Thursday, February 12, 2009

The Futility of Not Creating Debt Free Currency

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How Can We Survive?

What is the cardinal rule to survive? Pure survival, rather than focus on any other orientation, is said to be a basic instinct of man when hard times strike. On account, it brings out the worse or best in us.

As such, today’s global recession to depression, now really deepening and going into overdrive, is compelling us to think of any ways and means to ride out the financial-economic tornado. Yet how can we do so when there are no opportunities available? How can we do so when everything is “business as usual?”

Moreover, it most surely is “business as usual” with the same out patterns present that got us all into this current dilemma in the first place. Meanwhile, the ripple effects of the crisis continue lamentably right around the world.

On account, personal efforts are not enough to handle the ongoing worsening conditions. Consequently, there must be government intervention to truly jump the economy forward, especially as the government exists for the people and not the other way around!

If this whole trouble is not a supernatural problem, but is only an artificial problem, then it can be solved in an outright fashion since it is man made. Therefore, the successful remedy can be generated, too, which involves removal of debt, the creation of which led to the most turbulent years in the history of global financial markets in that debt generation has arguably been THE main foundation for the money flow in our current model.

Consequently, governments should be compelled to infuse funds in capital or aid programs that create work and economic stimulus for their citizens rather then help the banking system carry on as usual. After all, who can borrow money from the bank if he has no means for capital growth as the foundation to pay it back with interest?

The Philippine government is currently pledging P15 Billion or $300 Million in capital from taxpayers’ money and/or from foreign borrowings for Philippine Deposit Insurance Corporation (PDIC) to fund the payout of deposits of the closed bankrupt legality group of rural banks presumably caused by the greed and corruption of those involved. Meanwhile, we see the same pattern of wrongful behaviors around the world!

In particular and concerning the Philippines:

IMF has the forecast that Philippines has $800 Million deficit in balance of payments in 2009. IMF AND WB loans at interest are destroying my country’s economy and the working class people who suffer increasing poverty under such an arrangement.

So what is next? Why do we need to pay interest further? How CAN we do it? The Filipinos have paid too much already. We have NO MORE to give! We cannot pay back whatever we do not have and it was an unjust transaction with which to begin such that no Filipino in his right mind would ratify it except for our wealthy elite, who took the loans for their own indirect benefits.

In the end, let’s face a hard truth in this whole matter. It is this: What kind of values do we want to promote as a society? Can we not realize that it is not the banks that matter, but the people who make up the society? If this latter view is the case, then we need to change our financial models to support them rather than use them like chattel and slave for the gains of the global business and banking tycoons.

The alternative — the one to which we are likely heading — just might be that Filipinos wind up expecting to copy the poor in Haiti in order to get ourselves out of this mess. Are we expected to live under tarps after losing our homes? Are we expected to look for food by combing garbage dumps? Must we and our children eat mud cookies because we can no longer have jobs and cannot pay for imported food?

As Penny Hess stated in “America causing world food crisis and starvation”:

Forced deregulation of world agricultural markets. Historically countries around the world produced food for themselves and their governments kept restrictions on the price of food to prevent speculation and price gouging. Haiti, where the people are today forced to subsist on a steady diet of mud, is a perfect example. Twenty-five years ago Haitian farmers grew and exported their own rice.

But in the late 1980s the U.S. backed IMF forced Haiti, as a condition for a desperately needed loan, to deregulate their markets and open them up to competition from the outside. The U.S. then dumped its government-subsidized rice onto Haiti (and many other countries around the world), selling the American rice cheaper than Haiti farmers could sell theirs for. The U.S. rice dumping brought to an abrupt halt Haiti’s own self-sufficient agricultural infrastructure and forced millions of people into desperate poverty.

U.S. Agribusiness. According to Gretchen Gordon in, The Food Crisis: Global Markets and Deregulation Strike Again, three major corporations, Cargill, Archer Daniels Midland and Bunge, “control the vast majority of global grain trading, while Monsanto controls more than one-fifth of the global market in seeds.”

While billions of human beings are starving, Cargill’s third quarter 2007 profits increased more than 86 percent and Monsanto’s were up 45 percent. In fact they are using the current crisis to further impose their genetically modified seeds on the peoples of the world.

Meanwhile, high salaries and compensation packages — rewards really for doing who knows what — are still given to the bankers and business tycoons even in these hard times of global financial crisis and even while President Obama and the Australian prime Minister have called for an end to unrestrained selfishness on the part of these financial speculators. At the same time, it has been reported that, in Germany, bank managers receive annual Euros 500,000.00 or $645,000 as a rough average intake.

In a similar vein, Josef Ackermann, chief executive of Deutsche Bank AG has the total gain, including assorted benefits and shares, of Euros 14 Million or $18.9 Million. And the list goes on… and on concerning irresponsible money managers who are making out royally due to the losses of many, many others.

As such, European bankers receive astronomical, US-style compensation, which is similar to the huge rewards obtained by other financial executives in India, China, Philippines, India, Russia, Mexico, Brazil and other countries. Likewise, some Russian financial executives and bankers are paid in the amount of $500,000 to $5 Million range, while top Italian and French executives make $2 Million to $3 Million annually.

Similarly, Indian salaries have risen to $300,000 to $3 Million level and Mexican financial executives are making nearly $1 Million. However, chief financial executives in Japan usually receive salaries merely in the $400,000 range. All the same, many ordinary citizens around the world wallow in dreadful poverty, hunger, homelessness and despair while these financial gangsters worldwide gain from their ongoing losses.

In the end, we need to reorganize the patterns of the global economy rather than continue to throw money at useless crooks and empty remedies that, doubtlessly, do not work because, if they did, we would be seeing improvements already rather than an ever deepening crisis. Therefore, we need to start pressuring our government representatives to make the necessary radical reforms. If we not change our monetary patterns soon, the most terrible outcomes imaginable are all but assured.

Eric V. Encina, Filipino Social Creditor/Monetary Reformer, can be contacted at: Read other articles by Eric. ...

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