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Below is the text of an open letter by Islamic Party associate member
Alexander Baron to Bill Gates in Common Sense issue 29
(Turn of Millenium Issue).
Open
Letter To The Richest Man In The World
Dear Mr
Gates,
I saw you
interviewed by Jeremy Paxman recently on which program - or
programme, as we say here! - you explained to a British audience
your plans to give away your entire fortune. I have no doubt that
being the richest man in the world and perhaps in real terms the
richest man in history you receive more than your fair share of
begging letters. This one is slightly different from most though
because rather than begging you to send me money I am begging you
not to give your money away but to devote your energy to fixing a
fault with the financial system which, if remedied, could lead to a
new golden age of prosperity for the entire world, and that without
your donating a cent to any charitable cause, organisation, or
individual.
During the
Paxman interview it was suggested to you that you are now so wealthy
that if you were to drop a $10,000 note in the street it would not
be worth your while to bend down to pick it up. You dismissed this
suggestion with a laugh, but how ridiculous is it?
On October 27,
1999, shortly after this programme was screened, I heard a disk
jockey on RTL Country claim that you are now worth $100 billion.
Obviously this is not all cash, but some of your assets will
appreciate faster than cash, so let us assume that you are indeed
worth $100 billion and that this money is appreciating at a mere 3%
per annum. That would return a cool $3 billion a year. There are 60
x 60 x 24 x 365 or 31,536,000 seconds in a year, so we can say that
your wealth is accumulating at 3 billion divided by 31,536,000 per
second which works out to $95.12 per second. If it took you ten
seconds to bend over and pick up that $10,000 note you would make a
net gain of over $9,000, so Paxman's claim was an exaggeration.
However, at the rates given above (dividing $10,000 by $95.12 per
second) it would take your wealth a mere 105.13 seconds to add
another $10,000 to your worth. Whether this is net or gross is
beside the point.
As the richest
man in the world you are the subject of intense envy and dislike by
all manner of people, including by extreme socialists who regard all
capitalists as parasites and exploiters of the masses. However, as
you rightly pointed out to Paxman, your company has empowered people
rather than exploited them, and this is something that both you and
Micro$oft can rightly be proud of.
The fact that
many ordinary people throughout the world now have at their
fingertips the sort of mega-computing power that was available in
the 50s only to governments and the largest corporations is down
largely to you. The fact that I and countless others like me can
produce neatly wordprocessed documents, play games to our hearts'
content, communicate instantaneously with people on the other side
of the world for the cost of a local rate phone call, and do a
thousand and one other things from our desktops, is down largely to
you. Rather than being any sort of parasite Bill Gates has indeed
become one of the great benefactors of mankind, notwithstanding the
fact that your own government has branded you a criminal for giving
away software!
The claim of
extreme socialists that all capitalists are parasites is clearly
ridiculous, you are living proof of that, but there is one sense in
which this claim is true. Micro$oft made its money by creating
wealth for and empowering consumers, but you will recall what I said
about your wealth appreciating at in excess of $95 per second. How
does this wealth accumulate? The simple answer is by interest. And
where does this interest come from?
Micro$oft's
wealth was created by the finest brains in America, including yours,
and by the people who work for Micro$oft directly and indirectly. A
capitalist who invests time and effort in a business deserves to be
rewarded, but interest, the interest on Micro$oft's wealth and on
yours, does not come from time and effort, from the sweat of your
brow or from the creative genius of your mind. Interest comes into
existence ex nihilo and is then loaned, or more properly sold, to
all and sundry. This is the major fault of the capitalist system,
and one which gives all capitalists a bad name.
The Money Trick
is the biggest con trick in history; a few years ago the fact that
money is created out of nothing by the banking system was either
ridiculed or not discussed at all, but nowadays it is openly
acknowledged. In fact, Major Douglas - one of the finest engineering
brains of all time - gave a mathematical proof for the creation of
money ex nihilo as long ago as 1924. The following is from his book
"Social Credit":
Let Deposits =
D
Let Loans, etc.
= L
Let Cash in
Hand = C
Let Capital = K
Then we have
Assets = L + C
Liabilities = D
+ K
So that L + C =
D + K
Differentiating
with respect to time, we have d
L/dt + dC/dt =
dD/dt; K being fixed, dK/dt = 0
Assuming that
the Cash in Hand is kept constant dC/dt = 0.
Therefore dL/dt
= dD/dt
which means
that the rate of increase or decrease of loans is equal to the rate
of increase or decrease of deposits. While the wealth of Micro$oft
was created by genius, hard work and not a little sweat, the far
greater wealth of the financial system was created by the stroke of
a pen, or today by a blip on a computer chip, because in practice
this is all most money really it: credit. Most money has no tangible
existence, and even the small amount of money which does, has no
intrinsic value.
Unlike a
computer which together with its software is a tangible asset, money
has no value at all unless people believe in it. The entire banking
system is based not only on a palpable fraud but on psychology:
money is created out of nothing, and functions only as long as
people have faith in it. Did you ever hear of anything so
extraordinary? Can you imagine a machine that didn't work unless you
believed in it? What use would a parachute be that didn't work
unless you believed it would open and lower you slowly and safely to
the ground? The power of the banks to create money ex nihilo and to
sell it to all and sundry: to private citizens, corporations and
governments, has resulted in the entire world going progressively in
debt to the financial system. It is debt which is the main cause of
wars, famine, poverty, and all the other major evils in the world
today. The main beneficiaries of the debt-based money system, apart
from the anonymously owned banks, are the mega-rich - people like
yourself. It is the mechanism of interest which siphons the wages of
the poor into the pockets of the wealthy.
Exactly how
much usury - to call it by its proper term - distorts the world
economy is evinced by a document I found recently in a Public Record
Office file. According to the "PITCAIRN ISLANDS DEVELOPMENT PLAN,
1964" (which can be found in file CO 1036/1412 at our national
archive), the island's main revenue in 1963 came from the sale of
postage stamps (70%); but a further 28% came from interest on
investments.
As I'm sure you
know, Pitcairn is something of a novelty, one of the most remote
islands in the world with a very small population. Yet over a
quarter of its earnings are derived from the interest on (foreign)
investments. I said that banks create credit out of nothing, which
is true, but we all know that in the real world there is no such
thing as a free lunch - as that famous saying goes - so if somebody
gets something for nothing, you can be sure that somebody else is
paying for it. What this means in practice is that wealth is
transferred from the have-nots to the haves. It is the toiling and
exploited masses, as Marx called them, who pay for the free lunches
of the mega-rich. You Mr Gates are a man who seeks to change the
world for the better, and you can. Instead of giving away your vast
wealth through your foundation, much of which will go into the
pockets of lawyers and the professional class who administer
charitable causes, here is an alternative suggestion. Call a press
conference and announce that from now on you will not take for your
personal gain one cent of interest on your investments, and
challenge every other wealthy person in the United States to do the
same.
This would be a
good starting point though to bring about the total abolition of
usury would require legislation, but with the backing of the
mega-rich like yourself, the requisite legislation would surely be
enacted in double quick time. All that would be needed is an Act of
Congress removing the power of privately-owned corporations to
create credit ex nihilo for their own gain, and remitting that power
to the United States Government. It is widely believed that the
Federal Reserve is owned by the US Government. This is a legal
fiction in much the same way as the Bank of England is believed to
be owned by the British Government. In any case it matters not who
actually owns the central bank or banks in question; as long as
money is created as an interest-bearing debt, the world will
continue to go progressively in hoc to the banking system. In
Britain there is a Parliamentary lobby called the Unitax Association
which seeks to abolish all taxation and replace it with one
universal tax, a tax on energy at source. The abolition of usury
would allow the institution of the Unitax proposals worldwide and
the payment of a basic income direct to all citizens, which would
abolish the poverty trap into which countless millions of poor
people in the advanced nations fall, and would at the same time
liberate the rest of the world from the clutches of irredeemable
debt.
It would also
totally eliminate parasitic capitalism, in particular the great mass
of the misnamed financial services industry. It is this aspect of
capitalism which gives productive capitalists like yourself a bad
name. While Micro$oft grew rich by producing goods and services for
willing consumers, the financial services industry produces nothing.
All it does is moves money from A to B from B to C and from C back
to A again and creaming off a bit of profit for itself with each
transaction.
In the 1980s a
British financial journalist named Tony Levene published an
excellent book called "The Shares Game" in which he exposed the
fallacy of beating the market by investing in trusts and through
various stockbrokers' schemes. The best way to invest in shares said
Levene is to buy a wide tranche of blue chips and hold on to them
resisting the temptation to buy and sell. The reason for this is
that the price of stocks and shares is determined by the great
financial institutions - pension funds and the like - so the idea
that investors in general can beat the market is a fiction. All
anyone can hope to do is keep pace with the market or reap a
slightly better than average reward over a period of time.
But however
much money a particular investor or small group of investors may
make by playing the stock market, none of these machinations
contributes to the real wealth of the community. Playing the stock
market generates income for stockbrokers, lawyers, and for numerous
other people in and around the financial sector, but buying and
selling shares does not grow so much as an ear of corn to feed the
world's poor, much less empower consumers as does Micro$oft.
I realise why
you have set up your foundation, Mr Gates. When they start out in
business most people dream of making a fortune. Very few do, but
when a man has become wealthy beyond the dreams of avarice the
acquisition of wealth becomes less important than the exercise of
power, political or otherwise. When a man has acquire both money and
power - and you certainly have power - he then sets his sights on
other goals. One such goal is to win the admiration or even the love
of his fellow men. In short, he wants to be perceived as a good guy.
There is nothing either unnatural or wrong with this, and only a few
conspiracy cranks, your envious competitors and the overpaid lawyers
of the US Government believe you are evil, rapacious, power-mad, etc
and ad nauseum. You are obviously a good guy and would have been
even if you hadn't made a dime in computing. You don't have to go
out of your way to convince anybody, least of all yourself, that you
are a good guy, but if you were to become known as the man who
abolished usury worldwide, you would go down in history not only as
the richest and most successful businessman ever, but as the
greatest benefactor of mankind since Prometheus stole the fire from
Heaven.
Author: Alexander
Baron |
Date Published:
Winter
1999/2000 |
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