The creation of money/credit is the most important issue confronting us all at the moment.We have an elite group called banks that have depreciated our currencies by 96% in 96 yrs.This is the main process by which wealth is transferred from the masses to the few.

When banks create money from nothing they are diluting the value everyone elses money,thus even this depreciated currency upon which they make interest,still puts them at an enormous advantage that no Govt or corporate institiution can avail themselves of.

Since real wealth eminates from the working population including both managerial and labour,it should be they who primarily benefit from the creation of new money.The equitable distribution of wealth could be done through credit unions and banks that operate as mutual societies ie no shareholders.The profits go back to the depositors.

We are fast approaching a feudal middle ages system whereby the Corporates with the aid of our Govts are creating masses of poor who have no way of climbing out of destitution.Govts with the best of intentions of social equity will not reduce poverty.The bureaucracy of social security absorbs most of the tax and the recipients will not help themselves.

When your neighbour is poor,so more likely are you.Poor people also more likely have poverty of the mind,and that ultimately will reduce all our living standards and expectations.Too much wealth in too few hands will bring about anarchy and war.

Arjay, its simplistic to think that just an increase in the money
supply, is responsible for inflation. For there are no perfect
markets.

What is acknowledged is that globalisation has had a massive
effect on reducing inflation in the last twenty years or so,
especially in Australia, as we dropped our tariff barriers.

You forget what spiked global inflation in the 70s, ie the first
oil shock, when the price of oil went through the roof and
the Arabs nationalised their oil fields etc.

In those days there was far less money and credit available in
Australia, but a dire lack of competition. Companies could
simply increase their prices at will, workers could claim even
more, everything was passed on. Globalisation put a stop to
that.

In countries which had open market competition, inflation was
alot less. Switzerland, one place where money sloshes around
and should make you concerned, used to have a currency, in
the early 70s worth 4 sFr to the Australian dollar. Today its
1 sFr to the Australian $, as they never had our inflation.

Why on earth would we want to go back to the gold standard?

Lady Aussie alone, you'd make a great school mam :) Yup,
our spelling gets a bit slack. I see the bright side,
mine is better then UOG or Antonious :) I guess in these
discussions I am more interested in thinking about the substance,
then thinking about the spelling.

UOG, is it mentioned anywhere, that an ounce of gold is missing
from the Fed? Their profits change every year, as does the
profit of our Reserve bank. You would have to go googling to find
out how much they pay the treasury for every single year. You are
good at that, I don't need to to it for you.

gabby..as i suspected your afraid your quoted numbers wont stand up in light of other numbers you been tossing arround

re the gold ,see my previous links...no one knows if the gold is there or not[and it isnt]...workers report the gold held at fort knox is rusting..BUT GOLD DONT RUST...i think we should fully audit the fed,.....[see my previous link..you know the ones you never read...chosing rather to rebut only..what i said...the links say it better than i..

i re read a lot of your posts they all pretty much parrot the same stuff over and over...you rarely post links...and the few you have dont mention the dividend to govt..from the fed...when govts true dividend..should be on the govt bonds the fed holds and the peoples gold..the fed claims to hold..[intrest free]

instead of american money having on it in god we trust...it should be in the lies of the fed..we went bust...or is it the fed you trust, or the fed turned our gold.silver into dust...the tissue of lies will not be sustained...those who stall the audit of the fed are serving treason

*as i suspected your afraid your quoted numbers wont stand up in light of other numbers you been tossing arround*

OUG, You are of course wrong as usual, so I will explain to you
why.

From memory, that figure was 31 billion $ and came from Wickipedia,
which tells you all about the Fed and how it functions.

The real reason is that for posters like yourself, I refuse to
do any homework. Now if it was a wise poster like Pericles, it
would be a different story, for I respect his opinions, even
if at times we agree to disagree.

You are what I call a flooder. You post huge numbers of links,
then expect people to spend their days going on a wild goose
chase, to disprove the huge amount of rubbish on those links.

Fact is the net not only has good stuff, but also heaps of rubbish,
lots of people making money selling books to the gullible etc.
If you want to believe every word, well good luck to you lol,
I am not that stupid and won't waste my time on it.

IMHO you are simply delusional. Perhaps you smoked too much
weed in your life lol, I know similar characters, they live with
the fairies. Sorry OUG, but I had to say it as I see it.

gabby quote<<Westpace financial report, to find the figures:

http://info.westpac.com.au/Sites/1/pdf/WBC08AR_Financials.xls

Its shows..interest paid at 21.8 billion.>>ok there we go gabby

ONE BANK[westpac]...pays 21 billion to the fed [or some fed]...one smallish bank in the global sceme of things

again quoting your own numbers..in response to how much the usa fed paid out as dividend to usa treasury,,,your reply,,..<<From memory, that figure was 31 billion $ and came from Wickipedia,
which tells you all about the Fed and how it functions.>>yes it does [i thought it was 79 bil but will trust your memory of the facts

so the aussie fed..from one bank..[westpac]..got 21 billion...say just for the 'big4' round it off at 100 billion..PLUS...minus running costs

we see that just in the aussie fed franchise the govt is losing 100 billion

you dont have the aussie fed dividend payment??..they gave govt do you[because the fed..[as you have now admitted simply creates the book entry..ie creates the money from thin air...and some how gives only pennies of it back...as well as keeping the gold reserves...

in fact they lost the gold long ago...sold it to their mates..[but you didnt read that link did you]

you should up..your download..to two meg..[your one meg download limit isnt serving you to get the facts bro]..i love you bro...but you really should read the links...i had to read them...maybe if you read them you would stop defending thieves and liars..they are stealing from you too

*ONE BANK[westpac]...pays 21 billion to the fed [or some fed]...one smallish bank in the global sceme of things*

You see OUG, this is where you go all delusional. Nobody has claimed
that Westpac paid 21 billion to any fed. They source their money
from various people. Mums and dads make deposits, they are paid
interest, companies make deposits, they are paid interest. Anyone
from whom Westpac borrows, is paid interest.

Now if Westpac want to borrow from the Reserve Bank, or park their
Reserves money there, they do so and are paid interest or pay
interest. Reserve Banks act as bankers banks.

If you check out the Australian Reserve Bank website, it will
tell you how much it has paid each year, back to the Australian
treasury. Sometimes the Reserve bank pays very little, as they
might have lost on their forex holdings etc, it depends on how
currencies change in value.