Response to Gerrard Eckhoff

Reading Mr Eckhoff's letter makes me wonder how ACT ever got a reputation for sound money policy. He is so hopelessly wrong about everything that it is hard to know where to start but let's try this:-

''I intend to follow the current fashion and print money". It isn't ‘the current fashion'. The Bank of England has been doing exactly that quite legally since it was founded as a private bank in 1694. And a variety of other banks had been doing it illegally for several centuries before that.

Is this counterfeiting? No, in the sense that the Government of the day made it legal for the Bank to create money from nothing. However, the private investors put up only half of their agreed capital and printed the rest after they got access to the printing press. That was surely counterfeiting. And does this counterfeiting destroy our monetary system? Yes it does! Haven't you noticed? But it's legal.

Quantitative easing as used in the USA (and the UK and Japan) is not a good idea, but contrary to your prediction, despite printing trillions (yes, trillions) of US $ it has not caused rampant inflation! Please explain.

The reason that it is not a good idea is that the money has been created from nothing, without any asset backing, by the Reserve Bank, which is a cabal of the 14 biggest private banks in the US. In different circumstances it could easily cause inflation. If this infusion of blood into the US economy has produced no response it's because its hard to get a reaction from a corpse.

Monetary reformers such as Positive Money, Social Credit and a whole host of economists do not approve of the present quantitative easing. The common bond between these groups is their belief that the right of private banks to create money by a process called Fractional Reserve lending must stop; that the State should create the nations money supply, at low or no interest and that the money should be spent into existence by the process of building our national infrastructure (such as the Christchurch rebuild),

If Mr Eckhoff doesn't like this idea he might like to take a closer at the unholy mess being made by this Government, in Christchurch, using the existing solutions.

Dennis Dorney, Dunedin spokesman, Positive Money

 

Worth a Try?

Having read Dennis Dorney's refutation of Gerard Eckhoff's letter, one has to pause and think. Does he have a point? If one looks a the parlous financial state the world is in at present, you would wonder if there was not a better way.

I have just read "Extreme Money: Masters of the Universe and the Cult of Risk" by Satyajit Das, and the fearsome potential of the financial manipulations being conducted by the moguls of 'Wall St' and others to destroy the world's financial structures is real and now. It is obvious to me and many others that the present systems are warped by the trickery of the 'Greed Merchants' to the point of collapse. Derivatives, Swaps, fractional Banking, Quantitive Easing (printing of 'trillions of dollars) and unlimited Debt (which can never be repaid) all contribute to the fall.

After the pain of the collapse there will be a renewal of the financial systems as we know them. It will most probably be based on 'Gold' as the unit of value and any and all money printed will be backed by the unit of value. That is the system which pretty much served the world from Roman times. It was the introduction of 'fractional Banking' plus the demeaning and the removal of the gold standard in 1971 by President Nixon which finally unleashed the world's finances into the hands of the 'Banksters' and the 'Greed Factor' kicked in.

Where you see individuals helping themselves to hundreds of millions of dollars per annum as rewards for setting up and merchandising 'Financial Packages' to unsuspecting investors, there has to be a day of reckoning. Where you have the governments of the world's nations conniving with these financial 'swindlers' and public servants being seduced into playing the games of 'Debt Funding' anything that they wish, we have an explosion of frivolous things like 'Stadiums' Expansive Museums etc. all put on the credit card with the unsuspecting citizens to pay. Worse, in order to conceal the extravagances we see these same public servants dealing in the dangerous plays of 'Derivatives' and 'IRS' (interest rate swaps) which already have indicated serious additional losses.

Where it will end is anyone's guess, but it won't be pretty. In the end it may well be that Mr Dorney's form of people control of Money supply and Debt could be the answer. It is far too important to be left in the hands of the 'Banksters' who have brought us to where we are today.