6BUT HERE IS WHAT REALLY HAPPENED LONDON MEETING POINTBUT HERE IS WHAT REALLY HAPPENED
7FAXTHE INSTITUTE FOR RATIONAL ECONOMICS. 11 STORTH LANE, SHEFFIELD S10.3HN ENGLANDTEL:00-44-(0) FAX: MOBILEFOR THE ATTENTION OF DATO' ABDUL AZIZ BIN SHAMSUDIN C/O THE FAX MACHINE OF DATIN ASMAHDear Br.Abdul Aziz. I have been trying, unsuccessfully, for the past few days to forward a copy of James Gibb-Stuart’s letter to Dr. Mahathir via me. I will try again but to be on the safe side I will send it via Lady Asmah's fax.I have heard the news about Anwar. He was certainly not independent of the banks. Please let me know if we can be of assistance. James Gibb-Stuart and Mohammed Rafiq are standing by.Yours sincerelyDaud Musa Pidcock7/Sept/98
8THE INSTITUTE FOR RATIONAL ECONOMICS FAX COVER PAGE For the attention of Dato Abdul Aziz ShamsudinPrime Minister’s OfficeP.M.Dept.Jalan Dato Onn 5052Kuala LumpurMalaysia Fax number: October 5th 1997 NUMBER OF PAGES INCLUDING THIS (10)
9John Kenneth Galbraith John Kenneth Galbraith "The study of money, above all other fields in economics, is the one in which complexity is used to disguise the truth or to evade the truth, not to reveal it". Money: From Whence it Came & Where it Went?
10For the attention of Dato Abdul Aziz Shamsudin Prime Minister’s Office THE INSTITUTE FOR RATIONAL ECONOMICS FAX MESSAGE11 STORTH LANE, NETHERGREEN. SHEFFIELD S10 3HNENGLANDFAX# FAX#For the attention of Dato Abdul Aziz ShamsudinPrime Minister’s OfficeP.M.Dept.Jalan Dato Onn 5052Kuala LumpurMalaysiaFax number:October 5th 1997Dear Brother Shamsudin, assalamalaikum.Since our last meeting a number of important things have occurred. Not least, amongst which, was the first gathering of “The Bromsgrove Group” a new forum for economic and monetary reform. Brother Aziz Said attended on one day and was favourably impressed with the quality of the delegates, their research, their solutions to escalating debt and their commitment to play a proactive role in assisting Malaysia and other countries - including our own - to stand up to the likes of George Soros and the pernicious system he represents.
11They were all thrilled to learn of Dr They were all thrilled to learn of Dr. Mahathir’s outspoken comments delivered to the Annual Seminar of the World Bank in Hong Kong on September 20th, in which he openly refers to Rockefeller’s anti-trust activities and their: “beggar thy neighbour policies” which are the hallmark of these advocates of unfettered “free trade” and “unregulated capital.” As mentioned, we have an extensive library of books, speeches, and pamphlets, dealing with the above issues and I have prepared a few additional items which will be useful in your existing debate with Soros, and appropriate for the forthcoming Commonwealth Conference in Edinburgh.Of particular importance and relevance are the 1932 admissions, by Winston Churchill, that he (like the Prime Minister of Malaysia 65 years later) was deceived into following the advice of the financial “experts” of his day (whose offspring, unfortunately, are the economic advisers of today). It is well understood, in economic and monetary reform circles, that following the disastrous return to the gold standard, on advice received from Montagu Norman, the longest ever serving Governor of the Bank of England, that Churchill was in favour of hanging him for treason.A point not lost on Eddie George, its present Governor, when he delivered the Churchill Memorial Lecture at the Foundation J P Prescatore, in Luxembourg, on Tuesday the 21st of February in 1995.
12Edward Alan John George, Baron George known as Eddie George, or "Steady Eddie” who was Governor of the Bank of England from 1993 to 2003.After attending Dulwich College and learning Russian at the Joint Services School for Linguists during his National Service. George joined the Bank after graduating from Emanuel College Cambridge in 1962.Apart from secondments to Moscow State University, the Bank for International Settlements (Basel) and the IMF (International Monetary Fund), he remained there throughout his career.George was appointed Governor of the Bank of England in 1993, and retired on the completion of his second five-year term of office on June 30th During his governorship the Bank was given independence in setting (minimum) UK interest rates by Gordon Brown the incoming Chancellor of the Exchequer after the 1997 general election.He was succeeded as Governor of the Bank of England in July 2003 by Mervyn King. He was given a life peerage in June 2004 as Baron George, of St Tudy, in the County of Cornwall. He was appointed a Deputy Lieutenant of Cornwall in March He has one daughter: Liz George - a journalist.
13THE ECONOMICS OF EMU - European Monetary Union. Foundation J P Prescatore,Luxembourg, Tuesday the 21st of February in 1995.“Prime Minister, Ministers, Your Excellencies, Ladies and Gentlemen. Sir Winston Churchill - whose memory we celebrate this evening - was a great Englishman and a great European…It is a very great honour to have been invited to deliver this 21st Churchill Memorial Lecture to such a distinguished audience here in Luxembourg…I am delighted to be here - delighted but also, frankly, somewhat nervous. I am nervous because deep in the consciousness of the Bank of England is an awareness that it was one of my predecessors as Governor, Montagu Norman, who, in 1925, advised Winston Churchill to return to the gold standard. That was - I hasten to point out - well before I was born! But our experience of fixing sterling’s exchange rate parity, in the conditions of that time, was deeply unfortunate. And shortly before we were forced off gold again in 1931 Winston Churchill wrote to Edward Marsh, his Private Secretary:- “Everybody I meet seems vaguely alarmed that something terrible is going to happen financially. I hope we shall hang the Governor of the Bank of England if it does. I will certainly turn King’s Evidence against him!”
14CHURCHILL’S “HIDEOUS OPPRESSION” SPEECH TO THE HOUSE OF COMMONS CHURCHILL’S “HIDEOUS OPPRESSION” SPEECH TO THE HOUSE OF COMMONS. BUDGET PROPOSALS. HANSARD.Vol. 264, 21ST April 1932.
15AND OF COURSE, NOT TO FORGET THAT - MONEY IS NOT WEALTH! NNA CAUTIONARY TALE FOR THOSE FOOLISH ENOUGH TO CONTEMPLATE HITCHING THEIR ISLAMIC CREDENTIALS TO GOLD – UNLESS OF COURSE THEY HAVE UNLIMITED SUPPLIES OF THE STUFF AND CAN FIX ITS PRICE ACCORDINGLY.IMAM GAZZALI & ABRAHAM LINCOLN RECOGNISED THE FOLLY OF PEGGING AN INFINITE SUPPLY OF WEALTH - GOODS AND SERVICES – TO A FINITE SUBSTANCE SUCH AS GOLD –AND OF COURSE, NOT TO FORGET THAT - MONEY IS NOT WEALTH!
16CHURCHILL’S “HIDEOUS OPPRESSION” SPEECH TO THE HOUSE OF COMMONS CHURCHILL’S “HIDEOUS OPPRESSION” SPEECH TO THE HOUSE OF COMMONS. BUDGET PROPOSALS. HANSARD.Vol. 264, 21ST April 1932.“When I was moved by many arguments and forces in 1925 to return to the gold standard I was assured by the highest experts, and our experts are men of great ability and of indisputable integrity and sincerity…that we were anchoring ourselves to reality and stability; and I accepted their advice. I take for myself and my colleagues of other days whatever degree of blame and burden there may be for having accepted their advice. But what has happened? We have had no reality, no stability. The price of gold has risen since then by 70 per cent. That is as if a 12-inch foot rule had suddenly been stretched to 19 or 20 inches, as if the pound avoirdupois had suddenly become 23 or 24 ounces instead of - how much is it? Look at what this has meant to everybody who has been compelled to execute their contracts on this irrationally enhanced scale. Look at the gross unfairness of such distortions to all producers of new wealth, and to all that labour and science enterprise can give us. Look at the enormously increased volume of commodities which have to be created in order to pay off the same mortgage debt or loan. Minor fluctuations might well be ignored, but I say quite seriously that this monetary convolution has now reached (such) a pitch where I am convinced that the producers of new wealth will not tolerate indefinitely so hideous oppression…”
17When Churchill raised this it was in 1932, only 14 years after the end of the ‘Great War’ in and 7 years before its PREDICTED resumption, WITHIN less than 25 YEARS.In 1918, on the eve of the signing of the Armistice, Silvio Gessel, published the following article in the German newspaper Zietung am Mitag
18Silvio Gesell’s accurate prediction of a resumption of hostilities in less than 25 years was published in Zeitung am Mitag in Berlin in during the signing of the Armistice in 1918“In spite of the holy promise of all people to banish war, once and for all, in spite of the cry of millions 'Never a war again,' in spite of all the hopes for a better future, I have this to say: If the present monetary system, based on interest and compound interest, remains in operation, I dare to predict today, that it will take less than 25 years for us to have a new and even worse war. I can foresee the coming development clearly. The present degree of technological advancement will quickly result in a record performance of industry. The buildup of capital will be rapid in spite of the enormous losses during the war, and through its over-supply will lower the interest rate. Money will then be hoarded. Economic activities will diminish and increasing numbers of unemployed persons will roam the streets ... within the discontented masses, wild, revolutionary ideas will arise and also the poisonous plant called "Super-Nationalism" will proliferate. No country will understand the other, and the end can only be war again.”
19Winston Churchill’s 1932 speech (full text attached), clearly demonstrates that this “usurer-friendly” system - which we can see from Silvio Gessel’s observations - has, in one form or another, caused most if not all the wars and difficulties of the past continues to play a pivotal role in those of today, and will, if the present system remains in place, lead to more and more in the future. For, contrary to popular belief, interest (regardless of its rate or percent) is usury by another name. The word ‘interest’, is a deceptive substitute, designed to legitimise the crime of usury and make the consequences of its use seem innocuous. Usury is: ‘the tap-root from which most injustices flow, and the prime reason for its condemnation in the Qur’an. Which points out that war is visited on all who permit it to flourish in their societies. (1)
20The above passages clearly endorse Dr The above passages clearly endorse Dr. Mahathir’s decision to pick up the gauntlet of George Soros and defend his country from his attacks and the attacks of others like him “who love to reap where they never sowed”. In paragraph 21 of his speech, he points out that he received similar bad advice from similar “experts” among “the rich and the mighty countries” and who, like Churchill, regrets having followed it. Nowhere did the advice given to Dr. Mahathir carry a Government Health Warning or cautionary - Caveat.The Prime Minister stated that: “We were told that we must allow our money to be traded outside our country. We were told to permit short selling, even to let trading in borrowed shares to be legalised. We must allow for speculation.” This, in spite of the fact, as William Keegan pointed out in the Observer of September 28th 1997, that: “Those who live by the inflow [always] risk being drowned by the outflow. (And) Few nations are as open to flows as Malaysia.”
21Dato - It is worth noting that the ‘Tiger’ economy of Malaysia in 1997, is in exactly the same situation the ‘Bulldog’ economy of Britain has been periodically finding itself in since records began. However, the frequency with which these have occurred, increased dramatically after the founding of the Bank of England in Of which its founder, William Paterson, is said to have stated that: “The Bank of England hath benefit on all monies it creates out of nothing”.Two years later, in 1696, records show that the bank had legally - but fraudulently and immorally created - (out of nothing, and at tiny cost) - the sum of £1,657, 996 against its actual cash in hand of only £33,664. Thus, the foundation of the world’s “Trade Cycle” was laid by the forefathers of the rich individuals, in those self-same “rich and powerful countries,” who advised Malaysia to pursue policies full of “classical nonsense” which were known to have derailed Britain’s economic activities in:- 1720; 1729; 1763; 1810; 1816; 1821; 1825; 1826; 1833; 1839; 1844; 1847; 1857; 1860; 1866; 1870; 1890; 1914; 1925; 1927; 1929; the 1930’s etc., etc., etc – with the next one always just around the corner waiting to happen – or artificially precipitated.Had the Honourable Winston Churchill and the Honourable Dato Seri Dr. Mahathir been advised correctly, they would have been asked to take into account the plans of David Ricardo who, in 1823, called for the establishment of a National Bank of England - which, if followed, would have eliminated the destructive opportunities of perpetual speculation and the inane imperative - (some say fetish) - of the policies which demand that we: “export or die” or insinuate the notion that we can only have: “guns or butter?”
22THE BANK OF ENGLAND, EDDIE GEORGE, MALAYSIA & BANK NEGARA In his speech to the International Conference on Islamic Banking & Finance on the 28th of September 1995, at the Markfield Conference Centre, Leicester, England. The Governor of the Bank of England, Eddie George, made several references to banking in Malaysia, of particular concern is the following one:- “…I have been especially interested in the development of Islamic Banking in Malaysia, where the central bank, Bank Negara, has taken the lead in establishing standard definitions for Islamic financial products and introducing a degree of standardisation of procedures”.“They have also encouraged what in a European context might be called “critical mass”, with a large number of players, a broad range of instruments and the development of an inter-bank market. I look forward to learning more about all these developments when I visit Governor Don in Malaysia next month”.It would be interesting to find out what Eddie George “learned” during his visit, and what “expert advice” he gave to Dato Ahmad Muhammad Don, Governor of Bank Negara, when he visited him in Malaysia during October What ever the case may be. It is abundantly clear that by encouraging the development of a broad range of “critical mass products” that these, and other loopholes, were easily turned into instruments of mass destruction against Malaysia by George Soros, Eddie George and other financial predators. Establishing an inter-bank market - in which money is traded like a commodity - contains the seeds of its own self-destruction. Hopefully, Malaysia has now come to recognise the present banking system - together with all its so-called “Islamic” variations on a theme - is irredeemable.
24“The masses are content to live in slavery when the elite from among them are constituted their overseers”
25BUT THE IMF, WORLD BANK AND GEORGE SOROS, HAD NOT RECKONED ON DR MAHATHIR MOHAMED, HAVING DIFFERENT VIEWS ON THE MATTER. BECAUSE HE SENT OUT A NUMBER OF TRUSTED ASSOCIATES TO SEE WHAT COULD BE DONE TO DEFEND MALAYSIA AND IT’S NEIGHBOURS FROM THE IMF (INFANT MORTALITY FUND) AND THEIR PERNICIOUS SYSTEM.
27I DID IT MY WAY Dr. Mahathir Mohamad THE A$IAN MONETARY CRISISGeorge Soros & Our Part in his Downfall
28For the attention of Dato Abdul Aziz Shamsudin Prime Minister’s OfficeP.M.Dept.Jalan Dato Onn 5052Kuala LumpurMalaysiaFax number:October 5th 1997Dear Brother Shamsudin, assalamalaikum.Since our last meeting a number of important things have occurred. Not least, amongst which, was the first gathering of “The Bromsgrove Group” a new forum for economic and monetary reform. Brother Aziz Said from the Malaysian High Commission in London attended on one day and was favourably impressed with the quality of the delegates, their research, their solutions to escalating debt and their commitment to play a proactive role in assisting Malaysia and other countries - including our own - to stand up to the likes of George Soros and the pernicious system he represents. Please find attached our 5 point Survival Plan:-
29THE FIVE STEPS TO ECONOMIC SELF-PRESERVATION AND SURVIVAL PROVIDED BY DAVID PIDCOCK FOR DR. MAHATHIR MOHAMAD WERE DESIGNED BY JAMES GIBB-STUART AND READ AS FOLLOWS:-(1): Firstly a measure of foreign exchange control is necessary, to prevent the nation’s reserves, its financial lifeblood, being sucked out by speculators.(2): Secondly, that the progressive and accelerating liberalisation of financial markets should be reversed, as this advance towards a global economy robs developing peoples of the benefits of their own national resources.(3): Thirdly and for the same reason, there should be no inclination to privatize/piratise national assets as a device for paying off government debt. Such assets belong to the people, and should not be put up for auction, particularly where market forces can consign them to foreign ownership.British experience of privatisation proves that selling assets to reduce the national debt is only a temporary expedient. They can only be sold off once, and when they are gone, the cycle of debt and borrowing continues. In the matter of existing loans that have gone sour, it is impossible to generalise. But each situation must be dealt with on its merits and, wherever possible, to try and prevent the creation of acrimony and any trade reprisals that might result.
30(4): Fourthly, every endeavour should be made to avoid further borrowings, particularly in the form of US dollars. The recent round of currency devaluations has shown this to be a treacherous device whereby international entrepreneurs can buy up the local economy at bargain basement prices.(5): At this stage a clear appreciation is needed of what constitutes money, wealth and resources.Even without the lure of foreign financial inflows, we must ask, to what extent is the nation impoverished?The sun still shines.The crops still ripen.The eager workman's hands and skills and energies are in no way diminished -- provided he can have faith in his Government to protect his earnings and ensure an adequate reward for himself and his family – for more read Lincoln’s 1865 Declaration handed to you at Langkawi by David Pidcock.
31Even in conditions of economic crisis, the primary priority is not to pay the bankers or reassure the stock markets, but rather to see that the people are properly fed and housed.A child dying of malnutrition in the midst of plenty is a crime against humanity and a blight on the bounty of Mother Nature. It comes, therefore, as no surprise to learn that in places like the Sudan and elsewhere in Africa that IMF stands for Infant Mortality Fund.That is why IMF 'bail-outs' which hinge upon further foreign borrowing, liberalisation of markets and cutbacks in social expenditure, should be rejected absolutely.Fortunately, support for this viewpoint is finally coming through from Western sources, where the more independent-minded economists are now contending that the IMF and its harsh methodology should be drastically revised or abolished.
32When we met Dato Abdul Aziz Bin Shamsudin in London, we spoke about debt-inflicted Eastern nations turning back upon themselves, looking inward at their own basic strengths and resources – Malaysia can and should resort to the same measures.THESE FIVE STEPS - Which include: Stopping the hemorrhage of national reserves by means of exchange controls; reversing the liberalisation of financial markets; rejecting the privatisation of public assets; avoiding foreign loans or further borrowing; and steadfastly maintaining social programmes, with government created debt-free money when and wherever necessary -- all of which fly in the face of IMF outrage -- will cause any charismatic leader to be smeared and ridiculed at home and abroad – as the saying goes: “Be ye chased as ice and pure as snow, you will not escape calumny”.Furthermore, like any Prime Minister or President he and his followers must look to their personal and governmental security, avoiding the risk of physical or political assassination and losing no opportunity to tell the public what they are doing and why they are doing it; laying it continually on the line that the current financial crisis is not his crisis, or their crisis, but a crisis of Western economics and its failed monetary system which will ultimately devour the whole of civilisation if it is not resisted and amended.
33Thomas Jefferson, realized too late that the Founding Fathers had also been misled, writing the following in 1815 to Treasury Secretary Gallatin:"The treasury, lacking confidence in the country, delivered itself bound hand and foot to bold and bankrupt adventurers and bankers pretending to have money, whom it could have crushed at any moment."However, at this juncture, it is still not too late for Malaysia to apply a workable home grown solution.Yours Sincerely.JGS. (James Gibb-Stuart) October 5th 1997.
34THE A$IAN MONETARY CRISIS 1997- 2000 I DID IT MY WAYEND OF PART (1)Dr. Mahathir MohamadTHE A$IAN MONETARY CRISISOr George Soros & Our Part in his DownfallDAVID M PIDCOCK