Yesterday, August 23, the BBC published a report titled, Bank of England defends QE but admits rich benefit most. In the British version of “Quantitative Easing,” the report says that since March 2009, the Bank of England has purchased “£375bn of government bonds, known as gilts.” Of course, like every other central bank, the BoE has no money with which to buy the bonds, it simply creates it, thus injecting counterfeit money into the economy under color of law.
According to the BBC story, “The policy of QE means that the Bank [of England] now holds more than a third of all government bonds in issue.” That means the BoE has created massive amounts of counterfeit British pounds. But that is just the beginning. Commercial banks create more counterfeit money as they buy more government bonds under the fractional reserve banking system. Ordinary people end up paying the cost.
See my previous posts on QE.–t.h.g.
Here is a well done video by Islamic scholar Tarek El Diwany, in which he outlines the history of usury and interest and explains difference between them. He goes on in parts 2, 3, and 4 to describe the evolution of the present destructive debt-money system and the choice before us. Well worth viewing.–t.h.g.
Who in their right mind would be so bold as to predict the end of money and banking as we’ve known it (besides yours truly, that is)?
Well, how about the Governor of the Bank of England?
“There is no reason products and services could not be swapped directly by consumers and producers through a system of direct exchange – essentially a massive barter economy. All it requires is some commonly used unit of account and adequate computing power to make sure all transactions could be settled immediately. People would pay each other electronically, without the payment being routed through anything that we would currently recognize as a bank. Central banks in their present form would no longer exist – nor would money.”
– Mervyn King – Governor of the Bank of England
You see, even the insiders can see the writing on the wall.
Another observer who has been in the thick of cashless trading developments for decades is Bob Meyer, publisher and editor of Barter News. A while back, Bob wrote an article that gives some pertinent history of the “barter” industry and sketches his vision of how “Simple One-to-One Exchanges Will Give Way to Organized, Computerized, Multi-Lateral Barter.” I strongly recommend that people read it: THE ORIGINAL MEANING OF TRADE MEETS THE FUTURE IN BARTER
As the global financial meltdown continues government and banking authorities become ever more desperate to preserve their flawed system of money and banking, using means of control that are increasingly despotic. Now they want to draw a more opaque curtain around their money manipulations to prevent people from taking effective action to protect themselves. For the past 165 years the Bank of England has been obliged to publish a weekly account of its balance sheet. This has at least made its inflationary actions visible and may have deterred it from more extreme abuses of the currency. Now they want to be relieved of this minimal obligation of transparency. This was reported in an article by Edmund Conway that appeared in the Telegraph of London on Saturday, January 10, 2009. In the subhead Conway says, “The Bank of England will be able to print extra money without having legally to declare it under new plans which will heighten fears that the Government will secretly pump extra cash into the economy.”
In addition to further bailouts of banks by governments around the world, we can expect ever more legislation aimed at sustaining the flawed money and banking system. That will include greater secrecy and more odious legal limitations on private initiatives that are seen as competing with conventional money and banks. We’ve seen it all before. That’s why a study of the history of money and banking is so important. – t.h.g.