Lend me your ears.

by Harold Bell
(Samoa)

To answer you thoughts on a perfect banking format.

I see that you bought old Uncle Tom into the financial picture, and if you did not realize it I should explain that Thomas Jefferson despised the duplicity of banks in general.

Me too in fact.!

But in any case I want you to think of money as a commodity and not as a medium of exchange.
Mr. Soros does and has made billions using this concept. Money by itself can be traded for other currencies, held for future value, to loan, to purchase other commodities, and in general it is an easy way to escape the barter system.

Lets travel back in time concerning lending.

Back in the 1930's a book was written titled

The Richest Man in Babylon?

And was authored by an archeologist who was involved in the excavation and preservation of the 100,000 clay tablets recovered from the city of Babylon.

When excavating these clay tablets he discovered one section of tablets was devoted (and described) in detail the history of a man described as the money lender!

This individual loaned money to the camel trader, the baker, the chariot makers etc. and he set aside 10% of all his earnings until he became the (Richest Man In Babylon) wealthiest man in the city.

This was 2000 years before Christ, and from what I can remember, when attending the University our class calculated his average loan was around a 6% simple interest loan. His philosophy was a good deal (loan) has to be a fair deal for both parties. In fact this archeologist applied these concepts to his own life after the excavation, and using these basic principles he retired with a nice nest egg.

Today's banks (lenders) still make simple interest loans, and maybe rule of 78 loans, which are basically loans where you pay most of the interest at the beginning of the loan and little at the end. I'm not sure if these loans are still legal but (If you sold your house a year or two after the purchase, and you had a rule of 78 loan, you would end up paying more than the value of your original loan.) and if you paid it off over a 30 period you would owe 4 times the original value of your home.

I have been out of the picture for too many years now, but you can see the concept, and the billions made by banks during the 70's and 80's. The original thought was the inflation value would match the loan value at the end of the term.

The period of Babylon did not have derivatives, futures, short selling, corporations, banks, insurance companies and the like and they led a pretty simple life.

If you did not pay your taxes you were sent to work for the government on their irrigation canals, and was fed one bowl of oatmeal a day.

If you were lucky enough to have nice relatives to pay your back taxes and buy your way of this miserable life you could count your blessings.

What I'm saying here is that the concept of government control and banking has been a part of human history for four thousand years and when you bring up today's banks it is very hard for me to give you all the details concerning their current predicament but in essence the decadence of today's banks are a real worry.

Prior to 1972 (after the depression years) most banks held a pretty conservative view and operation and actually made their profits off their loan pro folios which kept them out of investments of high risk. No fees on checking accounts, and no taxes on savings, and the public could not purchase T-Bills, only the federal reserve member banks could purchase these instruments.

Enter 1972, and the government deregulated the banking industry and what they have been doing since has been criminal!

The Federal Reserve has been keeping interest rates so low it has forced the banks back into the risk investments, derivatives, futures , short selling etc. and here we are back doing the same thing as during the depression years of the 1930?s,

Now because this is a free society you are free use a bank of your choice to get a loan, or just save your money at home.

Gold, silver, wheat, corn, or what ever you want to save.

Need more money? You can always borrow from relatives, the syndicate, old Levi himself, or eat less, buy less, and save up for your needs.

Many banks will fail, but most will end up as another extension of your government and because of government meddling over the last 50 years you cannot convince me of a contra view. The barter and bourse systems will again prevail and the government will do all it can do to shut it down as these systems cannot be taxed.

Forget about the banks, and listen to old Levi.

Start saving, start planning, and don't stress out as the human race will continue its advances and repeat its mistakes.

Is there a perfect mathematical banking agenda?

Well, if you add up all the pros and cons of getting married and actually do get married you will certainly understand that human interaction, after weighing up all your pros and cons (facts), you never end up with what you expect and please expect many the changes made during the interim.

These changes will take place, and all you can say is yes dear? and do your thing.

The banks? Lots of changes just ahead, so keep watching.

Your answer - nothing is perfect!