MONETARY: Discussion of Monetary Reform

["Harry Frazee" <haf1776@hotmail.com>]

Dear Mr. Shakespeare and others discussing monetary reform.

It is difficult to tell if you were the one that posted those words so I 
will start with an apology if it was not you. Of course if it was you then I 
hope you will read and head these words. First it is impossible to show that 
the monetary mechanism, the one in place today in every modern country 
benefits any one except the banks and bankers. It is easy to show the this 
mechanism is responsible for every kind of social distress cursing the 
societies of our planet.

Here is why in the simple terms. When a bank makes a loan it does not get 
the money from somewhere.  The money is created out of thin air.  It has no 
material existence.  “Money” from nothing.  This is the only kind of money 
in circulation except for coins. Their amount is negligible for the 
discussion. While debt  “money” circulates it works to exchange the goods 
and services we create. Here is the rub. It is not really money though that 
is what we call it. It is debt and evidence of debt.  When  paid back it is 
extinguished, destroyed, no longer circulates, no longer imagined to exist. 
Because of interest charged for its use more money is required for repayment 
than is originally created. The ramifications of these simple facts are 
endless and they are all harmful to society.  If you cannot see the harm of 
this system just let me know and I can give you endless examples. Here are 
some.

Where else in the business world is it possible to create an imaginary 
product which accrues a perpetual profit.

The dictum of business in today’s world is make a profit or die. This means 
that business must charge more for their goods or services than they cost to 
produce. That is a self evident fact. But wait a moment. Now get this. It 
means the workers are never paid enough to consume the products or services 
they produce.

Profit for business as a whole is impossible. Those that succeed have done 
so at the expense of other which, of necessity must fail.

I’ll finish up this little missile with the basic proof. When the banks loan 
money there are three requirements written into the loan, otherwise there 
would be no loan. Keep this in mind while we learn what happens. (1)We all 
know money cannot, will not multiply unless someone works which means time 
has to pass. It may be a short time like the harvest of crops or it may be a 
long time as in the growing of forest for timber. (2) Risks must be run. No 
one can control risks. (3), For a major duration of the loan the money is 
inaccessible, not liquid. It no longer exists for the borrower. As we have 
noted it never really existed at all. It was paid out in wages, materials 
etc. I can only be repaid if the project succeeds, that is, makes a profit, 
which now means success. These conditions are not rules set by economist. 
They are conditions contingent on the exchange of solar energy in 
conjunction with raw materials. They require labor. They are part of the 
physical system of the universe. There is no question of their abrogation.
“Minor usury” like industrial share holding etc means the borrower and 
lender run an even risk and parties are content to wait for success of the 
enterprise. Major usury , the case in most gilt edged investments, 
especially government loans and credit creation by banks the circumstances 
are different. When employing major usury the community must satisfy three 
conditions laid down by the bank, (1) interest & payments are due 
immediately, (2) No risk is run, (collateral securities are required) and 
(3) the loan can be recalled at the discretion of the bank, ( the money is 
always liquid); these conditions are unworkable. This impossible procedure 
is the universal practice, the basis of banking. Our money is created by a 
usurious process to which all three conditions are attached.
We all partake of usury in its major and most disastrous form. The structure 
of credit is built on it. The mortar binding it is the old bitter blend of 
blood and tears. This may sound overstretched, fantastic, poetic. It is 
truth. This is the reason for social distress.

This hardly begins to enumerate the inequities of this pernicious system.
Let me know if more “proof” is required as there is tons of it to be had.

Warmest personal regards, Harry Frazee  Address and EMail on file


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