House Democrat from Florida, Alan Grayson, questioned Elizabeth Coleman, Inspector General (IG) of the Federal Reserve. In response IG said [Grim] that they have direct oversight on the board programs and operations. But they do not have jurisdiction to directly go out and audit reserve bank activities specifically.
Thus reserve bank activities are privately controlled. It is here we see that the origin of money power is in the hands of a private entity.
2.1 Lack of Foundations
You cannot compare any two objects of nature; they are all like apples and oranges. You cannot even compare two apples; they have different shapes, colors, sizes, and even tastes. You must have noticed that even the same apple has different tastes at different parts of it. Such is the characteristics of all objects of nature. There is a reason behind it, they are all souls, they reincarnate. Their past life matters.
It is impossible to describe an apple using real numbers or money. It is not possible to assign money value to any object of nature, even manmade objects. Two manmade objects cannot occupy same space at same time; therefore their environments are different. Even two integrated circuits manufactured on the same wafer can be different. Thus GDP cannot be really measured. It provides a value based on false notions.
The reference [BEA] says – “Some activities, such as the care of one’s own children, unpaid volunteer work for charities, or illegal or black-market activities, are not included because they are difficult to accurately measure and value.” If this is so, then how a CEO’s salary for his own company can be determined? How the work of an employee can be measured when he is getting paid? How do you differentiate the salary of a mechanical engineer and a graphics design engineer? How do you compare the creativity of a fork lifter and that of a research director? You cannot.
We should realize that material and labor, that is GDP, are physical and therefore are parts of nature. Thus the core of economy is a physical system. Since this GDP is physical it must obey the laws of nature or the laws of physics. The money is not physical, it is an abstract object. We have seen that this money is not necessary to create, grow, and maintain this physical economy in the chapter on Moneyless Economy (MLE). Thus we can see how this unreal or non-physical money interferes with this physical economy and violates the laws of nature. We also briefly cover the consequences of this violation.
Thus assigning money values and treating them differentially is an extension of very well hated cast system of modern Indian society. It demoralizes and creates great sins for all people involved, whether a Brahmin or not. It is discrimination at the most granular level. How can you create anything true using something false, like money? You cannot.
2.2 Wrong Fundamentals
In this subsection we see how false money helps to violate the laws of nature and creates poverty and misery for people. It is of course obvious because by using something false you cannot create anything true.
Pot & Bag
Assume that the total material wealth of a nation is equivalent to a pot of gold. That is, this gold represents all the automobiles, airplanes, missiles, roads, bridges etc., or in other words this is the GDP, the gross domestic product.
Similarly assume that the total money available is a bag of dollar bills. This is the equivalent of the largest monetary aggregate (M3) or the total money in the economy. This bag of money has an one-to-one relationship with this pot of gold. This bag of money can buy that pot of gold. It is this bag of money that was used to create that pot of gold.
By the law of conservation (LOC) this pot of gold cannot grow. This law says:
Mass and energy cannot be created or destroyed; it can only be transformed from one form to another form, or it can be transferred from one place to another place.
This bag of money cannot grow either, because this bag is equivalent to that pot of gold and is attached to it by the LOC.
We all know that the Fed can print another bag of money, out of thin air. It is a private bank and only it can print money without any restrictions, transparency, and accountability to anyone. Money is free for the Fed and it can give it to anyone it chooses, as we point out later.
This extra bag doubles the price of the pot of gold causing inflation. This extra bag violated the LOC, because only one bag was tied to the pot of gold, by one to one relation. The bag was not supposed to grow. But the falsity of money and the power of CB caused it to grow.
If this money is allocated only to the top fifth of the population then their share of the pot of gold will increase, changing the wealth distribution. According to the LOC, since the gold cannot increase, the share of the bottom fifth will then naturally decrease causing poverty. This violation of LOC caused the rich richer and poor poorer. Thus secretly printing money, and giving it to top fifth, creates poverty, and CB is responsible for that poverty generation. Rich has stolen the gold from the poor with the help of CB.
This transfer of wealth happens not only because the money share decreases for the bottom fifth, the price of gold also increases, and thus reducing their purchasing power. Thus the true measure of poverty is how rich someone is. The gap between rich and poor indicates the real inflation. Poverty and inflation should be measured by this income difference or income ratio of rich and poor.
Thus the main purpose of the Central Bank, is to transfer wealth, as clearly stated by the US President Abraham Lincoln (1861-1865) –
“Corporations have been enthroned, an era of corruption will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people, until the wealth is aggregated in a few hands, and the republic is destroyed (Grint, 2005).”
Milton Friedman, the Nobel laureate in economics, said that the US recession of 1930s was created by the central bank (Skarica, 2011). We show that the recession is the most powerful mechanism for the bulk transfer of wealth. Our recent experience of economic crash in 2008, and the analysis of our public data show that the above conclusions by Lincoln and by Milton are very legitimate and real even in our present times. We show the public data and their graphs later in this chapter.
According to the LOC there cannot exist a win-win situation. When someone wins, someone else must lose. In every apparently win-win situation, a detailed analysis will always show that there is a third party who will be the loser. Thus the LOC says that the transfer of wealth must happen when someone becomes richer or someone else becomes poorer. Under this system the environment of earth will always be the loser.
Simultaneity law, as discussed in the first chapter, plays a very important role in the economic system also. Almost all objects of earth have owners and have been labeled by a price tag. Not only all physical objects, and all human souls are directly connected by this simultaneity law, all economic objects are also connected. This is more so, because by a false mechanism of money, every object and human being got tied to each other, by an one-to-one relationship with money assignments. Therefore no single person or no two persons can make any transaction in a win-win situation. The involvement of the entire economic system always connects all transactions with all other people. The LOC will then force many others to lose.
Ordinary people work and produce wealth, but it is stolen in the house of rich people. Bottom fifth suffers the most. Profiting, giving higher salary, printing money and giving it to rich people and without contributing to GDP, creating recessions, interest charging are all the methods that central bank has designed to transfer wealth, makes some one richer and someone else poorer. In fact the entire financial system is a means to transfer wealth. That is because the financial system can redistribute the quantity of money. And therefore, by one-to-one relation, redistribute the pot of gold also.
Nature is Free
The most important characteristic of nature is that it is given to all of us as free. Therefore anything we produce from nature has to be free also. The air is free, yet nature is not controlling its supply, it treats us equally, and allows us to use it according to our needs. We are also not hoarding it and know intrinsically how to properly use it.
When rain showers, similarly, it does equally over all of us, it is free and yet we develop according to our own characteristics as is well known, some plants give red flowers some give yellow. Thus we intrinsically know how to use the nature, satisfy our needs according to our requirements, and manifest ourselves in the way we want. These characteristics are embedded in our mind, body, and soul. We have learnt this because we evolved life after life, experiencing nature over billions of years and guided by the reincarnation law. Thus all of us intrinsically know how to grow without exploiting each other and the environment. All we need is the removal of the guns, i.e. the money power, which is preventing us from our spontaneous growth.
We also know that we cannot take anything away from nature. Since it is free, there is no need to take anything away from it. There is no place to take it also. We are all here on this earth. One day we have to die, and when we go, we will not be able to take anything with us. So nature is free and will remain free forever and for all people. Then why try to hoard things for us? A comfortable life and with any lifestyle you want, can be provided by moneyless economy (MLE), as we have discussed in another chapter. The free nature is already designed to give us anything we want. None of us can do anything better than the natural economy, which is MLE.
Since by simultaneity law we are always connected, if we become rich, obviously by stealing form others, we will still remain connected to each other, because we are all souls. The suffering of the poor will cause suffering of the rich. This suffering will be manifested in many different forms to both groups.
People are Free
The only other thing we may want is to control the life of other people. But can we really control the life of other people? No, we cannot. We can take the home away from a person, but the person will learn to survive as homeless. But this homelessness will affect all of us also, because of the simultaneity law of nature we are all connected, not only physically, but buy the yogic power of all souls. We can take the food away, but there are beggars all over the world and they are surviving also. Again, their poverty and misery will affect all of us in many different ways that we cannot even imagine.
When we make someone fool, we actually become fool. Eventually one day we will realize this universal truth in the core of our hearts. The foolish person is really a gem; he gave you the happiness, if you think it so, by sacrificing himself. The person, who sacrifices most, learns to love you most also, and his love will eventually heart you too. The free nature can do miracles. We have seen the nature of yogic power that we all have, hidden in our souls.
Thus we should recognize that people are free in this world. There cannot be any price tag for any person or any object. Everyone will be more than happy to work free for anything or any process as long as every system follows the laws of nature. That is, there is no accumulation of wealth and any dictatorship or brutality over people.
However, we see that the Central Bank (CB) based economy is forcing people to remove this fundamental law of nature from peoples’ mind. CB is giving more money to some people and no money to many. People are trying to accumulate wealth in their homes, with the active support of CB, creating large scale poverty. We will see, in this chapter, how IMF actually caries out such a systematic carnage in countries requiring bailout money. CB is trying to control all people of the world by carving their freedom to make them miserable. This creates discrimination, mental and physical violence, requiring need for police force, thus further alienating people from their intrinsic affinity to nature developed over billions of years. A system that violates and forces people to violate the laws of nature will not be sustainable.
Money is Free
Just like nature is free so is money. Money is free because it is not an object of nature, therefore it is false, and is abundantly available. We know that CB can print as much money as it wants without any constraints, accountability, and transparency.
Since money is free we do not have to return it also. What is the point in returning something that is free? Thus there cannot be any debt also. Government cannot have any debt to CB. CB also should not claim its money back, because it did not cost anything to print money. Moreover, most of the money is on the computer these days, therefore it does not even require printing cost. There is no price difference between $1M and $1T on computers.
Thus everything associated with money is false. The debt is false, economy is false, and the money itself is false. This is obvious because money is not an object of nature and therefore is abundant. Thus CB is just bullying all of us. It does not have any real power. However it has purchased everybody and everything using money, including all the guns.
Profiting is Cheating
Let us examine how profiting transfers wealth. Consider a company that manufactures writing pens at a total cost of $5 per pen. Now assume that the company sells it at $15 per pen making a profit of $10 per pen. Thus the cost of the pen for the CEO of the company is $5 but for you and me it is $15. Therefore every pen is taking away an extra $10 from all of us. This process of profiting helps to take money away from people and to accumulate to the hands of a very small group of people creating inflation and transfer of wealth. The interest charging process is essentially the same activity also. Anytime money is accumulated, by LOC the wealth is transferred, and therefore poverty is increased.
Profiting is a method of cheating or stealing. However the foundation of capitalism is profiting. Thus we are living in a society, where basic concept or foundation is to cheat everybody. Everybody is cheating everybody; it is not just financial cheating. It is cheating at all levels, husband is cheating wife, father is cheating son, mother is cheating daughter. Professor is cheating students, government is cheating people. How can such a society do any good for anybody? This is in every country now. All these are very immoral activities and are the consequence of false money controlled by central bank. Just like a CEO is responsible for all activities of a corporation, similarly the CB is responsible for all activities of the entire humanity.
Thus accumulating wealth using profiting, interest charging, higher salary, and printing money without producing GDP etc., are processes of stealing from others. This creates poverty. The persons who are acting this way are engaged in immoral activities; and they know that. This causes them to spend sleepless nights in fears of morality. Every soul knows what morality is, as we will learn in the soul theory chapter, it is an intrinsic quality of humans, and no one needs to be explained about it. But unfortunately we cannot get rid of central bank, it controls the military power. This is the global destiny in this era. We just have to watch helplessly.