Chapter 4.


It is certainly not the blindfolded people and is certainly not government as the Federal Constitutional agreement requires.

Political babble about need to free ourselves from colonial ties is just `hogwash', the only colonial ties we now retain are those that protect our human freedoms.

Do we want to give our freedoms away?

The only people who want us to give our freedoms away are the people who want us in colonial servitude to international finance.

Although we call some of our banks Australian, the fact remains that those banks stood over our Federal Government in the 1920s to establish their superiority in the `pecking order' of power; Facts and Theories of Finance by Frank Anstey; quote:

The war governments gave the Associated Banks the `Right to Draw' Commonwealth notes without any gold payment or any deposited security.

The mechanism of this scheme, and the way it operated, were set forth in detail on June 13, 1924, by the then treasurer Earle Page.

For all notes drawn under the scheme the banks had to pay interest at rates varying between 3% and 4%. ...

For instance six millions of the War Gratuities had to be paid in cash. The Government arranged with the banks to pay out and charge to the Government on a 5% loan basis. For this the banks had `Right to Draw' Commonwealth notes to an account paid to ex-soldiers. Thus the banks were out nothing and scooped the difference between the 4% notes and the 5% `loan'.

But the banks did not draw notes - they traded on their `Right to Draw' as if the notes were actually in their own vaults. Thereby they avoided interest payments to the Government, but upon these `Rights' they issued credits and drew interest from the Government and from the general public.


On June 23, 1923, these Rights to Draw totaled 8,000,000 pounds. The Board made a demand that the banks should exercise their `Rights' - draw the notes, and pay interest thereon. The Banks refused.

Early in 1924 the banks made a demand that these rights should be extended by another 3,000,000 pounds. The Chairman of the Board, Mr John Garvan, stated that these `Rights' were equivalent to an issue of notes to the banks without interest. He described the proposition as `madness'. The Treasurer upheld the view but the banks' demand was conceded. EQ. EA.

Anstey goes on to report that the banks subsequently demanded and forced the issue of further "free" drawing rights to a total of 31,000,000 pounds.

A similar showdown, perhaps an even more blatant blackmail, had taken place in 1907 to force the US Government into servitude.

Who really governs Australia? If the Commonwealth Bank had been allowed to operate as intended, and as it did in its early years, Australia need never have known any depression. The newly formed Commonwealth Bank financed World War I and many other of our economic needs without need of foreign debt and interest robbery. The following quotes are from The Story of the Commonwealth Bank by D J Amos, F.C.I.S. in which he provides information on the early bank and events leading to its betrayal by political parties. The parties, by their actions, proved that they had already in their hearts betrayed, for their own comfort and servitude to money, the people of Australia.

Amos shows that in 1912 we were a nation free from want and debt; in 1921 Commonwealth Bank Governor, Sir Denison Miller, (as reported in the press) said; p5-6, quote:

"The whole of the resources of Australia are at the back of this bank ... whatever the Australian people can intelligently conceive in their minds and loyally support, that can be done." [As, for a time, it had been.]


By utilising Australian notes in this manner the Commonwealth Government avoided debt, interest charges and taxation ... it made enough money out of that account to pay the greater portion of the construction cost of the East-West Railway, the remainder coming out of revenue. (Hansard Vol. 129, p. 1930). EQ.

1931 found Australia faced with a complete breakdown of her monetary system and proposals by the Theodore-led government to ease the financial situation were refused by the Bank; p34-5, quote:

[The Commonwealth Bank] now proposed, without any consultation or prior discussion, to cut off money supplies to the government beyond a point that would be reached in a day or two. That could only be regarded as an attempt on the part of the bank to arrogate to itself a supremacy over the government in the determination of the financial policy of the Commonwealth, a supremacy which had never been contemplated by the framers of the Australian Constitution, nor sanctioned by the Australian people. In financial, as in all other matters of public policy, the Government was responsible to the electorate, and not to the banks, and it could not change this responsibility without exposing to grave danger the democratic principles of the nation. The Government would not be a party to any attempt of the Bank Board, or any other authority, to take from the people's representatives in parliament what had hitherto been regarded as an essential prerogative of the people - the control of the public purse. He [Theodore] went on to point out that the present financial difficulties .. had been largely caused by the action of the Commonwealth Bank and the private banks themselves; for they had blindly followed the overseas banks in pursuing a deflationary policy which had forced down prices the world over, and brought in its train a collapse of trade, loss of commercial profits, thousands of business bankruptcies, and the creation of unemployment on a scale wholly unprecedented in the history of the country. That it was in the power of the banks to remedy this state of things could not seriously be denied. EQ. EA.

Scullin's surrender to Sir Robert Gibson (bankers representative) in the Senate settled the matter and the sell-out of Australia to the international money-lenders was virtually complete.

Speaking of the depression of the 1930s Amos assures us that had our bank been allowed to function as intended; p9, quote:

"Many prosperous business firms would have been saved from ruin, and somewhere about one-third of our people would not have had to eat the bitter bread of charity. Neither would the people have had to submit to the ruinous debt and taxation imposed upon them in the second war period (1939-1945). EQ.

The grip of the international bankers on Australia and other nations was tightened further in 1944. p45, Quote:

On July 1st, 1944, delegates from 44 nations met at Bretton Woods, in the USA. There they found an Agreement already prepared for their signatures, and they were asked to sign upon the dotted lines. It took three weeks to induce them to sign, but eventually they all did so.

... p46

Australia was given until December 31st, 1946 to ratify the agreement. Some cabinet ministers were in favour of doing so, but many members of parliament and trade union executives saw clearly that to do so was to prove false to their promise to bring the Commonwealth Bank back to its original position of financier for the people of Australia. EQ.

Australia signed in August 1947. We were the 45th victim of this plunder to sign.

Economic and PR manipulations combine with a general ignorance of the monetary system to bring pressure on public figures and on governments to do as they are told by the international `mafia' financiers.

This subservience is strongly supported by a propaganda to seduce people to dreams of power; a megalomaniacal pride in belief that they can achieve great things for their country, or for humanity, without any real understanding of the physical or human realities.

As Amos suggests certain carrots consistently dangled before the donkey's nose are of great use in sending the donkey down the road desired by international finance. He also sees that a great deal more is now known about these forces and how they operate. The problem is that this knowledge is not taken up by the people.

The reason knowledge is not taken up by the people is that it is, by subtle deceit, kept from the people. If a government wanting to fight the international money manipulators were to take the public into its confidence it would surely get the support needed. That they do not do so shows that they are not fully sincere. Deceit is made easy by a managed party system; p49, quote:

The right of the people of this Commonwealth to expand or contract financial credit in accordance with their needs, by means of the Commonwealth Bank, was something that the people of Australia should have safeguarded with the same jealousy as they safeguard their right to vote. They did not do this, so when the artificial depression of the `thirties' burst upon them, they were exposed without defence to the mercy of domestic and foreign financiers who knew no mercy. ... they are just as powerless to help themselves against future depressions which those same financiers may be preparing for them. EQ. EA.

Today the position of the internationals in Australia is further strengthened by the introduction of foreign banks to Australia. In 1992 Australia has entered into its second worst depression, which could yet become even worse. Had our Commonwealth Bank continued as originally planned, had our system of government continued as originally planned, things would have been very different as the following quote supports; Quote:

It [The Commonwealth Bank] saved the Australian primary producer from stark ruin by financing with (and sometimes without) the assistance of the private banks ...

Until 1924 when the Bank was effectively strangled, the benefits conferred on the people of Australia by their Bank flowed steadily on. It financed jam and fruit pools to the extent of $3 million; it found $8 for Australian homes, and so on, until the strangling of the bank when in June 1924 the Bruce Page Govt. brought in a bill to amend the Commonwealth Bank Act ... EQ.

So the Commonwealth Bank became, in effect, a stooge of the private banks and in line to become a stooge of international banking. The story, as Amos tells it, of the sabotage of the Commonwealth Bank and the depression of the thirties, is even more true of our situation today. Amos came to the following conclusions for the actions of the Chifley administration ... Quote:

There is evidence of a desire to avoid a split in the party. This is known as "Party Politics" and consists in placing the interests of the party before the principles for which the party stands. EQ.

Today, in party politics, principles no longer count. The nearest thing to principles that any party stands for is called "self interest". This has always applied but never as blatantly as now. Quote:

International Finance can be trusted to see to it that the banking system in Australia is used, not for the benefit of the people of Australia, but in furtherance of its own policy, whatever that policy may be. We will prosper or we will starve, as that policy determines ... EQ

Until people are prepared to admit that they are slaves to a system there is NOTHING that they can do that will free us of this tyranny.

That system must be eliminated before we can make any headway to social enterprise, prosperity, and social justice as a nation.

As Lord Rothschild is reported to have said all those years ago: "Permit me to issue the money of a nation and I care not who makes its laws".

As you might expect, he was devious. what he said was technically correct but he gave it emphasis that would lead people to believe he was above the law. To have been truly honest he would have said, "So long as the law-makers ALLOW me to issue the money I care not who makes the laws." This way of expressing it would have given people to understand that they could change everything by controlling the law-makers.

There is also another truth that we should remember, well expressed by C H Douglas in, In Whose Service is Perfect Freedom; quote:

It is not too much to say that an International Organisation having almost unlimited control of money, and in consequence, of the Press, can produce almost any "trend" which may serve its purpose. What it cannot do, however, is to avoid the natural consequences of the policies which it pursues. EQ.

This mass contempt for human rights is world wide and imposed in waves as of a rising tide of deprivation and enslavement. The people work for years to build up assets and the political parties, working as sheep dogs, round up the sheep and (by economic blackmail) they are shorn.

After the 1990s depression people will be told that the economic conditions are improving, people will work hard to pay off their debts and establish new assets. Then, in a few years, will be time for the next shearing.

How do they get away with such blatant financial atrocities?

No, it is not entirely a matter of a natural cringe and servility to those with money and power. Cultural cowardice will go a long way to explaining the political servitude but to explain public indifference we have to look for clever propaganda.

When a good man stands up in parliament and resists the pressures of economic blackmail we might think that the people would flock to support him. But when the people do not understand the issues or what is at stake, then they look to media and to `authorities' for leadership and that is where the PR experts do their work. At best you will get a confusion of information, at worst a one-sided misrepresentation of fact that will cause the people to support their enemies.

At this stage you may feel that this is all too incredible, or hopeless, but just think about what is at stake! By the end of this book I think you will see that our position is only without hope if we are without hope.

What the evidence and social situation is saying, is that everything we have to live for is either being taken from us or is under grave threat. What we have to decide is whether we want the information that will allow us to be free or if we prefer to allow our human potential to be drained away without our understanding or rational protest. brain4.htm

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