Mickey On Banking - The Money Myth Exploded - Full Stores & Empty Wallets

WORKBOOKS:

Offprint of the Michael Journal

THE MONEY MYTH EXPLODED
The Financial Enigma Resolved
A debt-money system

10. The benevolent banker

Oliver guessed what was on their minds, but he put on his best front. While he listened, the impetuous Frank stated the case for the group.

"How can we pay you $1080 when there is only $1000 on the entire island?"

"That's the interest, my friends. Has not your rate of production increased?"

"Sure, but the money hasn't. And it's money you're asking for, not our products. You are the only one who can make money. You've made only $1000, and yet you ask for $1080. That's an impossibility!"

"Now listen, fellows. Bankers, for the greater good of the community, always adapt themselves to the conditions of the times. I'm going to require only the interest. Only $80. You will go on holding the capital."

"Bless you, Mr. Oliver! Are you going to cancel the $200 each of us owes you?"

"Oh no! I'm sorry, but a banker never cancels a debt. You still owe me all the money you borrowed. But you'll pay me, each year, only the interest. If you meet the interest payments faithfully each year, I won't push you for the capital. Maybe some won't be able to repay even the interest because of the money changing hands among you.

Well, organize yourselves like a nation. Set up a system of money contributions, what we call taxes. Those who have more money will be taxed more; the poor will pay less. See to it that you bring me, in one lump sum, the total of the amount of interest, and I'll be satisfied. And your little nation will thrive."

So our boys left, somewhat pacified, but still dubious.

11. Oliver exults

Oliver is alone. He is deep in reflection. His thoughts run thus:

"Business is good. These boys are good workers, but stupid. Their ignorance and naivety is my strength. They ask for money, and I give them the chains of bondage. They give me flowers, and I pick their pockets."

"True enough, they could mutiny, and throw me into the sea. But pshaw! I have their signatures. They're honest. They'll honor their pledges. Honest, hard working people were put into this world to serve the Financiers."

"Oh great Mammon! I feel your banking genius coursing through my entire being! Oh, illustrious master! How right were you when you said: 'Give me control of a nation's money, and I won't mind who makes its laws.' I am the master of Salvation Island because I control its money."

"My soul is drunk with enthusiasm and ambition. I feel I could rule the universe. What I, Oliver, have done here, I can do throughout the entire world. Oh! If only I could get off this island! I know how I could govern the world without wearing a crown."

"My supreme delight would be to instill my philosophy in the minds of those who lead society: bankers, industrialists, politicians, reformers, teachers, journalists - all would be my servants. The masses are content to live in slavery when the elite from among them are constituted to be their overseers."

12. The cost of living unbearable

Meanwhile, things went from bad to worse on Salvation Island. Production was up, and bartering had dropped to a minimum. Oliver collected his interest regularly. The others had to think of setting money aside for him. Thus, money tended to clot instead of circulating freely.

Those who paid the most in taxes complained against those who paid less. They raised the prices of their goods to compensate for this loss. The unfortunate poor who paid no taxes lamented the high cost of living, and bought less.

If one took a salaried job with another, he was continually demanding increases in salary in order to meet the mounting cost of living.

Morale was low. The joy went out of living. No one took an interest in his work. Why should he? Produce sold poorly. When they would make a sale, they had to pay taxes to Oliver. They went without things. It was a real crisis. And they accused one another of wanting in charity, and of being the cause of the high cost of living.

One day, Harry, sitting on his orchard, pondered over the situation. He finally arrived at the conclusion that this "progress", born of a refugee's monetary system, had spoiled everything on the island. Unquestionably, all five had their faults, but Oliver's system seemed to have been specifically designed to bring out the worst in human nature.

Harry decided to demonstrate this to his friends and to unite them for action. He started with Jim, who was not hard to convince. "I'm no genius," he said, "but for a long time now there's been a bad smell about this banker's system."
One by one they came to the same conclusion, and they ended up deciding to have another conference with Oliver.

return to top > | continue to parts 13-15