Dear President Gloria Macapagal-Arroyo,

Dear President Gloria Macapagal-Arroyo, Government Leaders and the entire Filipino people including those millions of calamity victims in the Philippines :

DEMAND A RADICAL CHANGE IN OUR FINANCIAL SYSTEM AND END THE CURSE OF DEBT!

GOVERNMENT LOANS AND DEBTS ARE LIKE DRUGS, THE MORE YOU TAKE THE MORE YOU HAVE TO TAKE!

There must be enough money debt free for the calamity victims and for rehabilitation in the Philippines.

If each and every Filipino calamity victim will be given the sum of P100,00 or US$2,000 to P200,000 or US$4,000 more or less value debt-free money aid, then they can provide for their own and buy their needs rather than or other than being supplied by rations from charity that are not enough for them to survive and thus they can get back sustainably to their own feet or they can plan to go back to their own respective provinces for settle down or some to migrate to other provinces for good, and abandon the sinking Metro Manila.

Still sadly so many millions of Filipino calamity victims helpless and languishing in great difficulties.

Combined domestic and foreign aid are not enough and can never be enough unless there will be debt-free money creation.

Government has no more money but of course debt service is the priority which is wrong. More than charity our people needs economic justice guaranteed to everyone with or without calamities. GOVERNMENT EXISTS FOR THE PEOPLE, AND NOT PEOPLE FOR THE GOVERNMENT.

This can be possible by debt-free money creation by the Government as my proposal below. This is possible if there is a real political and economic will. Money is only a figure and this is infinite. The Government can create and print money up to P100 billion and shall be enough for the victims and for rehabilitation purposes. THINK ABOUT THIS. Let us think outside the box!

If there is no lack of money, why is it that Government is continually borrowing money from domestic and foreign lenders?

There's a tremendous current strong demand to increase the money supply in Philippine Peso to put into circulation for great needs. But this money must come from the issuance of debt-free money creation and printing, and not from domestic and foreign borrowings, not from debt-and-interest- based money nor from taxes.

There is no, and there will be no inflation on debt-free money creation and printing since the money to be issued will be according to demand and contingency needs, and since money will not come from borrowings. The pernicious root-cause of inflation is the Government debt from Bank Created Money, not from debt-free money creation.

It's silly that Government permits the private bankers to create the money in the form of debt ex nihilo or out of nothing through the fractional reserve scam formula and the government borrows it at interest when it (government) can create its own debt-free money through the nationalization of central bank to become free money through the nationalization of central bank to become PEOPLE'S BANK. It's also a double stupidity that Government' s usual route is BORROWING EITHER OR BOTH DOMESTIC AND FOREIGN FOREIGN BORROWINGS when 70% of the budget goes to interest payments. Most foreign loans do not feed down to the Filipino people but increasing taxes, now privatizations, liberalizations disadvantageous to general public, more poverty, and corruptions.

The single most important factor restricting economic democracy to every Filipino people is GOVERNMENT DEBT & INTEREST, followed by corruptions. Hunger, starvation, poverty, unemployment, homelessness, crimes, violence, rebellion, corruptions, recessions, depressions, lack or absence of Government MONEY IN TIMES OF CALAMITY are the inevitable consequences of DEBT STRUCTURE AND INTEREST PAYMENTS sucking, leeching and eating the bigger percentage of people's wealth. RAMPANT PUBLIC BORROWING IS CAUSED BY THE PRESSURES AND NECESSITY TO FIND THE INTEREST ON PREVIOUS GOVERNMENT BORROWINGS. There is no respite nor rest in borrowings.

INFLATION caused by debt-based money creation and interest payments can be STOPPED, TAXATION AND CORRUPTIONS can be drastically lowered if the PHILIPPINE GOVERNMENT can find way to put into law and implement SOCIAL CREDIT MONETARY REFORM SCHEME economic alternative pragmatic paradigm route of balanced DEBT-FREE MONEY CREATION to be (must be) demanded and backed up by the ENTIRE FILIPINO PEOPLE, to be sponsored by the legislators with or without support of the economists, to be declared proper by the Supreme Court, to be finally approved by the President in lieu with the Department of Finance through the facilities of the Philippine central bank.

DEBT-FREE MONEY CREATION CAN PROVIDE relief from debts and interest and can lesser taxes. Debt-free money can provide extra basic income or dividend program or subsidy similar in other countries like Kuwait, state of Alaska and to other parts in the world, to every Filipino citizen equally and much more to calamity victims, as a matter of economic right by citizenship as every Filipino citizen is co-capitalist, co-heir of the country's wealth and co-contributor of the country's progress. This is so-called ECONOMIC DEMOCRACY.

This is my initial proposal to Government to set things right.

WE MUST ACCEPT THE FACT THAT THERE IS NO ANY FEASIBLE COMBINATION OF ECONOMIC GROWTH AND TAXES EVEN TO INCLUDE COUNTRY'S RESERVES AND EVEN THE COLLECTION OF ALL PEOPLE'S MONEY THAT CAN FUND TO PAY OFF THE COUNTRY'S ENORMOUS DOMESTIC AND FOREIGN DEBTS. The Government could only exit from debt through the cessation to adherence to debt finance, that is, stop borrowing money from private, commercial, foreign and international bankers, stop payments of interest as we have paid more than too much and or create money in peso debt free and let there be banking mechanisms to convert peso into dollars to pay all debts OR IF NOT, OTHERWISE, THE PHILIPPINE GOVERNMENT CAN FIND FUND IN THE NEXT 50 t0 100 YEARS TIME, which I doubt, either by forcible and increasing further taxes or by further borrowings. Economic growth cannot be relied upon to produce the money needed to pay off the debts. While we finding money through taxes and further borrowings, the peso will continue to be forcibly devalued by more than half from time to time in compliance with the present criminal fluctuation of currencies.

Fluctuation of peso is not designed to serve the people but to serve the international banking industry.

THERE IS NEVER ENOUGH MONEY TO COVER THE OUTSTANDING DEBT, because money today except some coins is created by banks in the form of loans (Check the use of this site for financial input, creating money out of nothing.
http://en.wikipedia .org/wiki/ Ex_nihilo), and more money is always owed back to the banks than they advance when they create loans.

BANKS CREATE THE PRINCIPAL BUT NOT THE INTEREST NECESSARY TO PAY THEIR LOANS BACK.

It is apparent that it is now obvious crime that a central bank being independent, is owned by a consortium of private banks, and was set up to serve their interests, is tasked with seeing that the banks are paid back; and the only to do it is to inflate the money supply to create more peso or dollars to cover the missing interest. By devaluing peso, it also imposes additional stealth taxes upon the citizens sadly to pay more debts even odious debts and finance corruptions. The money supply is inflated by making more loans, which adds up to the debt and interest burden that the inflated money supply was supposed to relieve.

SO MANY DOCUMENTS ATTEST THAT THE BANKING SYSTEM is basically a pyramid scheme, which be kept going only to continually creating more debt and so billions for the bankers and debts for the governments and for the people.

Most stimulus packages do not feed down to the people but to the powerful few, to the politicians and bankers. Professor Buckley says that IMF's $500 Billion stimulus package to help emerging nations hard hit by global financial crisis that it is doubtful where this money is going. This money is going to rich countries' banks. Stimulus packages are called to be grants but the money coming from the IMF will be extended in the form of loans.

According to him: These are loans that are made by the G20 countries through the IMF to poor countries. They have to be repaid and what they're going to be used for is to repay the international banks now. . . . [T]he money won't really touch down in the poor countries. It will go straight through them to repay their creditors. . . . But the poor countries will spend the next 30 years repaying the IMF.

Basically, said Professor Buckley, the loans extended by the IMF represent an increase in seniority of the debt. That means developing nations will be even more firmly locked in debt than they are now.

At the moment the debt is owed by poor countries to banks, and if the poor countries had to, they could default on that. The bank debt is going to be replaced by debt that's owed to the IMF, which for very good strategic reasons the poor countries will always service. . . . The rich countries have made this $500 billion available to stimulate their own banks, and the IMF is a wonderful party to put in between the countries and the debtors and the banks.

Not long ago, the IMF was being called obsolete. Now it is back in business with a vengeance; but it's the old unseemly business of serving as the collection agency for the international banking industry. As long as third world debtors can service their loans by paying the interest on them, the banks can count the loans as "assets" on their books, allowing them to keep their pyramid scheme going by inflating the global money supply with yet more loans. It is all for the greater good of the banks and their affiliated multinational corporations; but the $500 billion in funding is coming from the taxpayers of the G20 nations, and the foreseeable outcome will be that the United States will join the ranks of debtor nations subservient to a global empire of central bankers.

ANY FILIPINO CITIZEN WHO HAS GOODWILL will support the campaign for monetary reform and economic democracy for every Filipino. We are not born slaves of debt, we are born free from debt, and there is no valid reason for us to become slaves of debt in our own country.

Let us campaign for monetary reform and demand financial-economic security to everyone.

Philippine 2010 election will be our crucial and major decision to vote new set of leaders who will give us economic democracy and justice and NOT FURTHER DEBTS, INTEREST AND INCREASING TAXES. LEADERS WHO WILL HAVE HEART AND MIND FOR THE FILIPINO PEOPLE AND NOT FOR THE INTEREST OF THE POWERFUL FEW.

Let us think right and do what is right to save our country and our people from the calamity and savage cruelty of debt and interest, economic injustice, not just from natural calamities.

Thank you.

Sincerely yours,

Eric V. Encina
Filipino Monetary Reformer