal level. As depletion of oil fields and mines forces exploration and exploitation of resources into less accessible areas with perhaps lower yields, the cost of oil and ore goes up in relation to the greater number of man-hours needed to bring them to market. Conversely, technology and industrialization increases the output per labor-hour and, therefore, should reduce the price of consumer products.
Other factors are the relations of productive labor vs. non-productive and idle labor, excess profit taking, taking wealth out of the country, foreign ownership, etc.
A free economy with equitable distribution of wealth is possible, but only under a government that serves honestly all its citizens.
SOURCE: The Liberty Bell, December 1982