Dr Ron Paul,the Congressman for Texas is achieving some remarkable results.Just a month ago less than 10% of Congress supported a bill to audit the US Federal Reserve Banking system.The Fed is a private group of banks which own the US currency.They loan all the money to the US Govt at interest.What most people don't realise is that the fractional reserve system of banking which we also practise,creates serious inflationary pressures thus perverting the productivty of the real economy.

The US Govt issues bonds[a bond is really a promise to repay the loan] to the Fed,who in turn loan money to the US Govt.The Fed being a distributor of money then loans to all the other minor banks. What Congress cannot find out,is where this money that the tax payer is indentured to repay,has gone.Much of it has not been used to support small/medium businesses.The suspicion is that the Fed is using tax payer money to buy up cheap assets.ie other banks.

The ignorance amongst some of these pollies is amazing.Many in Congress think that the Fed is a Govt owned body.At the very least, Congress should support a bill to see where the money has gone.

The lack of reponse to this all crucial issue of reforming the banking system demonstrates the gross ignorance of not only our general population,but the so called intellectual elites who seem totally ignorant of how this dysfunctional system works.

I'm an intellectual midget,a try hard,yet I can see the injustice and the perversions that have distorted our economies for the last 100 yrs.Money should be owned by the people,since it is they who produce the wealth.Banks are the least productive institutions on the planet,yet in the biggest recession since 1930,they are still making obscene profits.

Ron Paul is right,it is all about liberty and the operation of the free market under a system of balanced power.The power however is far from balanced,thus is now currently in a stage of collapse.

How can a free market operate with banking system diluting people's wealth with money based on debt and expectation? It failed in the 1930's and it has failed now!

If you’re a midget I would be hard to spot under a microscope.

I know you all are limited with your posts so I get that answering questions probably annoys you all…

But what is the fractional reserve system of banking? Is what you described that is happening in the US happening here?

Does the US government give the money to the banks in the first place to hold but then they loan it back to the government and charge interest?

Oh gawd, I just realised I don’t even know where money comes from.

Jewely.See Paul Grignon's" Money as debt" Well worth watching.It explains money really well.
http://www.youtube.com/watch?v=vVkFb26u9g8

Arjay: "See Paul Grignon's" Money as debt" Well worth watching.It explains money really well."

I watched all five. I really did have it in my mind that money equalled gold stored somewhere. I thought it did represent something "real".

But arn't the governments themselves worried about the bankers?

Would a first move to be make earning interest illegal?

Are we too entrenched now for there to be a way of dealing with it that doesn't include everyone on earth understanding the debt creating money thing?

Jewely.The system has been entrenched for over 300 yrs.It is like ridding ourselves of the Catholic Church.It is a traditional institution.That said,we need to tread carefully when considering alternatives.If there are restrictions put on the amount of money produced,then who is to decide who gets it and how much?If there is no price for money,then some central body issues it not under a free market situation.That means you can have a fantastic idea that cannot get financed because of some bureaucrat.The Central Banks should not be making such enormous profits since they are not the producers of real wealth.

I'm not entirely happy with Govt alone creating and distributing money but we can evolve a more balanced equitable system.

On balance,I think that there should be a price for money, ie interest,but we should all share in the profits created by money,since money represents human potential and productivity.

The debt slavery created by the World Central Banks must end.There is a better way and perhaps you can add to this debate with your ideas.

Arjay:"I'm not entirely happy with Govt alone creating and distributing money but we can evolve a more balanced equitable system.
On balance,I think that there should be a price for money, ie interest,but we should all share in the profits created by money,since money represents human potential and productivity.
The debt slavery created by the World Central Banks must end.There is a better way and perhaps you can add to this debate with your ideas."

Okay, I feel like I'm at school.

What if the government made it law that the banks had to give everyone some shares in the banks.

They arn't allowed to sell them but can use the profit from them?

And people get them with their birth certificate (mum and dad hand the shares over at 18) and then go back to the bank when the person dies and handed to the next kid born.

No more benefits. No family assistance... Population stabilised.

i agree..we all need a share in the common-weal..[in the past we did have..[but the wealth now has become privatised,as an audit of the fed will reveal][but..that..aint going to be allowed[to happen]

quote from
http://www.washingtonsblog.com/2009/05/economy-will-not-recover-until.html

the way Washington works...The government is run..by people who first and foremost want to advance their careers.

And,the best way to advance..your career..in Washington..is to go along with what everyone/else is saying...If that's not completely obvious..before..[the collapse of the housing/bubble],..it certainly should be obvious now.

How many people in government have lost their jobs because they failed to see the bubble?..the top financial officials in the Obama administration,without exception,..completely missed the housing bubble...One might think it was a job requirement.
http://uruknet.com/?p=m54034&hd=&size=1&l=e

This lack of accountability among fed controled economists and private[for proffit/economic-analysts is the core-problem that must be tackled...Unless people are held accountable for their failures..in the same way as custodians and dishwashers,there will never be any incentive to point out looming disasters like the housing/derivitives trading..bubble.

The reality is..we have a systematic risk/regulator...called the Federal Reserve/Board...They blew it..completely.

We will do far more to prevent the next crisis by holding our current risk regulator accountable for its failure(fire/jail people)than by pretending..we somehow..had a gap in our regulatory structure..be creating another worthless bureaucracy....lol
http://www.huffingtonpost.com/2009/05/06/fed-inspector-general-kno_n_197934.html

http://www.newsok.com/house-bypasses-governors-veto-to-claim-oklahomas-sovereignty/article/3366762http:/www.newsok.com/house-bypasses-governors-veto-to-claim-oklahomas-sovereignty/article/3366762

the Wharton study pointed out that the public,expecting to be protected from such abuse,as suffered a trauma of loss similar to that after 9/11."

Indeed,the government's responses to both'crises'have been similar:
http://www.washingtonsblog.com/2009/05/is-everyone-in-washington-being.html
http://whatreallyhappened.com/WRHARTICLES/briefing.html

After 9/11,no one was held accountable for something that-at the very least-should have been prevented

Instead,a new super-bureaucracy was created(the Department of Homeland Security),that promptly set out to subvert state sovreignity,just as some super-risk-regulator is now being proposed for the economy[run by the banker controled world/bank..[imf]controled fed/reserves
http://rawstory.com/08/news/2009/05/07/naomi-klein-poorest-most-vulnerable-paying-for-bank-bailouts/

as with 9/11,the government is creating a commission which will be sure not to"assign blame"
http://www.huffingtonpost.com/2009/05/06/fed-inspector-general-kno_n_197934.html

the economy will not recover until the perpetrators of our crises are held accountable...But unfortunately..the government/party/elite banker/lawyer/media cartel is doing everything possible to avoid holding anyone accountable.

http://www.economicpolicyjournal.com/2009/05/insiders-have-good-belly-laugh.html
http://www.dailypaul.com/node/92236
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=389&topic_id=5611262
http://www.counterpunch.org/roberts05072009.html

Jewely,I just want people to think for themselves.I don't have all the answers.It was not until this GFC happened 12 months ago did I start questioning our flawed system.

Money needs to be created from productivity not debt.Each year we our GDP or Gross Domestic Product is revealed by the ABS and this can be used as a guideline for creating money to equal real growth.This money belongs to the people,so why not make the banks who generate this real currency pay their customers say 3.5% which is usually our GDP on their annual salaries?This means that all working people share in the wealth created in society.So if you earn $100,000.00 pa you get an extra $3500.00 pa from your bank just for having an account with them.It costs the bank nothing since they generate it in a computer as with the fractional reserve system.You don't have to actually have $100,000.00 in the bank at any time,just turn this amount over in the form of wages.It has to be a simple system.

Any money gererated above the GDP by the banks then has a price of interest so that people with innovative ideas can create more wealth.

Presently the Global Reserve Banking System has us all chained to debt on over valued assets that many cannot repay.This system of creating money via debt is actually limiting economic prosperity.

"Jewely,I just want people to think for themselves.I don't have all the answers.It was not until this GFC happened 12 months ago did I start questioning our flawed system."

I am thinking, after ten years of hanging out with very young foster kids enmass I fully get the sentiment about thinking for oneself. It's like my mantra. But I'm not used to thinking "big". I'm not even used to talking to grown ups that have thoughts about anything other than teething and nappy rash.

Okay so what if you, or me (hey I could fluke it) nailed it, came up with the best money system in the world. How would you get it out there?

GFC?

Jewely.The first stage is to get people thinking.Since this thread started Ron Paul has moved rapidly from 25% congress support to 33% support to audit the Fed.This is truely a David and Goliath battle.see http://www.ronpaul.com/

This present system was not planned .It just happened and those in power will not relinquish it without a serious fight.Wouldn't everyone like to conjure money from nothing and then loan it at interest to the Govt/individuals? To have the ability to create too much money is the same as counterfeiting.It steals other people's hard earned assets.If all honest people truely understood how the system worked ,there would be a revolution tomorrow.

Change won't happen unless many people have the knowledge.That is why the internet is so important.You won't see the pop media writing about fundamental issues like these,since the Corporate elites have shares in all the major media outlets.There are some areas journos will not dare tread for the sake of their careers and money.

Many people just say change won't happen because they are too powerful.Well,this time of collapse and human suffering is ripe for creating awareness and real change.Liberty from unnecessary debt is just as important as physical liberty.Why should people work hard all their lives and have their savings stolen by inflated worthless money?
They are stealing people's time and enjoyment of having leisure beyond work.

Arjay:"Many people just say change won't happen because they are too powerful.Well,this time of collapse and human suffering is ripe for creating awareness and real change.Liberty from unnecessary debt is just as important as physical liberty.Why should people work hard all their lives and have their savings stolen by inflated worthless money?
They are stealing people's time and enjoyment of having leisure beyond work."

This question of financial liberty seems to require a sudden awareness of the masses.

In that thing you sent me it repeated several times how this concept of money is not taught in schools, people don't understand where money comes from. I certainly never had a deep thought about the very thing that supplies everything that surounds me.

So I suspect a team of people will be required for this one message to reach enough to create change. Is there an example in history where a change has taken place because of people dedicated to teaching others one specific reality to generate enough interest for a change to be demanded by populations.

Have to be a huge world embracing example. Earth is round. How did that message get out? Or have I gone off on a strange tangent, is this the job of politicians to understand something and then advocate for change?