ADVICE NO CHARGE
Read this and make a copy for your files in case you
need to refer to it
A corporate attorney sent the following out to the
employees in his
company. Maybe we should all take some of his advice!
1. Do not sign the back of your credit cards.
Instead, put "PHOTO ID REQUIRED".
2. When you are writing checks to pay on your credit
card accounts, DO
NOT put the complete account number on the "For" line.
Instead, just put
the last four numbers. The credit card company knows
the rest of the
number, and anyone who might be handling your check as
it passes through
all the check processing channels won't have access to
3. Put your work phone # on your checks instead of
your home phone. If
you have a PO Box use that instead of your home
address. If you do not
have a PO Box, use your work address. Never have your
SS# printed on
your checks (DUH!). You can add it if it is necessary
but, if you have
it printed, anyone can get it.
4. Place the contents of your wallet on a photocopy
machine. Do both
sides of each license, credit card, etc. You will
know what you had in
your wallet and all of the account numbers and phone
numbers to call and
cancel. Keep the photocopy in a safe place. I also
carry a photocopy
of my passport when I travel either here or abroad.
We've all heard
horror stories about fraud that's committed on us in
stealing a name,
address, Social Security number, credit cards, etc..
Unfortunately, I, an attorney, have first-hand
knowledge because my
wallet was stolen last month.
Within a week, the thieves ordered an expensive
monthly cell phone
package, applied for a VISA credit card, had a credit
line approved to
buy a Gateway computer, received a PIN number from DMV
to change my
driving record information online, and more. But
here's some critical
information to limit the damage in case this happens
to you or someone
5. We have been told we should cancel our credit cards
the key is having the toll-free numbers and your card
numbers handy so
you know whom to call. Keep those where you can find
6. File a police report immediately in the
jurisdiction where your
credit cards, etc. Were stolen. This proves to credit
were diligent, and this is a first step toward an
there ever is one).
But here's what is perhaps most important of all (I
never even thought
to do this.).
7. Call the 3 national credit reporting organizations
place a fraud alert on your name and also call the
Social Security fraud
line number. I had never heard of doing that until
advised by a bank
that called to tell me an application for credit was
made over the
Internet in my name. The alert means any company that
credit knows your information was stolen, and they
have to contact you
by phone to authorize new credit.
By the time I was advised to do this, almost two weeks
after the theft,
all the damage had been done. There are records of all
the credit checks
initiated by the thieves' purchases, none of which I
knew about before
placing the alert. Since then, no additional damage
has been done, and
the thieves threw my wallet away this weekend (someone
turned it in).
It seems to have stopped them dead in their tracks.
Now, here are the numbers you always need to contact
about your wallet,
etc, has been stolen:
1.) Equifax: 1-800-525-6285
2.) Experian (formerly TRW): 1-888-397-3742
3.) Trans Union : 1- 800-680-7289
4.) Social Security Administration (fraud line):
We pass along jokes on the Internet; we pass along
If you are willing to pass this information along, it
could really help
It never hurts to be reminded of
This is for you, and for you to
share with everyone you know...
1. Tip from
Tae Kwon Do: The
elbow is the strongest point on
your body. If you are close
enough to use it, do!
2. Learned this from a tourist
guide in New Orleans. If a robber
asks for your wallet and/or
DO NOT HAND IT TO HIM.
Toss it away from you....chances
are that he is more interested
in your wallet
and/or purse than you, and he
will go for the wallet/purse.
RUN LIKE MAD IN THE OTHER
3. If you are ever thrown into
the trunk of a car, kick out the
back tail lights and stick your
arm out the hole and start
waving like crazy. The driver
won't see you, but everybody
else will. This has saved lives.
4. Women have a tendency to get
into their cars after shopping,
eating, working, etc., and just
sit (doing their checkbook, or
making a list, etc.
DON'T DO THIS!)
The predator will be watching
you, and this is the perfect
opportunity for him to get in on
the passenger side, put a gun to
your head, and tell you where to
AS SOON AS YOU GET INTO YOUR
CAR, LOCK THE DOORS AND LEAVE.
a. If someone is in the car with
a gun to your head
DO NOT DRIVE OFF, repeat:
DO NOT DRIVE OFF!
Instead gun the engine and speed
into anything, wrecking the car.
Your Air Bag will save you. If
the person is in the back seat
they will get the worst of it.
As soon as the car crashes bail
out and run. It is better than
having them find your body in a
A few notes about getting into
your car in a parking lot, or
A.) Be aware: look around you,
look into your car, at the
passenger side floor, and in the
B.) If you are parked next to a
big van, enter your car from the
passenger door. Most serial
killers attack their victims by
pulling them into their vans
while the women are attempting
to get into their cars.
C.) Look at the car parked on
the driver's side of your
vehicle, and the passenger side.
If a male is sitting alone in
the seat nearest your car, you
may want to walk back into the
mall, or work, and get a
guard/policeman to walk you back
IT IS ALWAYS BETTER TO BE SAFE
THAN SORRY. (And better paranoid
take the elevator instead of the
stairs. (Stairwells are horrible
places to be alone and the
perfect crime spot. This is
especially true at NIGHT!)
7. If the predator has a gun and
you are not under his control,
The predator will only hit you (a running target) 4 in 100 times; And
even then, it most likely
RUN, Preferably ! in a zig -zag
8. As women, we are
always trying to be sympathetic:
It may get you raped, or killed.
Ted Bundy, the serial killer,
was a good-looking, well
educated man, who ALWAYS played
on the sympathies of
unsuspecting women. He walked
with a cane, or a limp, and
often asked "for help" into his
vehicle or with his vehicle,
which is when he abducted his
************* Here it is *******
9. Another Safety Point: Someone
just told me that her friend
heard a crying baby on her porch
the night before last, and she
called the police because it was
late and she thought it was
weird. The police told
"Whatever you do, DO NOT open
The lady then said that it
sounded like the baby had
crawled near a window, and she
was worried that it would crawl
to the street and get run over.
The policeman said, "We already
have a unit on the way, whatever
DO NOT open the door."
He told her that they think a
serial killer has a baby's cry
recorded and uses it to coax
women out of their homes
thinking that someone dropped
off a baby. He said they have
not verified it, but have had
several calls by women saying
that they hear baby's cries
outside their doors when they're
home alone at night.
Please pass this on and DO NOT
open the door for a crying baby
e-mail should probably be taken
seriously because the Crying
Baby theory was mentioned on
America's Most Wanted this past
Saturday when they profiled the
serial killer in Louisiana.
I'd like you to forward this to
all the women you know. It may
save a life. A candle is not
dimmed by lighting another
candle. I was going to send this
to the ladies only, but guys, if
you love your mothers, wives,
sisters, daughters, etc., you
may want to pass it onto them,
Send this to any woman you know
that may need to be reminded
that the world we live in has a
lot of crazies in it and it's
better to be safe than sorry.
IN THE USA
Millions of U.S. workers joined
unions in the 30s and 40s through strikes, rallies and marches. That is why
the United Nations recognized the right to organize a union as a human right
BUT. . .
40 million people want to form
unions, but cannot, because companies *fire activists *close plants *threaten
employees * and worse
The National Labor Relations Board,
which was formed to help workers form unions, now helps bosses fight us.
FACTS ABOUT THE 1500'S
The next time
you're washing your hands and complain about the water temperature isn't just
how you like, look about how things used to be.
Here are some.....
Most people got married in June
because they took their yearly bath in May
and still smelled pretty good by June.
However, they were starting to smell
so brides carried a bouquet of flowers to
hide the body odor. Hence the
custom today of carrying a bouquet when
* * * * * *
Baths consisted of a big tub filled with
hot water. The man of the house had
the privilege of the nice clean water,
then all the other sons and men, then
the women and finally the children-last of
all the babies. By then the water
was so dirty you could actually lose
someone in it. Hence the old saying,
"Don't throw the baby out with the bath
* * * * * *
Houses had thatched roofs-thick
straw-piled high, with no wood underneath.
It was the only place for animals to get
warm, so all the dogs, cats and other
small animals (mice, bugs) lived in the
roof. When it rained it became slippery
and sometimes the animals would slip and
fall off the roof. Hence the saying,
"It's raining cats and dogs."
* * * * * *
There was nothing to stop things from
falling into the house. This posed a real
problem in the bedroom where bugs and
other droppings could really mess up
your nice clean bed. Hence a bed with big
posts and a sheet hung over the top
afforded some protection. That's how
canopy beds came into existence.
* * * * * *
The floor was dirt. Only the wealthy had
something other than dirt. Hence
the saying, "dirt poor."
* * * * * *
The wealthy had slate floors that would
get slippery in the winter when wet,
so they spread thresh (straw) on the floor
to help keep their footing. As the
winter wore on, they kept adding more
thresh until when you opened the
door it would all start slipping outside.
A piece of wood was placed in the
entranceway. Hence the saying, a "thresh
* * * * * *
In those old days, they cooked in the
kitchen with a big kettle that always
hung over the fire. Every day they lit the
fire and added things to the pot.
They ate mostly vegetables and did not get
much meat. They would eat the
stew for dinner, leaving leftovers in the
pot to get cold overnight and then
start over the next day. Sometimes the
stew had food in it that had been
there for quite a while. Hence the rhyme,
" Peas porridge hot, peas porridge
cold, peas porridge in the pot nine days
* * * * * *
Sometimes they could obtain pork, which
made them feel quite special.
When visitors came over, they would hang
up their bacon to show off.
It was a sign of wealth that a man "could
bring home the bacon." They
would cut off a little to share with
guests and would all sit around and
"chew the fat."
* * * * * *
Those with money had plates made of
pewter. Food with high acid content
caused some of the lead to leach onto the
food, causing lead poisoning and
death. This happened most often with
tomatoes, so for the next 400 years
or so, tomatoes were considered poisonous.
* * * * * *
Bread was divided according to status.
Workers got the burnt bottom of
the loaf, the family got the middle, and
guests got the top, or "upper crust."
* * * * * *
Lead cups were used to drinking whisky.
That combination would sometimes
knock them out for a couple of days.
Someone walking along the road would
take them for dead and prepare them for
burial. They were laid out on the
kitchen table for a couple of days and the
family would gather around and
eat and drink and wait and see if they
would wake up. Hence the custom of
holding a "wake."
* * * * * *
England is old and small and the local
folks started running out of places to
bury people. So they would dig up coffins
and would take the bones to a
"bone-house" and reuse the grave. When
reopening these coffins, 1 out of
25 coffins were found to have scratch
marks on the inside and they realized
they had been burying people alive. So
they thought they would tie a string
on the wrist of the corpse, lead it
through the coffin and up through the
ground and tie it to a bell. Someone would
have to sit out in the graveyard
all night (the "graveyard shift") to
listen for the bell; thus, someone could be
"saved by the bell", or maybe considered a
* * * * * *
And that's the truth...
Now , whoever said that History was boring
! ! ! ! !
Educate someone...... Share these facts
with a friend
Tobacco was brought to Spain for the first time in 1555.
Christopher Columbus was
christened Cristofro Colombo and that he was not the first to discover The
Americas? Also that Columbus's arrival marked the beginning of one of the
cruelest episodes in Human history. That under Columbus and other Spanish
adventures,as well as later European colonizers, an era of genocide was opened
that ravaged the native American population through warfare, forced
labor,draconian punishments and European disease to which the Indians had no
Pyramids in Egypt contain enough stone and mortar to construct a wall 10 feet
high and 5 feet wide running from New York City to Los Angeles.
There are over 100 different types
the city of Washington, D.C., no buiding may be built taller than the Capitol.
spend more than $125 billion a year on sneakers. One hundred million pairs
were sold in 1975.
are more people in New York City, than there are in the states of Alaska,
Vermont, Wyoming, South Dakota, New Hampshire, Nevada, Idaho, Utah, Hawaii,
North Dakota, Delaware, and New Mexico combined.
are more Irish in New York City than in Dublin, more Italians than in Rome,
and more Jews than in Tel Aviv in New York City.
New York City has the
Largest Black population of any city in The United States. It is followed by
Chicago and Philadelphia.
there are ten million bricks in The Empire State Building.
chips were invented by a Black chef in Louisiana in 1865.
is heavier than cream.
Americans spend $600 million a year on hot dogs. They consume enouth of them
each year to form a chain stretching from Earth to the Moon.
The Black Plague
destroyed half the population of Europe in the fourteenth century.
mortality rate for infectious diseases is lowest between the ages of 5 and 15.
After 25 the body is much more susceptible to disease.
primary source of physical discomfort among Americans is back pain.
are more than 50,000 earthquakes throughout the world every year.
than 71 million gallons of water pass over Victoria Falls in Africa every
is no documented proof that Betsy Ross designed the American flag.
Roman Catholic population of the world is larger than that of all other
Christian sects combined.
Christianity has a billion followers. Islam is next in representation.
average person can live for 11 days without water, assuming a mean temperature
1. The first couple to be shown in bed together on
Fred and Wilma
2. Coca-Cola was originally green.
3. Every day more money is printed for Monopoly
than the US Treasury.
4. Men can read smaller print than women can;
women can hear better.
5. The State with the highest percentage of people
who walk to work:
6. The percentage of Africa that is wilderness:
28% now get this...
7. The percentage of North America that is
8. The cost of raising a medium-size dog to the
age of eleven: $6,400
9. The average number of people airborne over the
US any given hour:
10. Intelligent people have more zinc and copper
in their hair.
11. The world's youngest parents were 8 and 9 and
lived in China in 1910.
12. The youngest pope was 11 years old.
13. The first novel ever written on a typewriter:
14. Those San Francisco Cable cars are the only
mobile National Monuments.
15. Each king in a deck of playing cards
represents a great king from
history: Spades - King David, Hearts -
Charlemagne, Clubs-Alexander the
Great, Diamonds - Julius Caesar
16. 111,111,111 x 111,111,111 =
17. If a statue in the park of a person on a horse
has both front legs in
the air, the person died in battle. If the
has one front leg in the
air, the person died as a result of
received in battle. If the horse
has all four legs on the ground, the
of natural causes.
18. Only two people signed the Declaration of
Independence on July 4th,
John Hancock and Charles
Thomson. Most of the rest
signed on August 2, but
the last signature wasn't
added until 5 years
19. "I am." is the shortest complete sentence in
the English language.
20. Hershey's Kisses are called that because the
machine that makes them
looks like it's kissing the
21. No NFL team which plays its home games in a
domed stadium has ever won
a Super bowl.
22. The only two days of the year in which there
are no professional
sports games (MLB, NBA, NHL, or
NFL) are the day
before and the day after
the Major League Baseball
23. How about this.... The nursery rhyme "Ring
around the Rosy" is a rhyme
about the plague. Infected people
with the plague
would get red circular
sores ("Ring around the
would smell very bad, so
common folks would put flowers on
so that they would cover the smell
of the sores
("...a pocket full of
posies..."). People who died from
the plague would
be burned so as to
reduce the possible spread of the disease
("...ashes, ashes, we all fall
24. What occurs more often in December than any
other month? Conception.
25. What separates "60 Minutes," on CBS from every
other TV show? No theme
26. Half of all Americans live within 50 miles of
what? Their birthplace.
27. Most boat owners name their boats. What is the
most popular boat name
28. If you were to spell out numbers, how far
would you have to go until
you would find the letter
"A"? One thousand
29. What do bulletproof vests, fire escapes,
windshield wipers, and laser
printers all have in common?. All
30. What is the only food that doesn't spoil?.
31. There are more collect calls on this day than
any other day of the
year? Father's Day
32. What trivia fact about Mel Blanc (voice of
Bugs Bunny) is the most
ironic? He was allergic to carrots.
33. What is an activity performed by 40% of all
people at a party? Snoop
in your medicine cabinet.
34. In Shakespeare's time, mattresses were secured
on bed frames by ropes
when you pulled on the ropes the
tightened, making the bed
to sleep on. Hence the phrase
35. It was the accepted practice in Babylon 4,000
years ago that for a
month after the wedding, the bride's
supply his son-in-law
with all the mead he could drink. Mead is
beer and because their
calendar was lunar based, this period was
the honey month or what
we know today as the honeymoon.
36. In English pubs, ale is ordered by pints and
quarts. So in old
England, when customers got unruly, the
would yell at them mind
their own pints and quarts and settle
where we get the phrase
"mind your P's and Q's."
37. Many years ago in England, pub frequenters had
a whistle baked into
the rim or handle of their ceramic
cups. When they
needed a refill, they
used the whistle to get some
service. "Wet your
whistle" is the phrase
inspired by this practice.
38. In ancient England a person could not have sex
unless you had consent
of the King (unless you were in the Royal
When anyone wanted to
have a baby, they got consent of the
King gave them a placard
that they hung on their door while they
having sex. The placard had
F.*.*.*. (Fornication Under Consent of
on it. Now you know where
that came from.
39. In Scotland, a new game was invented. It was
entitled Gentlemen Only
Ladies Forbidden.... And thus the
entered into the English
HIDDEN TRUTH BEHIND GLOBAL DEBT .
1) What is money... how is it created and who creates it?
2) Why is almost everyone up to their eyeballs in debt... individuals,
businesses and whole nations?
3) Why can't we provide for our daily needs - homes, furnishings cars etc.
4) How much could prices fall and wages increase if businesses did not have
to pay huge sums in interest payments which have to be added to the cost of
goods and services they supply...?
5) How much could taxes be reduced and spending on public services such as
health and education be increased if governments created money themselves
instead of borrowing it at interest from private banks.?
"If you want to be the slaves of banks and pay the cost of your own slavery,
then let the banks create money." Josiah Stamp, Governor of the Bank of
WHAT IS MONEY....?
It is simply the medium we use to exchange goods and services.
a.. Without it, buying and selling would be impossible except by direct
b.. Notes and coins are virtually worthless in their own right. They take on
value as money because we all accept them when we buy and sell.
c.. To keep trade and economic activity going, there has to be enough of
this medium of exchange called money in existence to allow it all to take
d.. When there is plenty, the economy booms. When there is a shortage, there
is a slump.
e.. In the Great Depression, people wanted to work, they wanted goods and
services, all the raw materials for industry were available etc. yet
national economies collapsed because there was far too little money in
f.. The only difference between boom and bust, growth and recession is money
g.. Someone has to be responsible for making sure that there is enough money
in existence to cover all the buying and selling that people want to engage
h.. Each nation has a Central Bank to do this - in Britain, it is the Bank
of England, in the United States, the Federal Reserve.
i.. Central Banks act as banker for commercial banks and the government -
just as individuals and businesses in Britain keep accounts at commercial
banks, so commercial banks and government keep accounts at the Bank of
TODAY'S "MONEY"... CREATED BY PRIVATE INTERESTS FOR PRIVATE PROFIT.
"Let me issue and control a nation's money, and I care not who writes it's
laws." Mayer Amschel Rothschild (Banker) 1790
1.. Central banks are controlled not by elected governments but largely by
PRIVATE INTERESTS from the world of commercial banking.
2.. In Britain today, notes and coins now account for only 3% of our total
money supply, down from 50% in 1948.
3.. The remaining 97% is supplied and regulated as credit - personal and
business loans, mortgages, overdrafts etc. provided by commercial banks and
financial institutions - on which INTEREST is payable. This pattern is
repeated across the globe.
4.. Banks are businesses out to make profits from the interest on the loans
they make. Since they alone decide to whom they will lend, they effectively
decide what is produced, where it is produced and who produces it, all on
the basis of profitability to the bank, rather than what is beneficial to
5.. With bank created credit now at 97% of money supply, entire economies
are run for the profit of financial institutions. This is the real power,
rarely recognised or acknowledged, to which all of us including governments
the world over are subject.
6.. Our money, instead of being supplied interest free as a means of
exchange, now comes as a debt owed to bankers providing them with vast
profits, power and control, as the rest of us struggle with an increasing
burden of debt....
7.. By supplying credit to those of whom they approve and denying it to
those of whom they disapprove international bankers can create boom or bust
and support or undermine governments.
8.. There is much less risk to making loans than investing in a business.
Interest is payable regardless of the success of the venture. If it fails or
cannot meet the interest payments, the bank seizes the borrower's property.
9.. Borrowing is extremely costly to borrowers who may end up paying back 2
or 3 times the sum lent.
10.. The money loaned by banks is created by them out of nothing - the
concept that all a bank does is to lend out money deposited by other people
is very misleading.
MONEY CREATED AS A DEBT
a.. We don't distinguish between the £25 billion in circulation as notes and
coins (issued by the government) and £680 billion in the form of loan
accounts, overdrafts etc. (created by banks etc,).
b.. £100 cash in your wallet is treated no differently from £100 in your
current account, or an overdraft facility allowing you to spend £100. You
can still buy goods with it.
c.. In 1948 we had £1.1 billion of notes and coins and £1.2 billion of loans
etc. created by banks - by 1963 it was £3 billion in cash and £14 billion
bank created loans etc.
d.. The government has simply issued more notes and coins over the years to
cover inflation, but today's £680 billion of bank created loans etc.
represents an enormous increase, even allowing for inflation.
e.. This new "money" in the form of loans etc, which ranks equally with
notes and coins - how has it come into existence?
"The process by which banks create money is so simple that the mind is
repelled." Professor. J. K. Galbraith
This is how it's done.. a simplified example...
a.. Let's take a small hypothetical bank. It has ten depositors/savers who
have just deposited £500 each.
b.. The bank owes them £5000 and it has £5000 to pay out what it owes. (It
will keep that £5000 in an account at the Bank of England - what it has in
this account are called its liquid assets).
c.. Sid, an entrepreneur, now approaches the bank for a £5000 loan to help
him to set up a business.
d.. This is granted on the basis of repayment in 12 months - plus 10%
interest - more on that later.
e.. A new account is opened in Sid's name. It has nothing in it,
nevertheless the bank allows Sid to withdraw and spend £5000.
f.. The depositors are not consulted about the loan. They are not told that
their money is no longer available to them- The amounts shown in their
accounts are not reduced and transferred to Sid's account.
g.. In granting this loan, the bank has increased its obligations to
£10,000. Sid is entitled to £5000, but the depositors can still claim their
h.. If the bank now has obligations of £10,000, then isn't it insolvent,
because it only had £5000 of deposits in the first place? Not exactly..
i.. The bank treats the loan to Sid as an ASSET, not a liability, on the
basis that Sid now owes the bank £5000.
j.. The bank's balance sheet will show that it owes its depositors £5000,
and it is now owed £5000 by Sid. It has created for itself a new asset of
£5000 in the form of a debt owed by Sid where nothing existed before - this
on top of any of the original deposits still in its account at the Bank of
England. - it is solvent - at least for accounting purposes!
k.. (At this stage the bank is gambling that as Sid is spending his loan,
the depositors won't all want to withdraw their deposits!)
l.. The bank had a completely free hand in the creation of this £5000 loan
which, as we shall see, represents new "money", where nothing existed
before. It was done at the stroke of a pen or the pressing of a computer
m.. The idea that banks create something out of nothing and then charge
interest on it for private profit might seem pretty repellent. Anyone else
doing it would be guilty of fraud or counterfeiting!
New "money" into the economy...
a.. Sid's loan effectively becomes new "money" as it is spent by him to pay
for equipment, rent and wages etc. in connection with his new business.
b.. This new "money" is thus distributed to other people, who will in turn
use it to pay for goods and services - soon it will be circulating
throughout the economy.
c.. As it circulates, it inevitably ends up in other people's bank accounts.
d.. When it is paid into someone's account which is not overdrawn, it is a
further deposit - Sid pays his secretary £100 and she opens an account at
our hypothetical bank - it now has £5100 of deposits.
a.. If we assume for a moment that the remaining £4900 ends up in the
accounts of the original depositors of our hypothetical bank, it now has
another £4900 in deposits - £10000 in total if the depositors have not
touched their original deposits. In practice much of it would end up in
depositors accounts at other banks, but either way there is now £5000 of new
"money" in circulation.
a.. Thus in reality, all deposits with banks and elsewhere actually come
from "money" originally created as loans - (except where the deposits are
made in cash - more on cash very shortly).
a.. If you have £500 in your bank account, the fact is someone else like Sid
went into debt to provide it.
The key to the whole thing is the fact that :-
a.. Cash withdrawals account for only a tiny percentage of a bank's
2.. Bank customers today make almost all payments between themselves by
cheque, switch, direct debit or electronic transfer etc. Their individual
accounts are adjusted accordingly by changing a few figures in computer
databases - just book keeping entries. No actual money/cash changes hands.
The whole thing is basically an accounting process that takes place within
the banking system.
THE ROLE OF CASH
a.. The state is responsible for the production of cash in the form of notes
b.. These are then issued by the Bank of England to the high street banks -
the banks buy them at face value from the government to meet their
customers' demands for cash.
c.. The banks must pay for this cash and they do so out of what they have in
the accounts which they hold at the Bank of England - their liquid assets.
Their accounts are debited accordingly.
d.. The state (through the Treasury) also keeps an account at the Bank of
England which is credited with the face value of the notes and coins as they
are paid for by the banks. (This is now money in the public purse available
for spending on public services etc.)
e.. This is how all banks acquire their stocks of notes and coins, but the
cash a bank can buy is limited to the amount it holds in its account at the
Bank of England - its liquid assets.
f.. As this cash is withdrawn by banks' customers, it enters circulation in
a.. Unlike bank created loans etc, cash is interest free and can circulate
NON CASH PAYMENTS - Book keeping entries
a.. With so little cash being withdrawn, and from experience knowing that
large amounts of deposits remain untouched by depositors for reasonable
periods of time, banks just hope that their liquid assets will be sufficient
to enable them to buy up the cash necessary to meet the relatively very
small amounts of cash that are normally withdrawn.
a.. A bank has serious problems if demands for cash withdrawals by
depositors, and indeed borrowers who want to draw some of their loans in
cash, exceed what the bank holds in its account at the Bank of England.
b.. In practice it would probably try to get a loan itself from the Bank of
England or another bank, to tide itself over. Failing that it would have to
call in some loans and seize the property of borrowers unable to pay.
DEPOSITORS' CLAIMS AGAINST BANKS .
a.. Once you have made a deposit at the bank (in cash or by cheque), all you
then have is a claim against the bank for the amount in your account. You
are simply an unsecured creditor. Your bank statement is a record of how
much the bank owes you. (If you are overdrawn, it is a record of what you
owe the bank). It will pay you what it owes you by allowing you to withdraw
cash, provided it has sufficient cash to do so.
b.. If customers are trying to withdraw too much cash, this is a run on the
bank, which will soon refuse further withdrawals. So it's first come first
c.. Should you want to make a payment by cheque, this is less likely to be a
problem - you are simply transferring part of your claim against the bank to
someone else - the person to whom your cheque is payable - just a book
d.. If the person to whom your cheque is payable has an account at the same
bank as you do, the deposit stays with that bank - overall the bank is in
exactly the same position as it was before.
e.. I give you a cheque for £50 - we both have accounts in credit at
Barclays - what Barclays owes me is reduced by £50, what Barclays owes you
increases by £50 - but nothing has left Barclays - the total deposits or
claims against Barclays remain the same...
BANKS' CLAIMS AGAINST EACH OTHER
a.. ..BUT if you keep your account at Lloyds, deposits at Barclays are
reduced by £50, whilst deposits at Lloyds increase by £50.
b.. Millions of transactions like this take place every day between
customers of the various banks, using switch cards, direct debits,
electronic transfers as well as cheques - deposits are therefore constantly
moving between the banks.
c.. All these cheques and electronic transfers pass through a central
clearing house (which is why we refer to a cheque being "cleared").
d.. The transactions are set off against one another, but at the end of each
day, a relatively small balance will always be owed by one bank to another.
e.. A bank must always be ready to settle such debts.
f.. To do this, it makes a payment from its account at the Bank of England
to the creditor bank's account at the Bank of England.
Thus a bank faces claims from two sources (which it meets out of its liquid
assets) - its customers wanting cash, and other banks when it has a clearing
house debt to settle.
Unless all the banks are faced with big demands for cash at the same time,
the banking system as a whole is safe, although an individual bank is
vulnerable, should a large number of depositors for some reason withdraw
their deposits in cash or transfer their deposits to other banks.
a.. We now see how today the whole system is basically a book keeping
exercise where millions of claims pass between the banks and their borrowers
and depositors every day with relatively very little real money or cash
changing hands - backed by tiny reserves of liquid assets.
b.. The system is known as FRACTIONAL RESERVE BANKNG and banks are sometimes
accurately referred to as dealers in debts.
c.. Barclays Bank's 1999 accounts illustrate the whole thing very well - it
had loans owing to it of £217 billion, it owed £191 billion to its
depositors - backed by just £2.2 billion in liquid assets!
d.. A bank's level of lending is geared to the amount of cash it has or can
buy up - its liquid assets - rather than the amount of its customers'
e.. But if a bank can attract customers deposits from other banks, it will
add to its liquid assets, as other banks settle the resulting clearing house
debts in its favour - hence there is tremendous competition between banks to
Interest .. Big Profits for the bank...
a.. Let's now return to Sid - he has to pay our bank 10% interest on his
loan - £500. These interest payments are money coming into the bank, they
are profits and they end up in its account at the Bank of England -
additional liquid assets for the bank.
b.. It now has an extra £500 to meet its depositors' withdrawals. If Sid
manages to repay the original loan as well, it will have an extra £5500.
c.. Our bank created for itself out of nothing an asset of £5000 in the form
of a loan to Sid. It is no longer owed anything by Sid, but in repaying his
loan with interest, Sid turned a mere debt into £5500 of liquid assets for
the bank - a tidy profit for the bank.. and the basis on which more loans
can be made.
d.. Banks today risk creating loans 100 times or more in excess of their
liquid assets as Barclays Bank's 1999 accounts show - (see above).
e.. Thus our bank will soon be making many more loans. Thus, the deposits it
receives back will increase and so will interest payments and therefore
f.. With more loans and more deposits, there will be a greater demand to
withdraw cash - but increasing profits means more cash can bought by the
bank. (This is how the amount of cash in circulation has been increasing to
reach £25 billion by 1997.)
a.. It is a myth to think that when you borrow money from a bank, you are
borrowing money that other people have deposited - you are not - you are
borrowing the bank's money which it created and made available to you in the
form of a loan.
More debt for the rest of us....
a.. Sid's interest payments and any repayment of the loan itself to the bank
means however that this "money" is no longer circulating in the economy.
b.. Any payment into an overdrawn account reduces that overdraft. It
operates as a repayment to the bank and the "money" is lost to the economy.
c.. More money must be lent out to keep the economy going. If people don't
borrow or banks don't lend, there will be a fall in the amount of money
circulating, resulting in a reduction in buying and selling - a recession,
slump or total collapse will follow depending on how severe the shortage is.
d.. The increase in bank created loans over the years is additional
conclusive proof that banks do create "money" out of nothing - £1.2 billion
in 1948 up to £14 billion by 1963 up to £680 billion by 1997.
e.. Today's supply of notes and coins after taking inflation into account,
has similar buying power to the supply in 1948 (£1.1 billion) but since
then, there has been a ten fold plus increase in real terms in money supply
made up of credit created by banks.
f.. This has enabled the economy to expand enormously, and as a result
living standards for many people have improved substantially.... but it has
been done on borrowed money! What is credit to the bank is debt to the rest
g.. The banks are acquiring an ever increasing stake in our land, housing
and other assets through the indebtedness of individuals, industry,
agriculture, services and government - to the extent that Britain and the
world are today effectively owned by them.
THE REPERCUSSIONS OF OUR DEBT BASED MONEY SYSTEM...
1) Goods and services are much more expensive...
The cost of borrowing by producers, manufacturers, transporters, retailers
etc. all has to be added to the price of the final product.
2) Consumers' have much less money to spend...
They are burdened by the cost of mortgages, overdrafts, credit cards,
personal loans etc. As a result of 1) and 2) there is...
3) A surplus of goods and services...
...because the population overall can't afford to buy up all the goods and
services being produced. This in turn creates.....
4) Cut throat competition...
Businesses try to cut prices and costs to grab a share of this limited
purchasing power in the economy, as illustrated by:
(i) Wages being held down as much as possible.
(ii) Shedding of jobs.
(These both reduce people's spending power
(iii) Retailers importing cheap products from
abroad where wages are much lower.
(iv) Production of cheaper goods that don't last
(v) Protection of the environment a low priority.
(vi) Mergers and take-overs - corporations get
bigger and bigger, driven to search out new
(vii) Big companies shifting production to
poorer countries which have cheap non-
unionised labour and the least stringent
safety and environmental laws or....
(viii) Demanding large government subsidies and
tax free incentives as the price for setting up
new production or not relocating abroad.
5) Ever increasing indebtedness.
a.. When a bank creates money by making a loan, it does not create the money
needed to pay the interest on that loan.
b.. The bank lent Sid £5000, but it demands £5500 back. Sid has to go out
into the business world and compete and sell to get that extra £500 from his
customers. It can only come from money already circulating in the economy -
made up of loans other people have taken out - so soon someone will be left
short of money and have to borrow more.
c.. Thus the only way for interest payments to be kept up is for more loans
to be taken out.
d.. Although a few individuals and businesses may pay off their debts or get
by without additional borrowing, OVERALL people and industry must keep
borrowing MORE AND MORE to provide the money in the economy needed to keep
up interest payments on the overall volume of debt.
e.. The present level of debt at £680 billion means we are borrowing about
£60 billion of new "money" into existence each year to pay the interest on
f.. But people and industry can't go on borrowing indefinitely - they will
no longer be able to afford to, and will gradually stop borrowing more money
into existence. When this happens, the economy will go into decline. The
system thus contains the seeds of its own destruction.
g.. When loan repayments and interest payments are made to banks, this is
money taken out of circulation. If it went on indefinitely, in an economy
where the money supply is largely made up of loans etc. created by banks,
there would eventually be almost no "money" left in circulation and with it
h.. Under the present system, if the economy is to be kept going, money must
be constantly lent out again. It would be possible simply re-circulate the
existing money supply without creating new money were it not for the fact
that extra money is needed to cover interest payments and also to enable the
economy to grow.
is guaranteed because producers constantly have to borrow more, and must add
the cost of that increased borrowing to the price of the goods produced.
a.. Why is it that when the moneylenders hike their prices (i.e. put up
interest rates) this is supposed to reduce inflation?
b.. It doesn't....
c.. It's just that there is a delay in industry putting up prices.
d.. Initially industry is forced to hold or even reduce its prices with
profits down, or even sustaining losses in a desperate bid to sell its
products in an economy where money available for spending is reduced because
of higher interest payments being made to the banks.
e.. Inflation may be held in check or even reduced temporarily, but
eventually industry must put its prices up in order to recover these higher
f.. This most readily happens when interest rates come down, more people
borrow, and money supply and consumer spending increases. Inflation then
g.. The fact that levels of borrowing/money creation have to keep on rising
as already explained, adding to the overall burden of interest payments,
guarantees that inflation will be present as long as we have an economy
based on an increasing burden of debt.
EFFECTS ON INTERNATIONAL TRADE
a.. Surplus goods in the national economy have to be disposed of somehow.
The obvious way to do this is to try to export them!
b.. The absurdity is that every nation is trying to do this, because of the
same fundamental problem at home.
c.. This creates frenzied competition in world markets and masses of near
identical goods madly criss-crossing the globe in search of an outlet.
d.. Instead of international trade being based on reciprocal mutually
beneficial arrangements where nations supply each others' genuine needs and
wants, the whole thing becomes a cut-throat competition to grab market share
in order to stay solvent in a debt based economy.
e.. Big corporations demand unrestricted access to every nation's market -
so called "free" trade.
f.. The European Union "single market", the North American Free Trade
Agreement and the World Trade Organisation are the best examples of the
drive to open up all national markets.
Exporting is good for a nation's economy...
because when exported goods are paid for, this brings money into the
exporting nation's economy free of debt.
a.. The money to pay for them was borrowed from banks in the importing
b.. That money is lost to the importing nation's economy, but the debt that
created that money still has to be repaid by the importer out of the
remaining money in the importing nation's economy.
c.. If a nation can become a big net exporter, for a time it's economy will
boom with all the interest free money coming in - a trade surplus will
Importing is not so good for a nation's economy...
a.. If some nations are building up trade surpluses in this way, others must
be net importers and building up trade deficits.
a.. Ultimately, those with big deficits can no longer afford to import,
since so much money is sucked out of their economies leaving a
proportionally increasing burden of debt behind.
THIRD WORLD DEBT AND THE INTERNATIONAL MONETARY FUND (IMF)
a.. The IMF was set up to provide an international reserve of money
supposedly to help nations with big deficits.
b.. In practice it makes matters worse.
c.. A nation with a big deficit has to seek a bail out from the IMF.
d.. BUT this comes in the form of a loan, repayable with interest.
e.. Like loans from a commercial bank, IMF loans are money created out of
nothing, based on a cash reserve pool, which is provided by western nations
who go into debt to provide it (see National Debt).
f.. The nation with the deficit goes even more heavily into debt.
g.. It will however be able to carry on trading and importing goods from the
h.. As a result, much of this borrowed IMF loan money flows into the
economies of wealthier western nations.
i.. However, the repayment obligation including the interest payments
remains with the debtor nation.
j.. This is the true horror of third world debt - the poorest nations borrow
money to bolster the money supply of the richer nations.
k.. In order to secure income to pay the interest, and redress the trade
balance, these poorest nations must export whatever they can produce. Thus
they exploit every possible resource - stripping forests for timber, mining,
giving over their best agricultural land to providing luxury foodstuffs for
the west, rather than providing for local needs.
l.. Today, for nations in Africa, Central and South America and elsewhere,
the revenue from their exports does not even meet the interest payments on
these IMF loans (and other loans from western banks).
m.. The sums paid in interest over the years far exceed the amounts of the
original loans themselves.
n.. The result is a desperate shortage of money in their economies -
resulting in cutbacks in basic health and education programmes etc.
o.. Grinding poverty exists in nations with great wealth in terms of natural
p.. Structural Adjustment Programmes - these are now attached to IMF loans
and include conditions that recipient countries will reduce or remove tariff
barriers and "open up their markets to foreign competition" - in other words
take surplus goods off another country that can't be sold at home.
British national debt now stands at £400 billion - the annual interest on
that debt is around £25 -30 billion. The government can only pay it by
taxing the population as a whole, so we pay! National debt is up from £26
billion in 1960 and £90 billion in 1980.
a.. Successive governments have borrowed this money into existence over the
b.. Instead of creating it themselves and spending it into the economy on
public services and projects boosting the economy and providing jobs, they
get banks to create it for them and then borrow it at interest.
c.. It all started in 1694 when King William needed money to fight a war
d.. He borrowed £1.2 million from a group of London bankers and goldsmiths.
e.. In return for the loan, they were incorporated by royal charter as the
Bank of England which became the government's banker.
f.. Interest at 8% was payable on the loan and immediately taxes were
imposed on a whole range of goods to pay the interest.
g.. This marked the birth of national debt.
h.. Ever since then the world over, governments have borrowed money from
private banking interests and taxed the population as a whole to pay the
How the Government Borrows Money
a.. When governments borrow money, in return they issue to the lender,
exchequer or treasury bonds - otherwise known as government stocks or
b.. These are basically IOU's - promises by government to repay the loan by
a particular date, and to pay interest in the meantime.
c.. They are taken up chiefly by banks, but also by individuals with money
to spare including very wealthy ones in the banking fraternity and, in more
recent years, pension and other investment funds.
d.. When government securities are taken up by banks, this is money creation
at the stroke of a pen by the banks out of nothing.
e.. Banks are creating money as loans out of nothing by lending it into
existence to the government in very much the same way as they do to
individuals and companies.
f.. The government now has new money in the form of loans to spend on public
g.. If this money was not borrowed into existence in this way, there would
be that much less economic activity as a result.
h.. Under this system NATIONAL DEBT IS CREDIT ISSUED TO THE GOVERNMENT AND
AS SUCH HAS BECOME A VITAL PART OF THE TOTAL MONEY SUPPLY OF ANY MODERN
i.. The government constantly tells us that there isn't enough money for
this that and the other, because it knows that the cost of borrowing any
money it needs has to be passed on to the taxpayer.
j.. Instead, it sells off state assets and now gets the private sector to
fund public services instead.
enormous increases in national debt...
enormous profits for the banks...
a.. Massive government borrowing and money creation by banks is required to
fund a war effort.
a.. The same international bankers have covertly funded both sides in both
world wars and many other conflicts before and since.
a.. Having profited from war leaving nations with massive debts and more
beholden than ever to them, the banks then fund reconstruction.
b.. Bankers have even helped bring wars about. The calling in of loans to
the German Weimar republic largely created the conditions for the rise of
c.. The pattern was well established by the mid 19th. century - by then
international banker and speculator Nathan Rothschild could boast a personal
fortune of £50 million.
The Constant Increase in National Debt
a.. In the same way that under the present system, industry and individuals
must keep borrowing more and more to enable interest payments to be kept up
on their existing loans, so government must constantly borrow more and more
to keep up interest payments on its existing loans.
b.. Furthermore, when a particular government stock is due for repayment,
the government simply borrows more by issuing new government stocks.
Phasing out of National Debt.
"If the government can issue a dollar bond, it can just as easily issue a
dollar bill." Thomas Edison.
a.. Government could stop borrowing money at interest, and start creating it
itself by spending it into the economy on public projects and services, at
the same time creating jobs and stimulating the economy.
b.. It already does this to a very limited extent - the amount it receives
from the banks when it sells cash to them is added to the public purse and
is available for spending on public services and projects.
Seeking to redistribute what money there is by taxing the rich to pay for
services for the less well off does nothing to solve the problem of the
overall shortage of money in the economy caused by interest payments on a
debt based money supply - a problem which most socialists have yet to
The world's economies are our economies. We create the real wealth through
our ingenuity, enterprise and hard work. The current banking system operates
as a massive drain on that wealth as well as concentrating power and control
in the hands of a tiny minority.
Money is the means of facilitating the exchange of goods and services .
There is nothing wrong with creating it out of nothing, because this is the
only way to provide the means of exchange. The amount that is printed or
created simply needs to be matched to the amount of economic activity that
is taking place. What is wrong is that the right to do this has been allowed
to pass to private interests who create it as loans for private profit.
a.. U. S. President Abraham Lincoln considered it a primary duty of the
government to provide a nation with the medium of exchange to enable the
economy to function.
a.. Can we not ultimately incorporate the humanitarian principles of a fair
distribution of wealth that underlies socialism with the dynamic benefits of
a free enterprise economy that lies at the heart of capitalism?
b.. For so long as the power to create money is in the hands of private
interests who do it for profit and control, we can never say that we live in
The European Union single currency gives the power to regulate the money
supply of all those states that join up, to the European Central Bank. The
Maastricht Treaty (article 107) forbids national governments and all other
EU institutions to seek to influence the bankers who make up the ECB. For
the first time this puts the creators of money totally beyond any form of
democratic control or accountability.
ALTERNATIVES - see below
THIS HAS BEEN A VERY BRIEF INTRODUCTION.. I go into more detail with fuller
explanations including how creating money as a debt produces the cycles of
growth and recession and how banks profit from both. Also housing and
mortgages and a little bit of history showing how the present system
developed. All contained in a 20 page A4 sized resume available for 10
second class stamps from my address below. I also have a 4 page introduction
to the alternatives available for 3 second class stamps (this includes state
owned banks lending money interest free, a national credit office, local
currencies operating alongside national currencies, a citizens dividend
etc.) Both available for 11 second class stamps.
Book: "The Grip of Death" - a study of modern money, debt slavery and
destructive economics.. by Michael Rowbotham - 326 pages £15 Jon Carpenter
ISBN 1-897766-40-8. Highly recommended for the most detailed examination of
the problem and how the current system could be phased out over a period of
News sheet: "Prosperity" - Freedom from Debt Slavery - monthly from 268 Bath
Street, Glasgow, G2 4JR.
Contacts: The British Association for Monetary Reform, 27 Imberhorne Lane,
Felbridge, West Sussex, RH19 1QX..
Campaign for Interest Free Money, Global Cafe, 15 Golden Square, London W1R
3AG. Tel. 020 7328 3701.
Richard Greaves - member of the Bromsgrove Group of monetary reformers and
contributor to "Prosperity" "The Old Stables", Cusop, Herefordshire, HR3
5RQ. E-mail: firstname.lastname@example.org Tel: 01497 821406. Revised - September
DID YOU KNOW
That you can clean
almost anything in your household with ammonia and bleach. Ammonia is a good
cleaner and can be
used to clean counters, floors, stoves, etc. and bleach will kill midew in the
bath as well as
to keep your drains
unclogged. Never mix ammonia and bleach ,the fumes are toxic.