For Like minded people who like to see-
THE ONLY REAL SOLUTION TO QUEENLAND GOVERNMENT'S INSOLVENCY.
You all know by now of course, that according to "orthodox" financial and economic sources, the Queensland Government is bankrupt - thanks to the incompetence and even stupidity of the Beattie/Bligh government. Both of these people and their "governments" were recently sacked by the people of Queensland at the recent State election. Notwithstanding this, they both walked away with their pockets full, and a fat superannuation for life, adjusted each year for inflation. An absolute disgrace, or worse. Also disturbing is that they have been replaced by equally incompetent people.
However, now that we the people are left with a debt of some $85 Billion, (which even the present State governor declared at the swearing-in of the new parliament, is unsustainable), the present LNP Campbell government and its members are all scratching their empty air-filled heads wondering how they are going to deal with such an enormous debt. Almost all of the members of the present government have no real, true understanding of finance-economics whatsoever. The Queensland Governor has, as I said, told them from Day one - swearing-in day - that the debt is unsustainable. What then are they to do?
Here is the only real and sensible solution to the debt problem It should have been done many years ago. Sir Joh Bjelke Petersen wanted to do at least something like this, and was howled down by his enemies, and the mainstream media.
THE 3 STEP SOLUTION.
STEP 1. We must re-establish our own Queensland State Bank. We have the constitutional right to do this, (Section 51 Clause 13 of the Australian Constitution, plus Royal Commissions to do with banking, going back to the 1930’s and beyond.
The new Queensland State bank, owned exclusively by we the people, can be established in one day’s sitting in Parliament.
Q. Some will of course ask, how on earth can we do this, when we have no capital do do it with?
The answer is simple and straight forward.
STEP 2. FUNDING THE NEW STATE BANK.
There are a number of ways which the bank may be funded:
(a) by way of transferring some of the State government’s current investments:
(b) by raising capital from we the people, by way of a secured profit-earning share issue. Properly managed and promoted, we the people will flock into the new State-owned bank (our own People’s Bank) by the tens of thousands, bringing with them their funds from their (other former) investments. Thus the cash reserves of the new bank will be bulging at the seams.
(c) A combination of both (a) and (b) of the above methods. This would be the preferred method and procedure.
Referring to (a) above, the 2011 financial report of Q Super – the superannuation fund of government employees, past and present - reports that it then had over $32.48 Billion in investments in various portfolios. By now they will easily have well over $32 Billion in investments, to quote round figures. We the people, can authorise and direct the government to in turn authorise and direct Q Super sell off say, 25% of those investments in shares, stocks and bonds, and place those funds into a the new State Bank. That amounts to $8 Billion, that can and will be invested into the new Queensland State Bank, as “working capital.” This sale need not be all at once, but can be spread over a reasonable of time, so as to save any shock in the market place, due to lack of understanding by anyone.
Note! This bank must NOT be listed on any stock exchange anywhere in the world, it must be constitutionally owned entirely by the Queensland people. Shares in the bank may be purchased by the people, but only by dealing directly with the bank, and the bank with the people. The bank thus conducts it’s own stock investments, and short-term “trading” (read speculating) must be discouraged, even prohibited. Shares may only be bought and sold within the bank’s structure, and only at par value.
The bank must NOT under any circumstances be “corporatised” or “securitised” in any way whatsoever, to either on-shore or off-shore corporations or interests, but must remain solely an asset of we the people, entirely, absolutely and in perpetuity.
REDEMPTION OF THE CURRENT DEBT.
Now as is commonly known by anyone who has made a REAL study of banking, (but not known by the general public at large, as it is kept hidden from them, and never discussed or even mentioned in the media, or in public, or indeed taught in universities) all banks – including existing banks – have the legal authority to issue funds many times the value of their cash reserves. This has over the last 20 years or so become commonly known as “Fractional Reserve Banking,” and there is much information available on the subject. (Those who would like to know more about this subject of banking, contact us.)
This “fraction” has ranged, in various banking and credit institutions in Australia, from 10 times, all the way up to 33 times the cash reserves of the bank or credit institution. Thus they can lend out from 10 times, up to 33 times (or more) their cash reserves.
For the sake of this exercise, let’s say the new Queensland State Bank of We the People, is given the authority by the State Government, to set conservative a figure of 12 times it’s cash reserves. That is, it can lend out up to 12 times it’s cash reserves. This is a very safe and conservative figure, by all estimations and calculations. Now based on the amount of $8 Billion accumulated as per STEP 2, (c) above, the bank will thus have the capacity to finance – lend out – up to $96 Billion. This means that it can easily replace the existing debt of $85 Billion mentioned in our opening Paragraph 2 (above) with it’s own issue, and take over all the debts of the State, which debts are then owned by the people, NOT by corporate enterprises, as they are now. As this amount is repaid to the bank at very low interest, it is simply “written off,” i.e., cancelled out of existence, as is the practice in all banks and credit institutions, and the bank will continue to finance other Queensland clients.
Moreover, it will have a surplus of over $11Billion to take over much, and progressively all, of the private debts of farmers and manufacturers throughout Queensland, serving only Australian farmers and manufacturers, at an interest rate of say, 2 1/2% per annum, rather than foreign corporations. This 2 1/2 % interest rate charged to farmers and Queensland manufacturers, will:
(a) take much of the strain off these farmers and manufacturers, and allow them to progressively reduce their debts; and
(b) it will also provide very attractive earnings back to the original investors in Q Super of, remember, 2 1/2% times 12 (the fractional reserve allowance of the new State Bank) which calculates out to 30%. Now even after allowing operating expenses of the bank of say, 5% (which calculates out to $4.8 Billion. If they can’t operate a bank in Queensland for less than that, they should be sacked immediately, and replaced with someone who can). It leaves 25% clear to be payable to the shareholders.
It’s a pretty clear bet that the current shareholders in Q Super – or anywhere else for that matter - are not receiving dividends of anywhere near that amount on their investments each and every year.
Thus, the problem of the current Queensland State debt is resolved, and everyone gains, and no-one loses. It’s safe, and it has been done before, in many places around the world, including Australia. It was done by Sir Dennison Miller, the first governor of the original Commonwealth Bank, which financed Australia through World War One debt-free, and also financed the building of the trans-Australia railway line across the Nullarbor Plains in the same fashion.
Speak to your political representative and give him strict instructions to act in this manner immediately, as time is not on our side, unless we act, and then it will be on our side, for us, and for our off-spring. Remember, he is legally your servant, not your master. We the people, are still the boss, though that fact has not dawned on some people yet.
Taking these simple steps takes guts on the part of the pollies. It will also get this State out of debt, as we used to be.
Read this message through again, and understand it fully, then go to your State representative, and instruct him accordingly.
Definitely worth considering - but I'd still like to see all the Labor crooks held accountable for the billions they've stolen/misappropriated from the people of Queensland.
Rob, what then is the Bank of Queensland, a branch of which is in nearby Coffs Harbour in NSW ?
It came in an email from a friend - admin's origin unknown. I thought about whether to put it up but its theme is very similar to the 12 year old canadian girl and her speech to the bankers.
That is why I just posed the question - is it worth considering? Look @ the content- think about the course that we are all on- do we pretend that there is no problem till we all wake up one morning to find that the world monetry system has collapsed. Buggered if I know but those who are paid to know on our behalf SHOULD be doing the hard research! No need to shoot the messenger- the idea is either sound or it isn't.
btw Jan- all our family bank with the BoQ and find it very good out of the majors choice.
imo It is important to stimulate debate on this topic if only to get people to think for a second on the importance of the topic.People are that compliant and unquestioning these days that we are getting what we deserve in the way of reckless fiscal management.
It takes no skill to borrow or print money but to service the interest is just a stop gap in the capital gains game that has lasted 20 years now. The real skill is to pay back a loan in full- something less than 1% of creditors would ever have done in their life!
We have done it here- borrowed $200000 in 1984 to buy out my parents and paid back over $ 600000 in wool and beef to pay it off early in Principal and Interest. They couldn't believe it and even wanted to penalise me ( that didn't get too far tho) . Alan -I realize that it is very simplistic above but I have also learn not to take things a face value. EG Our discovery of the countries biggest meat processors having a huge voting block over the producers levy money and the questionable voting entitlements. 99.9% of my peers(cockies) have no Idea and probably too stupid to even realize the implications - but there you GO!
Good on you Tony! Tony Howard for treasurer- look out Swan.
We couldn't have got here without debt but I recall we had 5 separate loans at one stage and the objective was to be rid of them asap. I think you have to be young and green to stand the pressure.
Had twenty years of full on work - absolutely scorned anyone waisting time on a computer (LOL)- no time for politics- party or industry. Had a sea change in 2008 in Gladstone to recalibrate what life is about and seem to have become the Robin Hood of the red meat industry. All good fun and just another chapter.
Did the Peter Spencer trip for two years and turned back the ocean several times and leave it with good prospects but out of time for the general population. There is never a dull moment and it is one exciting journey.
Jan - the Bank of Queensland is a privately owned bank that started out in Queensland. No different to the Bendigo Bank or any other of the small banks.
Jan Courtney said:
Rob, what then is the Bank of Queensland, a branch of which is in nearby Coffs Harbour in NSW ?