I sent you an email.

Tom,

Good to hear that you have taken an interest in this issue. And yes I have met plenty of conspiracy nuts in the last 10 years or so myself but conspiracy or not, one always can look at the facts.

The conspiracy lies within the area of who did what and why. But the facts never change. So for example it’s pretty clear recently that Goldman Sachs played a huge part in the way the US authorities dealt with the crisis last year. Of course it’s easy to see as both Paulson and Geithner are GS people (as many officials are these days)…and what of Warren Buffet buying into GS when it looked pretty horrible…..and what of Bear Stearns, Lehmans and Merrills) who was left standing?

It’s all pretty obvious….even Sorkin’s book “Too big to Fail” lays it all out in the open.

But I digress. It’s not so much conspiracy as incompetence. The rich will always look after themselves as will the vested interests that support them.

But the fractional reserve system is quite clearly a Ponzi scheme…..which has survived in tact due to the continuing rise in global land/property prices which all the debt is created against.

When property prices in the US crashed it put enormous strain on the system eventually bringing close to collapse. The phenomenal leverage just became too much to bear.

The answer is to create a consistent and stable supply of money. We need to forget about interest rates and inflation which has been the focus for the last 30 years. It’s done nothing but cause harm at a time when technological innovation has been so amazing.yet we still have many people who are illiterate and fill up our prisons.

The forced abandonment of the Gold Standard was the start of the rot and constant deregulation of financial markets has simply perpetuated the disaster. I’m not saying we have to go back to Gold. In fact I don’t think we should as that in itself would cause terrible instability.

What we need is for countries to create their own supply of money…imagine it in a physical sense. For example, if the money supply is $100bln…then we need to know there are actually $100bln of notes in existence. New money can only be created by the issuing authority and therefore the supply can be monitored and controlled (unlike now). In fact the Reserve Bank Act strictly forbids anyone else from creating money yet banks to do it all the time when they create new loans.

I’ll post more on the actual steps we need to take to make this process happen.

Please keep up your interest and keep researching the subject.

kind regards

Raf

Regards

Tom Hunsdale

who wrote the “Nationalise money not banks” article?

I´m working on the same theme in South Africa and would like to get into contact with the mind behind it. You may contact me under m@3877.com.

Yours sincerely

Michael Duerr