By Pinky Khoabane
FORMER Reserve Bank Director and author Stephen Goodson is disappointed that the African National Congress (ANC) has not come out in support of Public Protector Busisiwe Mkhwebane’s recommendation to amend the Constitution to enable an amendment to the Bank’s mandate. Goodson is the author of “A History of Central Banking and the Enslavement of Mankind” and “Inside the South African Reserve Bank Its Origins and Secrets Exposed”.
He maintains that central banks represent the private banking system. Since the turn of the 20th Century, the number of central banks have exponentially increased following a conference in Genoa in 1922 at which among others, a decision was taken that independent states had to have their own central bank and these had to be independent of their governments. “What was not stated was who they would be dependant on. It has since transpired that central banks now work hand-in-glove with private banks,” Goodson says. The private banks are there to further and represent their interests.
He says the Reserve Bank represents the private banks in this country. “The Reserve Bank does issue bank licences but beyond that they represent the interest of the banks. They do this by granting them the right to create the country’s money supply from thin air by granting loans to the public. Six percent of the money supply consists of bank notes and coins and the rest is credit which is created by the private banks at interest as a debt to the detriment of the general public”.
The former Reserve Bank director says the State Bank is the way to go and cites North Dakota in the Unites States as an example. “We need to change the mandate so that the Reserve Bank serves the interests of the people rather than the private interests of the banks. We can only do that by two things; the constitution has to be amended and also a monetary reform bill has to be introduced which will create a state bank which will be under the control of the treasury.”
Goodson says the only way to prosperity for all is a state bank. A state bank was initially proposed in 1920 when the Banking Currency Bill was being debated in Parliament and was proposed by the Labour Party. As empirical evidence, he says, the Labour Party cited the Commonwealth Bank of Australia which “in 1920 was providing the Australian government with loans at two-thirds (2/3) of 1%. So we had the proof that a state bank works but it was rejected because the prime minister at the time was Jan Smuts who was very much in the fold of the Rothchild Group and therefore the proposal of a state bank was defeated.”
Mkhwebane backtracked from her initial recommendation in her findings on the CIEX report that the constitution be amended to change the mandate of the Reserve Bank. The Public Protector’s finding was slammed by several political parties including some members of the ANC. The Rand lost 2% of its value which was attributed to her recommendation. She also decided not to challenge the high court review sought by the Reserve Bank and Treasury.
Goodson says Mkwhebane was shot-down over this recommendation because the banks, who have long captured the state, dont want people to discuss this. He says there’s a set belief that says you cannot criticise the Reserve Bank and if you do, you will encounter problems. In a panel discussion on the CIEX report late last year, Goodson mentioned his life had received threats on his life over the years.
He says it’s very disappointing that the ANC didn’t back Mkhwebane but had instead attacked her. “I believe what she proposes has merit. It should be discussed. It needs to be debated in Parliament and not swept under the carpet that this great religious edifice of the Reserve Bank may not be attacked in any form. Everything is up for debate…..I believe she did a singular service to the country by proposing the change to the mandate and I’m hoping that there will be a follow-through once the dust has settled. But we cant just leave this matter here and say we are content with the existing paradigm”.
The Reserve Bank has failed
“It is quite clear the Reserve Bank has failed in its objectives and the mandate of bank must be revisited,” Goodson says:
- It says it will protect the currency but since 1921, the Rand has lost 99.9% of its value. Where is the protection?
- Since 1921, there have been 19 recessions and a depression
- Current depression is bound to develop into another depression
- We cant continue to have 27% and possibly even 50% unemployment
- We cant continue to have 50% of the population living under the poverty datum line
- The Banking System is the root cause
Stephen Goodson’s books – A History of Central Banking and the Enslavement of Mankind and Inside the South African Reserve Bank – Its Origins and Secrets Exposed” are sold as a set and cost R200, which includes postage and packing. If you would like to have your parcel tracked, please add R36.
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