Posts Tagged ‘banking’

Sorting Out Society

2 April 2017

The “Thinking Out Loud” category is for hypotheses, ideas, opinions. Though of course these are always influenced, or colored, by prior training and study, I put a post here when I am unsure of the facts, or don’t care to be academically rigorous.

block man pencil sketch

Sketch I made for art class, about 1970. I picked it to symbolize the effects that “bad things” have on life and the individual.

A problem of money

What got me going on this line of thinking was a difficulty I was having obtaining funding for a project. I thought to myself: Someone doesn’t want to spend this money; they want to sit on it instead. And that lead me to the subject of banking.

Banking

Banking, it is said, started when tradesmen (this is the story I heard) wanted someplace to store their gold securely. The “banker” stepped forward, offering to provide this service. In exchange, he would be allowed to loan out the money to others, and collect interest payments on these loans. Interestingly, according to Wikipedia, originally the most secure places for such deposits were temples and palaces. But we won’t go down that road just yet.

Here we have a situation where a professional-level service is invented to fulfill a need. The service consists basically of amassing deposits (and safekeeping them) which one can then earn money on. It is presumed the need arose due to 1) lack of space at home to store such items, or 2) fear for the security of the assets.

Today, money exists as figures in accounting books. And those books are actually stored on computers. There is no longer any great need to provide security for currency. All one must do is secure the computers.

Traditional banking still exists, but cash deposits bring back virtually no earnings to the depositor. Investment banking, on the other hand, has skyrocketed. The whole society has been pushed into making investments and buying on credit. Why? Keeping deposits safe doesn’t make money, especially when they are only numbers in a computer. Traditional banking can still pay off, but there is much more to be made managing investment portfolios and offering short-term credit at very high interest rates. This work relies on the existence of asset pools, and managers of these pools are often rewarded according to the size their pool. Even if you could sell some assets to buy, say, land (which works under a different system), the modern banker would prefer to loan you the money to buy the land, with your assets as collateral. It would be simpler for the land buyer to just sell one asset in order to buy the other, but is not in the interest of the bankers to operate that way.

Back to Basics

The original need for banking, then, arose – we are to suppose – from an uncertainty concerning the security of real assets (gold). Why would anyone have this uncertainty? Because people existed who were willing and able to steal such things from other people who had acquired them more-or-less honestly. Those people are commonly called “criminals.” They have always been a major nuisance in any society. They are willing to break the most basic rules, or morals, in a society. Why? That is a question to be answered elsewhere. It HAS been answered, but for the purposes of this discussion, it is irrelevant.

Let’s say you had a criminal of somewhat unusual intelligence. What might he be attracted to do, say, in the banking scenario above? One thing he could do would to become a banker. Then he could hire some hoodlums (criminals of leser intelligence, we might imagine) to go around town and steal precious things from people’s houses. He would then advertise his services, noting the recent increase in the crime rate. He would have to keep his connection to the hoodlums a closely-guarded secret. And in such a wise, he would attract more business to his bank.

Application of the criminal modus operandi (MO) to other fields

Mishaps, crime, sickness, hunger, disputes and war are some of the big problems that society must deal with. Smart criminals could secretly cause such things to happen, then offer services to “protect” people from the bad effects of these things. In modern times, criminals have even been accused of causing bad weather, floods, earthquakes, and ecological collapse. For them it would seem like “good business,” would it not?

What professions these days offer such services?

  • Lawyers
  • Doctors
  • Insurance Brokers
  • Psychiatry and Psychology
  • The military and arms manufacturers
  • Police
  • Governments
  • Educators
  • Preachers

All of the above fields are subject to pressure from the criminal world and can turn criminal. In other words, they offer services based on the fear that something bad will happen. Most people, though, would not be interested in causing such bad things to happen. Only the criminals would.

The real essentials

All an honest society of human (or similar) beings would need to survive – even prosper – would be the following:

  • Food (and water)
  • Shelter (housing and community buildings)
  • Clothing sufficient for seasonal weather variations
  • Transport
  • Systems for handling waste
  • Means of communication
  • Quiet times
  • Opportunities to play
  • Opportunities for spiritual growth

How, then, did we get governments, lawyers, war, insurance companies and psychiatry? It traces back to the criminal and his origins.

Recent discoveries support these observations

Hubbard was the first researcher I studied who really laid out the basics for me. But others before and more commonly after him have reiterated those basic findings.

The human personality is immortal and capable of remembering anything it has ever experienced. Thus, a simple process of sharing experience could ultimately replace education as we now know it. It could also replace all the self-important “research institutions” that seem to look and look but never find the answers. Of course, this ability to remember must be unlocked. That’s where spiritual development comes in. And who was pushing the inability to remember? Criminals, of course. You wouldn’t want someone getting murdered, then coming back, going to the police, and telling them exactly how it happened and who did it. (Variations on this have actually occurred.)

Hubbard adds that the being is capable of knowing anything that can be experienced. On an esoteric level, this indicates that anything is possible. On a more practical level, it means that the plagues of man caused by criminals or otherwise could in theory all be dealt with at the spiritual level. This even includes healing of the body.

People are basically good. They are willing to play the game of human life and cooperate in doing so. All the basic requirements of the game could be provided based on this willingness alone. There is no real evidence that any of the professions listed above are in fact indispensable. There is only evidence that in a world where criminals go undetected and unexposed, these extra functions become apparently necessary.

Huge numbers of people on Earth and elsewhere live out their lives doing nothing but the essentials, as listed above. Some never experience any major criminal activity. Others do and bounce back. Some less fortunate get sucked into the criminal system of die at the hands of criminals. These could be as much as 1/4 or more of the population of this planet. That’s too many. With better understanding of and control over the criminal, most of those adversely affected could be returned to happiness.

Happiness, you could say, is the overcoming of not unknowable obstacles toward a known goal.
– LRH, 1954

Institutionalized Crime: Banking

4 July 2016
shark

Member of animal superorder Selachii.

In Part 28 Jonnie Tyler finally finds out who the “small gray man” is. He is a banker, portrayed by LRH as a member of the alien race called the Selachee.

The planet Psychlo, as Jonnie has just learned on his own by sending fancy video cameras out into space using the transshipment platform, was blown up a little over a year ago when Jonnie managed to secretly send a load of bomb-filled coffins there. The huge nuclear bombs blew down into Psychlo, held in on top by a tremendously strong protection shield. The explosions reached its molten core and eventually turned the whole planet into a small star.

Psychlo was the home planet of Intergalactic Mining, which had taken out a loan from their bank about a thousand years earlier to purchase Earth from the government. The Psychlo Empire had discovered the planet after finding a map of its location on a space probe launched from Earth. According to the bank, Psychlo had “legal title” to the planet, which had been transferred to Intergalactic at the time of the sale. The mortgage had a payoff period of over 2,000 years. The company had stopped payments on the mortgage a year ago, when Johnny had succeeded – unknowingly – to destroy its home planet.

The bank was looking for the new legal holder of the title so it could serve loan delinquency papers on them.

Does this sound ridiculous? It happens every day on Earth, on a much smaller scale.

Of course, at the level of a planet, it is ridiculous. Not because of the concept of “legal title” but because of how the law favors appropriation of lands (or planets, or space) by force, with no further responsibilities or liabilities attached. This is law written by the conqueror and is unjust on the face of it. Yet we deal with such laws every day.

Did the native inhabitants of any lands on Earth have any say in the “laws” that governed the disposition of those lands when Europeans overran them by force? Of course not. They were required to learn European law to retain any control at all over any piece of their former territories. From a more humanitarian viewpoint – or even from the viewpoint of “natural law” – what occurred when Europe overran the Americas was theft, plain and simple. In all of the Americas, there is very little if any “legal title” that can be traced back to a real, human, transaction between friendly parties.

But banks set up a legal system that would favor their interests. And I can only imagine that they used various forms of blackmail and propaganda, as needed, to bring pressure on the writers of those laws.

I haven’t finished re-reading (listening to) the book yet, and I don’t remember how Jonnie solves this problem.

There are obvious basic principles of respect and responsibility that could be applied in such situations. The first and most obvious is that an inhabited planet should not be considered “fair game.” If it can be demonstrated that any individual, group, or society is occupying and taking care of an area of space, that gives them “title” to that area. For many reasons, use of land – or space – cannot be governed by quite the same rules that cover personal property such as clothing, furniture, tools. Yet the bankers have distorted law in that direction, while overlooking certain obvious contradictions.

The result in many places is that land can be bought and sold as if it were private property, while if stolen by certain protected parties, will be considered as belonging to them regardless of the act of theft.

I you want to wreck your shirt and buy a new one every week, that’s your choice. But you can’t treat land – or planets – that way. A conqueror that kills a planet or its inhabitants, or sells them into slavery, has no right to legal title and incurs a debt to the inhabitants or their survivors. That our laws should protect such a conqueror is only institutionalized crime.

My study of this subject has only taken me as far as Henry George’s book Progress and Poverty. I found his basic ideas very persuasive, and I recommend the book. Law, however, can always be broken and re-written by force. This is an irreducible fact of life. So, to go far, one must speak softly, but carry a very big stick.

A very short history of coups d’état in the U.S.

6 October 2013

It is time for me to put in my 2 cents on this matter, as the political scene continues to be quite extreme.

It is common in history to think of political coups as being accomplished by killing (assassinating) the existing government leader.

For some reason, this line of reasoning is not followed in the United States. All assassins were lone nuts or extremists, not associated with any political opposition group. This seems to me to be highly silly.

In this, I follow the analysis of Bill Still in his 2010 documentary “The Secret of OZ.” Many other researchers in this line have come to the same conclusions, and include the Kennedy assassination in the same group as the others. The attempted assassination of Andrew Jackson in 1835 is also usually included in this list, as it was overtly political. The only presidential assassination which does not fit this pattern was the William McKinley shooting, but it definitely is part of this subject.

Four Presidents killed; one political issue.

The attempt on Jackson’s life was made on 30 Jan 1835.

Lincoln was taken out on 14 April 1865.

Garfield was wounded on 2 July 1881 and died of complications about a week later.

William McKinley was shot by an anarchist on 6 Sept 1901 and died a week later.

Teddy Roosevelt was wounded by a man who claimed to be avenging the death of McKinley on 14 Oct 1912.

And Kennedy was taken down on 22 Nov 1963.

What is the issue that ties all these deaths and attempts together?

Who controls the money supply?

It can be established that public (government) control of the money supply can lead to a prosperous economy that grows stably.

Still’s film cites Roman coinage, English tally sticks, and Colonial Scrip as examples of government-issued money that fostered economic growth and general prosperity.

The Founding Fathers were aware of the usefulness of Colonial Scrip, and started the Revolution majorly on demands from England that all debts be paid in gold, which was scarce in the colonies.

During the conflict, the colonies printed “Continentals,” a paper money, to get by during the war. This was undermined by massive English counterfeiting. When time came to write the Constitution, the rampant inflation caused by the counterfeit Continentals was still on everyone’s mind, and the Constitution only allowed the federal government to mint coins, not print paper money.

From that time until today, a largely unpublicized political battle has raged over what body would be allowed to issue paper money in the U.S.

Timeline of the Money Wars

The early Congress was persuaded to create a private bank in 1782 to issue paper money. This bank, the Bank of North America, inflated the money supply, so Congress killed it in 1785.

The next privately-owned bank allowed to issue money was chartered for 20 years in 1791. Thomas Jefferson (among others) didn’t like the idea. As time went on, it become more and more clear that it was a bad idea. After Congress refused to renew the charter in 1811, the British attacked Washington D.C. in 1812.

This pressure eventually resulted in a new private central bank being chartered for 20 years in 1816. During this period, Congress came under the thumb of private banking interests, and renewed the bank’s charter in 1836. However, Andrew Jackson vetoed the renewal.

So the bankers secretly declared war on the American people. When they could not get a new private central bank, they started the Civil War, hoping to divide the new nation and thus defeat its will to be financially independent. Lincoln printed “greenbacks” during the war, and intended to continue this practice. When it was clear the war would not divide the country, Lincoln was taken out in the spring of 1865.

After this, Congress, still firmly in the pockets of the banking interests, was persuaded to reduce the money supply in the United States, causing a depression. The Coinage Act of 1873 was passed to take silver coins out of circulation. In response to this suppression, a “greenbacker” movement was born, and also a “free silver” movement. Garfield supported these causes.

He was taken out on 2 July 1881 after being in office only a few months.

European banks continued the pressure by again demanding payment in gold, as England had done prior to the revolution. This resulted in a “panic” in 1893, and massive loss of wealth by small banks and farmers.

In 1896, William Jennings Bryan ran on an anti-banker platform. The bankers defeated him with a rumor-mongering campaign. This allowed them to pass the Gold Standard Act of 1900.

But the populace was still anti-banker and supported Teddy Roosevelt. He was shot in October of 1912 but survived.

However, Woodrow Wilson was pushed into signing the Federal Reserve Act of 1913, and we still have that system today. (The Federal Reserve is a private bank that issues all paper money in the United States.)

It is believed that Kennedy had plans to change this system. Since he was taken out, no President has seriously talked about it, though it is obvious to the public that the banking sector remains largely corrupt.

Coup D’état: Accomplished

For all intents and purposes, the banking interests won in the United States in 1913. They consolidated their power with the Kennedy assassination in 1963.

There has been much written and said about who these people really are, where they come from, what they want, and to what extent their power reaches. I just call them “criminals.” That’s basically all they are. They want to get rich without working, because they can’t work, they can’t invent, they can’t dream of anything bright or beautiful. They are locked in cages of their own designing; they have no business running a nation or a bank. The sooner we learn to handle them, the better our futures will be.

My take on the push against Sharia in the US

9 May 2012

Those who follow me (if any) know that I am interested in changing the current financial system. In this regard, I have been following the White Hats movement, which seems loosely related to the much more tentatively real Galactic Federation of Light.

These people want to replace the current system with one that is “equity-based.”

On googling “equity based finance” I found numerous links to articles and papers about Islamic banking. Why was this?

It is because Sharia advises in favor of equity-based financial practices.

I read the Wikipedia article on it here:
Islamic Banking

To quote the article briefly:

The term “Islamic banking” refers to a system of banking or banking activity that is consistent with Islamic law (Shariah) principles and guided by Islamic economics. In particular, Islamic law prohibits usury, the collection and payment of interest, also commonly called riba in Islamic discourse. In addition, Islamic law prohibits investing in businesses that are considered unlawful, or haraam (such as businesses that sell alcohol or pork, or businesses that produce media such as gossip columns or pornography, which are contrary to Islamic values). Furthermore the Shariah prohibits what is called “Maysir” and “Gharar”. Maysir is involved in contracts where the ownership of a good depends on the occurrence of a predetermined, uncertain event in the future whereas Gharar describes speculative transactions. Both concepts involve excessive risk and are supposed to foster uncertainty and fraudulent behavior. Therefore the use of all conventional derivative instruments is impossible in Islamic banking.

The source given for this statement is:
Mervyn K. Lewis, Latifa M. Algaoud: Islamic Banking Cheltenham, 2001

Morality in finance

This introduces the odd idea that banking, and financial matters in general, should be conducted on an ethical, even moral, basis.

The is NOT the Western tradition! To be curt, the West has practiced “rape and pillage” banking since at least the days of Rome.

Push against Sharia in US

There has been a push against Sharia in the US justified by the idea that Sharia encourages Islamic extremism (for which there is no proof, of course).

According to this article support for this backlash seems to be loosing ground. But where did it come from? The article mentions David Yurushalmi, a lawyer for the conservative Center for Security Policy (CSP). David, an anti-globalist, does not claim to be the intellectual or any other leader of this movement. However, he does firmly believe in it, as does the Center he works for.

This group honors mostly various military leaders in the US. One odd exception to this was Christopher Cox, U.S. Congressman from California, and chairman of the Securities and Exchange Commission from 2006 to 2008. This group also supports Zionism and American Exceptionalism.

According to Wikipedia, its membership includes Richard Hoagland and Linda Moulten Howe, who are prominent commentators in the alternative news community.

Again according to Wikipeida, based on a web page that no longer exists, the CSP is subsidized by donors supportive of neo-conservative causes, including the Sarah Mellon Scaife Foundation, the Shelby Cullom Davis Foundation and the William H. Donner Foundation.

I have no real way of tracing the sources of funding for these foundations. However, the Mellons were a banking and oil family. Shelby Collum Davis was an investment banker. And Donner was a steel man who got financial support from Mellon.

These guys like the “American way” there’s no doubt about that. And that includes, I presume, the “American” way (actually the Roman/Italian way) of doing banking. Many “modern” banking practices are outlawed by Sharia.

Any connection?

It’s a lot more clean and clear than the surface argument, isn’t it?