Linkage Between Monetary Economics And Labour Slavery, Circumventing It To Your Advantage--Part 2

DEMONETISATION PROCESS
1^st Principle:
It is not a strong economy that makes a currency the strongest on the planet earth. On the contrary, it is a strong currency that makes the country’s economy strongest. Make your money the most important in the world and everything else will come to you.

The theory above which forms the cornerstone of the monetary order designed since 1944 Britton Woods Agreement underscore why Dr Nkrumah shun way from the use of pounds in the Ghanaian economy after our independence and thereby presented a new currency to Africa called cedi. The data below, define countries that walked out of IMF membership and the year of exit. And the conspiracy that led to the destruction of their entire economy which is evidence to us today

Irag………………2000

Syria…………….. 2006

Iran……………….2008

Libya………………2009

The main money for trading and main money for saving on the global scale is issued by an organization owned by an unknown group of private bankers. But why should we care about the USA and the rest of the world —we should be primarily interested in our own country or Africa. It is high time we discussed the cedies. Let us look at it. Let us read what it is written on it. This is something that an ordinary person in everyday life never does.

Frankly speaking, most of us are only interested in the value of the bill and not in what it says. Now, let us have a look at ‘A note of the Bank of Ghana’. Does it mean that the note was made in Ghana? Geographically, yes. And de jure- no. Why? Remember the Federal Reserve System that issues green dollars with portraits of American presidents, an independent Central Bank, independent from the state. Is the Ghanaian system the same? The principle of the so-called ‘independence’ of the Central Bank is the basis of the world economy. It is this burden that pulls it downwards, to the bottom. We will study the situation using Ghana as an example.

In order to understand it, let us read the law on the Central Bank of Ghana (Bank of Ghana). Let us start with the simplest question — who issues Cedies? This is easy — the Central Bank of Ghana, also known as Bank of Ghana, has the monopoly on issuing the Ghana national currency. This is exactly Section (35) of the Law state; The Bank shall have the sole right to issue and redeem currency notes in the country. Does this sound sensible? Yes, there should be only one issue centre. But what is it controlled by. The most interesting article in the law on the Ghana Central Bank is probably Section 37 (5), 39 and 40; The currency issued by the Bank be printed or minted by the Bank or under the Authority of the Bank. Section 39 and 40 it contains so much information that one needs to read it at least twice. Let us look at it as a whole and then examine the details Section 39, Clause (1) sub clause (A) The Currency cover assets of the Bank includes Gold, Gold Coin and Bullion. Section 40 Clause (1) the currency cover assets of the Bank shall be available to meet only the liabilities of the Bank as represented by the total of the amount of currency notes and coins issued by the Bank and are in circulation.

Section (5) Subsection (1) The authorized number of shares of the Bank be seven hundred billion share of no par value which shall be taken up from time to time by the government and may be increased from time to time.

Section 6 (1) There shall be a “General Reserve Fund” of the Bank, Clause (2) At the end of each financial year of the Bank, after allowing for the operational expenses out it income and after provision has been made for bad and doubtful debts, depreciation of assets, replacement of currency, development fund, contributions to staff and superannuation fund and other contingencies, there shall be transferred to the “General Reserve Fund”.

Clause (2A) State: One-half of the net profit of the Bank if the amount of money in that Fund is less than the paid-up capital of the Bank.

{½(Net Profit) = GRF(X) < (Capital)}
And (2B) one-quarter of the net profit of the Bank, if the amount of money in that fund is less than twice the amount of the paid-up capital of the Bank

{¼ (Net Profit) = GRF(X) < ½ (Capital)}

Is the Bank of Ghana into Business of Profit, and who do they account the profit to? Could we understand the purpose and the function of the General Reserve Fund (GRF) which the law has been silent about it?

Section (51) Power to borrow and guarantee
Subsection (1A) Without the Prior approval of the Minister borrow from foreign institutions for day to day operations (1B) In accordance with this Act or any other enactment; borrow money from foreign institution and pledge assets held by it as security for the repayment of the loans. (1C) Lend money or grant short-term credits to any financial institutions; but the Bank may, without the approval of the Minister, lend to those Institution in the ordinary course of businesses. Subsection (2) The Bank may at the written request of the Minister, guarantee a loan to the government or an agency of Government by a foreign Institution.

Subsection (5) The Government may guarantee on behalf of the Republic a loan granted under paragraph (1A) and (1B).

Why the same law state under subsection (1A) that the Bank could borrow externally without government approval yet subsection (5) comes out to state government may guarantee on behalf of the republic a loan granted under the Section (1A). Could any experience lawyers explains the controversy there.

Section 50 Subsection (1) The Bank may
Paragraph

1. Purchase and sell external convertible currencies
2. Discount and re-discount treasury bills drawn in convertible currencies
3. Purchase and sell bills of exchange drawn in convertible currencies
4. Import, export, refine, hold, sell, transfer or otherwise deal in gold, gold coins and bullion, silver, platinum, and any other precious metals as determined by the Board.
5. Acquired, hold and transfer exchange and foreign government securities

The above somehow describe the Business duties and transaction of Bank of Ghana to qualify as a profit making venture according to the Law

1. Maintain account with Central Banks and Reputable International Financial Institutions
2. Act as correspondent Bank or agent for an International Banking Institution or Monetary Authority
3. Effect foreign exchange transactions of any kind.

Subsection (2) The Bank shall not acquire, hold or transfer any foreign government securities unless those securities are denominated in convertible currency.

Are Ghanaians who are shareholders of this Bank aware that Bank of Ghana work as an agent to a Monetary Authority as Paragraph “G” of Section 50 of the Law categorically state?

Why, the Interpretation of the Key words like “Convertible Currency” and “General Reserve Fund” was left out in the explanation of the terminologies used for drafting the legislative instrument which Section 69 of the same Law seek to achieve such purpose.

The interpretation of the term “Convertible Currency” and “General Reserved Fund” is never defined in Section 69 of the Law meant for Interpretation of key words used. It clear that the convertible Currency is the dollar and pounds as earlier stated and could check it on the World Bank Data for foreign reserves for all listed IMF members, Which the Reserve of Ghana as at 2013 was $5,587,739, 324 and in a continual decline, what does it imply or hold for us.

Per the Monetary rule Instituted, governing all IMF members the Volume of Cedi to circulate in Ghana’s economy is set to artificially balance with the volume of export through purchasing foreign currency at the stock exchange.

The system works as follows: Ghana sells certain goods at the global market; the country receives X- dollars; the Central Bank buys the dollars at the stock exchange; the dollars go to the gold and foreign currency reserves of the Central Bank. Ghana economy is credited with Y- Cedies. In other words, foreign currency can only get into the country through the stock exchange, where it is sold and the respective amount of cedies is ‘injected’ into Ghanaian economy. Some sort of an unspoken parity rate for the population is observed.

The parity rate depends on the amount of dollars in gold, foreign currency reserves and the amount of cedies in the economy. For example, oil prices grow. For the same goods Ghana now receives 110 dollars and not 100. The parity is tilted and the Central Bank corrects it. It lowers the dollar exchange rate, buys them for less money and injects into the economy a smaller amount of cedies per dollar. If the oil price drops, the process is reverse: the Central Bank increases the dollar exchange rate. And now, for each incoming dollar, more Ghana currency is issued. It is the Central Bank that watches the gross volume of Cedies. As according to the law on the Central Bank, it is the governing body of the Central bank — the Board of Directors — that makes decisions regarding ‘total volume of cash issue. In other words, there is a strict relation between the monetary stock inside Ghana and the dollar stock that Ghana receives from the outside. And that means that we are vulnerable.

We are not fully independent. Why does the Central bank keep the parity rate between the amount of dollars in the gold and foreign currency reserves and the gross volume of cedies issued, and this is because any country which is a member of the IMF is obliged to guarantee single-step exchange of the total amount of the national currency into dollars and pounds using its own gold and foreign currency reserves. This rule has to be observed at any given moment. Otherwise, a country cannot be accepted to the IMF. And without being in the IMF one cannot be a part of the ‘civilized society’. As a result, the Ghana economy does not have as much money as required for its proper operation but equal to the amount of dollars in the reserves of the Central Bank. The amount of cedies that can be issued depends of the amount of dollars Ghana received from it export exchange. As I have earlier indicated the whole Ghanaian economy is artificially put in direct correlation with the export of natural resources.

This is why a drop of any of it traditional export commodities causes a collapse of everything and everywhere. This is not due to insufficient tax collection. The reason is that cedies disappear from the economy, which is followed by a collapse of trade, construction, reduction in salaries and curtailment of the whole production process. It is important to understand that the gold and foreign currency reserves of the country are not state reserves. This money is not to be spent. It has to stay in the storage of the Central Bank just to make it possible to issue cedies. The gold and foreign currency reserves do not do any good to the government or the people. Their role is completely different — it is just to guarantee, which cannot be spent and which allows issuing cedies.

The Scoop of this lecture is limited for the sake of time to delve deeper in the Bretton Woods agreement and everything that has happened in the financial-mirror of the world.

This Indicate that both the Business Capitalist and the Socialist suffers at the mercy of Financial Capitalist, now the way out proposed by my module is to shift to Praxeological economic studies and practice as a bases to focus in strengthening African Industrial capacity and operations.

Increase our domestic consumption based under all kinds of sacrifice just to build the economy of Ghana, select leaders that are not party driven but with state interest as first priorities and humbly accept the present political climate humiliation by engaging all minds and hands that are productive and efficient; who are also patriotic to state affairs.

To Be Continued....