Now, an accountant is someone who knows nothing about economics, otherwise, he could not be an accountant.
An accountant is talking with figures and so forth, which correspond to something called money.
And, money is not a measure of value. If you do not believe it, you should see the prices today.
And, see what you get with them. You should see what is happening on the international market today,
Money is fake today. And, you have people talking about the economy is growing.
Yes, the amount of money is growing, but the economy is collapsing!
And, as long as people try to explain political issues, and substantive issues,
in terms of accounting they do not know what they are talking about.
And any suggestions they make are likely to be incompetent, or worse. Or actually damaging.
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Economics is the power of mankind to increase his power, the will power of man over physical nature.
And, it is by production, not by software. It is not by information theory. Its not by services economy.
It is by actually changing things. It is creating an environment which is suitable to man.
It's power systems. Its water systems. Large scale agricultural development.
Its inventions. But it is, above all, scientific discovery and Classical artistic composition.
These are the qualities of man. That is economy. That is physical economy.
The increase and protection, of man’s power in and over nature, to meet the requirements of man.
And, as an instrument in nature, to make nature better.
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For practical purposes, all Australian currency notes in active circulation are now polymer. The benefits
of polymer arise from greater security and durability, and reduced machine maintenance and
processing requirements.
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Note processing and distribution
Despite the strong growth in electronic payments media, such as EFTPOS and direct entry, the public's demand
for currency notes has grown broadly in line with the economy over recent years.
Use of $50 and $100 notes grew strongly; these two denominations now account for about 87 per cent
of the value of notes on issue.
During the year, the Reserve Bank issued into circulation around $69 billion in currency notes and had
$68 billion in notes returned for processing. Of the total notes processed, about 93 per cent were
classified as fit for reissue, a percentage which has increased because of the durability and cleanliness
of polymer notes.
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In future, the Reserve Bank aims to achieve its objectives by processing notes in circulation on
average twice each year, resulting in significant cost savings.
The operational procedures in the cash services areas were streamlined, in which notes are returned to the
Reserve Bank from the community and in handling and custodial arrangements within cash services areas.
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Please Note: The Australian Constitution does not mention the selling of notes and coins.
Australian Constitution Chapter one Section 51: The Parliament shall, subject to the Constitution, have
power to make laws for the peace, order, and good government of the Commonwealth with respect to subsections;
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(iv.) Borrowing money on the public credit; (xii.) Currency, coinage, and legal tender;
(xiii.) Banking, the issue of paper money; and (xvi.) Bills of exchange and promissory notes.
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The selling of working stocks of notes and coin to commercial banks of which previously, had been
owned by the RBA; is  an alteration of the Australian Constitution and will be stopped.
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The chart below indicates how the increase occurred in the value of notes on issue ( $ million), continuing
the underlying trend towards a greater proportion of notes on issue being accounted for by the bank
loans to Government, Business and People and the higher prices paid for goods and services in a
Debt Based System.
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(1). Treasury issues Treasury Bonds to the Reserve Bank.
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(2). Reserve Bank registers the Treasury Bonds then places them for tender.
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(3). the tenders are then accepted from highest yield to lowest yield.
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(4). Treasury Bonds are then placed with Austraclear for trading on the Futures exchange.
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(5). Treasury Bonds are then traded as 10 and 3 year Bonds.
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(6). Government, Reserve Bank and Commercial Banks may then buy the Bonds.
      AOFM issues Interest coupons payable on Commonwealth Government Securities.
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(7). The Reserve Bank manages the amount of ES funds available to banks by buying Bonds to increase
the supply of such funds for business and public use.
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The aim of domestic market operations is to supply sufficient liquid funds, Exchange Settlement (ES)
funds, to the banking system to maintain the cash rate around the desired level; the interest rate on
funds borrowed and lent overnight by Commercial Banks.
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Demand for ES funds by banks fluctuates from day to day, mainly in response to anticipated settlement
obligations. This may include Loans and Mortgages to business and individuals.
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Why RTGS?
The reduction of settlement risk in domestic high value payments systems has been a principal
objective of many central banks over the past decade.
This risk arises when payment instructions are sent and acted upon by banks and their customers,
but settlement of the resulting net obligations occurs some time later.
In Australia’s deferred net settlement system, final settlement of interbank obligations was not
completed until 9.00 am the day following the sending of payment instructions.
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In the interim, a bank could find itself unable to meet its settlement obligations. Because of the
very large values and the multitude of individual transactions involved, the result could have
been a serious disruption to payment flows, leaving other banks facing liquidity pressures and
even insolvency. The Reserve Bank could provide emergency liquidity to try to stem this type of
systemic risk, but in doing so could take on large exposures to payments system participants.
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The RTGS system addresses this problem at source by preventing the buildup of unsettled
obligations. It is based on the simple premise that if a bank does not have sufficient funds in its
ES account, any payment it wants to make will have to be queued until there are funds available.
Since payments are not made unless they can be settled, settlement risk is eliminated.
If a bank were to fail during the course of the day, there would be no need to unwind a chain of
payments or put the Reserve Bank balance sheet at risk.
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Deferred net settlement During day 1. Payer instructs bank to make payment  2. Banks exchange payment instructions  3. Beneficiary’s bank credits account of beneficiary  4. Beneficiary may withdraw funds and make further payments  . Overnight 5. Banks calculate net obligations and notify RBA  .  Next day 6. RBA posts debits and credits to banks’ ES accounts.  . Note old system; Previous day’s payments would be thrown into doubt if a bank were unable to settle its net obligations.

Real-time gross settlement During day 1. Payer instructs bank to make payment  2. Payments sent to RBA’s RTGS queue  3. Payments for which ES funds not available remain in queue  4. If ES funds available, payer’s bank has its ES account debited and beneficiary’s bank has its ES account credited  5. Beneficiary’s bank notified of payment  6. Beneficiary’s bank credits account of beneficiary  7. Beneficiary may withdraw funds and make further payments  .  Note RTGS system; Each payment is final as it is made and not at risk if payer’s bank subsequently fails. Used by People's Mandate System.

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Assets section as;  "Cash" and "Liquid Assets" (Overnight settlements system) and;
Liabilities section as;  "Deposits" (Banks Exchange settlement accounts) and
"Notes and Coin on Issue"

1) apply to their bank to issue electronic settlement or Bank cheque;
2) an amount payable to the registered Goods or Service provider or employee the;
3) registered Goods or Service provider or employee deposits the amount received into account.
4) If personal cheque or bank cheque has not been delivered must be returned to the bank.
5) Using Invoices to Withdraw for Gambling; shall not be permitted.

Treasury shall only issue Treasury Credits to the Reserve Bank and converted to the legal tender of
$A Notes for the direct supply of liquid funds to the Exchange Settlement (ES) Accounts for supply of cash
to the banking system then to the public such as;
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Aboriginal and rural business, industry, farmers, producers, manufacturers, small business, banks,
home buyers, nursing homes and all Charities, Hospitals, Schools and Universities, electricity, gas,
telephone accounts, car, all vehicle registrations, and legal purposes and;

Hospitals, IVF Treatment, Umbilical cord blood bank, Schools, all public works, all rail and road construction and
maintenance; no need for road tolls, all Federal, State, Territory and Local government services, council rates,
sewerage authorities and water costs, new residential development and infrastructure and;
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Making use of sewerage water by treatment, to be chemically pure for manufacturing and farming use,
salinity and water management and other environmental issues, including recycling of all used materials,
in Australia will be supplied free.
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After which the legal tender of $A Notes shall be recycled to the AOFM short term investment facility, to
pay for costs related to National Consolidated Revenue Fund and normal government expenses where the;

Cash proceeds not required for immediate purposes are placed in a short term investment facility (term deposit)
provided by the Reserve Bank of Australia. The AOFM uses term deposit balances as the
primary vehicle for managing within year mismatches in the timing of cash receipts and outlays.
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To Control the money supply and inflation;
Withdrawals shall be based on need; if the number or value of withdrawals become excessive,
example Real Estate, there shall be a maximum number or value of withdrawals over a stated
period; will replace the existing Reserve Bank cash rate adjustments.
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Once finance has been committed to say; building a house or a project, the money will not be stopped
while the house or project, remains in the process of being built.
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Existing Private and Commercial Investments;
All individual earnings, profits, superannuation and all other investment accounts shall be retained.
All investments including all property will be by negotiation.
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The Treasury Credits, currency note and coin issue shall be a Constitutional Asset and must be kept in circulation,
so banks can have cash available for public use and all withdrawals shall be free of repayments
and interest. All Banks shall provide the service but shall not own or create any currency, mortgages or loans.
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Parliament, all Business, Banks and all Individual account holders shall own the value but not the
Treasury Credits, notes and coins.
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May withdraw part or all of the value in cash from the bank account and; account holder must not make out
any Cheque to account holder, who is the same account holder or to a subsidiary company of the same group.
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All home buyers must live at or on place of residence a minimum of 24 months if purchased through the
bank. If account holder has enough deposit in account to purchase there shall be no restrictions.
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The core functions of this service cover the issue,
transfer and registration of securities,
the maintenance of ownership records,
the distribution of interest payments and
the redemption of securities at maturity.

The Government released a discussion paper in October 2002 and invited written submissions from
interested stake holders. The outcome of the review was announced in the Budget in May 2003 with the complete
decision contained in Budget Statement No 7.
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The review concluded that sufficient Treasury Bonds should be issued to support the Treasury bond
futures market; usually traded as 10 or 3 year Bonds.
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Further, the Australian financial market may become less diversified and more vulnerable during periods
of instability. Given the findings the issue of Reserve Bank Bonds, would be targeted to support the
Treasury bond futures market by replacing the Treasury bonds with the Reserve Bank Bonds.
Treasury debt issuance of the Treasury bond futures market will be abolished.

The result is that you have always too little credit in circulation to give the workers full employment.
You do not have too many workers, you have too little money in circulation and that which circulates,
all bears the endless burden of unpayable debt and interest (usury).
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The engineering approach is to firstly identify and detail the specific final objective, and then tabulate and assess all
the alternative methods of achieving the specific objective. Late in World War 1, the U.K. Government invited him to
investigate a problem within the aircraft industry, because of his reputation for analysing problems.
The concern was to explain why the companies in the aircraft industry were going into recession while the world was
calling out for planes in all directions? Why was the industry not enjoying a prolonged boom?
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In every factory his analysis of the books showed that there was a consistent and substantial disparity between
the wages paid and the total prices for the same period. The books of other businesses also showed there was an
ongoing disparity or shortfall between wages, salaries and dividends, or what could be called spendable incomes or
cash, and total product prices.

The deficiency or shortfall included items like depreciation, bank charges, and payments to other companies, none
of which were fully and immediately available in a cashable form to liquidate the prices of products
produced within the same time span.

Regardless of the extent of it, the Douglas Analysis showed that in every firm, and every industry the flow of wages
was lower or less than the flow of prices, creating an ongoing shortfall or deficiency.

Furthermore, the mushrooming of debt throughout the whole economy was visible evidence, which reinforced the
existence of an ongoing gap or shortfall. Douglas postulated that this quantifiable growth in debt, not only showed
that a gap existed, but that it was being filled with freshly created credit, showing as a debt to the banks.

From there, it followed that how fully or otherwise, the administration allowed the continuous filling of the gap to
occur, would determine the frequency and severity of the then common "Trade Cycles". To that time all sorts of
weird explanations for trade cycles had been suggested, to even include sunspots and positions of the
constellations, so the Douglas analysis evoked very serious discussions.

Douglas postulated that industry is ONLY indefinitely sustainable, if a sufficient stream of new purchasing power
(money, or credit) is added to total incomes to balance total prices. This equilibrium would enable the community's
resources to be kept fully employed; naturally producing what is called a booming economy.

However, he also warned that if that credit stream is from an outside source, such as the privately owned banking
system, at interest, then sooner or later the build-up of debt to the banks would reach crisis point and industrial
strangulation. Either ownership of all productive assets could be acquired by the banks to liquidate the debt; Or the
debt would need canceling by a massive devaluation as done by both France and Germany at different times; or an
excuse would be manufactured justifying going to war.

At a lower level of financial pressure, it has long been observed that a shortfall of purchasing power in countries is
greatly improved by exporting more than is imported. That is why it is referred to as a "favorable trade balance".
The economic lift associated with concurrent removal from the local market of the goods exported, combined with the
acquisition of some of the victim country's domestic currency, is further confirmation of the validity of the
Douglas Analysis.

Were there NOT a deficiency of purchasing power or so-called money, then the increase in money supply, at the
same time as reduced volume of goods on the local market, would automatically produce "demand pull" inflation.
But it doesn't. It causes a "favorable" economic boom, and that is the reason why every country so badly wants
favorable trade balances that if pushed hard enough, they will go to trade war to achieve it.

Douglas then scrutinized the mechanics of so-called bank lending and some decades ahead of the various
"Monetary Commissions" showed that the ostensible lending of "deposits" was really just a charade or deception
to fool the public and allow the continuation of a sophisticated racket or scam.

Monetary Commissions in England, under (ex) Chancellor of the Exchequer Reginald McKenna, in Canada, and
then in N.Z. have reluctantly but quite unequivocally confirmed that banks cannot, and do not, lend their deposits (which are really their liabilities), but instead, whether extending overdrafts or purchasing assets or Treasury Bills or Treasury Bonds, create new credit out of nowhere and use that.
Furthermore, as soon as those figures enter a Current Account, they become spendable money, and increase the M1 or national Monetary Pool in exactly the same way as funds brought in from overseas.

From there, C.H. Douglas postulated that sovereign governments would need to take control of the "money power",
reclaiming to itself the right to expand the money supply as necessary. This would allow it to be used in the
interests of local and national communities, and for their benefit, rather than the eventual taking over of everything
by the privately owned banks.
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