Wednesday, March 14, 2012

5 Principles for Money and Banking in a New World System

image source
Eric Blair
Activist Post

Increasing numbers of global citizens are becoming aware that the monetary system and international cartel of banks are rotten to the core and represent the root cause of all economic disparity to mankind.

They can literally print all the wealth they need for their cabal, while at the same time transferring the interest attached to each monetary unit created to the general public.

It's a scheme that has given them ownership of nearly every material object on earth, while placing the chains of debt servitude on the whole of humanity. Knowledge of this scheme is reaching a critical mass who are now becoming hungry for solutions.

A great many scholars have put forward models of monetary creation and banking that have tremendous merit for a new world system that better serves all of mankind.  These scholars look to what has had some success in the past for presenting a better model for today.

Some propose returning to a gold or commodity standard to help control the supply of money, while others seek to remove interest (debt) attached to money creation.  There are also out-of-the-box proposals like using electricity as currency or the already successful digital currency Bitcoin.  Each display the desire for something new and show elements of promise in their own right.

However, there is much infighting over the best approach to replace the current system. Therefore, I propose that all of these factions who share solidarity that something must be done to end the banking cabal's bondage at least unite behind principles first, and then design the new system to fit those principles.

Here are the principles I would suggest are a good starting point:

Fiat money may not be created by a private group: Many learned scholars have condemned the entire idea of fiat (paper) money as unrealistic.  Indeed, they have history on their side in that it has never succeeded for very long. However, paper money is simply a much more practical physical currency than anything else for a swelling population.  Therefore, it will likely have to be part of the mix in the future of money.

The problem with fiat money is twofold: who and what controls the issuance and supply of the money?  Given that a private cabal has taken over planet earth because of no restrictions on their printing press, it seems the temptation for abuse is too large for an unaccountable private agency to be responsible for money creation.  Thus, I propose it should only be the function of the government (federal, state, or local), with strict guidelines for supply controls. Perhaps these controls can come in the form of a commodity standard as some suggest, or a Constitutional Amendment clearly defining how the monetary supply should be governed and, more importantly, to detail exactly what the government is allowed to spend money on.

There shall be no monopoly on currency: Even if the government is the only entity capable of creating fiat currency, no law shall be passed to outlaw any other form of currency.  Currently, in America, legal tender laws force everyone to use private Federal Reserve Notes as money, and they enforce it with the guns of the State to prevent any competition from the likes of gold and silver or anything else.

This is a form of mafia control in order to extract taxes on every single voluntary transaction in the economy (I'll get to taxes in my final suggestion). All forms of commodity and barter exchange should be legalized no matter what type of universal "federal" currency is agreed upon.  This will prevent tyrannical central control from dominating the economy.

Money shall not be created with debt attached to it: Currently, money is created out of thin air by the Fed, given to the cartel of private banks at nearly zero interest who then buy Treasury bonds to fund government spending.  The bonds pay a much higher interest rate than the money that was created, and the payments for the right to use the nation's currency is paid for by taxes to the private bankers who create and provide no value to the actual economy.

All of the middlemen leeching off this system must be cut out of the money creation process.  The only way to do that is to eliminate the debt attached to each unit when it is created.  And, philosophically, we must agree that money is a unit of exchange, not an instrument of debt that inherently enslaves all who use it -- including governments.  Many gold advocates say money should also be a store of wealth, but money is just a vehicle to buy something of value like gold, land, businesses, labor, or tools.  Yes, money as a store of value encourages savings, but then it discourages active investment and economic development. By itself, it seems that currency should simply be a debt-free unit of exchange.

Loans shall be made by full reserves only: Under the current fractional reserve system, new money is created every time a loan is made because the banks are allowed to lend what they don't have, at interest.  What a scheme!  In a new system, loans can be made by anyone at interest rates they determine (or the market determines) as long as they have "full reserves" to lend.  In other words, if a wealthy individual wants his money to work for him, he may lend it out at interest.  Or, as the current banking structure permits, several depositors can buy CDs at their local credit union who will then lend the funds to qualified borrowers.  The system won't change much in this regard, except that banks must have full reserves to make loans -- not a fraction of what they lend, which creates new money with debt attached to it.

Taxes must be voluntary: I fully understand that this concept is so foreign to modern society that many will denounce it as impossible.  However, it is absolutely essential for any of the above to work.

In fact, mandatory taxes are only a necessary evil because of the current monetary system which rewards and encourages government growth and spending.  Ultimately, it becomes a question about the role of government -- which creates nothing and provides no actual services, but rather acts as the ultimate gun-toting middleman who's gotten fat in the process.

Know this; no one will starve in the streets if the government stops taking money from some and subsidizing others. Roads got built, hospitals helped sick people, and defense was provided long before mandatory taxes (remember war bonds when people actually believed in funding wars). Significantly, if money is created by the government without debt attached, and government spending was strictly defined under the Constitution, then no federal taxes would even be necessary.

To handle local social services, local governments could set up an online exchange that allows people to make donations directly to any public/private services they deem valuable.  If people were not burdened by mandatory taxes and the pressures of manufactured inflation, they would gladly give to schools, roads, clinics, police and fire services, etc., because it is in their local interest to keep those services healthy.  It is an investment in their own health and wealth if their community is strong, as their property values will be enhanced and they'll naturally want the best for their children.  When the dust settles, it can and will work if we commit to it.

In conclusion, I'm under no illusions that the current banking cabal that runs the planet will release their grip willingly or go quietly into the dustbin of history.  I'm also fully aware that these proposals, even if agreed upon tomorrow, will not likely happen in the foreseeable future.  Indeed, most would call me a dreamer just for writing this.  Yet, I think it is vital to open this discussion to help get the ball rolling for practical solutions. Incidentally, everything that has ever manifested into reality once started off merely as ideas.

Please share this and add your own opinions and proposals in the comment section of this article.

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Anonymous said...

Get rid of money altogether. How about that?

It is always the case that as soon as you put up new rules to prevent old abuses, there will always be those who will look for a way to circumvent those rules because there is the need for greed. This greed is the corrupting influence, it is present in every person, because it is a human trait, which means that as long as you have money, there will always be this urge to conquer its supply and create the exact mess the world is in, all over again.

Anonymous said...

This has changed my life, I have always thought there would be no hope, but having read this, I can now see that there are smart ideas out there, which would help the majority of humaity and not the greedy minority.

Thank you for sharing this Eric and Activist Post.

Netanyahu said...

Netanyahu: No Lebanon will be on the map

Yes that's right: I said it and so what? No one can mess with my world domination of the banks or the governments.

Right you boys there in Costa Rica? Better censor this, right boys? How's the beach?

Anonymous said...

I am going to have to respectfully disagree with you on this point. "Currently, in America, legal tender laws force everyone to use private Federal Reserve Notes as money, and they enforce it with the guns of the State to prevent any competition from the likes of gold and silver or anything else."

I will point to Utah as an example but also all across the nation there exists legal means to use silver (and gold) as money.

In intent your statement is true, the Federal Goverment dictate currency, however, the Federal Government does not have say in what two private individuals use as a value of exchange. Don't confuse currency with money and medium of exchange.I am fully able under the law to trade two of my cows for say your pick up truck, or an ounce of silver for four bales of hay.

There is no state or federal law that can or does regulate bartering. (Collecting taxes is another, but the value of exchange in a barter situation is typically revenue neutral) If however, you place a currency value to said cow or said silver then you are treading on Federal grounds. But barter in an of itself is fully legal and goes on everyday.

I do this on a regular basis in our community. Also, silver coinage can be used as a exchange. American Silver Eagles are legal tender, as are pre-1965 half dollars, quarters and dimes. They have a value above a FRN equivalent a Silver to FRN exchange rate so to speak.

I may price my goods or services in two means. My two dozen eggs may be priced as $6 in FRN or .25 in a constitutional silver quarter. The Federal Government can not dictate to my pricing structure. If I want to accept a silver quarter for my two dozen eggs thats my business not the state or federal governments. (They minted the silver quarter not me, it was never made illegal to use that coinage) If I was selling another item for say $40 in FRN I may have a secondary price that is $1 in constitutional silver, say a Silver American Eagle, or 3-1964 half dollars (more silver in a 1 ounce American Eagle than two kennedy halfs.

To your point though, private individuals and public corporation such as Walmart, may not want to participate out of fear in this medium of exchange. may be the people need to take it back? I know it works in privately held businesses like a local own gas station and grocery store. What a stronger way to build your comunity outside the system than using Constitutional silver!

Legal means outside the current system of Federal Currency exists, you just have to exercise those means.

Anonymous said...

I'm staying with the tried and proved method until the dust settles...silver

Anonymous said...

Anonymous said...

I appreciate your efforts to improve money. It is a worthwhile endeavor, but I would put a few other things first.

First, almost every problem we have is at least partially the result of government being used, bribed and co-conspiring with various money-making schemes. So much so that that is how markets work these days. Want to make a killing in war; buy some congressmen. Want to make a killing in healthcare; form a monopoly in something like dialysis and hook it up to government to hoover out the taxpayers. Banking, healthcare, housing, student loans... you name it and government was bribed by someone to do what was in their interests, not ours.

This must stop. The vast majority agree on this and yet congress does nothing about stopping its own corruption, its own harming of the people it represents.

Finance is a special case as it is the most acute form of corruption. Crime cannot continue to pay simply because it is big crime. And that is the other issue: there is no rule of law when some are exempt. Pretty simple. If bankers don't go to jail, not only will they continue and increase their criminality (as they have already demonstrated repeatedly), but it drives out honest business.

I'd like to see the bad debt created while the Fed kept interest rates artificially low and while Wall Street blew bubbles and swindles, crammed into the Fed and the Fed closed and replaced with a simple office that sets the rate of expansion or contraction in the money supply.

One of the main problems for the dollar are all the wars, which cause inflation because they need to be financed. The war machine is now totally out of control, using congress to serially commit us to wars that are bankrupting us. This is a third problem - privatized interests welded to government power.

In short, I'd see other problems as more acute. To recap:

1) Congress is a vending machine for special interests. This must be stopped by getting all money out of elections.

2) Finance needs complete overhaul. Financialization has grown like a cancer, destroying the health of the real economy. Finance is supposed to serve us, not rule us.

3) The rule of law must be for all.

4) Wars are inflationary. Not even a well-intentioned Fed can keep money sound when the war industry commits us to serial warfare.

Thanks for asking for input.

Anonymous said...

Its a great topic. I do not know what the best solution is but the current scheme is broken. I agree with the author that there should be no money created with debt behind it. Kennedy was going to take this on before he was murdered. I wish he would have succeeded.

I know its orthoganal to this discussion, but I would prefer a resource based economy. I happen to have a great job and I am lucky, but its not fair that I win because someone else loses. Whatever solution we come up with every human being should have some minimum salary and if they decide to work they can make more if they wish. What bothers me with the current scheme is there are people that lose and go hungry or hurt. I can't live with that.

Blair T. Longley said...

Nice ideas for money system principles.

However, I can not imagine how society is actually going to stop being controlled by those who are the best at being dishonest and backing that up with violence.

My views on this are collected here:

Anonymous said...

the solution requires the elimination of the rationale that money is "necessary." we've advanced, as a species, past the point where scarcity was unavoidable to an era where scarcity is now "manufactured" (to keep profits high, industrial sabotage is perpetrated by capitalists). "money" is a medium that contains "stored wealth." 1000 years ago, if a peasant (let us say, an English peasant, as they were the most free) brought his/her surplus crops to the market, and there was nothing to barter for (scarcity of goods) or nothing that was needed at the time (use value), the crops would be sold for "coinage" that would be set aside for when the value stored in such coinage was necessary. industrialization and advances in automation have provided humanity with the tools necessary to eliminate scarcity and satisfy needs (unlocking the "secrets of nature") but it is monetary quantification (as part of capitalist rationalization) that hinders further progress, human development, and qualitative human emancipation. we created the "rules" and "rationale" that dominates and encapsulates us. the problem is, we forgot this little tidbit of information. if we created the mess we're in, then we can create an alternative that eliminates/solves the structural antagonisms that are inherent within capitalism.

Steven G. Berry said...

#3 Money shall not be created with debt attached to it


#4 Loans shall be made by full reserves only

expose the author's complete lack of understanding of how a fair monetary system should work.

In fact, the whole article is misguided as the only real solution was identified in 1979 by Mike Montagne of perfect economy dot com.

There is no need think out another system as there is no other true solution. Go ahead if you must, but you will come back to MPE(tm.)

Money must be created from collateral (as debt/credit) at zero interest. Full collateral, zero interest.

The problem most people have is that they have been brainwashed (by the usurers) to accept the notion of interest. Eliminate interest and MOST of our problems are solved. It is that simple.

P < P + I. Creating debt PLUS interest means debt can never be repaid. Repaying debt is the basis of HONOR. Think about that for a while...

Anonymous said...

We are on our way to a moneyless world. Whether it happens by design of default is the only question. We need to base our values on something new, something like the fulfillment of each individual's potentials, abilities, talents, capacities, and creativity. In some circles they refer to this as value-fulfillment.

Friends ask me how this could possibly work, but they usually slip back into some sort of bartering or exchange system. While those may be a part of the transition to moneyless societies, those are not givens either.

How about we turn on the idea about ideas and come up with a totally different way of operating on this fine planet. Money is really an anachronism, and as most people are aware of recently, the printed paper is just that, printed paper that we all HAD full faith and trust in, but no longer do. It is time to wake up our sleeping giant brains and come up with new radical ways of living, relating and cooperating with each other.

As a start, just think of what kind of change there would be affected in every single facet of life on the planet if we no longer used money as a way to operate our societies and lives. If there was no longer profit in the form of money, everything, absolutely everything would change.

I don't know how the transition or even outcome might happen. It isn't for one person or a group of people to decide anyway. It is for all to decide. But it is coming, and it behooves us to move forward with designing the Shift in a way that is efficient, reasonable, sober and compassionate. How do I know it is coming? The signs are everywhere, especially the last couple years. And I've been catching more and more articles and books with titles like "The End of Money." But really all one needs to do is look around at the vast economic changes that are happening throughout the entire world and the ensuing chaos. Chaos is a harbinger of collapse. It isn't "bad." It merely is a sign of time to move on.

We humans have one extra special gift that makes us shine and that is our imagination. Ideas do indeed change the world. This era needs to be approached as the opportunity of the centuries, to create something so startling and new that all future generations will applaud are brave step into life without green paper, gold, silver, plastic, promissory notes, and the myriad of other inventions of value and exchange.

Start dialoguing with your friends, neighbors, colleagues and family. Design a world you would like to live in. Play with the ideas, expand them audaciously, inspire each other, imagine the impossible. The more energy you pour into it the more speed it will gain.

We are limitless beings. We have limitless probabilities we can create, engage and manifest. Why not go for something beautiful and exciting, something that exhilarates and beneficially serves this wonder we find ourselves in?

Isn't it time for a moneyless world?

Anonymous said...

Everyone! Look at all the systems we've tried in our history as people of the world. They all work satisfactorily to a degree. Only when the majority of the people follow rational and logical rules, and have respect for one another. Our current top down political and economic system has become a complete failure for most people ruled by it because the political and economic power at the top has become too concentrated and corrupt, and from that point downward too many people have lost their compass or principals, if they ever had them to begin with. Whether you believe in religion or not, it sure is better in my book to live around people that don't lie, cheat or steal. The golden rule. Just look at the junkies we have to choose from in elections, wether they're from the left or the right, neither one can change things or inspire masses of people, because they're all bought and paid for global puppets controlled by the same global elite gangster banksters. We can all make a huge difference as people if we live principled lives as people. Good or bad, right or wrong, it's the collective effect of our individual choices that counts the most in our society.

Anonymous said...

The principles here ignore the fact that we have a super-production economy in which robots are rapidly replacing humans as producers. A monetary system adapted to modern economic conditions is described in the Wikipedia article on "Social Credit".

Anonymous said...


Anonymous said...

There are some better ways. Monetary systems are very important. Central Control is problematic.

Pretty much summed up in The secret of OZ.(

Search Ending Taxation - The only Game in Town.

Viedoklis_lv said...

I have my own proposal for what should be next monetary system as to transition where it will disappear forever.
My offer to back money by green energy, products & services.

Something that every country can create and everyone needs - us and mother earth.

Anonymous said...

I nearly wept tears of joy reading Anonymous' comment: moneyless. I could've written those words. I call it a "Gift Economy." Stop with the life-draining valued judgements, the competition, the "me n mine" vs "them" foolishness.

Find the joys in collaboration instead of competition. Creation is cooler than control. OH we'll have to forgive some of the lizard types (the repentant ones) and get over the hurt of being distracted for all these centuries. BUT HEY, wasn't the lesson learned worth at least some of the trouble?

People who put the imaginary "economy" in front of the very real life that is given freely to them, they're just skeered.

"You may call me a dreamer/but I'm not the only one..."

Shine Bright.

Anonymous said...

Reading through these comments, I find a common
thread of some type of monetary system based on a system that eliminates the creation of wealth. Interest aside, the creation of wealth is the motivation behind excelling, creating new and innovated products, exploring ideas, providing a better mouse trap if you will, etc.

The experiment of exchange or production based on a common basis of need was tried in American during first european settlements, they failed miserably when some discovered that zero to minimal work was needed to still get the basic needs of survivial met. Production and innovation decrease, as did the populations of Jamestown and Plymouth. While some toiled to provide for the survival of the settlement, others lazed away. Once the settlers were told they coould profit from their land by producing goods to barter or sell did the colonies begin to florish.

Tread lightly on looking at a new monetary system that prevents wealth creation or one where no one is a loser, that leads to a civilizations death. Corruption and a fiat currency is the problem not the idea of money.

Anonymous said...

Where is labor in this issue?

How much will gold or silver or wampum be worth if there is no one to sort stack load and deliver?

When are you going to Strike this banker crowd out labor and start issuing the tickets to your worth called money that you make valuable in the first place? Will you be certain to see to it that there is something for everyone? That's it.

Anonymous said...

If we all get the same on this new system and there is no longer any incentive, will I still get to keep my 250 channel choices that I now receive setting on welfare?

Anonymous said...

The Lawful Bank provides a gateway to ‘The Alternative Monetary System’ (TAMS) - a new and independent monetary and banking system owned and controlled by its users/members. The objective of TAMS is to create its own liquidity (money) for the benefit of the people of the nations that choose to use it... and by so doing, reassert the sovereign right of the people to self-governance - for a nation cannot truly govern itself unless it is in full control of the means by which its money is created.

DaveR said...

Eric: Your plan is inconsistent and depends on gov’t honesty and following rules(a joke?). It won’t work for the same reason your like of tariffs for mercantilism (Ian Fletcher style) are ALWAYS abused and politicized. We need to get the gov’t (at least their monopolies and licenses) OUT of money, health, edu, etc. It’s all in parts 1, 2, and 3 in the left margin of my site and in my book ‘Monetary Revolution USA’ on Go there to see my ‘4 monetary rules’ and ‘6 step plan’ to convert to gold.
Specific comments on your plan (using your numbers) are;
1. Private mints should be allowed to create commodity (gold, silver, etc.) coins as money. Paper and base-metal tokens (‘representative money) are ok if redeemable on demand by ant bearer. Right, fiat money is bad (not redeemable).
2. This conflicts with your item one where you say only the govt can make money. Adding states doesn’t help much. There needs to be free market COMPETITION!
3. Gold as money is not a debt.
4. Yes, demand deposits (checking accts) should have 100% reserves. Time deposits (savings) can be used for loans, with fractional reserves, if fully disclosed to depositors. If they don’t like it, they can withdraw to a better bank.
5. ‘Voluntary’ govt taxes is a conflicting terms. What you should want is ‘private charity’. That is what helped the poor before the govt took over and used gang-theft-by-vote to fund the giant entitlement programs we now have.

History proves my approach works (commodity money, not debased over time, private competition). Govt control ALWAYS results in fraud and failure. Central banks are create by and for bankers and politicians. Our Fed is an example; a scam from the start!!
Regards, Dave

Anonymous said...

What a bunch of stupid eleventh hour monenetary reform wankers. Since 1969 Mathematically Perfected Economy. There is no other solution... Google it

Anonymous said...

Abolish the Federal Reserve and restore monetary authority to the U.S. Treasury to create and extinguish honest debt free money based on a 3 legged stool of precious metals, barter exchange contract and Labor Treasury Certificates for work performed, goods produced and services rendered. International Trade and balance of payments could be conducted with barter exchange contracts. For example a bushel of wheat for a barrel of oil. Thus, no trade deficit, no debt.

Pass a revaluation bill limiting paper currency debts to 1% of their gold dollar value of $2,000 and ounce, reevaluating the currency and issuing new currency at a 100-1 exchange rate, pro-rating all prices, incomes, debts and charging a 10% exchange rate fee to pay down the legitimate debt.

Since 1900 the dollar has lost 99% of it's purchasing power. The new dollar is the $100 dollar bill. Just move the decimal point to the left and add 2 zeros.

canobs said...

__Nice suggestions and ideas, but look at what the economist CliffordHughDouglas found years ago in his Social-Credit system ___ As the constitution mention a public central bank (and certainly not privatized) his system is based on the reserve created by the production capacity and natural reserves of the country, the public banks (without interest charges for social needs like schools,water systems,hospitals etc...)would compete wit the privates for loans to private companies and individuals._____see the sites : - - or /CliffordHughDouglas) - also - and

Anonymous said...

This poor fellow has been led astray by all the plagiarists.

"Fiat money may not be created by a private group."
Why not? WE are the creators of money. We may do this as a group or as individuals. What he really means (or needs to understand) is that no group or individual (private or public) shall exploit the currency.
(Issued by other private individuals/groups.)

Problem isn't "fiat"; it's banking's obfuscation of our currency (promissory obligations).

"There shall be no monopoly on currency:"
Of course not; but how is it monopolized; and how do you avoid monopolization, if you deny the universal right to private groups or individuals to issue unexploited promissory obligations?

"Money shall not be created with debt attached to it."

Deny people the right to assume obligations to pay for consumption *as they consume of it*, and you tremendously impede our ability to sustain prosperity.

Thank Paul Grignon ("Money as Debt") for this stupidity.

"Loans shall be made by full reserves only."
He just said money can't be debt!
Beyond the contradiction, he's not saying it has to be backed by gold (or whatever). The only way a currency can provide full representation and redeemability, is if it's redeemable ("backed") by the very property it represents. The only currency that does this is Mathematically Perfected Economy.

["Taxes must be voluntary."
Again, idiotic. You have to pay for what you consume of government infrastructures/services. If taxes were "voluntary," so would payment of promissory obligations be "voluntary." Promissory obligations have to be enforced, or there is no integrity to a money which only otherwise represents respective property by a fact of redeemability. The only way you maintain redeemability is by enforcing promissory obligations (contracts). That means for government promissory obligations (collectively engendered) or private promissory obligations.

So who is Eric Blair?


Carter said...

As long as criminals can get into positions of power there will be abuses. Currently we live in a criminal society where a certain percent of the population is out for themselves, and will step on the heads of the larger balance of people who are just going along - the decent people. We have to raise the ethics level of society as a whole. A good start = THE WAY TO HAPPINESS by L. Ron Hubbard.

Before you reject the solution, first - READ IT! Then decide. It IS a start.

Anonymous said...

The Solution to the Financial and Ecomic Crisis
1-Abolish te Federal Reserve and restore monetary authority to the U.S. Treasury to create and extinguish honest debt free money, based on a 3 legged stool of precious metals, barter exchange contracts and labor Treasury Certificates for work work performed, goods produced and services rendered. International Trade and balance of payment could be conducted with barter exchange contracts For example: A bushel of wheat for a barrel of oil. Thus no trade deficit, no debt.
2-Pass a revaluation bill limiting paper currency debts to 1% of their gold dollar value of $2,000 an ounce, reevaluating the currency and issuing new currency at a 100-1 exchange rate, pro-rating all prices, incomes, debts, and charging a 10% exchange rate fee to pay down the legitimate debt. The dollar has lost 96% of it's purchasing power since 1900. As hyper-inflation destroys the dollar, very soon the new dollar will be the $100.00 dollar bill. Just move the decimal point to the right 2 places and add 2 zeros.

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