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The importance of a national currency

Written by Alain Pilote on Tuesday, 01 May 2001. Posted in Politics

Msgr. Schooyans of Belgium (see article pages 3-4) and Pope John Paul II (see below) have warned us about the dangers of globalization, one of the obvious ones is manufacturing jobs that are shifted from Canada and the U.S.A, because of cheap labor. When the minimum wage is about $3 per day in Mexico, many companies do not hesitate: they move there, with their jobs.

But as the regular readers of the "Michael" Journal know, all these mergers of companies and nations are aimed at the ultimate objective of a single world government, in order to control people even more. The recent meeting in Quebec City, Canada, for example, is a start to joining all of the Americas into one government, with one single currency. When the Pope talks about "a global system governed by a few centers in the hands of private individuals," we know who these "private individuals" are: the barons of High Finance.

The Financiers don't want any country to be sovereign and self-sufficient, and thus be able to escape their control. And the key point in all this is the issuance of a national currency. No country can pretend to be sovereign if it does not issue its own debt-free money.

One would like to make Canadians think that it would be a good thing for Canada to give up the Canadian dollar for the American dollar — just as the European nations will give up their national currencies for the Euro in January, 2002 — but that would be the end of sovereignty for Canada, and make the implementation of the Social Credit principles in this country practically impossible.

Those who understand the Social Credit principles know what harm abandonning its national currency means for a nation. With an honest money system, as advocated by the Social Credit philosophy, money must be issued by each sovereign nation, and be a true reflection of physical realities: money must be issued as new products are made, and return to its source (the nation's central bank) as products are consumed, so as to have a constant balance between money and production (as much money as products, no more and no less) to prevent any inflation of prices.

There is therefore no question of issuing money anyhow, and thus bring about runaway inflation, as the opponents of any monetary reform are fond of repeating in order to scare people. For example, industrialist Henry Ford once compared money to a postage stamp, when he said:

"The function of money is not to make money, but to move goods and services. Money is only part of our transportation system. It moves goods from man to man. A dollar bill is like a postage stamp; it is not good unless it will move commodities between persons."

You will never hear about fear of inflation of stamps, of stamps losing their values because they printed too many of them. If you go to the post office to buy stamps, you will never hear the clerk say to you: "Sorry, there are no more stamps for sale; the country has sold out all the stamps it had printed for the year. Come back next year!" No, they just print as many stamps as needed to make letters move.

Moreover, a stamp comes into circulation when it is stuck on an envelope, to make it reach its destination, and is then obliterated when it leaves the post office, so it cannot be used twice.

A Social Credit system would operate in about the same way. As it has been mentioned above, new money will be created for new production, and be "obliterated", withdrawn from circulation and return to its source when goods and services are consumed.

The fraud of the private banks

Today, private banks have usurped this sovereign power of the creation of money (The central banks of Western countries actually create less than 5% of all the money of their nations.), and they try to consolidate their power. By lending, not paper money, but bank money (cheques, or, figures not even existing on paper, but only in microchip cards and computers in the form of electronic signals), private banks can lend several times the amount they actually have in reserve in paper money. (in Canada, chartered banks lend 100 times more money than their cash reserves, and in the U.S.A., this ratio is 40 times.)

The banks charge interest on the money they create out of thin air, with a stroke of the pen or with an entry in a computer, whereas the value of this money is based on the production of the country, which does not belong to the Bankers but to the population as a whole. What the regular readers of the "Michael" Journal have known for a long time, and that every citizen should know, is that it is simply ludicrous for any sovereign government to borrow at interest, from private banks, money that it can create itself, interest free. Of course, this money must not be issued anyhow, but in keeping with the quantity of existing products.

Then, governments could finance, without interest, all of the needs of their countries, and they would no longer have to pay interest charges on their debts, since they would cease to get into debt. If a natural disaster occurs, and requires government aid for the population and reconstruction, the sovereign government of each nation could grant this aid by using its own central bank and create interest-free money.

The objective of private banks is not at all to issue money according to the needs of the population, but to make more profits, and to oblige governments, businesses and individuals to borrow from them even more, and get even deeper into debt. The oligarchy of Bankers knows very well that if only one country takes back the control of the issue of its own currency, this would be a deadly blow to their monopoly of the creation of credit, since this country would show the entire world the proof that a country can be run without borrowing from private banks, and the other countries would soon follow this example, This is why, by establishing only one central bank for all of the European countries, the Bankers will make all financial liberation impossible for any country in Europe.

No to a global currency!

Why close down hospitals, downsize public services or privatize them, when the physical possibilities of supplying these services - materials and manpower - exist? With an honest money system, it would be possible to finance, interest and debt free, all that is physically feasible, to answer the needs of the population. The Canadians must therefore oppose a single currency for all of the Americas, just as the European nations must oppose a single currency for all of Europe. No to the world government and a global currency, and yes to an honest national currency, issued without debt! Yes to Social Credit! As the Pope said, the only form of globalization that is desirable is the "globalization of solidarity" that is to say, the love of neighbour.

About the Author

Alain Pilote

Alain Pilote

Alain Pilote has been the editor of the English edition of MICHAEL for several years. Twice a year we organize a week of study of the social doctrine of the Church and its application and Mr. Pilote is the instructor during these sessions.


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