NOTE: Readers are invited to read and re-read this article and share the link so others can read it. There are more than 10 million Filipinos working outside working outside of the Philippines to send money back home to their families. This would not be happening if usury was abolished from the orthodox money system and replaced with a simple service fee. Eric V. Encina's research and ideas presented in this article ought to be networked far and wide by people who know Filipionos living in other countries so they can be informed and help to implement short term and long term solutions. Readers are invited to share this link on Facebook and anywhere else in cyberspace.
This article is one chapter from a manuscript that Eric V. Encina has been working on for the past seven years. Your donations are needed to help with the financing costs for the publishing of printed copies of this Chapter and for the complete book titled 'The Savage Cruelty of Debt' - as many Filipionos do not have access to internet connections. Eric gratefully thanks any offers of support - financially or otherwise to help get this information to the people. See details of Eric V. Encina's BPI account at the end of this article.
The Money Reform Proposals To Cure Poverty In the Philippines - and Elsewhere!!
No. 1 – It Is Very Simple
Authored by Eric V. Encina and Adapted from the work of
James Gibb Stuart - Scottish Author/Money Reformer
cruel that modern economics has been portrayed as a too highly complex
discipline for the ordinary people, only made fit for the rarefied intellects
of economics faculties to appreciate and comprehend. Most of its graduates bask
in the reflected glory of their proud status symbols, and are armed with the latest
computerized wizardry, while posing as the present day witch doctors of
monetary science. It seems their intent is to technically mislead and adroitly
marginalize the greater number of Filipino people who are suffering the savage
cruelty of poverty and perpetual financial hemorrhage.
are invited to thoroughly examine, the aggregate contribution to the betterment
of humanity by the common Filipino people. After a brief study, any readers
will see that the obvious inverse proportion and blatant contrast between
the multiple millions of poor Filipino people and the prestige and mystique of
the wealthy class who enjoy prosperity and abundance without conscience.
Finding a better way of doing things has been the happy lot of contemporary
industry, as a century of invention has done away with drudgery, the made
the oil lamp has become obsolete, as well as the spinning jenny and the wooden
orthodox, economic model of usury-based, debt money has failed to meet the
challenge. Its nostrums dwell deceptively and eternally on controlling monetary
wealth, rather than expanding it. The faltering, economic model of usury-based,
debt money ignores the many problems such as wars, violence, poverty, scarcity
and lack on planet earth which stands ready to give its bounty blessings.
truth is that there is a terrible fallacy in modern economic thinking that is
frequently avoided, and/or never debated or subjected to scrutiny. The most
ingenious attempts at balanced growth and maximization of resources are
commonly avoided as we progress into this 21st Century.
misunderstood fallacy devolves around the creation of credit (otherwise
referred to a money creation), and the financial orthodoxy that rules any new
money which can only be obtained as an interest-bearing (usury-bearing) loan
from the orthodox, banking system. Though this modern, usurious banking
operation has been condemned by Christianity and other religions for centuries,
it still operates globally in this 21st Century.
It is very
tragic that centuries of this avaricious practice have loaded most of the
developed nations with massive national debts, and annual debt-servicing
charges (usury) at hair-raising amounts of money. Such economic control inhibits
real wealth production, thereby denying 21st Century man
the benefits and ultimate evolution of his enhanced technology.
economics, there is always a better way to go, and it is really a very simple
strategy. Given the ease of modern technology, credit creation need not be a
global banking monopoly. Elected governments in the western world and in the
Philippines have the authority to create and issue, interest-free (usuryfree)
money for their people.
is true. Historically, for brief periods, usuryfree money creation was
successfully achieved, and well-documented in Great Britain, America and
Australia. But such beneficial effects were prevented in perpetuity
because the powerful, international banking cartel was madly jealous of its
privileges and in each case, they quickly planned and seized opportunities to
take back their monopoly control of money, while the ignorance of an uninformed
citizenry lost the amazing privilege of what they had temporarily gained.
cycle must change, but it can only change when an enlightened populace of
re-educated, Filipino people, are thoroughly alerted to the scam of modern
money creation. The Filipino people must learn about workable theories of money
creation, and how these theories can best be implemented and controlled by the
Philippine Government for good purposes that will benefit their common welfare.
So let the debate begin on the modern money system by searching for, finding
and sharing both printed and online resources that will explain how usury can
be abolished – thereby eradicating poverty forever.
No. 2 – Money and Resources
public - the multiple millions of
debtors who are victims of modern, economic adversity, and who are experiencing
monetary or financial problems, must be open to educating themselves about how
this usury-based, model of debt money is threatening their lifestyles, their
security, their current and future job prospects. When they fully understand
what is happening to them is by design and not be accident, they will be
motivated to action.
Money – or truly stated - the lack of money -
is the restraint that places a limit on many vital areas of human endeavor and
it is the purpose of various discussion paper-proposals that have been prepared
and are now available for study.
limitation on what we can hope to achieve, either individually or jointly as a
society, is the availability of resources. We cannot make bricks without clay,
clothes without cloth, girders without steel – and the requisite acquired
skills to bring these benefits into existence. But we have enough resources in
our country and in the whole world in this age of plenty, what we are lacking
is fair and equitable tokens – that we can use to negotiate trades/exchanges.
modern cash economy should be geared to achieve a fine balance between these
two main factors, money and resources. If the need is there – say for a
specialist hospital to cure a range of human ailments – or a
technologically-based campaign to clean up polluted atmospheres – then what is
clearly recognized as a social benefit and a boon to future generations should
not be put off, delayed or hindered by an apparent or even real lack of money.
– not the availability of labor, skills and natural resources – has been
universally portrayed as the limiting factor upon the even the most
praiseworthy venture. We have been always deceived and conditioned by our
political and banker/finance appointees, our financial and economic
soothsayers, to believe that there must always be a shortfall between what is
desirable and what is financially possible. We have been erroneously, let to
believe that whatever the benefits advancing technology may place at our
disposal, there must always be a degree of human need and deprivation that will
be forever unsatisfied. This defies the achievement of true economic and social
resources! Resources and money! One is tangible, the other is somewhat elusive.
Yet it is upon the marrying and the harnessing of these two concepts that
mankind must depend for an improved level of all-round prosperity amenity in
does the problem lie? Perhaps the problem lies in the nature of money itself!
No. 3 – The Money Creators
people’s appreciation of money is based upon their everyday experience of life.
Children get their first acquaintance with money through simple coinage, when
they find what buys them goodies at the sweetshop. At a later stage the
interest switches to banknotes or ‘paper money’ or ‘folding’ money, as larger
outlays and earning capacity make it a more convenient medium for carrying,
exchanging and storing wealth.
youth gravitate towards the convenience of plastic cards and commonly get
hooked with credit cards, debit cards and to a lesser degree - check book
money. Most adults conveniently pay their debts with plastic cards or by
scribbling a certified signature on suitably inscribed pieces of bank paper.
Much of the modern concern as a wage or salary earner is devoted to ensuring
that one’s bank and mutual society account stay in balance. If not, debtors are
commonly and harshly penalized by the modern, banking system.
normally the extent to which money impinges upon our personal lives or
family life. We have become familiar with it as coin, banknotes or paper
money or credit. But unless professionally engaged in banking or finance,
common people only come in contact with a tiny fraction of the total amount of
money currently in existence in our country and in the whole world. Millions
and billions of dollars of government and institutional money float forever
above the heads of common debtors. Debtors are often hard-pressed to deal with
their monthly commitments and obligations. This is usually the case in dreadful
poverty and where there is chronic shortage of money or lack of income. The
horizons of debtors are commonly clouded by the next unpaid bills, and in such
a terrible predicament money appears to be not only scarce, but also finite,
with a limited supply to go around.
populace in poverty and pressuring money problems, debtors are always groomed and
conditioned to experience fears about the lack of money. In dire economic
circumstances, there is often a carefully cultivated scarcity at the lower
levels of society. Yet money in the larger sense is never finite, and is
continuously being created – and destroyed by the banking system.
are the creators? Mainly the central banks, such as Bangko Sentral Ng
Pilipinas in the Philippines, the Bank of England in Great Britain and the
Federal Reserve Bank in the USA, or the international bankers - both
multilateral and bilateral financial institutions and the big private banks, which
are beholden to the BIS (Bank Of International Settlements) in Switzerland. The
banks create money when they buy government securities such as Treasury bills,
etc. and it is money creation in its absolute form because the checks that they
write to buy the stocks are not covered by either collateral or deposits.
privilege of creating this money has been conferred upon the central banks by
the governments, that is, by the Philippine Government, US Government, British
Government, etc. by the constitutional mandates to create all the currency and
credit needed to satisfy the spending power of Government and the buying power
people in the world and almost none in the Philippines question the
validity of this procedure, since it works smoothly in practice, and is an
indispensable element of modern finance management. But as a Filipino
Monetary reformer and a student on monetary science and all my colleagues in
monetary reform all over the world claim that the treatment of the newly
created money as an interest- bearing (usury-bearing) loan between Central Bank
and the Treasury is the root-cause of economic stringency and instability,
since it results in an ever-increasing burden of exponential and
unpayable, national debt.
No. 4 – Who’s Money Is It?
must necessarily come to a clear point in this debate or argument. This is
where we have to separate reality from myth, logic from prejudice, public
credibility from spurious or false protocol. We have established from
facts and documents – and it is not disputed – that money is created when a central
bank/private bank/international bank purchases securities from the Treasury
department of a state authority. The fact is that the Bank pays with check
drawn upon its own reserve account, which we know to possess neither collateral
nor deposits, but to be both credible and acceptable because it has the backing
of the government and all its resources. It is important to note that people
are considered to be resources by government, as they provide the labour to
transform natural resources into consumer products.
money or a figure has been created out of nothing, out of thin air, out of ink
and pen or out of computer digits electronically displayed or printed on paper.
This usury-bearing debt money instantly commands respect and acceptability
through its linking to the nation’s credit. That, and the fact it has been
vouched in payment of government stock, which among the major industrial
nations or rich nations is reckoned to be as good as gold.
money is it? Abraham Lincoln, the titanic figure who guided the American
Republic through Civil War, insisted that such ownership indeed belonged to the
people, to the citizens, and the privilege of creating and issuing money on
their behalf was the supreme prerogative of the Government. To support and prove
this contention, he decreed some US$40 Million to be created for the funding of
the war efforts, and this precedent might have been repeated according to
needs had he not been assassinated in his hour of triumph. He was reportedly
assassinated by the agent of the bankers.
years later in UK, a British chancellor, Lloyd George, ordered the creation of
UK 300 Million pounds sterling in Treasury notes to use against or overcome
serious liquidity crisis during that time at the onset of World War
I. And like Lincoln’s ‘greenback’ money, the notes were created
interest-free (usuryfree), for the benefit of both Government and the people. In
the book “The Financiers and the Nation”, the author Rt. Hon. Thomas
Johnston, M.P., a former Privy Seal, claims that the same procedure might
legitimately have been adopted for further prosecution of the Great War, had
the powerful banking cartel not convinced the Government to borrow the
money in the form of a War Loan.
Philippines, when Independence Day was declared by America on July 4,
1946 and proclaimed by President Harry Truman, the Commonwealth
Government remained where it issued interest-free (usuryfree) money. However,
in a very short period of time when the banking system was subsequently
rehabilitated and strengthened as patterned after the US Federal Reserve
System, the interest-free (usuryfree) money creation was very limited. Like US
Federal Reserve System, the Central Bank of the Philippines was established in
1949. It was controlled by the American Federal Reserve Bank and other global banking
institutions. In 1986 the Central Bank of the Philippines became independent as
provided by the Constitution. By the pressures of the US Federal Reserve banks
and the foreign-international banks, the Central Bank of the Philippines was
also forced to introduce trade and currency speculations with trade and
exchange controls for 10 years. In 1961 the Philippine Peso was allowed to
float at the exchange rate of P2 to US$1, but now at approximately P45 to US$1.
critical years of 1980’s during the time of great President Ferdinand E.
Marcos, he vehemently opposed the system of the IMF and WB, proposed debt
moratorium, and cessation of debts and from his Martial Rule Power. The reign
of President Marcos did not last long as he was under heavy attacks by the
International Bankers. He was destroyed by the economists and the
political oppositions, and eventually dethroned from power by a stupid popular
uprising. President Marcos was accused of corruptions and dictatorships, but
until now these accusations have not been proven true. President Marcos fought
hard against the policies of the IMF. He had in mind to create all the
Philippine money by a seniorage system through Central Bank of the Philippines
instead of borrowing money at interest (usury) to the IMF/WB and other
dethronement was an international plot fomented by the international financiers
and global manipulators. The People-Power Revolution I followed President
Marcos’ reign of power and this eventually led to the appointment of Mrs.
Corazon C. Aquino as President in the 1980’s, followed by President Fidel A.
Ramos in the 1990’s. His reign of power was followed by President Joseph
Estrada in 2000 but he was also ousted from power on the preposterous
accusation of economic plunder and yet until now this accusation remains
unproven. President Joseph Estrada’s reign was followed by another People Power
II Revolution that eventually appointed President Gloria Macapagal-Arroyo to
reign from 2001 until 2004 and she was re-elected once again. The current
president is President Benigno Aquino who assumed office on June 30, 2010.
administrations have been (and still are) under the foul plague of debts under
the infamous usury-based economic system of the International Money
Mafia-Bankers in the holocaust of deadly penury. Their terms in office have
been suffocated by the massive internal and external debts at hair-raising and
skyrocketing interest payments. Under their terms, forced by memorandum of
agreements with the transnational banking institutions, many of the bitterest
economic pills have been swallowed to agree and undergo the economic policies
and structural reforms for further borrowings under the tutelage of the Machiavellian
and infamous IMF-WB.
a closer look at the implications of these dramatic events or historical
instances and having them fresh in one’s mind, the reading public will get a
better view of the present savage cruelty of debt and poverty in the
Philippines and in many other countries.
noteworthy that we have had money created and issued for public use,
interest-free (usuryfre) and with no further obligations or posterity or
descendants. We also have had money created by a central bank selling
securities to our government Treasury Department at varying rates of interest
or usury, thereby, piling up irrevocable debt which has to be serviced by not
only by this generation, but also by future generations. This cycle of debt is
unsustainable and is (and will be) impossible to repay in the foreseeable
future under this faltering usury-based, debt money system.
So what is
the determining factor? What really makes these models different? The central
bank financing through the purchasing of securities at interest (usury) is
regarded at the norm, while Lincoln’s usuryfreee, ‘greenbacks’ and Lloyd
George’s Bradbury usuryfree, pound notes and Marcos usuryfree, Bagong Lipunan
notes have become historical curiosities at the respective, national and
No. 5 – The Most Vital Issue
It is indeed
difficult to argue and clearly not good enough to be always on debate about these
issues. There is much evidence to support the fact that the global banking
cartel authorizes the central banks and international banks to create what is
fraudulently referred to as ‘sound money’
or ‘printed money.’ This money is
commonly issued at whim and without discipline, for mere political advantage. We-the-people
must learn about the process of creating money, and when we do we will realize
that under such procedures the funds are being created out of nothing. Simply
stated, assets already in existence are being further monetized.
Why do we
not bother ourselves about how money is created? Do we see any link of poverty
with the act of modern money creation?
Is seems like a difficult subject or concept. Neither our government leaders,
nor our religious leaders, nor the common people have been able to grasp and
comprehend the simplicity of the scam of modern money creation. If we are
serious about enjoying true economic freedom, we must make an effort to educate
ourselves and then take responsibility to educate others who are ready and
willing to be re-educated.
think we are born free, we are really slaves of debt at the moment of
birth! Consider the various forms of money or paper bills or negotiable tender
currency that may pass through our hands or touch upon our lives, from birth to
death - by far the highest percentage is a form of invisible credit, authorized
by the signature of a debtor on a promissory note, and then created by a
creditor (banker) either as ledger entries or a series of digits on an
electronic computer. We are commonly blinded to the fact that the interest
(usury) portion of any and all of these forms of debt money is never created
and issued into circulation. The solemn mystique of modern money creation that
fosters the reality of poverty, scarcity and lack is the simple fact debtors
everywhere are signing impossible contracts with creditors – where it because
of the shortfall, it becomes impossible for all debtors to repay both the
principal and interest (usury) portion of loans/mortgages.
future, will we have government political leaders and legislators who can deal
with such matters? Currently, many of them are simply content with themselves,
with their salary as they believe they are entitled to, their full bank
accounts and cards, spending money extravagantly and immorally. They are
content to appreciate the characteristics and uses of physical money such as
deposits, banknotes or paper bills and cons, and almost none of them have come
to understand the fundamentals – and the need for democratic control – on money
creation or creation of credit.
creation is the subject that transcends, in priority and importance, virtually
any other political or social issue. It transcends because it impinges
upon the political power and social opportunity. Money is the machinery
by which political and social objectives are given practical implementation. The
machinery of modern money is not properly understood and its functions have not
effectively been brought out to public advantage. Therefore, what is being
perpetuate is that all-too-familiar pattern of reduced expectations which is
the economic malaise of the 21st century that is presently
devouring our nation and our civilization.
first proposal has dealt with money and resources. It has touched upon the
limiting factor which has to be imposed when new money can only be obtained as
interest-bearing (usury-bearing) loans from the banking system. It raises the
specter of an ever more onerous, odious and pestiferous burden of Domestic and
Western countries where there are growing numbers of alternative economists and
monetary reformers, many of them have been exploring for alternative solutions,
their minds have been directed towards a solution of this mind-boggling problem
since it was first highlighted by C.H. Douglas in Scotland. Over the years much
has been done by the bankers and their appointees to confuse and obfuscate the
issues, since any breach of their monopoly or control rights on the creation of
money or credit would strike at the basis of greedy thirst for power.
many other aspects of life in our free society that require attention, but this
issue of money creation for the ordinary citizens must be addressed and
ultimately solved for life preservation and secured sustainable living. Many
researchers agree that when usuryfree living becomes a reality, many other
societal problems will likewise be solved simply because the main cause of
these problems are rooted in the function of usury which directly and/or
indirectly causes wars, violence, poverty, scarcity and lack.
Certainly, as the orthodox economic system of
usury-based, debt money continues to grind adroitly into an ever more corrupt
mess, the usurers will increasingly defend by all means the status quo that is
forever eroding our freedoms. What can we do?
No. 6 – The Need for Public Awareness: Filipino People
– Wake Up!
stage questions arise or must arise: If usuryfree money creation is really
possible, what is the most critical thing that must be done immediately to
address our tormenting problems of debt and poverty now and for the future of
our nation? Why should the burden of urging it forward fall so heavily
upon the public at large? Why shouldn’t the government leaders and the many
highly paid academics, economists, and politicians with greater means and
opportunity be advocating for the government to create usuryfree money for
we-the-people? Unfortunately, most religious leaders and common clergy have
also been co-opted to serve the global banking power instead of serving the
people by exposing the evil and immoral aspects of the design flaw of usury on
our orthodox economic system of debt money.
answer is difficult and complex here is my attempt to answer to that question.
We must continue to dwell upon and expose the centuries of power and patronage
that the bankers have conferred upon themselves by their monopoly control of
the money system. It is a belief – which is true enough – that money – if you
have enough of it – can be used or made to buy almost anything in the world.
And the bankers, through their adroit control of money or credit, have at their
powerful disposal virtually all the money in the world.
powerful money creation enables the bankers to go hostage gathering in every
sphere of public life. It is indeed their interest to do this, and there is
much evidence that they they have been doing so for a very long time. The
global banking cartel has been buying up loyalties of newspaper magnates,
public and private news media commentators and leading politicians. In this 21st
Century, the global banking cartel has absolute control of all print and
electronic media - newspapers, radio and television stations – as well as
universities, colleges, schools, institutions, governments and even the
religious organizations and their clergy.
a watchful eye over their businesses to control money and population. Hence,
those who want to prosper in their chosen calling or jobs or employments are compelled
to observe the banking protocol. The danger is that if they step out of line
and get curious about the bankers’ credit monopoly, or they start discussing
the possibility about economic power being restored to the people, they are
liable to find that their financial backing removed or they will be targeted by
injurious media campaigns that will quickly destroy their prestige and
present, who would be the best Filipino government official or leader or any
charismatic leader could imitate or emulate Lincoln or Kennedy or Marcos – all
of whom dared to create workable models of usuryfree money that would give
financial power back to the people? Can we seriously contemplate this in
2012? How can we best obtain a wide degree of public awareness and strong
public opinion in order that this proposal of the government creating usuryfree
money for the people cannot just be cast aside?
the People! This concept may seem revolutionary or outlandish, however, in this
new technological age of plenty where specialists or experts abound in all
recognized sciences and disciplines, surely we can find enlightened citizens
who are willing to restore that eternal vigilance that will help to usher in
this new age of usuryfree living for not only Filipinos but for everyone on
planet earth. In this age of unsurpassed communication skills and
opportunities, the greatest need is for the people to learn about and share the
simple truths about modern money creation
since without significant monetary reform, we can never get a proper
utilization of our country’s bounteous resources or of our planet’s natural wealth.
Indeed, fellow Filipinos who read this, and realize what it is saying, are
imbued with a certain responsibility to help change the system for the better.
good starting point it is recommended that Filipions who are motivated to
action, follow the lead of those local communities all over the world that are
bartering/trading and supporting local entrepreneurs by learning how to create
and spend their own usuryfree time currency. They are invited to study and
examine the successful and workable models of usuryfree time currency and then
launch such models in their respective local communities to facilitate the
re-birth of local bartering and trading products and services.
action will accelerate the re-education process as people will have an
opportunity to experience the fact that these time currencies are free of
interest or usury. With some experience, the people will soon demand that all
levels of government take a leadership role and accept these usuryfree time
currencies as partial payment for taxes. This is possible because every level
of government employs local people and engages in contracts for products and
services with local businesses.
Hours and Mountain Hours are two working models worthy of examining and
adapting to suit any local economy. For information about Ithaca Hours, readers
are directed to this website: http://www.ithacahours.org And for information about Mountain Hours readers are invited to review
these video clips at this website: http://www.mountainhours.com
No. 7 – A Debt-creating Discipline
believes in usuryfree money or people’s money, and who still needs some
persuading? Many have become thrilled with the concept of nations creating
their own usuryfree money or credit. Be forewarned and do not be confused and
neutralized by the first blockbusting rebuttal issued on behalf of the bankers?
two levels on which there has to be clarity of conviction. Firstly, be fully
aware of the immense benefits that would accrue from the government or state exercising
its ability to create all or part of its own financial credit outlays – without
the function of interest (usury). Secondly, in the knowledge that procedures and
strategies are readily available for achieving this, and that only public
ignorance and the bankers’ pressures have prevented earlier historical instances
from being perpetuated, know that the power of the bankers lies on the
ignorance of the people about modern money creation.
problem about reforming the money system is that there are many skilful
government officials, economists and experts in the Department of Finance and
economic faculties who stand ready to defend the established practice of
issuing all new money as a debt upon society. They always say and gravely
insist that usuryfree money creation would be vastly inflationary. This is a
myth. One only has to study and comprehend these lessons by John Turmel – who
proves that the function of interest (usury) on money is what creates
highly unlikely, that governments when presented with the opportunity to create
their own funds as an interest-free or usuryfree currency would use it to
promote, selfish schemes and fantasies thereby debauching the currency. Under
the watchful eyes of informed citizens and faced with the awesome responsibility
for creating and spending a nation’s resources, the Department of Finance
and Treasury officials, the House, and Senate Committee officials and the members
on Finance and Economics will be required to be operating within a discipline that
honors honesty and integrity and prevent them straying from the paths.
down through the centuries, since the formation in 1694 of the Bank of
England, the formation and establishment of Federal Reserve Central
Bank of USA in 1913 and followed by other Western-based nations, and the
establishment of the Central Bank of the Philippines in 1949 as an
independent institution, the maintained discipline fostered deceit, deception, selfishness and greed –
simply because requirement was that new funds should only be made available as
an interest-bearing (usury-bearing) debt money and the ultimate effects of this was never fully understood by the
local and national economy in the Philippines – as elsewhere – is reeling under
a preponderance of debt with skyrocketing interest (usury) payments to
commercial/private and international banks. Most taxes levied by the government
are used to pay the interest (usury) on outstanding debts. This is an example
of legalized robbery to fulfill the mandate and dictates of the
International Financiers. Societies are existing in the most stressed financial
circumstances, people are in dreadful monetary and material poverty, starving,
deprived and desperate in the midst of plenty. This is happening because of the
defective and malfunctioning debt money system based on usury – simply because of
the protocol which commands that new credit can only be made to materialize as
a charge upon the debtor – whether that debtor is an individual, a family, a
business, a corporation, a province or a country.
thought about it and having studied the implications, are you willing to go on
accepting it? Wake up, Filipino people! Just because it is something you won’t
ever see debated in economist papers, or in the prestigious columns of
financial editorials, are you willing to go on believing it’s a problem that
doesn’t exist? Or if it does exist, and you know it exists, are you afraid to
talk about it for fear of causing offence in high places? Do not be afraid – be
courageous, learn what’s really going on in the local, national and global
economy and dare to teach others and make a difference.
of the present deadly financial situation in the Philippines, this is the time
to choose: (a) between an intellectual honesty which seeks the truth and goes
on seeking regardless of pressure or convenience; and (b) a financial orthodoxy
which, to protect its own protocol, creates selective no-go areas within the
No. 8 – Confronting an Established Order of the Banking System
bankers defend their banking industry; defend their rigid financial swindling
practices, even when they are so obviously at variance with our expectations of
social/economic/monetary justice. Why?
and prime ministers, cabinet secretaries, senators, congressmen,
governors, mayors, and all government officials, and clergy - all of them speak
with such respect and reverence for the banking institutions from which they
borrow the nation’s money, that it might seem almost an affront or an insult
and an impiety to question or doubt their motives and their judgment.
unfortunate that in the high places of government, alternative
methods of creating money or credit to address the groaning and moaning
problems of poverty of the majority are not mentioned. It is as though these
usuryfree currencies never existed: Lincoln’s ‘greenbacks’, Lloyd George’s
Bradbury’s and Marcos’ Bagong Lipunan currency. There are no clumsy lies or
evasions, just a bland ineffable commitment to the system as it has always been
operated. It is sad indeed that economic history has been written here and
managed, with such inconvenient episodes edited out and consigned to the
dustbin of posterity.
the preponderance of power and patronage can be totally confusing or
disconcerting. Nothing in our upbringing has prepared us symbols and emblems of
authority that so clearly mitigate against the public good. We are up against
Established Order, with only our logic and our intellects, our sense of JUSTICE
and our moral values to tell us truth from falsehood, right from wrong.
are made of this. In this 21st Century, it will surely take a
revolution in economic or monetary thinking, a veritable upheaval in widely
based conceptions, to force a situation in which governments no longer feel
compelled to borrow at interest or usury, but are able to supplement
their budgets by judicious issues of the people’s money – without exacting
Philippine Government, Do It Now!
reform will only come about by popular demand. It can happen no other way. The
issue of usuryfree money or people’s money is one which can only be settled by
the people themselves, by the Filipino people, however, they cannot do this
until they have been properly alerted and they will not be alerted until the
subject can be openly debated.
As it was
said in the beginning, it was really very simple. That is the level on which
the debate must be continued; not by the slide rule and the calculus, and the
massive computer banks of analytical data compiled by the modern economists,
but on the simple logic of who owns what – and whether money should be the servant
or the master of man.
ordinary people – don’t have to concern themselves with technicalities. That is
a job for the professionals. A democratic public can defend its freedom by simple
insistence on the principal alone – and the principal in this case must
enshrine a usuryfree, money system that benefits humanity at large, while
curbing the immense power and patronage currently enjoyed by the oligarchs of
No. 9 – A Money System Out of Control
are closest to investment and currency markets, and to the complexities of the
modern financial system, are unlikely to be receptive of any plan for reforming
the system or for changing things. Billions to trillions of money in US$,
Philippine Pesos, UK pounds sterling and Euro currencies, yen, etc. are
traded, gambled, cashed, invested, vouched, created and cancelled in any single
working day. The bedazzling flicker of the astronomic numbers warns all but the
hardened operator to steer clear of matters that seem to be beyond their comprehension.
it is not an issue that need concern us directly. Crash courses in market
speculation are neither necessary nor recommended. For even in full cognizance
of this sophisticated world within a world, this casino of invisible levers and
mighty fortunes moving around at the flicker of an electronic button, we have
to stay rooted on first principles, and let the constant bedlam of
international brokerage, deal-making and currency gambling pass right over our
Because it is money or credit that drives this intricate and outwardly
bewildering machine, unlimited and invisible credit based on the banking
system’s concessionary right to monopolize the creation and issue of money. So
the technical know-how, the twists and manifestations, the dazzling
sophistications, must be viewed in relation to that single point of principle
upon which our discussions began.
machine is out of control. This massive financing, investing, marketing,
speculative, and gambling machine is completely beyond any form of democratic
control. That is because Governments have collectively given up the right to
create and issue the People’s Money or Credit without usury. Democracy started
to die when politicians abdicated its powers in favor of the banking system.
Now so-called democracy is sick and
corrupt and pathetically inept in face of the true power, which is the global
said that the privilege of creating and issuing money was Government’s supreme
prerogative. His was a principle which he followed through in his own
generation. Subsequently a latter-day statesman, Sir Robert Menzies of Australia,
echoed Lincoln’s basic wisdom when he declared that there could be ‘No independence without financial
Think on these things, you who were born
a democrat, and assumed that because of the sacrifices and clear-sightedness of
our forefathers, such freedom were guaranteed forever. There are ominous signs,
borne out by the visions of both Menzies and Lincoln, for in the global
situation evolved by an unregulated, international money power, it is doubtful
whether democracy can flourish again – or even survive the vicissitudes of the
next century – without taking back some control over its own credit.
No. 10 – Keeping it Simple
one area in which the financial establishment has recently been obliged to
concede the principle of usuryfree money. That is the issue of banknotes and
coins, where, following some intrusive probing by the Economic Research Council
in 1980, it was, revealed that for the UK at least, the pound sterling on one’s
pocket had been obtained without any increase in the nation’s debt. The
procedure, as explained in the ERC booklet entitled “Government Debt and
Credit Creation” (Dec. 1981), is for the Government and Treasury to
underwrite for each new cash issue an appropriate amount of securities, which
are then lodged ‘sine die’ with the Issue Department of the Bank of England.
and economic reformists, observing this, and seizing upon it as an already accepted
method of obtaining usuryfree national finance, have suggested that the
principle – and the issues – should be extended till they had a real
effect on government borrowing, and erased the worst features of the
usury-based, debt money system. Blandly the oligarchs have replied that they
could see no possible justification for such a vast expansion in the supply of
PHYSICAL MONEY – that it would be impracticable to store, and the economy
couldn’t absorb it – and because there has never been an established forum for
the debating of such proposals, no public opportunity has been presented for
exploring the implications.
are vast and far-reaching. It is patently absurd to insist that an Authority
which can order the creation of usuryfree physical money should not also have
it within its powers and its competence to create credit. Upon the vexed
question of how much should be created, nothing is more finite than the proposal
propounded in ‘The Money Bomb’ by James Gibb Stuart in 1983 – that
Government, on an annual basis, should lodge with the Central Bank (Bank
of England) securities equal to the interest on the National Debt, and
authorize it, as agent, to make out the payments to the debt holders.
is now self-evident that further borrowings are only necessary to pay the
interest (usury) on previous borrowings, that particular drain on government
finances would cease, the debt would stabilize at current levels, and Presto!
our elected politicians would find that they had regained control of the people’s
at the beginning that it was really very simple. That is just how simple –
provided we stick to principles, and are not phased or distracted by
technicalities. All that is needed is open discussion and debates. The finance
oligarchs are ever fearful of having to face such debate.
We need a slogan - for the
radical campaign on Social Credit monetary reform policy, monetary/economic
justice, cancellation of debts, and usuryfree money, for the promotion of
ideas-opinion-based materials on
environmentally-economically-politically-viable-alternatives for economic
democracy for the Filipino people and for all peoples.
‘It is the criterion of a just money system that what
are both socially and physically possible should also be made financially
possible.’ – Eric Encina
‘Money now is the nothing you get for something before
you can get anything.’ - Nobel Prize-winner Sir Frederick Soddy
Verzo Encina is a pragmatic and straightforward Freelance Writer on Social
Credit Philosophy, Monetary Reform, Alternative Economics and New Science of
Economics. Eric is a well-known Filipino Social Crediter/Monetary Reformer,
Activist For Economic & Monetary Justice. Eric has been involved in the
activism-campaigns for life, family and justice for the innocent born and
unborn children in the Philippines for almost 20 years in Luzon, Visayas and
Eric is a
native of Quezon Province, Mauban, Quezon. He was born on December 18, 1970.
Eric graduated from Enverga University, Lucena City, Quezon Province,
Philippines in 1991. He studied the Secretarial Course Education, and he was a
former Seminary aspirant of a number of Catholic Seminaries and Conservative
Catholic Congregations in Metro Manila.
very long time, Eric has been a Correspondent Student on Social Credit,
Monetary Reform and the New Science of Economics overseas. The “Michael”
Journal, Pilgrims of St. Michael, Quebec, Canada declared him as the “first
Filipino Social Credit Student” in 1992.
founded the Filipino Alternative Solutions For Sustainable Survival Movement in
Roxas City, Capiz Province, Philippines. This project is now closed down. Eric
writes intermittently for the Aklan Provincial Newspaper, the Aklan Reporter via
online submission. He attends and engages in debates and discussions elsewhere
in the Philippines, and he contributes regularly critical articles to overseas
divides his time traveling in the provinces and in Metro Manila through meeting
with Government legislators, friends and
with other campaigners and activists in Quezon province and elsewhere with
his ancestral family members. He is sometimes ubiquitous in these places for
the mission and as an agent he continuously works for the purpose of justice in
the monetary system. He is looking forward into possible public office in the
possible foreseeable future.
information, queries, comments, suggestions, critical correction and
assistance, Eric can be reached via either of these emails: email@example.com or firstname.lastname@example.org
NOTE: This is one chapter from a
book titled ‘The Savage Cruelty of Debt’ that is almost ready for
publishing. Contributions, gifts to offset the printing costs of the book are
invited and welcomed. Such donations can be sent via Paypal to email@example.com OR directly deposited in Eric’s bank account:
Eric V. Encina
Savings Account No. 1109-0113-51
BANK OF THE PHILIPPINE ISLANDS
Roxas City Branch, Capiz ,
Routing Number 0210-0002-1
Roxas City Bank Tel. No. 036 6215711
Eric graciously thanks any donors in