Saturday, March 27, 2010

Raison d'ĂȘtre

I am so thankful to the Lord I have found this site!!!This really is a great relief and a wonderful blessing to me.

...was able to pay consistently for half a year until I got pregnant. forced to resign ...during my 1st trimester because I had hemorrhage and was advised complete bed rest.

When the bank called, I tried to explain my situation and asked for consideration ....Still they demanded payment and sent someone to my house to check if im still residing here......Because of this I got hospitalized and had premature labor when I was 8th mo. pregnant.

They even called me when I was already in the ER.

This is an answered prayer because I had been fervently praying about my financial problem for a long time.I can now sleep soundly at night and just concentrate on taking good care of my baby boy whom my husband and I had been waiting for 5 years.

Thank you very much BANKER..May God shower you w/ blessings a thousandfold for helping and enlightening people like me..THANK YOU!!!

Thursday, January 14, 2010 6:53:00 PM GMT+08:00
Posted at "The Unwanted King" chapter

Hello banker,

To be perfectly honest, I'm in tears while I compose this email. I suppose it's a combination of fear, relief, anxiety and panic. But I thank the Lord that I came across your blog.

I have started reading your blogs and I find some relief from it, but due to the nature of my disease, I cannot find long-lasting relief. I suffer from Anxiety Disorder and I just recently recovered from Clinical Depression din. I have to say that my credit card paranoia is making me really ill.

Ruth's e-mail
Wed, Mar 3, 2010 at 2:34 PM

Monday, March 22, 2010





It is generally assumed that the purchasing power of money
is increased or decreased by its velocity of circulation. However,
this theory will not bear examination in the light of the facts regarding
the issue and withdrawal of money under the established system.

For purposes of analysis the following simple illustration of
the velocity of circulation theory will suffice:

A wage-earner A. uses a $10 bill of his income to buy two
pairs of shoes from a shoe merchant B., who immediately goes into the
adjoining store and spends the $10 to purchase some shirts from C.,
C in turn immediately goes across the street to grocer D. and buys
some provisions costing $10, grocer D. then takes the $10 bill across
to the local garage E., to buy some gasoline and oil.

The contention is that the $10 bill provided purchasing
power to the extent of $40 during the day by virtue of its "velocity of
circulation" in enabling $40 worth of goods to be purchased by consumers.
On the face of it this would appear to be the case, but on examination
it will be found to be a complete fallacy.

Because all money issued creates a debt of the corresponding
amount at its source of issue, for all practical purposes merchants
B., C., D., and E. can be assumed to be operating on credit loans
from their banks with some "savings" invested in their stock.

The proceeds of every sale they make can be divided into three
parts: (1) repayment of a bank loan before a new line of credit can
be obtained to replace stock, (2) payment of operating costs and
(3) net profit- i.e. personal income for services. Suppose that in
each case B.,C., D., and E. work on a 15% net profit. From each
purchase amounting to $10 they would be obliged to set aside - say,
$8.50 repayment of their bank loans for replacement of stock and overhead
costs, and only $1.50 as personal income.This is likewise true of C. and D. Therefore, by spending the $10 both of them created a liability against their future purchasing power.

When A. obtained the $10: in wages there was against it a
corresponding cost in the prices of goods coming on the market. This
liability must be kept in mind.

On buying the two pairs of shoes from B., A. surrendered his
right to $10 purchasing power and B. acquired the right to $1.50 of
this, the balance going for the repayment of his bank loan and cancellation
of the money as shown previously. (If he was operating on his
own capital it would make no difference, for the $8.50 would have to
go to the replacement of working capital with the same result.)

If B. does not repay his bank loan, but spends the whole $10,
he will have a liability of $8.50 outstading which will constitute
a debt against future purchasing power. In other words he will have
to sell over $50 worth of goods without getting any portion of it for
his own use in order to make good the deficit.

Thus while it is true that in the example quoted ,the $10
bill resulted in $40 worth of goods reaching consumers, there was
created a trail of debts against their future purchasing power amounting
to $10 (the liability against the original issue of the money) plus
$8.50 (B.'s undischarged liability) plus $8.5O (C.'s undischarged
liability) plus $8.50 (D.'s undischarged liability)- making a total
of $35.50. Suppose E. now meets his obligations of $8.S0, he retains
$1.50 as his net profit--:ie.,as purchasing power.

It will be evident that the effect is exactly the same as
if A. bought gasoline, etc., from E., and B. and C. and D had obtained
goods from each other "on time", pledging their future purchasing

The so-called "velocity of circulation" did not incredase purchasing power at all.
The fallacy in the theory lies in the incorrect assumption that money "circulates",wheras actually it is issued against production, and withdrawn as purchasing power as the goods are bought for consumption.

Saturday, March 20, 2010

Tatay, Ano Trabaho Mo?

Father : Anak, collector ako.
Anak : ng ano po?
Father : Credit Card debts
Anak : Ah... yung nambabastos ng mga taong may utang?
Father :( silence )

Saturday, March 13, 2010

Don't Worry. I'm Lying

got another txt message from fiscal pigares from makati prosecutors office informing me that my :court summons subpoena" is out within 24 hours and that it will be delivered by CIDG camp crame police station, to be assisted by NBI warrant section. am i supposed to take them seriously? honestly, had i not been as educated as now upon reading this blog, i would have panicked and cringe in fear. but now i know how to handle them, so i will just let them be. in fact, i will send them a msg telling them to sue me and we will just see each other in court. right, banker?
- Cathy

Saturday, March 6, 2010

Blaming Wont Help

Whatever you do with your life is not my problem.
It's your life anyway.
People around you are merely mirrors that tell you
what could be right or wrong with you.
Ultimately, it's you who will decide.

Should you fall,however,
we are here to HELP, not BLAME.

"Help, Not Blame" chapter
posted September 08, 2008