Our Fight

Have you ever wondered why for decades prices of goods always goes up and never comes down?

You feel very much trapped. Why the endlessly rising prices? Car and house prices soar more than ever before.

In 1982 for example the salary of a new graduate in Malaysia was RM1200 a month, the price of the cheapest new car then was RM14, 000, and the cheapest terraced house in the Klang Valley (Kuala Lumpur area) was RM60, 000.

Today, the average salary of new graduates is RM2, 200. This is an increase of only RM1, 000 within 31 years!

But the cheapest new car has soared to RM40, 000 and the cheapest house price in Klang Valley has soared to RM400, 000!

Why? Is it due to the increased prices of steel, cement and other housing materials?

No! Prices of these materials have certainly gone up but that is not the reason for the huge upswing in the prices of the above.

In any country paper notes and coins forms only 10 % of its total money supply. So what is the balance of 90%?

90% of that is money created out of thin air by banks. This is a fact not often understood.

Many think that a country’s money is just its paper notes and coins; it is backed by gold and the volume of money does not change from year to year.

No. The reality is that the notes and coins are only 10 % of the amount of money in a country.

Our money is not backed by gold, it is created all the time by the banks out of thin air and money supply is not static but constantly balloon.

Can we imagine what would happen if the amount of money goes up in a country without a commensurate rise in goods and services?

Yes inflation will occur. This is what we have experienced over the years.

In the above example, this is why the car prices went from RM14, 000 to RM40, 000 and the price of terraced houses from RM60, 000 to RM400, 000!

Let us recall what were the prices of goods in the 60’s, 70’s and the 80’s compared to now.

What is the price of a kilo of kembong (Indian mackerel)l, a kilo of chili , a piece of roti canai , a glass of teh tarik , bus fares, house rentals, nasi lemak, banana fritters and a plate of fried noodles ?

Compare these prices with the prices now.

Now we can see clearly how the increasing volume of money, increased without our knowledge and permission, will balloon the prices of goods to us.

The hike in the prices of these items is actually a theft of our purchasing power.

Did anyone warn us to be ready when the volume of money is going be raised before it is raised?

No. It is raised without knowledge and without our permission.

Worse still this system makes the rich richer and the poor poorer.

The amount of money in a country should be more or less constant and not boosted up non-stop all the time.

Endless increases in amounts of money, without permission and without the knowledge of the public are a form of cruelty, especially to the common people who are on low and fixed income.

How about if we show that it not just about stealing the purchasing power of the poor but the system systematically transfers wealth from the poor to the rich?

This is the consequence of the double whammy of the fractional reserve banking system combined with a debt -based banking system.

Fractional reserve banking system resulted in the creation of money out of thin air as follows.

You place RM1000 in the current account in a bank. You are given a cheque book and you believe you can spend RM1000 at any time by writing a cheque.

Your bank however does not keep the money specifically for you to use. After deducting reserves by 10 % to be placed in the central bank it lends RM900 to another customer.

This customer then puts his RM 900 in his bank and is given a cheque book. He is also confident he can spend RM900 by writing a cheque.

This bank will then lend to other customers after deducting the 10 % reserve. This bank then lends RM810 to its customer. This customer then places the RM810 in another bank and is given a cheque book.

If we stop here and count back the number of people who hold cheque books and how much money they think they can spend, so far we will have 3 people holding cheque books each believing they can spend RM1000 , RM900 and RM810 respectively, amounting to RM2 ,710 , while the money original placed in the bank was only
RM1, 000 !

This is money created out of thin air.

Mathematically with a reserve to be placed in the bank of 10 %, the system is able to create money out of thin air of RM10, 000, increasing the amount of money from RM1, 000 to RM10, 000.

If the original figure deposited was RM1billion, the system is able to create money out of thin air as much as RM9 billion increasing the amount of money from RM1 billion to the sum of RM10 billion.

This is why the prices of goods and services will always go up and it will not stop as long as this system is implemented.

The point is, inflation will not disappear from our lives and the prices will never go down.

Exceptions are terrible recessions where prices collapse, but it will not mean much to people without jobs and income.

And after the fractional reserve banking system burdened us with permanent inflation in our lives, the debt based banking system then constantly steals wealth from the poor to be given to the rich.

We have seen above how money is created out of thin air by the banks. Banks then lend this fake money to their customers.

Bank however always gives priority to customers who can provide assets as collateral for their loans.

Those capable of offering assets as collateral are the rich in society.

This means that those likely to get loans from banks are the wealthy, whether individuals or companies.

They use the money that is created out of thin air by the bank to buy other assets and services in the community.

Since the amount of goods and services do not rise commensurate with the rise of thin air money supply, this will generate inflation which steals purchasing power from the poor.

Hence the double whammy to the poor, of the theft of their purchasing power and the constant transfer of their wealth to the rich. .

This is the cruelty that we want to end; the struggle that we wish to begin.

Enough that we are complicit in supporting a system that results in the theft of purchasing power from the poor.

Enough that we are complicit in supporting a system that systematically transfers wealth from the poor to the rich.

Will you join us?