The Economy of a True Public Bank

A public bank is one that is truly owned by the people of a country. Unlike the present Bank of Canada whose shares are merely "held" by our Government for Her Majesty the Queen in Right of Canada, the shares of a public bank would be held by our Government for the people of Canada. And, unlike the present Bank of Canada, money would not be borrowed at interest into the economy but spent into it interest and debt free.

This is really the main difference between a private money system and a public money system. Once a private bank has control of a country’s money it becomes necessary for the Government of that country to borrow money at interest. With a public money system the Government simply prints and spends its own money into circulation. Neither system requires gold or silver backing. [Note: This will be the subject of a future post on this site.] Under both systems the money can simple be printed out of thin air as the phrase goes. Under one the Government must pay a private bank for the use of its money. Under the other the government simple pays the cost of the printing. We learned what the cost of printing would be in: A Bond is Simply a Promise to Pay - Part Two  quoted below. 

Let's look at how this insane scenario works from our Federal Government's point of view.

·   Let's say that the Federal Government sees the need for a new highway and this highway will cost 500 million dollars to build.

·   Based on this need the Federal Government goes to a Bank that has no money and applies for a loan of five hundred million dollars ($500,000,000) at five percent (5%) interest for one year. Remember the application is the same as a promise to pay and the same as a bond.

·   Because the Bank doesn't have $500,000,000 to lend it goes to the Bank of Canada and says, "The Federal Government will pay us $500,000,000 plus twenty five million dollars ($25,000,000) interest in one year if we will lend it $500,000,000. As you know, we don't have any money. We also know you don't have any money but will keep that knowledge to ourselves. But you do have the right to print money. If you agree to print $500,000,000 and let us use it for one year your share of the interest will be $15,000,000 and ours will be $10,000,000" 

·   The Bank of Canada, in considering this offer, knows, a) that only about 10% of the $500,000,000 will actually ever appear as physical notes; the rest will just be computer entries transferred from one account to another, b) that the number of notes needed to have 10%, or $50,000,000 in circulation will be about three million notes, c) that the cost of printing each note for this loan will be about four cents (0.04) and d) that the total cost to the Bank of Canada to print $50,000,000 will be 3 million notes times four cents, or one hundred twenty thousand dollars ($120,000). Based on these considerations the Bank of Canada agrees to "sell" the Chartered Bank $500,000,000 for one year at only three percent (3%) interest, or fifteen million dollars ($15,000,000).

·   In one year when the Government repays the loan plus interest ($525,000,000) to the Chartered Bank it returns the promise to pay that was used to create the value behind the loan.

·   The Chartered Bank now deposits $10,000,000 into its own account and returns $515,000,000 to the Bank of Canada.

·   When the Bank of Canada receives the $515.000.000 from the Chartered Bank it deposits $15,000,000 into its own account and destroys the original $500,000,000. 

[Note: Did you notice that due to the interest charged, more money leaves our economy than entered?]

So we see that the cost associated with printing the physical notes required for a $500,000,000 loan will be about $120,000!

Keep in mind folks that this isn’t a fight between Governments and the banks. You are the Government and whatever cost the government obliges itself to becomes obliged to you. If you understand that, the decision on whether Canada has a private or a public bank determines whether you are put on the hook (in the above example) for $500,000,000 plus interest or a $120,000 printing bill, the decision should be easy. This is not a fight between socialism and democracy. This is not a fight between conservatives and liberals as to who can spend tax dollars more wisely. This is not a fight between business and government. This is a fight between you and a private bank. If you decide for the private bank you remain obliged to pay an ever increasing federal debt that today stands at $550 billion. If you decide for yourself you’re federally debt free. You’re also provincially debt free and if you have any personal debt it will be small. It’s not a hard decision. What makes it a hard decision is what I call, our ultimate addiction.  

The two following links will take you to articles explaining the Public Credit Money System and the Provincial Credit Money System.

http://members.shaw.ca/theultimatescam/pcms.htm

http://members.shaw.ca/theultimatescam/provincialcredit.htm

If the private bankers speak against the Public Credit Money System it just might be something to look into. An 1865 quote from The London Times shows just how much private bankers fear the people having control of their own bank.

“If that mischievous financial policy which had its origin in the North American Republic, should become indurate down to a fixture, then that government will furnish its own money without cost. It will pay off its debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous beyond precedent in the history of the civilized governments of the world. The brains and wealth of all countries will go to North America. That government must be destroyed or it will destroy every monarchy on the globe.”



That mischievous financial policy was the Public Credit Money System established by the colonies of the North American Republic. And look what happens with a system like that.

1.       The government furnishes its own money without cost,

2.       it will pay off its debts and be without debt,

3.       it will have all the money necessary to carry on its commerce.

4.       it will become prosperous beyond precedent, and 

5.       the brains and wealth of all countries will go to North America, or whatever country offers the abundance of a Public Credit Money System.

Is there anything in this list that you would not want for Canada or the rest of the world? Why would any country choose debt over this? Of course we could assume that private bankers don't really know anything about the different banking systems or what would be the result of the implementation of these different systems. But I think that if any one would know these things to the nth degree it would be a private banker. Maybe we should pay attention and learn from them.

If every country was operating a Public Credit Money System the world would not be 51 trillion dollars in debt. Instead there would be no debt registered against any government in the world. The biggest difference would be in our thinking about money.

It seems that we all love the idea of making money with money. I wonder how that got installed in our brains? Under a Public Credit Money System some of these thoughts would have to change. The amount of money anyone would have would be dependant on their labour. Contrary to what former Prime Minister Paul Martin continually stated, inflation would disappear under a Public Credit Money System; no inflation equals no rising prices. If prices remain constant the practice of investing in real estate with the idea of selling it years later for much more than was originally paid may no longer be viable. But there is more gain to this than loss. With a Public Credit Money System we could all have the option of no interest mortgages. This would mean that instead of paying three or four times the cost of our home because of compound interest we would only pay once. And because everyone who wanted to work would have a well paying full time job everyone would be able to buy their own home. The career landlord may cease to exist. In the case of slum landlords this would be a welcomed change. 

Where would these jobs come from?

• From building and fully staffing more hospitals so that wait lined disappear.
• From building and fully staffing more schools so that all children receive the proper instruction that matches their individual learning ability.
• From fully funding paramedics, ambulances, fire fighters and police forces.
• From properly maintaining highways between our communities as well as all the street within these towns and cities.
• More jobs would be created within our higher learning centers such as colleges, university and technical school because with a Public Credit Money system education at all levels would be free, etc.

Where would the money come from that would pay for all these buildings, equipment and staff. The Government would just print it out of thin air and spend it into circulation! It's the same thing that happens now except there would be no bank demanding interest on money it just printed. The Canadian People's Bank (or whatever its name will be) when the need arose would just print the money needed to build a hospital. The Government would then spend this money into circulation by hiring architects, contractors, builders, etc. The contractors and builders would hire the trades people and the hospital would be built.

In the USA there is a movement called The American Monetary Institute. Their aim is to create a true Peoples Bank by nationalizing the Federal Reserve. Stephen Zarlenga is the initiating force behind this movement and is the author of, The Lost Science of Money. The American Monetary Institute's web site can be found here:

 http://www.monetary.org/.

The following link will lead you to The American Monetary Act It starts on page thirteen of this 32 page explanation. We need to go to school folks. We need to learn everything about money that never made it into our educational system. There was much more than just the information about different economic systems that never made it into our educational system  but we'll start with that for now.
 http://www.monetary.org/32pageexplanation.pdf.

Our Ultimate Addiction

 Ultimately there is only one thing stopping the implementation of a Public Credit Money System in Canada. And that is our thinking. People all over this world have become very polarized over any number of issues. I believe that this has been one of the central planks of the private bankers of the world. As proof of this I cite the following Banker's Manifesto of 1892. Congressman Charles A. Lindbergh, Sr. revealed the Banker’s Manifesto of 1892 to the U.S. Congress somewhere between 1907 and 1917.

1.  "We (the bankers) must proceed with caution and guard every move made, for the lower order of people are already showing signs of restless commotion. Prudence will therefore show a policy of apparently yielding to the popular will until our plans are so far consummated that we can declare our designs without fear of any organized resistance. The Farmers Alliance and Knights of Labor organizations in the United States should be carefully watched by our trusted men, and we must take immediate steps to control these organizations in our interest or disrupt them.
2. At the coming Omaha Convention to be held July 4th (1892), our men must attend and direct its movement, or else there will be set on foot such antagonism to our designs as may require force to overcome. This at the present time would be premature. We are not yet ready for such a crisis. Capital must protect itself in every possible manner through combination (conspiracy) and legislation.
3. The courts must be called to our aid, debts must be collected, bonds and mortgages foreclosed as rapidly as possible.
4. When through the process of the law, the common people have lost their homes, they will be more tractable and easily governed through the influence of the strong arm of the government applied to a central power of imperial wealth under the control of the leading financiers. People without homes will not quarrel with their leaders.
5. History repeats itself in regular cycles. This truth is well known among our principal men who are engaged in forming an imperialism of the world. While they are doing this, the people must be kept in a state of political antagonism.
6. The question of tariff reform must be urged through the organization known as the Democratic Party, and the question of protection with the reciprocity must be forced to view through the Republican Party.
7. By thus dividing voters, we can get them to expand their energies in fighting over questions of no importance to us, except as teachers to the common herd. Thus, by discrete action, we can secure all that has been so generously planned and successfully accomplished."

Consider paragraph 7 and 8 above. In 1892 private bankers made the decision to divide the American people (the voters) by the deliberate manipulation of the Democratic Party and the Republican Party. That practise continues to this day. And sadly, it continues in most countries. The above document also illustrates that in 1892 the bankers had established enough influence over the two political parties that they could decide what party would promote what issue.

If you think the organization of bankers that drafted this document have at any time since 1892 ceased their activities to have their “plans...so far consummated that” they “can declare” their “designs without fear of any organized resistance,” you need to think again. If any one thing should be perfectly clear it’s that private bankers do not have the welfare of the people (you) or the country at the heart. It should also be clear that they will use all the tools at their disposal to achieve their goal of “forming an imperialism of the world.”

Today the tools the bankers have at their disposal include the control or direct ownership of every major global corporation as well as all major media outlets. Don’t think so? Then visit: http://www.freepress.net/ownership/chart/main. You’ll see that there are six global corporations that own the vast majority of the media in the United States. And they are:

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General Electric

2009 revenues: $157 billion

General Electric media-related holdings include television networks NBC and Telemundo, Universal Pictures, Focus Features, 26 television stations in the United States and cable networks MSNBC, Bravo and the Sci Fi Channel. GE also owns 80 percent of NBC Universal.

Television networks: NBC Networks, Telemundo, Ion Media (partial stake).

Cable: NBC Entertainment, NBC News, NBC Sports, NBC Television, NBC Universal, CNBC, CNBC World (Arabia, India, Asia, Europe), MSNBC, Bravo, SyFy Channel, Telemundo, USA, Oxygen, Weather Plus, Mun2, Sleuth, Chiller, Universal HD, A&E Networks (16%; includes A&E, the History Channel, History en español, the Biography Channel, Military History Channel, Crime & Investigation Network, A&E HD, the History Channel HD, History International), the Weather Channel (partial), SyFy Channel HD.

Production and distribution companies: NBC Universal Television Distribution, Universal Media Studios

26 television stations, owned under the “NBC Universal” division. These include NBC affiliates, 46 stations, Telemundo affiliates, and a small number of independents.

International Channels: 13eme Rue (France), 13th Street (Germany), Studio Universal (Germany), Sci-fi Channel (Germany), Calle 13 (Spain), Sci Fi Channel UK, Movies 24 (UK), DivaTV (UK), Studio Universal (Italy), Universal Channel (Latin America), CNBC Asia, CNBC Europe, 18 Hallmark Channels (worldwide), KidsCo (worldwide, partial).

Programming: NBC Network News, NBC Universal Global Networks, NBC Universal International Channels, The Today Show, NBC Nightly News with Brian Williams, Dateline NBC, Meet the Press, Early Today, CNBC, Squawk Box, Mad Money, CNBC World, CNBC Arabia, CNBC-India TV-18, Hardball with Chris Matthews, the Rita Cosby Specials Unit, Morning Joe, Mun2, Sleuth, A&E [partial], the History Channel [partial], the Biography Channel (partial), ShopNBC (27%).

Production: NBC Universal (80% ownership): Universal Pictures, Focus Features, Rogue Pictures. Universal has production agreements with Imagine Entertainment, Jersey Films, Tribeca Films, Shady Acres, the Kennedy/Marshall Company, Playtone Company, Strike Entertainment, Type A Films, Depth of Field, Stephen Sommers and Working Title Films (Europe).

Distribution: Universal Studios Home Entertainment.

Magazines: SciFi Magazine

NBC.com, CNBC.com, iVillage.com, Scifi.com, telemundo.com, nbc.com, hulu.com (a joint venture between NBC Universal and News Corp.), Bravotv.com, Triotv.com, msnbc.msn.com, nbcolympics.com, ShopNBC.com. Partial: aetv.com, biography.com, historychannel.com, military.history.com, Thehistoryhcannelclub.com, Historytravel.com, Newsvine.com.

Military Production: Manufactures and maintains engines for the F-16 Fighter jet, Abrams tank, Apache helicopter, U2 Bomber, Unmanned Combat Air Vehicle (UCAV), A-10 aircraft, and numerous military equipment including planes, helicopters, tanks, and more.

Parks: Universal Studios Theme Parks and Resorts (Orlando, FL; Hollywood, CA; Costa Durada, Spain; Universal City, Japan)

Consumer Products: NBC Stores, ShopNBC (partial), GE Industrial (Formerly, GE Consumer and Industrial), AETN Consumer Products (37.5% equity).

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Walt Disney

2009 revenues: $36.1 billion

The Walt Disney Company owns the ABC Television Network, cable networks including ESPN, the Disney Channel, SOAPnet, A&E and Lifetime, 277 radio stations, music and book publishing companies, production companies Touchstone, Miramax and Walt Disney Pictures, Pixar Animation Studios, the cellular service Disney Mobile, and theme parks around the world. Disney Media Networks, a company whose holdings include:

The ABC Television Network: ABC Entertainment, ABC Daytime, ABC News, ESPN on ABC, ABC Television, ABC Kids, and Touchstone Television.

Production & Distribution Companies: Walt Disney Television, Walt Disney Television Animation, BVS entertainment, ABC Studios, Walt Disney Television, Disney-ABC Domestic Television.

Cable Networks: ESPN, ESPN2, ESPN Classic, ESPNEWS, ESPN PPV, ESPN Deportes, ESPNU, ESPNHD, ESPN2 HD, ESPNEWSHD and ESPNUHD, Disney Channel HD, Toon Disney, SOAPnet, ABC Family Channel, A&E Television Networks (42% equity; includes A&E, the History Channel, the Biography Channel, History en español, Military History Channel, Crime & Investigation Network, A&E HD, The History Channel HD), Lifetime Entertainment Services (50% equity; includes Lifetime Television, Lifetime Movie Network, Lifetime Real Women).

International Channels: ESPN International, ESPN America, ESPN Latin America, ESPN Asia, ESPN Classic Sport Europe, Jetix Europe, Jetix Latin America, Jetix Canada, Jetix Israel, International Disney Channels, History International.

The ABC Television Network has 226 affiliated stations reaching 99 percent of all U.S. television households. The company owns and operates ten ABC television stations in the nation’s top markets.

Programming: Good Morning America, World News with Charles Gibson, World News Now, 20/20, Primetime, This Week With George Stephanopoulos, Sportscenter/Monday Night Football, ESPNplus, Playhouse Disney, Jetix, ABC Kids.

Through its majority ownership stake in Citadel Broadcasting Corporation, Disney owns 277 radio stations in the United States.

Programming: ESPN Radio, ESPN Deportes Radio, Radio Disney, Lifetime Radio for women (50% equity), ABC Music Radio, ABC Radio Networks: Imus in the Morning, The Mark Levin Show, Morning Joe, The Tom Joyner Show.

Magazines: Family Fun, ESPN the Magazine, Jetix Magazine, Wondertime Magazine, Bassmaster Magazine and Disney Adventures

Music: Disney Music Group distributes music and motion picture soundtracks under its four labels: Walt Disney Records, Hollywood Records, Buena Vista Records, Lyric Street Records, Disney Music Publishing Worldwide.

Books: Disney Publishing, a subsidiary of the Company, owns Hyperion Books, Hyperion Books for Children, Disney Press, Disney Editions, Disney Adventures, Disney Fairies, Disney Digital Books, Mirimax, ESPN books, ABC Daytime Press, Hyperion East, Hyperion Audiobooks, Volo, Jump at the Sun, Disney Libri (Italy), Disney Hachette JV (France).

Other: Marvel Comics.

Production and Distribution: Walt Disney Pictures (includes Walt Disney Feature Animation and DisneyToon Studios), Touchstone Pictures, Miramax Films, Pixar Animation Studios, Hollywood Pictures, Buena Vista International, Buena Vista Home Entertainment, Buena Vista Home Entertainment International, Disney Theatrical Group, Marvel Studios, A&E IndieFilms (42% equity).

The Walt Disney Internet Group includes:

Parks and Resorts: Disneyland (CA), Walt Disney World Resort (FL), Disneyland Resort Paris, Hong Kong Disneyland, Disney Cruise Line, and DisneyVacation Club, Euro Disney, Walt Disney World (separate from Resort), Magic Kingdom, EPCOT, WD Studio Park, WD Tokyo, Sea Disney-MGM Studios, Disney Animal Kingdom, and ESPNZone.

Consumer Products: Disney Hardlines, Disney Softlines, Disney Toys, the Baby Einstein Company, Muppets Holding Company, Disney Direct Marketing’s catalog and website (DisneyShopping.com), Disney Stores, Disney Princess, Disney Interactive Studios, AETN Consumer products (37.5% equity).

Disney also owns Mobile ESPN and has launched the cellular service Disney Mobile.

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News Corp

2009 revenues: $30.4 billion

News Corporation’s media holdings include: the Fox Broadcasting Company; television and cable networks such as Fox, Fox Business Channel, National Geographic and FX; print publications including the Wall Street Journal, the New York Post and TVGuide; the magazines Barron’s and SmartMoney; book publisher HarperCollins; film production companies 20th Century Fox, Fox Searchlight Pictures and Blue Sky Studios; numerous websites including MarketWatch.com; and non-media holdings including the National Rugby League.

Networks: Fox, MyNetworkTV. In the United States, News Corp. owns 27 television stations.

Cable: Fox Business Channel, Fox Movie Channel, Fox News Channel, Fox College Sports, Fox Regional Sports Networks (16 owned and operated), Fox Sports En Espanol, Fox Sports Net, Fox Soccer Channel, Fox Reality, Premier Media Group (Australia 50%), Premium Movie Partnership (Australia 20%), Cine Canal (Latin America 23%), Telecine (Latin America 13%), FUEL TV, FX, FX HD, National Geographic Channel (US 67% and Worldwide 52%), National Geographic Channel HD, SPEED Channel, SPEED HD, Big Ten Network & Big Ten Network HD (49%), Premier Media Group (Australia 50%).

Production and Distribution Companies: Fox Television Studios, Fox Home Entertainment, 20th Century Fox Television, 20th Television, Regency Television (50%).

Satellite Television: Fox International owns 120 channels around the world.

Europe: SKY Italia includes Sky Sport, Sky Calcio, Sky Cinema, Sky TG 24, Premiere AG (25%). British Sky Broadcasting (39%) includes Sky News, Sky Sports, Sky Travel, Sky One, Sky Movies, Artsworld. News Corp. also owns Balkan News Corporation.

Latin America:LAPTV (33%), Telecine (13%).

Asia: STAR Channels, Space TV (India DBS 20%), Phoenix Satellite Television (18%), Hathway Cable and Datacom (22%), China Network Systems (17 affiliated cable systems), Vijay, Xing Kong Channel [V], ESPN Star Sports (50%), ANTV (20%), TATA Sky (20%), Asianet (50%), Asianet Plus (50%), Suvarna (50%), Sitara (50%).

Australia & New Zealand: Sky Network Television Limited (44%), FOXTEL (25%).

Programming: Fox Sports, Special Report with Brit Hume, Fox Report with Shepard Smith, On the Record With Greta Van Susteren, Fox News Sunday, The O’Reilly Factor, Fox Pan American Sports (38%).

Magazines: Barron’s, SmartMoney (50%), Big League, InsideOut, donna hay, News America Marketing (In-Store, FSI (SmartSource), SmartSource iGroup, News Marketing Canada), Alpha, The Weekend Australian Magazine, sundaymagazine, body + soul, STM (WA), home, TVGuide, News Magazine (Australia).

Newspapers:

Australia/Asia: More than 150 titles including: The Wall Street Journal Asia, the Fiji Times, Daily Telegraph, Nai Lalakai, Shanti Dut, Gold Coast Bulletin, Herald Sun, Newsphotos, Newspix, Newstext, NT News, Papua New Guinea Post-Courier (63%), Sunday Herald Sun, Sunday Mail, Sunday Tasmanian, Sunday Times, Sunday Territorian, The Advertiser, The Australian, The Courier-Mail, The Mercury, News Limited, The Sunday Mail, The Sunday Telegraph, Weekly Times, The Weekend Australian, MX, Brisbane News, Northern Territory News, Cumberland (NSW), Leader (VIC), Quest (QLD), Messenger (SA), Community (WA), Darwin Sun/Palmerson Sun (NT).

United Kingdom: News of the World, The Sun, The Sunday Times, The Times, News International.

United States: Newspaper holdings include the Wall Street Journal, the New York Post, MarketWatch and Dow Jones Newswire; News Corp. also acquired the Ottoway group of community newspapers through its takeover of Dow Jones in 2007.

Books: HarperCollins Publishers.

Production and Distribution: Fox Film Entertainment: 20th Century Fox Film Corporation, Fox 2000 Pictures, 20th Century Fox Espanol, 20th Century Fox Home Entertainment, 20th Century Fox Licensing and Merchandising, 20th Century Fox International, Fox Atomic, Blue Sky Studios, Fox Searchlight Pictures, Fox Music, Fox Studios Australia, Fox Studios Baja (Latin America), Canal Fox (Latin America), Balaji Telefilms (26%, Asia), 20th Century Fox Animation.

Fox Interactive Media manages Fox’s online holdings, which include MySpace.com, Scout.com (a college sports site), ign.com (Internet gaming), Simply Hired (an online job search site), FoxSports.com, Fox News.com, Fox.com, Intermix, IGN.com, IGN.com.au, NYPost.com, MSN.Foxsports.com, Broadsystem.com, NewsOptimus.co.uk, NewsOutdoor.com, RottenTomatoes, Fox.com, AmericanIdol.com, MarketWatch.com, Photobucket.com, Hulu.com (32%), jamster.com (51%), askmen.com, whatifsports.com, ksolo.com, springwidgets.com, flecktor.com milkround.com, nds.com, newsoutdoor.com, wsj.com, dowjones.com, barrons.com.

News Corp. also owns News Digital Media (a group of Australian Web sites). Mobile Web sites include Fox Business and Fox News. Fox is also now offering a mobile entertainment package called Mobizzo on Cingular and T-Mobile phones.

Outdoor advertising: News Outdoor.

Sports: National Rugby League.

Europe: NDS (72%), News Outdoor Group.

Misc.: Fox Sports Enterprises, National Advertising Partners, Media Support Services Limited (Russia), STATS LLC (50%).

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TimeWarner

2009 revenues: $25.8 billion

Time Warner is the largest media conglomerate in the world, with holdings including: CNN, the CW (a joint venture with CBS), HBO, Cinemax, Cartoon Network, TBS, TNT, America Online, MapQuest, Moviefone, Warner Bros. Pictures, Castle Rock and New Line Cinema, and more than 150 magazines including Time, Sports Illustrated, Fortune, Marie Claire and People.

Network: CW Network (50% with CBS).

Cable: Home Box Office, Inc. (HBO, Cinemax, HBO Sports, HBO Pay-Per-View, HBO on Demand, Cinemax Multiplexes, Cinemax on Demand, HBO HD, Cinemax HD, as well as HBO channels around the world), TruTV, TBS, TBS HD, Boomerang, Cartoon Network, Turner Classic Movies, TCM Europe, TCM Asia Pacific, TNT, TNT HD, CNN Airport Network, CNN International, CNN Headline News, CNN en Español, CNN en Español Radio, CNN Pipeline.

Regional and Local Channels: NY1 News, NY1 Noticias, Sports Net, R News (Rochester, NY), Turner South, Capital News 9 Albany, MetroSports, News 8 Austin, News 10 Now — Syracuse, News 14 Carolina-Charlotte, News 14 Carolina-Raleigh.

International: CNN International, CNN Headline News in Asia Pacific, CNN Headline News in Latin America, CNN+, CETV (36%)(China), CNNj, CNN Turk, CNN-IBN, Cartoon Network Europe, Cartoon Network Latin America, Cartoon Network Asia Pacific, Cartoon Network Japan (70% share), Imagen, TCM Classic Hollywood in Latin America, TNT Latin America, TNT Serie, truTV, Nuts TV, Cartoonito, Pogo, 7 networks in Latin America.

Production and Distribution: Warner Bros. Television Group, Warner Home Video, Warner Horizon Television, Warner Bros. Animation, Warner Bros. Digital Distribution, Telepictures Productions, HBO Video, HBO Independent Productions, New Line Television, Williams St. Studio, Cartoon Network Studios, CNN Newsource, Central Media Enterprises (31%).

Programming: CNN Newsroom, Live From The Situation Room, Lou Dobbs Tonight, Larry King Live, Anderson Cooper 360, NBA Games, MLB Playoffs, NASCAR, Entourage, Kids' WB, American Morning.

America Online: AOL, AOL.com, AOL Instant Messenger, AOL Wireless, AOL Music Now, AOL Local, McAfee VirusScan Online (bundled with AOL services), AOL by Phone, AOL Call Alert, AOL CityGuide, AOL PassCode, AOL Voicemail, AOL Europe (Germany and Luxembourg), America Online Latino (Brazil, Mexico, Argentina, Puerto Rico, Venezuela, Chile, AOL Global Web Services, AOL Latino).

Other Online Holdings: CNN.com, CNNMoney.com, CNNStudentNews.com, MapQuest, Moviefone, Movietickets.com, RED, Advertising.com, CompuServe, ICQ, KOL, SI.com, People.com, Pipeline, GameTap, CartoonNetwork.com, DCComics.com, Time.com, VeryFunnyAds.com, Cwtv.com, Golf.com, Truveo, Weblogs, TMZ.com, Momlogic.com, AIM, Bebo.com, NASCAR.com, NASCAR.com en Espanol, PGA.com, PGATour.com, Play On!, superdeluxe.com, MyRecipes.com, MyHomeIdeas.com, ThisOldHouse.com, buy.at, MedioTiempo.com, Goowy, Sphere Source, Mousebreaker.com.

Time Warner "operates" NBA.com until 2016.

Production: Subsidiary The Warner Bros. Entertainment Group owns: Warner Bros. Pictures, New Line Cinema, Castle Rock, Warner Premiere, Picturehouse, Warner Bros. International Cinemas, Warner Independent Pictures, a joint venture with Village Roadshow Pictures, and a joint venture with Alcon Entertainment.

Distribution: Distribution to more than 125 international territories.

Comics: DC Comics, E.C. Publications, Inc. (publisher of MAD magazine).

Time, Inc. controls: Time Warner Book Group (with publishing companies The Mysterious Press, Time Warner Book Group UK, Warner Faith, Warner Vision, Warner Business Books, Aspect, and Little, Brown and Company (includes Little, Brown Adult Trade, Little, Brown Books for Young Readers, Back Bay, and Bulfinch Press); Oxmoor House, Inc., Sunset Books, Books-of-the-Month Club, Inc., Southern Progress Corporation, Grupo Editorial Expansion (publishes 15 magazines in Mexico).

More Than 150 Magazines: People, Time, Sports Illustrated, Fortune, This Old House, 25 Beautiful Homes, 25 Beautiful Kitchens, 4x4, Aeroplane, All You, Amateur Gardening, Amateur Photographer, Ambientes, Angler’s Mail, Audi Magazine, Balance, Bird Keeper, Business 2.0, Cage & Aviary Birds, Caravan, Chat—Its Fate, Chilango, Classic Boat, Coastal Living, Cooking Light, Cottage Living, Country Homes & Interiors, Country Life, Cycle Sport, Cycling Weekly, Decanter, Entertainment Weekly, Essence (joint venture), Essentials, EXP, Expansion, European Boat Builder, Eventing, Family Circle (U.K.), Fortune Asia, Fortune Europe, FSB: Fortune Small Business, Golf Magazine, Golf Monthly, Guitar, Hair, Health, Hi-Fi News, Homes & Gardens, Horse, Horse & Hound, Ideal Home, In Style, In Style U.K., International Boat Industry, Land Rover World, Life, Manufactura, Marie Claire (joint venture), MBR-Mountain Bike Rider, MINI, MiniWorld, Model Collector, Money, Motor Boat & Yachting, Motor Boats Monthly, Motor Caravan, NME, Now, Nuts, Obras, Outdoor Life, Park Home & Holiday Caravan, People en Espanol, Pick Me Up, Practical Boat Owner, Practical Parenting, Prediction, Progressive Farmer, Quien, Quo (joint venture), Racecar Engineering, Real Simple, Rugby World, Ships Monthly, Shoot Monthly, Shooting Times, Soaplife, Southern Accents, Southern Living, Sporting Gun, Sports Illustrated for Kids, Stamp Magazine, Sunset, Superbike, Synapse, Targeted Media, Teen People, The Field, The Golf, The Golf+, The Railway Magazine, The Shooting Gazette, This Old House Ventures, Time Asia, Time Atlantic, Time Australia, Time Canada, Time for Kids, Time, Inc. Content Solutions, Time Pacific, TV & Satellite Week, TV Easy, TVTimes, Uncut, VolksWorld, Vuelo, Wallpaper, Webuser, Wedding, What Camera, What Digital Camera, What’s on TV, Who, Woman, Woman & Home, Woman’s Own, Woman”s Weekly, World Soccer.

Joint Ventures: Groupe Marie Claire (U.K.).

Marketing businesses: Synapse Group Inc., Targeted Media, Inc., Media Networks, Inc., Third Screen Media, LLC, ADTECH AGTACODA LLC, Quigo Technologies.

Other: CNN Mobile, CNNRadio, Warner Bros. Interactive Entertainment Inc., Monolith Productions (game developer), GameTap, Warner Bros. Consumer Products Inc. (licensing), HBO Properties (licensing and merchandising), HBO distributed over AT&T Wireless, Warner Bros. Animation (including Hanna-Barbera and Looney Tunes), Time Warner Investments, Winamp.

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VIACOM

2009 revenues: $13.6 billion

Viacom holdings include: MTV, Nickelodeon/Nick-at-Nite, VH1, BET, Comedy Central, Paramount Pictures, Paramount Home Entertainment, Atom Entertainment, and music game developer Harmonix. Viacom 18 is a joint venture with the Indian media company Global Broadcast news.

Viacom owns 10 TV stations (primarily broadcasting MTV Tr3s).

Cable: MTV, MTV2, Nickelodeon/Nick-at-Nite, TV Land, VH1, Spike TV, CMT: Country Music Television, Comedy Central, Palladia, MTV U, LOGO, MTV World, MTV Films, Nickelodeon Movies, Paramount Comedy, BET, BET Jazz, BET Gospel, BET Hip Hop, Nick Jr., TeenNick, MTV Tr3s, VH1 Classic, VH1 Soul, VH1 Pure Country.

International Channels: MTV Networks International operates in 160 countries. Viacom also owns Colors, The Music Factory, The Box, Game One, VIVA, QOOB, MTV Network Europe, Comedy Central Germany, MTV Base, MTV Arabia.

Production: BET Event Production, MTV Productions.

Programming: The Hills, Nick Gas, Turbo Nick, Nicktoons Network, The Daily Show, The Colbert Report, MTV Jams, MTV World.

MTV Radio, BET Radio, Imagine Radio Limited

Music: The Extreme Music Library, Director's Cuts Production Music.

Magazines: Nickelodeon Magazine.

Paramount Pictures (includes Dreamworks, Paramount Vantage, Paramount Classics, MTV Films, Nickelodeon Movies and Paramount Home Entertainment), Viacom 18 (50%) (India).

MTV.com, VH1.com, Spiketv.com, ComedyCentral.com, Nick.com, GT.TV, GameTrailers.com, Neopets Inc., MTVi Group, SonicNet.com, GoCityKids.com, MTV Overdrive, VH1 Vspot, BET.com, BET on Blast, Cmt.com, TurboNick, Quizilla, Nick Jr. Video, The Click, Nicktropolis, Addictinggames.com, Shockwave.com, ParentsConnect.com, Atomfilms.com, Rhapsody America (49%), Virtual Worlds (Nickropolis, vmtv.com), thedailyshow.com, colbertnation.com, southparkstudios.com (51%), spiketv.com, ifilm.com, jokes.com, Xfire (gaming).

MTV Mobile, MTV Games (including Rock Band), BET Mobile, Harmonix, Y2M: Youth Media & Marketing, Rhapsody (part ownership).

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

CBS

TV Radio Publishing Online holdings Other

2009 revenues: $13 billion

CBS Corporation owns the CBS Television Network, CBS Television Distribution Group, the CW (a joint venture with Time Warner), Showtime, book publisher Simon & Schuster, 30 television stations, and CBS Radio, Inc, which has 130 stations. CBS is now the leading supplier of video to Google’s new Video Marketplace.

Visit the CBS Corporation homepage »

Networks: CBS Network consists of 30 stations. CW Network (50% with Time Warner).

Cable: CBS College Sports Network, the Smithsonian Channel, MountainWest Sports Network (50% with Comcast). Showtime Networks, Inc. (SNI) owns Showtime, the Movie Channel, Flix, Showtime Too, Showtime Showcase, Showtime Extreme, Showtime Beyond, Showtime Next, Showtime Women, Showtime Familyzone, the Movie Channel Xtra, Showtime HD, Showtime Too HD, Showtime PPV, Showtime on Demand, the Movie Channel HD.

Programming: CBS Television Distribution: CSI: Crime Scene Investigation, Survivor, Everybody Loves Raymond, Jeopardy!, The Oprah Winfrey Show, Entertainment Tonight, The Early Show, 60 Minutes, 48 Hours, Face the Nation, Two and a Half Men, The Young and The Restless.

CBS also owns CBS News, CBS Sports, CBS Entertainment, and broadcasts the NCAA Basketball Tournament.

International: In the UK, CBS Action, CBS Reality, CBS Drama. In Australia, TV1 (33%), Sci Fi (33%).

Production and Distribution: CBS Television Studios, CBS Studios International, CBS Television Distribution, CBS Films, CBS Paramount Network Television, CBS Paramount International Television.

CBS Radio owns 130 radio stations in 29 markets; most of these are in the nation’s top 50 markets.

Books:

Simon & Schuster: Atria Books, Kaplan, Pocket Books, Scribner, Simon & Schuster, The Free Press, The Touchstone, Fireside Group.

Simon & Schuster Children’s Publishing: Aladdin Paperbacks, Atheneum Books for Young Readers, Little Simon, Margaret K. McElderry Books, Simon & Schuster Books for Young Readers, Simon Pulse, Simon Spotlight.

Other Publishing: Simon & Schuster Canada, Simon & Schuster UK, Simon & Schuster Australia, Simon & Schuster Audio, Simon & Schuster Digital, MTV Books.

CBS.com, CBSNews.com, CBS Interactive, CBSGames.com, CBS Outernet, CBSSports.com, CBSCollegeSports.com, Sportsline.com, CNet.com, ourchart.com, ProElite, Inc., smithsoniannetworks.com (50%), MaxPreps.com, NFL.com, NCAAsports.com, ParentConnect.com, PGATour.com, Sho.com, Innertube, TheShowBuzz.com, Last.fm, GameSpot, TV.com, MP3.com, help.com.

CBS owns CBS Outdoor, CBS Consumer Products, and manages CBS Television City at the MGM Grand Hotel & Casino (Las Vegas, NV).

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

So how do private bankers use these corporate giants to affect what we think? Just today I heard a talk by Robert Kennedy jr. aired on Vision TV. I was busy doing something else so the details are not clear but the general story he told when something like this.

In Washington, DC there is a group of people who meet every Wednesday or Thursday afternoon. This group consists of people from the major media, financial corporations and government officials. At this meeting these people decide what will be the major stories that are covered for the next week. Robert Kennedy jr. used as an example a speech given by the President. This group decided that they wanted to have the American people believe that this particular speech was strong. Within two hours after this meeting TV stations controlled by this group such as Fox News, CNN, etc., started airing the story that the president gave a strong speech. Within a few more hours every news program on every radio and TV station was talking about the president’s strong speech. The next day every newspaper had articles lauding the Presidents strong speech. And by the end of the week, Time, Newsweek and other magazines were all relaying the same message. Kennedy said that if this group wanted to send the message that someone was flip flopping on issues the same process was used and by the end of the week the “fact” that this person was a flip flopper was embedded within the consciousness of the American people. Remember how they made John Kerry, who had won a medal for bravery in Vietnam out to be a coward and bush the hero?

By this process citizens of a country are either swayed one way or another or they are pitted against each other. Sadly, in this way citizens of one country are pitted against those of another and the result is a war where the only victors are the private bankers who fund both sides.

The sadder part of this fiasco is that we end up believing the lies they feed use. These beliefs become so strong that even when the facts of an issue are out in the open we disregard them in order to maintain our belief. This is our ultimate addiction. We have become addicted to lies that in the end have little consequence. We have become divided voters, “fighting over questions of no importance” to the bankers.

We need to take back control of our thinking. We can never do that until we see the mechanism that's influenced what we think. And to do that we need to look at our own cognitive dissonance. http://formulafordebt.blogspot.com/2010/12/cognitive-dissonance.html

Remember what was said above. We can have a debt of $550,000,000,000.00, or 0.00. The choice is ours. For me and my family I choose zero debt, and I'm willing to work to see this be our reality. What's your choice?

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Comments to the author are welcomed.

david.ealing@gmail.com

Are Bank of Canada Notes Dollars?

I've been wondering if the notes printed by the Bank of Canada are dollars. This wondering started when I learned that the notes printed by the Federal Reserve are not United States dollars. Check it out yourself:
http://www.cfsnv.com/images/FRN%20not%20Dollars%20for%20Treas%20Dept.pdf
http://inclusion.semitagui.gov.co/Subjects/Taxes/News/20070630-Dollar.htm

Maybe we need to establish this fact in Canada.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Comments to the author are welcomed.
david.ealing@gmail.com

A Bond is Simply a Promise to Pay - Part Two

To see Part One visit:
http://formulafordebt.blogspot.com/2010/12/bond-is-simply-promise-to-pay.html

There is a point here that I hope readers of Part One of this post noticed. Under our present economic system neither chartered financial institutions (local Banks and Credit Unions) nor the Bank of Canada has any money to lend. They need no money because they use the money you have promised to pay them at some specified future date.

Let's look at how this insane scenario works from our Federal Government's point of view.

• Let's say that the Federal Government sees the need for a new highway and this highway will cost 500 million dollars to build.
• Based on this need the Federal Government goes to a Bank that has no money and applies for a loan of five hundred million dollars ($500,000,000) at five percent (5%) interest for one year. Remember the application is the same as a promise to pay and the same as a bond.
• Because the Bank doesn't have $500,000,000 to lend it goes to the Bank of Canada and says, "The Federal Government will pay us $500,000,000 plus twenty five million dollars ($25,000,000) interest in one year if we will lend it $500,000,000. As you know, we don't have any money. We also know you don't have any money but will keep that knowledge to ourselves. But you do have the right to print money. If you agree to print $500,000,000 and let us use it for one year we will agree to split the $25,000,000 the Federal Government will pay in interest." 
• The Bank of Canada, in considering this offer, knows, a) that only about 10% of the $500,000,000 will actually ever appear as physical notes; the rest will just be computer entries transferred from one account to another, b) that the number of notes needed to have 10%, or $50,000,000 in circulation will be about three million notes, c) that the cost of printing each note for this loan will be about four cents (0.04) and d) that the total cost to the Bank of Canada to print $50,000,000 will be 3 million notes times four cents, or one hundred twenty thousand dollars ($120,000). Based on these considerations the Bank of Canada agrees to "sell" the Chartered Bank $500,000,000 for one year at only three percent (3%) interest, or fifteen million dollars ($15,000,000).
• In one year when the Government repays the loan plus interest ($525,000,000) to the Chartered Bank it returns the promise to pay that was used to create the value behind the loan.
• The Chartered Bank now deposits $10,000,000 into its own account and returns $515,000,000 to the Bank of Canada.
• When the Bank of Canada receives the $515.000.000 from the Chartered Bank it deposits $15,000,000 into its own account and destroys the original $500,000,000. 

[Note: Did you notice that due to the interest charged, more money leaves our economy than enters?]

On top of this, the Government was forced to collect $525,000,000 in taxes to repay this loan in one year. But maybe I'm being too harsh here. Both Banks are, after all, more than willing to bend over backwards if the Government fails to meet its obligation. All they will ever require is that compound interest be applied to the remaining balance.

I've heard of people getting shafted but never to this degree. Do you see what happens? Do you really see what happens? Two entities with no money get to split $25,000,000 and all that happened was a printing press ran for a few hours!! If you and a friend set up a scheme like this you would both be charged with fraud. But private banks do this and they become honoured members of our society.

The following is from section 5.41 of the Auditor General’s 1993 report.

“The cost of borrowing is the third area that affects the annual deficit. In 1991-92, the interest on the debt was $41 billion. This cost of borrowing and its compounding effect have a significant impact on Canada’s annual deficits. From Confederation up to 1991-92, the federal government accumulated a net debt of $423 billion. Of this, $37 billion represents the accumulated shortfall in meeting the cost of government programs since Confederation. The remainder, $386 billion, represents the amount the government has borrowed to service the debt created by previous annual shortfalls.”

Translated into Math, that means this:

Actual loans to government…....…. $ 37,000,000,000

Usury by banking system……….. $ 386.000,000,000

Total debt (1993)………………. $ 423,000,000,000

From 1867 to 1992 Canada borrowed 37 million dollars from private banks. The compound interest on this amount has added 386 million dollars to the original 37 million dollars. So in 1993 Canada owed 423 million dollars. And the interest on this debt, in 1991-92 was, 41 million dollars! Canada now pays more interest per year than was originally borrowed!!

If you want to know what our federal debt is at any given moment check out: http://www.debtclock.ca/.
As of 5:18 pm on December 5, 2010 this clock read, $550,038,968,000.00. It is necessary, it is important, it is essential, that you understand that all the banks did was print maybe 5 billion dollars of the maybe 50 billion Canada borrowed. The other 45 billion entered the economy as a computer entry and left the same way. The rest or 500 billion dollars of this debt is the compounded interest the Government was charged for the money it "borrowed".

As an aside here, consider Africa. Between 1970 and 2002 the poorest African countries received $294 billion in loans, paid back $298 billion in interest and principal, but still owed more tan $200 billion.

It's a fraud folks. Banks do not lend money. They don't have any. Banks merely print what someone wants to borrow. If you don't believe me listen to what the bankers themselves tell you.

"The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banking was conceived in iniquity and born in sin. Bankers own the earth. Take it away from them, but leave them the power to create money and control credit, and with the flick of a pen, they will create enough money to buy it back again. Take this great power away from the bankers and all the great fortunes like mine will disappear, and they ought to disappear, for this would be a better and happier world to live in. But if you want to continue the slaves of bankers and pay the cost of your own slavery, let them continue to create money and to control credit."

Sir Josiah Stamp: Director and President of the Bank of England during the 1920's and reputed to be the second richest man in England.

I guess the question is, "Do you want to remain the slaves of bankers and pay the cost of your own slavery?" I for one do not. I write this blog because I am tired of slavery. I write this blog so that my daughter and grand children don't live the rest of their lives in slavery. How many of you feel the same?

There are those who have been able to figure this banking and corporate scam out much better than I. They say that there is a remedy for us hidden in the Bills of Exchange Act and if we learn these remedies we need never worry about bills in the mail or money again. They may be right but there is a problem here as I see it. Whose money do you use to live? In Canada there is only one form of money; that which is printed by the Bank of Canada. Use a private bank's money and you create a debt that can never go away. It may seem to go away at times but that's only because it got transferred to another country when it purchased our natural resources. Study: http://formulafordebt.blogspot.com/2010/11/formula-for-debt_09.html. We can play the game and be able to avoid taxes but someone will suffer from the debt we create as we use the money of a private bank. As I see it, we cannot win until we all win.

In the beginning what is written here may seem impossible to understand. However, understanding will come as long as you don't give up. And when understanding finally comes, you will be amazed how something so simple and easy to understand, had avoided your grasp for so long.

So many are depending on our understanding how debt is continually created by our use of a private bank's money. Some of these are children who will never get the chance to grow old because of the poverty they live in today. We need to understand the part we play in the creation of their poverty. The system is corrupt and it must be abolished.

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Comments to the author are welcomed.

david.ealing@gmail.com

Questionable Economics of BC Hydro

Are you ready for your BC Hydro rate increase. If not you MUST get involved. Sitting on your hands wont help. Wringing them wont help. The only real cure is for a de jure Government to take back control of our money; its creation and its being spent (not borrowed) into the economy.

Watch this video.
http://thecanadian.org/k2/item/402-erik-anderson-4

A Bond is Simply a Promise to Pay

                                Part One

In a recent post, http://formulafordebt.blogspot.com/2010/11/look-at-bank-of-canada.html, I asked a few questions in reference  to some points of the following email originating from a Bank of Canada official. In this post I will deal with the questions asked relating to question 4 below in green.

From:                                     Robert Turnbull [rturnbull@bank-banque-canada.ca]

Sent:                                      Wednesday, March 20, 2002 9:13 AM

To:                                         XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Subject:                                 Bank of Canada Act

I hope the following answers the questions in your E-mail of March 14 to Bank of Canada Public Affairs.

1.     The Bank is not a public corporation. All shares are held by the Government of Canada.

2.     The Bank of Canada Act does not provide for the appointment of elected representatives to the Board of the Bank.

3.     The Bank has no powers under section 18 to make loans to the federal government and to Provincial governments. It is not the Bank’s role to be a source of financing for Governments and this power has only rarely been exercised (on two occasions that I am aware of, when a government has been in dire financial straights.)

4.     The Bank issues notes by selling them at face value to financial institutions, who then put the notes into circulation. What does a financial institution use to pay for a $20.00 bill? A $20.00 bill????
The Bank also buys surplus notes from financial institutions What does the Bank of Canada use to buy these surplus note? Does it buy a surplus $20.00 bill with a non-surplus $20.00 bill? Something sounds fishy here. and destroys notes which are of poor quality. Each note is a claim against the Bank. The Bank accounts for notes on its balance sheet as liabilities.

5.     Subsection 23(b) means that the Bank may purchase shares of the BIS or make loans on the security of BIS shares. It does not authorize the Bank to borrow from the BIS.

I hope this information is of help to you.

On the surface it wouldn't seem strange that any business would sell what they produce and that the selling price would be related to the value of the product. But in this case it seems that what is being sold and what is being used to purchase that product is the same. It sounds like their selling a pound of potatoes for a pound of potatoes. But the Bank of Canada is not selling potatoes, it's selling money at face value.

4.     The Bank issues notes by selling them at face value to financial institutions, who then put the notes into circulation. What does a financial institution use to pay for a $20.00 bill? A $20.00 bill????

Again, on the surface it sounds like the Bank is selling a $20.00 note for a  $20.00 note and a $100.00 note for a $100.00 note, etc. And the truth is, it is. But the financial institution does not give the Bank of Canada $20.00 in return for $20.00. The financial institution submits a promise to pay a $20.00 note in return for a $20.00 note. Another word for a promise to pay is a bond. A bond is just a promise to pay a specific amount of money in a specific amount of time and with a specific amount of interest.

So does that mean that a financial institution, in order to "buy" money from the Bank of Canada, issues a promise to pay; a bond? The answer is no. The financial institution simply uses yours! Surprised?

You’ve been told, or maybe just lead to believe, that banks have a vault full of money ready to lend to all credit worthy clients. That is simply not the case. The Bank of Canada, believe it or not, is merely a printing house. It has no money to lend at any time. Chartered Banks merely offer you a computer terminal to transfer funds from one account to another. They have no money to lend.

To explain this let’s start somewhere close to the beginning. Imagine entering a Chartered Bank and requesting a loan of twenty thousand dollars to purchase a new car. The first thing that the bank loan manager will do is ask that you fill in a loan application form. So you do that and place your signature on the bottom line and guess what? You just created the money that the bank will then print for you. The bank did not have this money prior to your signature being placed on the application form. They don’t even have it now that your signature is on the application form; you have to slide the application form across the desk first. You don’t know it but you have just given the Chartered Bank the asset that they will use to “buy” the needed money to “lend” to you so that you can buy a new car. Put simply, you gave the Chartered Bank the money that they will now “lend” you. You have to not like how this is sounding already. We know that this must bring up many questions for you but let’s stay with the application for now.

What is a loan application form?

A loan application form is a bond or a promise to pay. A bond is simply a promise to pay. By filling out a loan application form you are issuing a bond; issuing your promise to pay. Literally, you are creating money. A promise to pay is just a note signed by one individual that promises to pay a specified amount, thing or service to another individual. A Government Bond is an example of a promise to pay. Your loan application is a promise by you to pay the amount of the loan as well as any stipulated interest charges to the bank at some future date. Your credit worthiness determines if your promise to pay has any value. Once the bank assures itself that you will fulfill your promise the application (your promise to pay) is accepted as valuable. The value of your bond (your promise to pay) is set at the amount you have promised to pay.

What happens next proves your promise to pay has value. The Chartered Bank submits your promise to pay to Canada’s central bank, the Bank of Canada, and purchases, that’s right, the Chartered Bank buys the funds you requested from the Bank of Canada!...and buys them with your promise to pay!

The Bank of Canada accepts your promise to pay as security for printing the $20,000 you requested. The actual printing necessary to facilitate your request will probably be less than one hundred notes that may total $2,000. The rest will be transferred through computer entries...electronically. It costs about five cents per note so the total cost associated with the printing of the bills necessary to fulfill your request to the Bank of Canada will be a grand total of five dollars ($5.00).

The Bank of Canada then transfers these funds, $20,000, to the Chartered Bank. Now with a simple computer entry the Chartered Bank credits your account with $20,000. Now with another computer entry (debit card transfer) the $20,000 is transferred to the auto dealership and you drive away with your new car. The only thing left is for you to fulfill your promise to pay by making your monthly payments. As you return each payment to the Chartered Bank they in turn return that payment to the Bank of Canada. Each payment reduces the value of your promise to pay by the amount of the payment. When you have discharged your total obligation by making all your payments the value of your promise to pay is zero.

Now let’s assume that the total interest you were charged for these funds is 7%; the Chartered Bank interest charge is 4% and 3% is charged by the Bank of Canada. Seven percent on $20.000 equals $1,400, so the total cost of your new car will be $21,400 and you’re happy, right? But should you be?

Let’s look at what the Chartered Bank actually did to receive the four hundred dollars it “earned”. Do you see what the Chartered Bank actually did? All it did was provide you with a computer terminal and a web site to transfer funds from one account to another. It provided no money, it printed no money. It merely charged you $800 for the use of its computer for probably less than an hour. What a great business!

Now let’s look at what the Bank of Canada did for the $600 it “earned”. It spent at the most $5.00 to print a few bank notes. And it gets to keep the $20,000 you returned to it. Now this is a great business! Actually, it’s a scam, a fraud, disguised as an honourable business.

You’ve merely been programmed to believe that banks “give” you something. The only giving in this arrangement comes from you. Both the Chartered Bank and the Bank of Canada had no money before you applied for this loan. Now the Chartered Bank has $800 and the Bank of Canada has $600 plus the $20,000 created by your promise to pay. This is money laundering at its finest!

What we as Canadians need to realize is that this is the only way money enters our economy; it's borrowed into existence. And as loans are repaid money is removed from our economy and is kept by the Bank of Canada. No money is ever made within our economy. It may appear that money is made when a company produces a product for $10.00 and then sells it for $20.00. It is true that this company has increased its wealth, but it has not created or added this wealth to the economy. It has merely accumulated preexisting money, money someone else has borrowed. Each one of these preexisting borrowed dollars are registered with some one's promise to pay and as long as this company holds them someone will fail in their attempt to fulfill their promise to pay.

The economic system the Bank of Canada operates is called the Private Debt Money System. The Bank of Canada claims to be a public bank owned by the people of Canada. If this were true it would operate under a Public Credit Money System. Why would a public bank that claims, "Our principal is "to promote the economic and financial welfare of Canada." operate an economic system that guarantees Canada will one day be obliged to apply for welfare from the International Monetary Fund (IMF)? The dominoes are falling in Europe and despite what our economist Prime Minister tells us, Canada's domino is in that line. 

Click this link for part two:

http://formulafordebt.blogspot.com/2010/12/bond-is-simply-promise-to-pay-part-two.html.

Comments to the author are welcomed.

david.ealing@gmail.com

Cognitive Dissonance



Cognitive: [kog-ni-tiv]

–adjective

1. of or pertaining to cognition.

2. of or pertaining to the mental processes of perception, memory, judgment, and reasoning, as contrasted with emotional and volitional processes.

Dissonance:

[dis-uh-nuhns]

–noun

1. inharmonious or harsh sound; discord; cacophony.

2. Music .

a. a simultaneous combination of tones conventionally accepted as being in a state of unrest and needing completion.

b. an unresolved, discordant chord or interval.

3. disagreement or incongruity.

 Basically the phrase cognitive dissonance simply refers to a state where one has awareness of thoughts or facts that are in disagreement with presently held beliefs. For example, let's say that you have a friend who you have known all your life. Then one day someone relates a story about your friend that in your mind is inconceivable. Let's say that you know your friend as a mild mannered non drinker and the story portrays him in a drunken rage. Add to this the fact that you know the one relating the story as someone who would never tell lies. What you've heard about your friend goes against what you know as  true; both about your friend and about the one relating the story. What you would experience over this occurrence would be called cognitive dissonance. You are faced with two options, neither of which you want. Either your friend was in a drunken rage or the other individual is telling a lie.

We see cognitive dissonance demonstrated in court cases where one member of a family has been charged with a serious crime. Other members of that family continue to claim the innocence of their relative even after overwhelming evidence to the contrary has been presented.

When examining our money system we first tend to not believe our actions contribute to other's experiencing poverty, unemployment, homelessness or worse. We have been taught that our work contributes to the economy therefore our effort is a benefit to others. We have also been taught that the poverty experienced by others is a result of circumstance or laziness, etc. It is definitely not related to our participation in our present economic system.

So when presented with the formula for debt, [P - (P + I) = D; Principle minus (Principle plus Interest) equals Debt] our first reaction is disbelief. Everything this formula states goes against everything we believe.

See: http://formulafordebt.blogspot.com/2010/11/formula-for-debt_09.html

It is important that we look at the facts with an open mind. I urge you to examine the evidence presented in the posts of this blog. Try to prove them wrong if you can. If you can, please let me know. If you can't, please tell others. Problems can only be corrected once the truth is known. Our present economic system is a problem and it's correction is our government taking back control of our money and instituting some form of a Public Credit Money System. Please watch this video: http://picasaweb.google.com/ohnocanada/OhCanadaMovie#5452543728926279634

Learn as much as you can about the effects of cognitive dissonance and see if you can detect how advertisers, governments and bankers use cognitive dissonance against us.

Comments to the author are welcomed.
david.ealing@gmail.com