borrowing – debt – interest

Dictatorship Imminent

Dictatorship Imminent posted in Eleison Comments on November 24, 2012

A remarkable portrait of our contemporary world appeared two months ago on the Internet website, 321gold. The title is daunting: “Decline, Decay, Denial, Delusion and Despair,” but the content is surely true to life. Starting from a street scene to be found no doubt all over the eastern United States, the author concludes that within 15 years an Orwellian dictatorship will descend upon his country as the unwanted effect of wanted causes. But the USA is not typical of the whole world? The whole world is buying into the American way of life. “Let the buyer beware”!

This autumn in the streets of Wildwood, New Jersey, the author observed pavements encumbered with a host of heavily overweight men and women under 50 years of age rolling around town on government-subsidized mobility scooters to visit one fast-food joint after another in order to gorge on sugar-laden goodies which would give their latest model scooters more work than ever. His amusing name for them? – “The weight-challenged disabled on their powered mobility enhancement vehicles.” Such is the flight from reality of “political correctness” and its language.

The author seeks causes for this tragic-comic effect: how can the American people that once saved 12% of their income have been persuaded to frighten the obesity statistics off the end of the charts with a debt-laden, sugar-sodden way of life, with no more savings for themselves and with an unbearable burden of debt being bequeathed to their children and grand-children? Of course there is a lack of self-control on their part, he says, but there must be something more sinister, some mind behind such a mindless scene. He says the mass of citizens are being manipulated by an invisible government that has mastered the modern techniques of mass manipulation.

He quotes a pioneer of these masters from the 1920’s, Edward Bernays: “The conscious and intelligent manipulation of the masses is an important element in democratic society . . . Vast numbers of human beings must cooperate in this manner if they are to live together as a smoothly functioning society . . . Whether in politics, business, social conduct or ethical thinking, we are dominated by the relatively small number of persons . . .who understand the mental processes and social patterns of the masses.” They are “the true ruling power of the country,” and they “pull the wires which control the public mind.” For what purpose? For their own wealth and power.

It is they who have organized today’s financial and economic crisis for their own benefit. They have “wrecked the world economy . . .shifted their worthless debt onto the backs of taxpayers and unborn generations, thrown senior citizens and savers under the bus by stealing 400 billion per year of interest from them, and enriched themselves with bubble-level profits and bonus payments.” And when the plug has to be pulled on this unsustainable way of life, then our invisible masters have prepared for us a 1984 “dictatorship of tears” with militarized police with millions of bullets, surveillance cameras and drones everywhere, imprisonment without charges and so on and so on. Yet, says the author, it is the citizens’ own fault who have preferred ignorance to truth, sickness to health, media lies to critical thinking, security to liberty.

There is only one thing lacking to this admirable analysis: could our governing elite have run so wild, or our masses have turned so dumb, if either had retained the least sense of a God who judges us all at death, according to Ten Commandments? Of course not. Catholics, wake up!

Kyrie eleison.

Delinquent Finance – II

Delinquent Finance – II posted in Eleison Comments on February 4, 2012

Delinquent finance has today a religious significance because it is playing a major part in the enslaving of the entire world by the conscious or unconscious enemies of God, the smartest of whom have to be well aware that their ultimate purpose is to send every single soul down to Hell. However, before we present any other piece of their financial machinery, it is necessary to understand the full delinquency of fractional reserve banking, first introduced in the “Eleison Comments” of October 29, last year.

Fractional reserve banking means that a bank need only hold in reserve, ready to be paid out to customers, a small fraction of the money they put into circulation. It arose in Europe in the late Middle Ages when bankers observed that if they took in as deposits, say, 100 ounces of gold and gave out 100 slips of paper certifying that the owner of the certificate could claim so much gold from the bank, then almost never at any one time would more than, say, ten customers ever bring in a certificate to claim back a deposit of gold. And as long as the people had confidence that the bank could and would always have gold to give in return for certificates, then these pieces of paper could happily serve as money, and as such they would circulate amongst the people.

However, the bankers realized meanwhile that in the normal run of business, they needed to hold in reserve only ten ounces of gold for 100 certificates, or, if they held 100 ounces of gold deposited with the bank, then they could issue 1000 paper certificates. Of these, 900 would have nothing at the bank to back them. They would be “funny money,” created by the bank out of thin air, but that would not matter so long as not more than a proportion of one customer out of ten wanted to cash in his paper for a piece of gold.

If they did, then the bank would not have the gold for all the certificates, and either it rapidly borrowed some gold from elsewhere to hand out, or the people risked realizing what a confidence trick had been played on them. If their confidence in the bank then vanished, everybody would want their money back at once – bank runs are only made possible by fractional reserve banking – and large numbers of customers would be left holding in their hands nothing but worthless pieces of paper. The bank would of course be bankrupt, and one could hope it would disappear altogether.

Thus wherever there is fractional reserve banking, the bank is intrinsically fragile, and it is, ultimately, playing a confidence trick on its customers. Extrinsically, it may protect itself by having a guarantee of support in case of need from, often, a central bank, but that guarantee is only as sure as the guarantor, and in the meantime it gives a dangerous power to any central bank. Thereby hangs another tale of financial delinquency, but that of compound interest must come first.

Power is at stake, and ultimately souls. Let nobody say these questions have nothing to do with religion. Think of the Golden Calf.

Kyrie eleison.

New Year

New Year posted in Eleison Comments on December 31, 2011

And so another year closes out without the sky having fallen in. I have for decades been saying that it is falling in, for instance to a little group of people in France some five or seven years ago. Amongst them was an SSPX priest who had been a seminarian in Econe when I was a professor there in the late ‘70’s and early ‘80’s. “Your Excellency,” he said, “Weren’t you saying that 25 years ago?” But he said it with a smile, so he may have thought that one day I could be right.

Then will 2012 be the year when the sky falls in? Plenty of worldly commentators think that it could well be the year in which the world economy implodes. Certainly debt cannot keep on piling up the way it has been piling up for decades. For instance welfare entitlements are an unbearable burden on the budget of many a Western democracy, but almost by definition a democratic politician is incapable of taking the severe decisions necessary to restore fiscal sanity, because if he wants to be re-elected he cannot touch them. It has been well said that a democracy can last for only as long as the people do not realize that the cash till belongs to them.

Then is 2012 the year in which the Western democracies finally crash? Maybe. But maybe not. Many people today have a sense of some disaster looming. Surely it cannot take yet another 30 years to arrive, one says. But one has been saying that now for many years. Perhaps people are so drunk on liberalism that ever increasing doses of chaos leave them unconcerned. Nevertheless while the wheels of God grind slowly, says the proverb, they do grind exceeding small. In other words all of God’s bills have to be paid, and the day of reckoning will come, and on accounts far more serious than those of mere welfare entitlements.

This year, next year, some time, never? Certainly not never. It will come in God’s good time. The year is relatively unimportant. As Hamlet says (Act V, 2), “There is a providence in the fall of a sparrow. If it be now, ‘tis not to come; if it be not to come, it will be now; if it be not now, yet it will come: the readiness is all.” There is a Providence. There is a God, and his timing is the best of all. “Gottes Zeit ist die allerbeste Zeit,” says the German proverb.

Nor does God require of easily most of us to undertake action to attempt to hold back Church and world on their present course to destruction. I am willing to bet that many of the world’s public leaders feel in private helpless to do anything, and I wonder if even the world’s secret controllers, hell-bent on world domination, feel at all times confident that they have their game in hand. “Only I can help you now,” the Mother of God has said.

What God does require of us is to live in his grace and to trust him. When the crash comes, in 2012 or whenever, from a human point of view it will no doubt be rather unpleasant, but from God’s point of view his chastisements are acts of mercy. St. Paul quotes Proverbs (III, 11–12): “My son, reject not the correction of the Lord, and do not faint when thou art chastised by him. For whom the Lord loveth, he chastiseth.” And St Paul goes on (Heb.XII, 7–8): “Persevere under discipline. God dealeth with you as with his sons. For what son is there whom the father doth not correct? But if you be without chastisement, whereof all are made partakers, then are you bastards and not sons.”

The Catholic readiness is all, as of the wise virgins (Mt.XXV, 13). Happy New Year.

Kyrie eleison.

Necessary Child

Necessary Child posted in Eleison Comments on December 24, 2011

Constantly in the news today is the world’s financial and economic crisis, especially in Euroland. A Dutch commentator (courtfool.info) proposes for his country a classic solution: get State money out of the hands of the banksters. Christmas may seem a strange moment to consider such money problems, but the whole question is whether apparent solutions are real solutions.

Unless the Euro was positively designed as a means of forcing political unity upon the variety of European nations, it was, as a common currency for a dozen very different national economies, flawed from the start. To begin with it did enable the poorer member nations to borrow and spend, borrow and spend, while it did help the richer nations to export and lend, export and lend, but the process could not go on for ever. When the poorer countries could no longer manage even the interest on their debts, the richer countries were also threatened with the paralysis of their economies by the bankruptcy of their major banks that had made the foolish loans.

At this point the European Commission, the European Central Bank and the International Monetary Fund co-operate to provide emergency funding, in other words to solve the problem of debt by more debt! However, a condition of receiving these funds is that the hopelessly indebted countries must submit to international guardianship, which will impose spending cuts that make the national governments less and less able to rule. As for the richer governments, they too must make themselves unpopular by cutting spending, in order to cover the losses incurred by their major banks’ foolish loans, says Mr.de Ruijter.

Now comes his solution. He says it is simple. Instead of pouring dozens of billions more into a Euro that is doomed to disappear sooner or later, and instead of having the international agencies impose spending cuts, “we can introduce State money.” A State central bank will replace the present central bank which, as in almost all States of the world, is now under private control. The State bank alone will be authorized to create money. All loans will be supplied as State money. All private or non-State banks will be forbidden to create balances out of thin air, in other words fractional reserve banking will be forbidden (cf. EC 224). These non-State banks will receive a fee for their services, but they will not be allowed to charge interest.

And who will control the State bank? Mr.de Ruijter writes, “It will fall under the responsibility of the Minister of Finance, and it will be controlled by Parliament. A commission of well formed people will watch over the long term interest of the money system.”

Well and good. But, Mr. De Ruijter, who will do the forming of these “well formed” people? At what school will they learn truly to look after the common good? And what motivation will be given to them powerful enough to prevent them from being cunningly bought out by the banksters? Democracy? It is democracy that has landed Europe in its present mess!

There is only one true and complete solution: the divine Child in the Crib of Bethlehem. Happy Christmas, dear readers (and thanks to all of you that sent me a Christmas card, but thanks also to those that didn’t!).

Kyrie eleison.

Delinquent Finance I

Delinquent Finance I posted in Eleison Comments on October 29, 2011

The imminent collapse of global finance, and/or the advent of global finance on the way to global government which that collapse has been designed to bring on, should be making souls think: how did we get into this mess, and how do we get out of it? If Almighty God has had no part to play in such a serious crisis, then obviously he is not serious but just a feel-good Sunday pastime. On the other hand if he is as important as once the builders of medieval cathedrals obviously thought, then neglecting him will have had a central part to play in today’s triumph of finance over reality.

Indeed one must go back to the Middle Ages to understand where today’s disaster has come from. As the Faith began to droop after the high Middle Ages, so men became more and more interested in Mammon, the other great motivator of their lives (Mt.VI, 24). Thus money, natured to be the servant of the exchange of real goods and services, was unhooked from nature to become modern finance, master of the global economy. A key step in this process, leading directly to today’s mountains of unpayable debt in all directions, enslaving the world to the visible bankers, or rather to their invisible controllers, was the post-medieval spread of fractional reserve banking.

When money serves the economy, a wise State will ensure that its total quantity in circulation goes up and down with the total quantity of real goods to be exchanged in that economy, so that its value will remain steady. Too much money chasing too few goods will mean its value drops by inflation. Too little money pursued by too many goods will mean its value rising, by deflation. Either way its changing value destabilizes all exchanging of goods. Now if banks, in which depositors deposit real money, need keep only a fraction of that real money in reserve to back a much larger quantity of paper money which they can put into circulation, then by putting too much or too little into circulation, they can play with the value of money and make fortunes by lending out cheap money and demanding back expensive money. Thus financiers can take over control from the State.

Worse, if fractional reserve banking enables banks to disconnect money from reality and fabricate it at will, and if they can charge even slight compound interest on their funny money, then logically they can – and do! – suck all real value out of an economy, reducing most depositors to borrowers and most borrowers to hopeless debt-slaves, or mortgage-slaves, taking care only not to kill off completely the goose laying the golden eggs for their benefit. The divinely inspired wisdom of the law-giver Moses was to put brakes on all lenders’ power by cancelling all debts every seven years (Deut.XV,1–2), and by restoring all property to its original owners every 50 years (Levit.XXV, 10)!

And why did Moses, great man of God and therefore man of deep “spirituality,” concern himself with such materialistic questions? Because as bad economics can turn men to despair, towards Hell, away from God – look around you, today and above all tomorrow – so good economics make possible a wise prosperity which in no way worships Mammon, but makes it rather easier to trust in the goodness of God and to worship and love him. Man is soul and body.

Moses would surely have smashed fractional reserve banking, like he smashed the Golden Calf!

Kyrie eleison.

Faith Victorious

Faith Victorious posted in Eleison Comments on August 6, 2011

By way of answer to Bishop Tissier de Mallerais’ persuasive criticism of Pope Benedict’s thinking, laid out briefly in the last four numbers of these “Comments,” what then shall we say (Rom.VI, 1)? Let us look at three arguments by which good Catholics might seek to defend the Pope from the accusation that his thinking is not Catholic.

A first line of defence might claim in general that to attack in any way the Pope is to help the enemies of the Church. But is not the primary duty of the Pope to “confirm his brethren in the Faith” (Lk.XXII, 32)? If then a Pope’s thinking seriously strays from the Faith, to point out to him, with all due respect, where he is going astray, is not to attack him, or to do the work of the enemies of the Church. It is to help him to see clear to do his duty, and to remind him of the one and only means he has of conquering those enemies, who are today more powerful than ever – “This is the victory which overcometh the world – our Faith” (I Jn.V, 4).

A second objection to Bishop Tissier’s argument, particular to our own time, might be that Pope Benedict is a prisoner in the Vatican, so he is not free to defend Catholic Tradition as he would really wish to do. Now it is true that the post-Conciliar Popes have been surrounded by high-up Church officials who are Freemasons secretly bent upon destroying the Church. It is also possible that since Vatican II the money-men have had more and more of a financial slip-knot around the Vatican’s neck. But enough dollars would follow the true doctrine, if only it were proclaimed, and if Benedict’s faith were not imprisoned by Hegelian errors, it would easily have the victory over the Freemasons all around him. Victory by martyrdom? It might take a series of martyr Popes, but if only we deserved them, as in the early Church, the Vatican would soon again be free!

A third more direct objection was alluded to in the last “EC”: Benedict XVI might claim that he believes not only in Faith and Reason correcting one another, but also in the Traditional Faith. Thus, he might say, he himself absolutely believes that Jesus’ own crucified body rose alive with his human soul from the tomb on Easter morning, so if he also tells modern man that the real meaning of the Resurrection is not a material body coming out of a material tomb, but spiritual love conquering death, that is merely to make the Resurrection accessible to disbelieving modern man.

But, Holy Father, did or did not that crucified body rise alive from that material tomb? If it did not, stop believing that it did, stop even pretending to believe that it did, and resign from being the Pope of delusional Catholics. But if it did rise from the tomb, then THAT is what you must proclaim to poor modern man, and you must – pardon my language – cast his disbelief in his teeth. Modern man does not need to be told about luv, luv, luv. He hears it all day long! He does need to hear the rational argument, not pre-supposing faith, that only Our Lord truly risen could have both stopped his implacable enemies in their tracks and turned his totally dispirited Apostles into world-conquerors.

Holy Father, it is useless trying to get through to the world on its own rotten terms. Conquer it on Our Lord’s terms! And if you are obliged to give to us an example of martyrdom, do believe that that is the example that many of us may need in the not too distant future. We humbly pray for you.

Kyrie eleison.