Thursday, April 05, 2007

Usury Part 1 of 2

Distant Early Warning: This entry is lengthy.

This entry is brought to you by Azer Global Peace Individualism. Why bother to criminalize the physical war while the real war is here … own backyards!

Those who charge usury are in the same position as those controlled by the devil's influence. This is because they claim that usury is the same as commerce. However, God permits commerce, and prohibits usury. Thus, whoever heeds this commandment from his Lord, and refrains from usury, he may keep his past earnings, and his judgment rests with God. As for those who persist in usury, they incur Hell, wherein they abide forever (Al-Baqarah 2:275)

If thou lend money to any of My people, even to the poor with thee, thou shalt not be to him as a creditor; neither shall ye lay upon him interest. (Exodus, 22:24 [6] – Hebrew Bible)

"His lord answered and said unto him, 'Thou wicked and slothful servant, thou knewest that I reap where I sowed not, and gather where I have not strawed: Thou oughtest therefore to have put my money to the exchangers, and then at my coming I should have received my own with usury.'"(Matthew 25:27 – New Testament)

The Elite on Freedom of Trade

The primary ethical argument in defense of usury by The Elite has been the argument of liberty against the "restraint of trade" since the borrower has voluntarily entered into the usury contract.

But …

Say the whole economy is worth RM 100.00. The economy borrowed RM 100.00 with interest charge at 5% per annum for 5 years payments:

Year 1: Pay loan RM 20.00 + interest RM 5.
Year 2: Pay loan RM 20.00 + interest RM 5.
Year 3: Pay loan RM 20.00 + interest RM 5.
Year 4: Pay loan RM 20.00 + interest RM 5.
Year 5: Pay loan RM 20.00 + interest RM 5.

Total payment = RM 100.00 + RM 25 = RM 125.00

Question is, how can an economy pay the extra RM 25.00 while the economy itself worth only RM 100.00???!!!

The Elite Agenda

Most people know directly or indirectly that The Elite are perpetually in debt. Most have no interest in discussing the matter, because they have no control over it. That which makes them disinterested should be of the most interest to them. We are still obligated to pay!

There is a problem …

The Elite uses law to make people believe that money spent should be paid back by its subjects. The Elite is using law to get someone else to labor on their behalf.

What The Elite need is a system of extraction that allows them to increase their demands upon people.

People who believe that a nation belongs to "us" and that "we" pass laws will easily swallow the idea that a debt incurred by The Elite of a nation should be paid back.

Who have to pay?


After all, it is "our" nation, cewah … wah … wah …anything the nation does, "we" did. The deception is obvious: we never agreed to the debt. If we had, the law wouldn't need tax collectors, we would pay voluntarily.

So why debt is special?

Debt is special because it lingers in the mind. It saddles the spirit with a gnawing remembrance that we owe someone else. People simply want to pay back money they owe. The Elite readily step in to remind us of this obligation, but do everything in their power to hide the fact that
we don't actually owe anything, because we never agreed to the obligation. It is them, The Elite who started the debt.

What is really happening?

When you take on debt, you agree to pay it back later. When you loan money to someone, you do so with the understanding that they might not be willing or able to return the money; you take on risk.

The Elite debt, however, is not backed by trust, collateral, or future reputation. It is backed by violence. If you loan money to a friend, and they stiff you, chances are you would never think to knock down their door in the middle of the night, place them in chains, and toss them in a dark cage for years on end. And yet, this is exactly what The Elite do when we do not pay the taxes the law demands.

Buying and selling human lives ...

If we were to cut through the clutter of culture, the clutter of nonsensical ideas and the trappings of legitimacy that The Elite paint their laws with, we would arrive at a simple and obvious fact: The Elite use debt to buy and sell human lives.

The Elite issue paper notes that are obligations to pay, backed by the violence of their police forces. When The Elite issue a bond, they are purchased because people know that they are backed by the ability to tax.

The Elite debt creates obligations upon people that they did not choose, and backs those obligations up with violence. We say that The Elite sell bonds, that they trade paper notes. In truth, The Elite buy and sell human lives.

Who Are The Elite Anyway?

No, they are not the sultans or the kings. In fact, throughout the histories, they have managed to limit the powers of the sultans or kings.

No, they are not from the successful families that have run businesses for generations. No, they are not inventors or highly educated people. Challenge them or their children in any subject - they would back off. Exceptional probably goes to law and jurisdiction and the financial knowledge as these are the knowledge they need to master in order to control people. No, they are not good athletes too. Challenge them in their own so called sport - golf, they would back off too. No, they are not artistic. Hearing them singing is disastrous.

How Long Have They Been Around?

Since the ancient civilization of Babylon.

Who was their first great leader?

Nebuchanedzer. No, Nebuchanedzer was not a king but he was too powerful that the earlier historians thought that he was.

Have they ever been defeated?

Throughout the human histories, they were defeated only once. Nebuchanedzer and The Elite were totally defeated by King Solomon.

The OP Concept

The OP Concept is the knowledge inherited from the ancient Babylon. OP stands for 'Other People'. As The Elite are not from the wealthy business people or highly educated or kings or sultans, they utilize this concept fully in order to be in control. Their most critical OP subjects are as follows:

1) Other People's Vote - To rule a nation.
2) Other People's Money - To borrow and loan money.
3) Other People's Intelligence - To labor intelligent people on their behalf.
4) Other People's Misery - To act as champions for poor people.
5) Other People's Resources - To use other people's resources on their behalf.

The Evil Weapon

Usury is one of their great inventions among many other financial and administration systems. Usury is the most evil financial tool they have been using in order to utilize the main commodity they are mastered - the people.

Their Game - Money as Commodity

The elite treat money as commodity. This way, the elite can sell money for a higher price than its face value.

This is a total bullshit! The points against this bullshit are as follows:

(a) Money has no intrinsic utility. It cannot be utilized in direct fulfillment of human needs. It can only be used for acquiring some goods or services. A commodity, on the other hand, has intrinsic utility and can be utilized directly without exchanging it for some other thing.

(b) The commodities can be of different qualities while money has no quality except that it is a measure of value or a medium of exchange. Therefore, all the units of money of the same denomination, are hundred per cent equal to each other. An old and dirty note of RM 10/= has the same value as a brand new note of RM 10/=.

(c) In commodities, the transactions of sale and purchase are effected on an identified particular commodity. If A has purchased a particular car by pin-pointing it, and seller has agreed, he deserves to receive the same car. The seller cannot compel him to take the delivery of another car, though of the same type or quality. Money, on the contrary, cannot be pin-pointed in a transaction of exchange. If A has purchased a commodity from B by showing him a particular note of RM 10 he can still pay him another note of the same denomination.

Their Game - Loan, Loan, Loan,... Usury ...

The elite treat loans as purely commercial transactions meant to yield a fixed income to the lenders.

This is also another total bullshit! The points against this kinda bullshit are as follows:

(a) Loans are meant only for those lenders who do not intend to earn a worldly return through them. They, instead, lend their money either on humanitarian grounds to achieve a reward in the Hereafter, or merely to save their money through a safer hand. So far as investment is concerned, there are several other modes of investment like partnership etc which may be used for that purpose. The transactions of loan are not meant for earning income.

(i) He is lending money to him as a sympathetic act or

(ii) He is lending money to the borrower, so that his principal may be saved or

(iii) He is advancing his money to share the profits of the borrower.

(b) If the business of the borrower earns huge profits, the financier should have shared in the profit in reasonable proportion, not by a fixed rate of return which is governed by the forces of supply and demand of money and not on the actual profits produced on the ground. This rate of interest may be much less than the reasonable proportion a financier might have deserved, had it been a joint venture. In this case the major part of the profit is secured by the borrower, while the financier gets much less than deserved by his input in the business, which is another form of injustice.

Usury - The Effects

Usury have a persistent tendency in favor of the rich and against the interests of the common people. It carries adverse effects on production and allocation of resources as well as on distribution of wealth.

On allocation of resources.

Loans in the present banking system are advanced mainly to The Elite who, on the strength of their wealth and political connections, can offer satisfactory collateral.

On Production

Since in an interest-based system funds are provided on the basis of strong collateral and the end-use of the funds does not constitute the main criterion for financing, it encourages people to live beyond their means. The Elite do not borrow for productive projects only, but also for conspicuous consumption.

On Distribution

We have already pointed out that when business is financed on the basis of interest, it may bring injustice either to the borrower if he suffers a loss, or to the financier if the debtor earns huge profits. Although both situations are equally possible in an interest-based system, and there are many examples where the payment of interest has brought total ruin to the small traders, yet in our present banking system, the injustice brought to the financier is more pronounced and much more disturbing to the equitable distribution of wealth.

On Artificial Money and Inflation

Since interest-bearing loans have no specific relation with actual production, and the financier, after securing a strong collateral, normally has no concern how the funds are used by the borrower, the money supply effected through banks and financial institutions has no nexus with the goods and services actually produced on the ground. It creates a serious mismatch between the supply of money and the production of goods and services. This is obviously one of the basic factors that create or fuel inflation.

This phenomenon is aggravated to a horrible extent by the well-known characteristic of the modern banks normally termed as "money creation." Even the introductory books of economics usually explain, often with complacence, how the banks create money. This apparently miraculous function of the banks is sometimes taken to be one of the factors that boost production and bring prosperity. But the illusion underlying this concept, is seldom unveiled by the champions of modern banking.

So what about the extra RM25.00?

To be continued ...