<p>It is very short-sighted to say that economics have nothing to do with religion, because economics (the <u>material</u> relations between men) flow from politics (the <i>human</i> relations between men), and politics (a man’s relations with his <u>fellow-men</u>) descend necessarily from his relations with his <u>God</u> (his religion). At this moment The United States have been brought to the brink of a tremendous economic crisis, and with the USA, the rest of the world. Let us try to see this crisis in a little more than just a material perspective, in order to prevent the situation from making no sense, if and when many things soon crash.</p><p>Money playing in a nation’s economic life a part as essential as that of oil in the engine of a car, it is normal that any State’s government will want to control the creation of money in that State. It is not normal for private citizens to control their State’s money because they risk doing so in their own interests, and not for the common good. Yet all over the world today the States’ money is controlled by central banks which are strictly independent of these States. In the USA in particular, the founding Constitution of 1787 laid down that the new State’s money should be created and controlled by the government (Congress), and this remained the normal situation until 1913, when a consortium of private citizens, money-men, after many vain attempts, at last succeeded in tricking Congress into handing over to the “Federal Reserve,” their brand new central bank, all power over the money of the USA.</p><p>These money-men had promised that the Fed, as it came to be known, would solve the problem of recurring economic crises, like the cycle of economic booms and busts. It did nothing of the kind, on the contrary it made them even worse, like the Great Depression of 1929 and the years following, and like now the Depression of the 2020’s which risks making 1929 look like a picnic, and risks stripping the United States of its prosperity and enslaving its liberty by making all American citizens into debt-slaves. The middle class will soon be no more. Could this have happened if they had listened to Our Lord? – “Seek ye first <u>the kingdom of God and His justice</u>, and all these things will be added unto you” – no. The same citizens had allowed themselves to be bewitched by the Fed’s promise of ever more easy money.</p><p>For in real life money is difficult to come by, and it has to be earned by the sweat of a worker’s brow. That is the real economy where bills and the rent must be paid, where real goods and services are produced generating real wealth, the industry and commerce which created the material success and prestige of the USA. But then there is the world of finance which rides on the top of the real economy like Wall Street rides on Main Street, where some fantastical way can be found or engineered around realities like bills and rent, where money grows out of investment, leverage and speculation, where for instance one young banker can in a few days ruin a centuries-old bank (Barings, 1995). It is a world which is wide open to propaganda and manipulation and fantasy, apt to be ever less tethered to the real world, apt to be swept away in dreams of unlimited wealth at the cost of no effort. Such dreaming is not Catholic!</p><p>But the Fed let it loose from 1987, in 2008 and in 2019 in particular. In 1987 Alan Greenspan became Chairman of the Fed and began encouraging fantasy finance over real economy. The commercial banks were allowed to speculate with their customers’ money. In 2008 their malinvestment generated a huge economic crisis, “solved” by the Fed beginning to create fabulous amounts of “money” out of thin air.</p><p>By 2019 as the public was more and more hooked on fantasy money, the Fed’s <u>public</u> balance sheet took off into complete unreality, seven trillion dollars and counting, and it is now crashing the real economy with the corona-panic, then “paying” the crash debts that everybody gets into with its unreal trillions, but turning the whole world into real slaves.</p><p>And the solution? God is the supreme reality. Let men return to Him, and their perspective would change wholly, and these fantasies of His enemies would begin to lift, like fog in the morning sun.</p><p>Kyrie eleison.</p>
So when in 1913 the money-men finally tricked the United States Congress into creating the Federal Reserve as a central bank to take control of the money supply in the USA, they knew that they were well on their way to controlling the USA altogether. Notice that if only more Congressmen had loved their country more and money less, the law creating the Fed would surely never have passed, but in modern democracies it is the people who vote into office the politicians who pass the laws. Let nobody pretend that the peoples in a democracy are not to blame for the misfortunes coming from their politicians. It is God who appoints the rulers in any country (Prov. VIII, 15), in function of what the people deserve.
For over a century since the founding of the Fed, it has only gained in power and influence. World War I (1914–1918) required money. The Fed provided it. The USA became a world power. World War II (1939–1941) required a lot of money. The Fed provided it. The victorious USA became a world super-power. From now, how could even patriots complain of the Fed? Even if Woodrow Wilson, President for the whole First World War, would write “Some of the biggest men in the USA, in the fields of commerce and manufacture are afraid of something. They know there is a power somewhere so organised, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak of it above their breath when they speak in condemnation of it.” It is this power that has directed the Fed ever since, and of which one President after another has been merely the puppet. Money motivates. God alone motivates more, but by 1914 in few countries did enough of the people turn to God for Him to overwhelm the money-power.
So having promised to end the cycle of boom and bust, in 1929 the Fed engineered the biggest bust of all up till then, the Great Depression, which greatly enhanced their power. Many patriots over the years saw clear, and tried to get Congress to dissolve the Fed, but the hidden money-power, serving its own interests, has been too strong, up to this day. In our own time, September of last year, to “save” the floundering USA economy from collapse, the Fed began emergency cash infusions of their money, made out of thin air, into the Repo Market which was threatening to seize up for lack of cash. The Fed promised the infusions would be temporary, but they have only increased ever since. Then came the forced Corona-panic and the closure of so many businesses that the Fed has had a perfect excuse to expand its balance-sheet ever since. To say it is now buying up the world is hardly an exaggeration. Since people still have confidence in the dollar, then the Fed can still “save,” with its “funny money,” systems failing anywhere in the world, at least until that confidence collapses, but by then all systems “saved” will be in the chains of debt – to the Fed.
The Corona-panic and George Floyd riots are direct successors of 9/11 – panics fabricated by the lies of politicians and their wretched media, be it “deadly terrorists” or “a deadly virus,” when everybody now knows that 9/11 can only have been an inside job, and the Corona virus is no worse than any other flu virus. As for the riots, Floyd’s autopsy showed that he died not by police suffocation but from the heavy overdose of a dangerous drug. However, Woodrow Wilson’s money-power has long known that panic fear is one of the best means of manipulating the people, and so their politicians and media are still sustaining the money-power’s lies as far back as Pearl Harbour (1941) and the Kennedy assassination (1963), and so on and so on. When the peoples turn away from God who is the Way, the Truth and the Life (Jn. XIV, 6), they turn away from the Truth, and are bound to lay themselves open to the Father of Lies (Jn. VIII, 44). And Satan gladly steps in, disguising himself of course as an angel of light (II Cor. XI, 14–15).
But how can a District Superior of the Society of St Pius X now be saying that the Corona-panic is “none of our business”? How can any Catholic churchman say that these huge lies serving to corrupt the entire world are “none of our business”? Where do souls to be saved for God’s Heaven come from, if not from the world around us? How can any Church leaders not see it as part of their duty to challenge these “operations of error,” branded by God as His punishment for lack of love of the truth (II Thess.II, 11)?
Two events are shaking the world, the corona-virus and the breakdown of what has been the world’s financial system for, maybe, the last two centuries. The two events may well be connected. Several commentators are actually mentioning Almighty God, at least in connection with the worldwide spread of the corona-virus, because that spread is like a plague, and in times past when there was no other remedy, plagues would often make men turn to God. But that God – who has not changed – is almost certainly playing a more important part in both events today than most people think.
Is that to say that God caused the worldwide corona-virus infection? Indirectly, yes, because He foresaw it from eternity and decided to let it happen. And what greater good might His permission for the infection be bringing about? We have seen the governments of many countries impose such restrictions on movements of their citizens that these countries are virtually brought to a halt. That is giving to the citizens a serious chance firstly to realise how fragile is the functioning of their much vaunted modern way of life: neither is it so robust, nor are they such champions of reality, as they may have thought. And secondly, by the serious interruption of their normal rat-race they are being given time and opportunity they would never normally have to reflect on that rat-race: Who am I? What is my life? What am I doing with it? Where am I going? Alas, many modern citizens thus providentially slowed down will only want to speed up again so as to distract themselves from thoughts that evoke anything higher than their all-engrossing rat-race . . .
Another reason why God may not directly have caused the corona-virus is the amount of serious speculation that the virus comes not from God’s Nature but from men’s laboratories, where viruses of Nature are made artificially much more harmful and contagious in order to serve as potential weapons of war. And if that is where the corona-virus came from, who can men blame for it except other men?
And then there is not only the fabrication of the virus but also its release – how did it escape from the laboratories to threaten mankind? Was the escape an accident, or was it a deliberate release? Again, there is much speculation that it was not an accident, but criminally timed to coincide with the crashing of the world’s financial system, also engineered. The virus would help the crash in two ways: firstly it would, however briefly, bring to a halt a significant part of the functioning of the world’s economies, forcing bankruptcies and a widespread increase of indebtedness and enslavement to the global Money Power; and secondly, an exaggerated panic over the virus in the same globalists’ media would serve to distract mankind from its enslavement taking an important step forwards. Certainly if the financial crash was deliberate, the coincidence of the virus was a windfall for whoever was behind the crash.
And so was, or is, anybody behind the March crash of the world’s stock markets, which is by no means over? Of course there was. The Money Power, controlling the governments with which it works, has so much money at its disposal that it can swing at will supposedly free stock markets, up or down. Such crashes as of this March are designed to cause a great transfer of wealth from little investors to the Money Power. In this case it created from 1987 a 33-year rising market to lure them in, and once they were well in, it crashed the market to strip them of their assets while it has itself bet on the falling market and made a fortune. And the governments protect the Money Power because it bought them off long ago.
And Almighty God? “My children, if you insist on worshipping Mammon and materialism instead of Me, this is what will happen to you. You have scorned My religion to replace it with politics. You have worshipped your governments instead of your God. You have believed in money instead of charity towards your fellow-men. Are you now surprised that governments, politics and money let you down? Or are you hurt that I let them let you down? Children, I am offering you Paradise, and for all eternity!”
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.
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!).
Numbers of commentators on economic questions are presently writing or saying that the world’s financial system is on the brink of collapse. None of them are sure of the timing, but many of them predict that it will be a major collapse. Yet before the onset of the financial crisis in 2008, few people saw it coming because they were comfortable in a way of life that seemed well established and for ever moving forward. However, if these commentators are right, it is about to come off its hinges.
We should all of us be thinking what went wrong and how it should be put right. Here below are a series of practical proposals, adapted from a recent article on the website Burning Platform. One need not agree with each of them to begin envisaging alternatives to our present broken system. There are political and financial proposals. Let us begin with the latter:—
*Nationalize those banks which by being “Too Big to Fail” can hold the State to ransom. Let any consequent losses fall on the people responsible or involved, not on the taxpayer. *Re-institute (in the USA) the Glass-Steagall Act to stop banks from ever becoming so big again. *Re-institute mark to marketing accounting rules, so that banks can no longer pretend that their assets are worth much more than they are worth in the market-place. *Regulate the derivatives market so that likewise no financial entity can become so big that it can threaten to crash the entire system if it goes under (as happened in the USA with AIG). *Simplify the present highly cumbersome system of income tax, or replace it altogether with a consumer tax, and eliminate corporate tax breaks. Notice how such proposals may be explicitly financial, but they are implicitly political, because to be put into practice they would need a significant change in the political way of thinking of the people and especially of the leaders. Finance depends on politics. Here are the more obviously political proposals, which may be disputed, but they at least point in the right direction:—
*To combat the corruption of too comfortable politicians, impose term limits. To combat the corruption of elections by special interests, cut out all lobbying and lobbyists. *To cut down the power of the central bank, take away its control of the nation’s money supply. *Re-organize the States’ welfare benefits, today so draining the States’ finances that tomorrow they will be able to benefit nobody. *Re-instruct the people to go without, and to accept a lower standard of living, so that instead of spending society into oblivion, they build it by saving. *Do what can be done to replace suburban sprawl by more self-sufficient communities. *Renounce world empire so as to cut down the enormous military spending of the USA, for instance by bringing thousands of troops home from their bases all over the world.
Here again, for such proposals to be put into practice, they require great changes in the people’s way of thinking, especially in that of the leaders. Political decisions depend upon what people value more, or most. Why are we alive? To enjoy on earth, or to be truly happy for eternity? Is that an either-or question? Is there an eternity? Thus politics depend on religion, or on the lack of it. Will today even a financial crash bring anyone to their senses?