The No Tax, No Loan and No Interest Initiative.
Using Treasury Script issued by the Parliament.
.
Part 1; What is Economics?
You see, people do not understand economics. That is part of the problem.
They think of economics in terms of accounting.
Now, an accountant is someone who knows nothing about economics, otherwise, he could not be
an accountant. An accountant is talking with figures and so forth, which correspond to something
called money. And, money is not a measure of value.

If you do not believe it, you should see the prices today. And, see what you get with them.
You should see what is happening on the international market today, Money is fake today.
And, you have people talking about the economy is growing.

Yes, the amount of money is growing, but the economy is collapsing!
And, as long as people try to explain political issues, and substantive issues,
in terms of accounting they do not know what they are talking about.
And any suggestions they make are likely to be incompetent, or worse. Or actually damaging.
.
The Creative Powers of Mankind.
Economics is physical.
But, it is physical in a special way. So, therefore, the issue is the creative powers of mankind.
Creative powers which are denied by those who rest solely on experience without regular education.
Denied by every positivist. Despised by every exponent of information theory.
Denied by every exponent of synthetic intelligence. Popular things these days.
.
 People who believe in information theory or synthetic intelligence are incompetents.
They are dangerously incompetent … The problem here, of economics ... it is not paper!
It is not accounting. It is physical. It is not just physical objects.
.
Economics is the power of mankind to increase his power, the will power of man with physical nature.
And, it is by production, not by software. It is not by information theory. Its not by services economy.
It is by actually changing things. It is creating an environment which is suitable to man.
.
It's power systems. Its water systems. Large scale agricultural development.
Its inventions. But it is, above all, scientific discovery and Classical artistic composition.
These are the qualities of man. That is economy. That is physical economy.
The increase and protection, of man's power in and with nature, to meet the requirements of man.
And, as an instrument in nature, to make nature better.
.
The basis of Treasury Script is the People not collateral.
Look at it another way; collateral is property, gold or any goods. The People are the consumers.
You can site the most prestigious bank in all the world in the centre of a barren desert and invite it to
give the character of money to the desert's assets in the form of currency and promissory notes and
negotiable securities.
.
All of these, what ever their numbers or denominations would be worthless bits of paper since they
would have no purchasing power in a land without people or resources.
.
But dig wells, find water, create an environment in which vegetation can exist and living things, can
grow and multiply. Then your currency will have started to acquire a value. That value will have been
determined, not by the awesome dignity of the bank itself or the acclaimed financial expertise of its
governors, but the intrinsic wealth of the community, which had gathered around its doors.
.
It is the people who constitute the basis of Government credit. Why then cannot the people have
the benefit of their own production, services, selling and buying in non interest bearing currency
instead of the bankers receiving the benefit of interest bearing bonds and loans resulting in
government and public debt?
.
.
Part 2; EXISTING ACTIVITIES OF THE RESERVE BANK OF AUSTRALIA.
Reserve Bank is an active participant in financial markets, manages Australia's foreign reserves,
issues Australian currency notes and serves as banker to the Commonwealth Government.
.
Includes the Bank for International Settlements;
This institution opened its doors in May 1920, ostensibly to deal with the transfer of the large sums of
money involved in the International Debts and reparations, which are the legacy of the Peace Treaties.
As frequently happens in connection with financial affairs, the ostensible objective of the bank, however,
can be recognized as a cover for much larger activities. (The Monopoly of Credit 60)

The constitution of the Board of Directors consists, first, of the governors of the central banks of Belgium,
France, Germany, Great Britain, and Italy, with a nominee of the Bank of Japan, and a representative of
United States banking. Added to this are seven additional directors nominated individually by the first
seven, having the same nationalities as their nominators, and ‘representative of finance,
industry or commerce’.

The central banks of France and Germany have the further power, during the period of the reparation
payments, to appoint one more member each, which they have done. There being a maximum of only
nine other seats on the Board, it is clear that the original central banks constituting the appointees of the
first directors have permanent control over the policies of the bank. This control is further emphasized by
a provision that voting rights at general meetings are in proportion to the number of shares originally
allotted to those institutions having the power of nomination to the Board. (The Monopoly of Credit 61-62)

Effects of Centralized World Finance
Obviously the intention . . . was that the B.I.S. should be essentially the Central Bank of central banks,
that it should hold reserves of gold as a basis of the cash reserves of the central banks, and that in
consequence it should act as the supreme regulator of the worlds money supplies. In other words, the
relation, for instance, of the Bank of England to the B.I.S. would be similar to that of the
Joint Stock Banks to the Bank of England, and thus it may be said that the B.I.S. places the final stone
upon the pyramid of financial organization. (The Monopoly of Credit 63)

While no doubt the working banker would be tempted to deny it, it seems true beyond all reasonable
doubt, to say that the system is directed to the constitution of a series of bottlenecks operating through
the financial system to place both production and distribution under the control of financial interests.

In the modern world, the considerable sums of purchasing power which are required to finance industrial
undertakings cannot be obtained without access to the mechanism of public credit which has come
under the control of this system.

The Joint Stock Banks therefore may be said to be in control at this point. Their own adherence to the
system in Great Britain is insured by their dependency upon the Bank of England for currency, and in
other countries by somewhat similar arrangements in regard to the central banks. These central banks
in turn are, by the costing system, forced to make provision for considerable transactions in the various
national currencies, and these transactions as between nations are destined to come under the control
of the Bank for International Settlements, which obviously places the power of veto on the interchange of
industrial commodities, as between nations, with this latter institution. (The Monopoly of Credit 64)

The possibility of manipulating the economic prosperity as between one country and another through an
international financial organization, such as is growing up independent of effective national control, and
having ends to serve which are not those of the populations affected, is perhaps one of the most serious
aspects of the annexation of financial credit. (Macmillan Report)
Unquote.
.
Royal Australian Mint sells the coins to the Reserve Bank and the RBA completed the introduction of
new cash distribution arrangements. This involved the purchase by commercial banks of working
stocks of notes and coin, which previously had been owned by the RBA, but held in note and coin
pools operated by armoured car companies. Because commercial banks must purchase stocks of
currency for full value, the result of this change in arrangements is that the RBA’s balance sheet and
profits are higher, when banks purchase currency the RBA invests the resulting funds in
interest bearing assets.  Note; This will cease as from the introduction of Treasury Script.
.
Government Banking; The banking services provided to the Commonwealth Government by the
RBA comprise two components. A core banking facility is provided to the Department of Finance and
Administration (DoFA), which is non contestable in terms of the Commonwealth Governments
competition policy. This facility is made up of a group of bank accounts, including the Official Public
Account (OPA), a term deposit facility for the investment of temporarily surplus Commonwealth funds
and a strictly limited overdraft facility.
.
Under the core banking arrangements, payments are made from the OPA to agencies and end of day
agency balances held with transactional bankers are swept back to the OPA overnight. These balances
are returned to transactional bankers at the start of the next business day. The services also embrace
electronic collection of forecasting data and reporting on high value transactions from agencies and
transactional bankers to assist the RBA in the discharge of its monetary policy and liquidity
management responsibilities. The RBA administers a term deposit facility,
on behalf of DoFA, through which agencies can deposit temporarily surplus departmental funds.
.
The other component of the RBA’s banking business is the provision of contestable transactional
banking services to government customers. Since 1991, the RBA has distributed government payments
direct to accounts at financial institutions through its Government Direct Entry System (GDES).
Government payments are;
Centrelink, Department of Veterans Affairs, FMA agencies via Bureau,
Australian Taxation Office, Department of Defence.
.
Registry Services;  During the year, RBA provided registry services to the Commonwealth
Government, South Australian Government Financing Authority (SAFA) and certain highly rated
supranational organizations, these are acquired under repurchase agreements and a number of other
official domestic and foreign institutions. The core functions of this service cover the issue, transfer
and registration of securities, the maintenance of ownership records, the distribution of interest
payments and the redemption of securities at maturity.
Note; This will cease as from the introduction of Treasury Script.
 .
Settlement and Registry Services;  Reserve Bank Information and Transfer System (RITS) is
used by banks and other approved institutions to settle inter bank payments, mostly on a
Real Time Gross Settlement (RTGS) basis. RITS also provides a facility for electronic tendering for
Commonwealth Government securities (CGS).  Shall change to Reserve Bank Bonds.
 In February 2002, in the interests of clearing system efficiency, members transferred all CGS to the
Austraclear system operated by SFE Corporation Limited.
.
The primary objective of domestic market operations is to implement monetary policy, the stance of
which is expressed in terms of a target for the cash rate, the interest rate on funds borrowed and
lent overnight by financial institutions. The aim of domestic market operations is to supply sufficient
liquid funds "Exchange Settlement (ES) funds"  to the banking system to maintain the cash rate
around the desired level. Note; This will cease as from the introduction of Treasury Script.
 .
Final settlement of payments system obligations occurs through transactions on accounts at the RBA.
These accounts are called Exchange Settlement accounts (ES accounts). ES accounts must be
maintained in credit at all times, and the RBA pays interest on overnight balances in these accounts.
Banks access their ES accounts through RITS and demand for ES funds by banks fluctuates from day
to day, mainly in response to anticipated settlement obligations. This will remain.
 .
 The Reserve Bank manages the amount of ES funds available to banks by buying securities to
increase (or selling securities to reduce) the supply of such funds.
The bulk of the Reserve Banks operations to implement policy are in repurchase agreements,
or repos. While outright purchases or sales of securities for liquidity management are most
efficiently conducted in stock of less than a year to maturity, repos have the advantage of allowing
the full spectrum of government securities to be tapped, since stock of any maturity can be used
as collateral for repos. Note; This will cease as from the introduction of Treasury Script.
 .
.
.
Why RTGS?
The reduction of settlement risk in domestic high value payments systems has been a principal
objective of many central banks over the past decade.
This risk arises when payment instructions are sent and acted upon by banks and their customers,
but settlement of the resulting net obligations occurs some time later.
In  Australia'sdeferred net settlement system, final settlement of ininter bank obligations was not
completed until 9.00 am the day following the sending of payment instructions.
.
In the interim, a bank could find itself unable to meet its settlement obligations. Because of the
very large values and the multitude of individual transactions involved, the result could have
been a serious disruption to payment flows, leaving other banks facing liquidity pressures and
even insolvency. The Reserve Bank could provide emergency liquidity to try to stem this type of
systemic risk, but in doing so could take on large exposures to payments system participants.
.
The RTGS system addresses this problem at source by preventing the build-up of unsettled
obligations. It is based on the simple premise that if a bank does not have sufficient funds in its
ES account, any payment it wants to make will have to be queued until there are funds available.
Since payments are not made unless they can be settled, settlement risk is eliminated.
If a bank were to fail during the course of the day, there would be no need to unwind a chain of
payments or put the Reserve Bank balance sheet at risk.
.
Deferred net settlement
During day
1. Payer instructs bank to make payment 
2. Banks exchange payment instructions 
3. Beneficiary's bank credits account
    of beneficiary 
4. Beneficiary may withdraw funds and make
    further payments 
.
Overnight
5. Banks calculate net obligations and notify RBA 
. 
Next day
6. RBA posts debits and credits to banks’
    ES accounts.
.
Note old system;
Previous days payments would be
thrown into doubt if a bank were
unable to settle its net obligations.
Real-time gross settlement
During day
1. Payer instructs bank to make payment 
2. Payments sent to RBA’s RTGS queue 
3. Payments for which ES funds not available
    remain in queue 
4. If ES funds available, payer's bank has its
    ES account debited and beneficiary's bank
    has its ES account credited 
5. Beneficiary's bank notified of payment 
6. Beneficiary's bank credits account of
    beneficiary 
7. Beneficiary may withdraw funds and make
    further payments 
.
Note RTGS system;
Each payment is final as it is made
and not at risk if payers bank
subsequently fails.
Used by People's Mandate No Tax System.
.
 RTGS and Other Settlement Services;  About 90 per cent of the value of inter bank payments is
settled on an RTGS basis; this includes all wholesale debt and money market settlements, Australian
dollar foreign exchange settlements and a range of time critical customer payments.
In addition to RTGS payments, RITS settles two batches of netted  paymeninter bankts each day.
The 9.00 am batch consists of positions collated by the RBA on behalf of the Australian Payments
Clearing Association arising from the previous days, low value clearings (paper, as well as bulk and
retail electronic).
.
The second batch settles net positions for equity transactions in CHESS, the electronic settlement
system operated by the Australian Stock Exchange.
.
The Sydney Futures Exchange Clearing House acts as a central counter party to its members' trades
and will operate its Exchange Settlement (ES) Account exclusively on a real time gross settlement
(RTGS) basis. Settlement services are also provided for the RBA’s own transactions in the domestic
securities and foreign exchange markets, as well as those arising from the Commonwealth
Government and other official customers.  See Debt Issuance Peoples Mandate Futures Market.
.
The RBA has adapted to these developments by broadening the range of collateral it is prepared to
accept in its domestic repo operations. This started with the decision in 1997 to accept
Australian dollar domestic securities issued by State and Territory borrowing authorities.
This increased the pool of securities available for repo by over 40 per cent at the time. Declines in
CGS on issue since then mean that, in June 2002, the repo collateral pool was effectively double
what it would have been if the RBA had not made this change.
Market participants adjusted quickly to the new arrangements, and between 50 and 60 per cent of
the domestic collateral held by the RBA on repo is now typically State government debt.
.
These developments contributed to the decision by the Australian Office of Financial Management
(AOFM) to alter the arrangements for the issuance of Treasury notes. Traditionally an instrument
used by the Government for within year cash management Treasury notes have become less
important for this purpose in recent years as the AOFM has been able to use its term deposits at
the RBA, on which it receives market rates of interest, to manage within year fluctuations in its cash
position.  In May 2002 the AOFM announced that it would in future issue Treasury notes only when
needed, rather than maintain a regular issuance schedule. Shall be abolished.
 .
Other Domestic Operations;   In recent years, the RBA has been active in the government bond
market in its capacity as fiscal agent for the Commonwealth.
These operations, which have been carried out under instruction from the AOFM, have largely
involved the retirement of outstanding debt through direct repurchases.
.
In 2001/02, the RBA undertook no transactions of this type and, in future, the AOFM will undertake
direct repurchases in its own name. Over the year, the AOFM pursued a consolidation program
through the use of conversion tenders rather than direct repurchases.
.
What is a repurchase agreement?
A repurchase agreement involves the purchase (or sale) of securities in exchange for cash, with an
agreement to reverse the transaction at an agreed price on a future date. They have some similarities
with foreign currency swaps, which involve the exchange of foreign exchange (US dollars) for cash and
which are also used when necessary to manage domestic liquidity. Shall be abolished.
 .
The other main area of domestic operations is securities lending. The RBA maintains a securities
lending facility through which it lends from its outright holdings of CGS on an issue by issue basis.
.
The RBA undertakes this activity to assist market participants to cover temporary shortages of
particular issues of Treasury bonds. However, the RBA prices its stock lending so as to be a less
attractive lender in the market to avoid the risk of displacing private activity.
.
Notes on Issue
The value of Australian notes on issue rose by $243 million, or 0.8 per cent, over 2002/03 to
$32.2 billion. The increase is significantly lower than the 2001/02 increase of $4.8 billion, or
17.5 per cent which, in large part, reflected the changed ownership arrangements for the cash
distribution working stocks. Under the new cash distribution arrangements, the working stocks are
recorded as “on issue” where as previously they were not.
.
The Banks note issue activities embrace the storage and issue of new and reissuable notes; the
processing of notes returned from circulation for quality control purposes; and research into and
development of note designs and security features.
.
For practical purposes, all Australian currency notes in active circulation are now polymer.
The benefits of polymer arise from greater security and durability, and reduced machine
maintenance and processing requirements.
.
Note processing and distribution
Despite the strong growth in electronic payments media, such as REPOS and direct entry, the
public's demand for currency notes has grown broadly in line with the economy over recent years.
Use of $50 and $100 notes grew strongly; these two denominations now account for about
87 per cent of the value of notes on issue.
.
During the year, the Reserve Bank issued into circulation around $69 billion in currency notes and
had $68 billion in notes returned for processing. Of the total notes processed, about 93 per cent
were classified as fit for reissue, a percentage which has increased because of the durability and
cleanliness of polymer notes.
.
In future, the Reserve Bank aims to achieve its objectives by processing notes in circulation on
average twice each year, resulting in significant cost savings.
The operational procedures in the cash services areas were streamlined, in which notes are returned
to the Reserve Bank from the community and in handling and custodial arrangements within
cash services areas.
.
The chart below indicates how the increase occurred in the value of notes on issue ( $ million),
continuing the underlying trend towards a greater proportion of notes on issue being accounted for
by the bank loans to Government, Business and People and the higher prices paid for
goods and services in a Debt Based System
.
At end June
 $1
$2
 $5
 $10
 $20
 $50
 $100
 Total
 Increase
(percent)
1997
19
47
351
601
1 837
8 912
8 297
20 064
4.6
1998
19
47
361
617
1 804
9 523
9 280
21 651
7.9
1999
0 
46
379
639
1 850
10 356
10 282
23 552
8.8
2000
0 
46
397
646
1 917
11 188
11 240
25 434
8.0
2001
0 
45
431
662
2 014
12 055
11 961
27 168
6.8
2002
0 
45
530
791
2 789
14 718
13 057
31 930
17.5
2003
0 
45
515
759
2 510
14 918
13 426
32 173
0.8
.
To explain the Reserve Bank's supply of money into the community.
(1). Treasury issues Treasury Bonds to the Reserve Bank.
.
(2). Reserve Bank registers the Treasury Bonds then places them for tender.
.
(3). the tenders are then accepted from highest yield to lowest yield.
.
(4). Treasury Bonds are then placed with Austraclear for trading on the Futures exchange.
.
(5). Treasury Bonds are then traded as 10 and 3 year Bonds.
.
(6). Government, Reserve Bank and Commercial Banks may then buy the Bonds.
      AOFM issues Interest coupons payable on Commonwealth Government Securities.
.
(7). The Reserve Bank manages the amount of ES funds available to banks by buying Bonds to
      increase the supply of such funds for business and public use.
.
The aim of domestic market operations is to supply sufficient liquid funds, Exchange Settlement (ES)
funds, to the banking system to maintain the cash rate around the desired level; the interest rate on
funds borrowed and lent overnight by Commercial Banks.
Demand for ES funds by banks fluctuates from day to day, mainly in response to anticipated
settlement obligations. This may include Loans and Mortgages to business and individuals.
.
Please Note: Value of Australian notes on issue have increased because of the banks loan facility.
In a debt based economy; the issue of Bonds and levels of borrowing and money creation by the
banks, have to keep on rising and thereby adding to the overall burden of interest payments and
loss of property if person defaults loan repayments, guarantees that inflation will be present as long
as we have an economy based on an increasing burden of debt, causing the price of all goods and
services and incomes to keep rising.
.
The Australian Constitution does not mention Bonds or the selling of notes and coins.
Australian Constitution Chapter one Section 51: The Parliament shall, subject to the Constitution,
have power to make laws for the peace, order, and good government of the Commonwealth with
respect to subsections;
.
(iv.) Borrowing money on the public credit; (xii.) Currency, coinage, and legal tender;
(xiii.) Banking, the issue of paper money; and (xvi.) Bills of exchange and promissory notes.
.
The selling of working stocks of notes and coin to commercial banks of which previously, had been
owned by the RBA; is an alteration of the Australian Constitution and will be stopped.
.
Part 3; The People's Mandate;
The No Tax, No Loan and No Interest Initiative
.
No Tax No Loan and No Interest Initiative is included in the Commonwealth of Australia Constitution
Chapter 4 Finance and Trade Draft and shall not be altered except by Referendum Section 128.
.
The Reserve Bank shall be the possession of the Commonwealth in the Right of the Commonwealth.
 This Initiative has been designed to be compatible with the Reserve Bank existing activities, including
Exports and Imports, except the Treasury Script will be spent in to the community and not the
Financial Markets. Where money shall be made available to the Government, Business, Farmers and
the Consumers; no loan or mortgage repayments or interest expense.
.
 Parliament shall invest in the People. There are over 19 million people in Australia and as the
population increases, money in the hands of the People will increase spending, creating more jobs.
will provide profits and reduced costs to all banks, businesses, farmers and Living Souls.
.
The Commonwealth of Australia Constitution Act.
51:1. The Parliament shall subject to Sections 57 and 58 and 128, of this Constitution, that all
legislation shall have direct reference to one of the subsections of Section 51.
All Legislation shall have direct reference to this Part Five included in title of that legislation.
Example:
Trade and commerce;
(a) This Act is with respect to Commonwealth of Australia Constitution Act 1900.
Chapter 1 Section 51:5 Subsection 1 -- Trade and commerce.
All Legislation shall be Titled and worded to match the Subsection number
of this Constitution with respect to;
(1.) Trade and commerce with other countries, and among the several States:
(a) This country Australia, shall manage to restore foreign trade, shall not require foreign credit and
shall not be faced with an economic boycott abroad. The Parliament shall use a barter system:
That is to say; equipment and commodities shall be exchanged directly with other countries and
among the several States, circumventing all international banks.
This system of direct exchange shall be without debt and without trade deficits.
.
Quick And Garren Notes On Constitution.
Commonwealth of Australia Constitution Act 1900 (UK)
Section 115. A State shall not coin money, nor make anything but
gold and silver coin a legal tender in payment of debts.
.
Page 1026 Note 460, A State shall not Coin Money; 
Coinage is a prerogative of the Crown.
A State is forbidden to coin money; it can not create a metal currency;
it can not give to metal any more than to paper the quality of money.
.
The combined effect of this negation, coupled with the operation of Part Five; Powers of the
Parliament. Section 51 subsection 12. Currency, coinage, and legal tender; is that the coinage and
legitimization of metal money, and in fact the regulation of the whole of the monetary system of the
Commonwealth, is exclusively vested (authority) in the Federal Parliament, as against the States.
.
That Parliament alone will be able to create money and regulate it's value, as well as create
paper money, and regulate it's value. It's laws of course will only be operative within the
Commonwealth, and may, in accordance with the usual practice, be reserved for Imperial
consideration, in order to maintain the uniformity of coinage laws throughout the Empire.
.
Note 461, Nor make anything but Gold and Silver Coin a legal tender;
The provision of this section, that the States may not make anything but gold and silver coin a legal
tender in payment of debts, would appear, at first view, to authorize a State to make gold and silver
a legal tender, in the absence of Federal legislation, and consequently to give the States a
concurrent power within those limits.
.
It must be noted, however, that  gold and silver can only be impressed with the quality of money by
Federal legislation, gold and silver metal can not be made legal tender until it converted into coin;
it can only be converted into coin by the Federal authority.
.
Commonwealth of Australia Parliament and this No Tax, No Loan and No Interest Initiative, shall
be subject to Section 44 shall not be under any acknowledgement of allegiance, obedience, or
adherence to a foreign power such as the United Nations, International Monetary Fund or
the World Bank or any other foreign power.
.
Commonwealth of Australia Constitution Act 1900 (UK)
Section 44. Any person who--
(i. ) Is under any acknowledgement of allegiance, obedience, or adherence to a foreign power,
or is a subject or a citizen or entitled to the rights or privileges of a subject or citizen of a
foreign power.
Political Parties and the United Nations are Non Government  Organizations and are
not subject to Section 44.
.
Part  V. -- Powers of the Parliament.
51. The Parliament shall, subject to this Constitution, have power to make laws for the
      peace, order, and good government of the Commonwealth with respect to:
Subsections;
(12. ) Currency, coinage, and legal tender:
(13. ) Banking, other than State banking; also State banking extending beyond the limits of
        the State concerned, the incorporation of banks, and the issue of paper money:
(16. ) Bills of exchanging and promissory notes.
.
53. Proposed laws appropriating revenue or moneys, shall not originate in the Senate.
56. A vote, resolution or proposed law, for the appropriation of revenue or moneys shall not be
passed unless the purpose of the appropriation has in the same session been recommended by
message of the Governor-General to the House in which the proposal originated.
.
The Constitutional value of Notes and Coins.
The coinage which developed was standard, as distinct from today's token money, that is; the coins
were worth their weight in gold and silver.
Money loses value when it's supply is increased at a rate in excess of the capacity of the economy
to produce goods and services. Bank notes were originally issued to depositors as evidence that gold
was held on their behalf in a bank.
It became convenient for the depositor to use the notes to transfer the deposit to another person,
for value received. The value of the notes was matched by the value of the gold held in banks.
As banks  realizedthe reserves of hard currency they held, it became a short step to lending it out,
at a rate of interest, by issuing bank notes to borrowers.
The value of token money now exceeded real money.
.
 Shall abolish;
Abolish HECS, loan and mortgage and the repayments and interest payments on them,
Treasury Bonds and Notes, all credit cards and all Parliament Acts and regulation costs.
.
Why Real Time Gross Settlement (RTGS)?
The reduction of settlement risk in domestic high value payments systems has been a principal
objective of many central banks over the past decade.
This risk arises when payment instructions are sent and acted upon by banks and their customers,
but settlement of the resulting net obligations occurs some time later.
In  Australia'sdeferred net settlement system, final settlement of ininter bank obligations was not
completed until 9.00 am the day following the sending of payment instructions.
.
In the interim, a bank could find itself unable to meet its settlement obligations. Because of the
very large values and the multitude of individual transactions involved, the result could have
been a serious disruption to payment flows, leaving other banks facing liquidity pressures and
even insolvency. The Reserve Bank could provide emergency liquidity to try to stem this type of
systemic risk, but in doing so could take on large exposures to payments system participants.
.
The RTGS system addresses this problem at source by preventing the build-up of unsettled
obligations. It is based on the simple premise that if a bank does not have sufficient funds in its
ES account, any payment it wants to make will have to be queued until there are funds available.
Since payments are not made unless they can be settled, settlement risk is eliminated.
If a bank were to fail during the course of the day, there would be no need to unwind a chain of
payments or put the Reserve Bank balance sheet at risk.
.
Real-time gross settlement
During day
1. Payer instructs bank to make payment 
2. Payments sent to RBA’s RTGS queue 
3. Payments for which ES funds not available
    remain in queue 
4. If ES funds available, payers bank has its ES
    account debited and beneficiary's bank has
    its ES account credited 
5. Beneficiary's bank notified of payment 
6. Beneficiary's bank credits account of
    beneficiary 
7. Beneficiary may withdraw funds and make
    further payments 
.
Note RTGS system;
Each payment is final as it is made
and not at risk if payers bank
subsequently fails.
Used by People's Mandate No Tax System.
.
 RTGS and Other Settlement Services;  About 90 per cent of the value of inter bank payments is
settled on an RTGS basis; this includes money market settlements, foreign exchange settlements,
Australian dollar and a range of time critical customer payments and shall include Treasury Script.
.
In addition to RTGS payments, RITS settles two batches of netted payments into banks each day.
The 9.00 am batch consists of positions collated by the RBA on behalf of the Australian Payments
Clearing Association arising from the previous days, low value clearings (paper, as well as bulk and
retail electronic).
.
The second batch settles net positions for equity transactions in CHESS, the electronic settlement
system operated by the Australian Stock Exchange.
.
The Sydney Futures Exchange Clearing House acts as a central counter party to its members' trades
and will operate its Exchange Settlement (ES) Account exclusively on a real time gross settlement
(RTGS) basis. Settlement services are also provided for the RBA’s own transactions in the
foreign exchange markets, as well as those arising from the Commonwealth Government and other
official customers.  See Debt Issuance Peoples Mandate Futures Market.
.
Treasury granted an Exchange Settlement (ES) Account;
 The Commonwealth Treasury will be granted an Exchange Settlement (ES) Account. This will be the
approval under the more liberal access arrangements announced by the Payments System Board.
.
 Final settlement of payments system obligations occurs through transactions on accounts at the RBA.
These accounts are called Exchange Settlement accounts (ES accounts). ES accounts must be
maintained in credit at all times.
.
 Reserve Bank Information and Transfer System (RITS) is used by banks and other approved
institutions to settle inter bank payments, mostly on a Real Time Gross Settlement (RTGS) basis.
.
 Under the new arrangements, non bank institutions which provide third party payment services are
eligible for Exchange Settlement (ES) Accounts at the Reserve Bank that are the means by which
providers of payments services settle obligations among themselves and with the Reserve Bank
which they have accrued in the clearing process. The Treasury Script will provide the banking
system with the deposits for more liquidity. Money received must be the same as the amount spent.
.
Notes on Issue
Under the new cash distribution arrangements, the working stocks are
recorded as “on issue” where as previously they were not.
.
The Banks note issue activities embrace the storage and issue of new and reissuable notes; the
processing of notes returned from circulation for quality control purposes; and research into and
development of note designs and security features.
.
For practical purposes, all Australian currency notes in active circulation are now polymer.
The benefits of polymer arise from greater security and durability and reduced machine
maintenance and processing requirements.
.
Note processing and distribution
Despite the strong growth in electronic payments media, such as EFTPOS and direct entry, the
public's demand for currency notes has grown broadly in line with the economy over recent years.
Use of $50 and $100 notes grew strongly; these two denominations now account for about
87 per cent of the value of notes on issue.
.
During the year, the Reserve Bank issued into circulation around $69 billion in currency notes and
had $68 billion in notes returned for processing. Of the total notes processed, about 93 per cent
were classified as fit for reissue, a percentage which has increased because of the durability and
cleanliness of polymer notes.
.
The operational procedures in the cash services areas were streamlined, in which notes are returned
to the Reserve Bank from the community and in handling and custodial arrangements within cash
services areas.
In future, Treasury will only issue Treasury Script to the Reserve Bank
if Commonwealth Official Public Account deposits are not enough to cover government costs and
payments for Parliament backed infrastructure projects and to the community.
.
***************
How will this new notes and coins be accounted for;
The Reserve Bank of Australia (RBA) is a financial institution, the financial statements have been
prepared using AAS32 – Specific Disclosures by Financial Institutions.
Treasury Script will be converted to notes and coins -- subject to Section 51 (12).
.
Shall be accounted for and listed in the Financial Statements; Assets section as; 
"Cash" and "Liquid Assets" (Overnight settlements system) and;
Liabilities section as;  "Deposits" (Exchange Settlement Accounts for Banks  ) and
"Notes and Coins on Issue"
.
Using Treasury Script for Commonwealth Cash Management;
Subject to Commonwealth of Australia Constitution. Chapter one Section 56;
56. A vote, resolution, or proposed law for the appropriation of revenue or moneys shall not be passed
unless the purpose of the appropriation has in the same session been recommended by message of
the Governor-General to the House in which the proposal originated.
.
and Chapter IV. Finance And Trade and Sections;
81. All revenues or moneys raised or received by the Executive Government of the Commonwealth
shall form one Consolidated Revenue Fund, to be appropriated for purposes of the Commonwealth
in the manner and subject to the charges and liabilities imposed by this Constitution.
.
82. The costs, charges, and expenses incident to the collection, management and receipt of the
Consolidated Revenue Fund shall form the first charge thereon; and the revenue of the Commonwealth
shall in the first instance be applied to the payment of the expenditure of the Commonwealth.
.
83. No money shall be drawn from the Treasury of the Commonwealth except under
appropriation made by Legislation.
But until the expiration of one month after the first meeting of the Parliament the Governor-General in
Council may draw from the Treasury and expend such moneys as may be necessary for the
maintenance of any department transferred to the Commonwealth and for the holding of
the first elections for the Parliament.
.
Government approved expenses and charities;
Shall issue it to pay the Government's approved expenses and charities.
Shall be issued in proper proportion to make the goods pass easily from the producers to the
consumers. In other words, to make sure there is always adequate money in circulation for the
needs of the economy.
.
Treasury shall issue Treasury Script if Commonwealth Official Public Account deposits are not enough
to cover costs of the Parliament backed infrastructure projects and payments to the community.
.
Government Banking; The banking services provided to the Commonwealth Government by the
RBA comprise two components. A core banking facility is provided to the Department of Finance and
Administration (DoFA), which is non contestable in terms of the Commonwealth Governments
competition policy. This facility is made up of a group of bank accounts, including the Official Public
Account (OPA), a term deposit facility for the investment of temporarily surplus Commonwealth funds.
.
Under the core banking arrangements, payments are made from the OPA to agencies and end of day
agency balances held with transactional bankers are swept back to the OPA overnight.
These balances are returned to transactional bankers at the start of the next business day.
.
The services also embrace electronic collection of forecasting data and reporting on high value
transactions from agencies and transactional bankers to assist the RBA in the discharge of its
monetary policy and liquidity management responsibilities. The RBA administers a term deposit facility,
on behalf of DoFA, through which agencies can deposit temporarily surplus departmental funds.
.
The other component of the RBA’s banking is the provision of contestable transactional
banking services to government departments. Government departments are;
Centrelink, Department of Veterans Affairs, Department of Defence.
.
The RBA shall distribute government payments direct to accounts at financial institutions through its
Government Direct Entry System (GDES) in the form of a basic wage to every person over
the age of 18 years for the remainder of their life.
.
If person over age 18, becomes employed the earnings shall be half the basic wage and in addition
to basic wage.  *** Example only;  Basic wage per week $300 / 2 = 150 + 300 = $450. ***
 Businesses may request their bank to deposit employees income by electronic settlement.
The basic wage will replace all Centrelink pension and all other payments
.
Parliament shall issue Treasury Script to provide payments;  
Treasury shall only issue Treasury Script to the Reserve Bank and converted to the legal tender of
$A Coins and Notes.
The issue of Treasury Script shall be for the direct supply of liquid funds to the
Exchange Settlement Accounts for supply of $A Coins and Notes to the Government Departments
including; all land and marine vehicle licences and registrations and electricity, gas, communication,
legal purposes and;
.
All Federal, State and Territory public works including all rail and road construction and maintenance;
no need for road tolls. Install water tanks near house and factory and farm use.
Municipal, sewerage and water services, new residential development and infrastructure.
Salinity and water management and other environmental issues.
.
Recycling of waste water and sewerage water by treatment, to be chemically pure for Parks and Reserves,
residential and factory toilets, including recycling of all used materials, in Australia will be supplied free.
.
For example, Parliament issue of the Treasury Script,
"We need $1 billion dollars to pay the contractor to build a new hospital".
Treasury will create and register $A1 billion in Treasury Script with the Reserve Bank of Australia,
who will authorize the printing of currency coin and notes and deposit the coin and notes into
Commonwealth Public Account who will instruct the Reserve Bank of Australia to issue
the $A1 billion to pay the contractor who built the hospital.
The $A1 billion created will be equalled when the contractor pays it into his private bank account.
.
This money was the result, of the issue of the Treasury Script to build the new hospital.
Thus, the contractor will then make purchases from and payments to other businesses,
car dealer, supermarket or store who will pay that new money into their bank accounts.
The new money adding to the companies income and no debt.
.
The issue of Treasury Script into the Commonwealth Public Account created the direct supply of
liquid funds to the Exchange Settlement Accounts for supply of $A Coins and Notes to the banking
system then available free to the public, using one of the two methods such as;
.
Method One, example;
 Purchaser receives from sales person invoice in triplicate, to purchase goods. Purchaser goes to
bank who then deposits the invoiced amount into Target Account, bank keeps one copy, the
purchaser returns to sales person who keeps one copy and one copy to purchaser who then
takes possession as the Owner of the goods.
or
Method Two; use EFTPOS only;
 All account holder payments to provider or employee, shall arrange with their bank to make payment
from the Exchange Settlement (ES) funds shall;
1) apply to their bank to issue electronic payments by EFTPOS only;
2) an amount payable to the registered Goods or Service provider or employee to;
3) deposit amount directly into Goods or Service provider or employee account.
The Financial Markets, Farmers and rural business, industry, manufacturers, all business,
banks, home buyers, nursing homes and all Charities;
May use Method One or Two, to pay for their normal expenses.
.
Public and Private Hospitals; May use Method One or Two, to pay for their normal expenses.
All medical expenses including Public and Private Hospitals, doctors, ambulance, paramedics,
dental, IVF Treatment, Umbilical cord bank. All Living Souls shall have free treatment and care.
Private Health insurance not needed and the medicare levy, shall be abolished.
.
Schools and Universities; May use Method One or Two, to pay for their normal expenses.
Free School and if attending university free university course. HECS shall be abolished.
.
Parents or Students;  Use Basic Wage to withdraw from the bank or use EFTPOS to pay for
stationary, text books and uniforms and to pay for items from shops or super-markets.
.
How Treasury Script will be recycled;
An important function performed by the Australian Office of Financial Management (AOFM) is the
management of the Commonwealth's cash balances. The Commonwealth's cash management task
arises because the day to day timing of the Commonwealth's receipts does not match the
disbursement pattern of its outlays.
.
Cash proceeds not required for immediate purposes are placed in a short term investment facility
(term deposit) provided by the Reserve Bank of Australia. The AOFM uses term deposit balances as
the primary vehicle for managing within year mismatches in the timing of cash receipts and outlays.
.
After which the legal tender of $A Notes and coins shall be recycled to the AOFM short term
investment facility, to pay for costs related to National Consolidated Revenue Fund and normal
government expenses.
.
The surplus of funds not required, shall be returned to the Commonwealth Official Public Account at
the Reserve Bank so the Reserve Bank using the RTGS and Other Settlement Services,
shall continue Governments payments to the community.

To Control the money supply and inflation;
Withdrawals shall be based on need; if the number or value of withdrawals become excessive,
example Real Estate, there shall be a maximum number or value of withdrawals over a stated period;
will replace the existing Reserve Bank cash rate adjustments.
.
All loans and mortgages repayments not complete shall be cancelled. People may apply to their
bank to issue Bank cheque or electronic settlement; to settle all repayments.
Once finance has been committed to say; building a house or a project, the money will not be
stopped while the house or project, remains in the process of being built subject to owners approval.
.
Existing Private and Commercial Investments;
All individual earnings, profits, superannuation and all other investment accounts may be retained.
All investments including all property will be by negotiation.
.
The Treasury Script, currency note and coin issue shall be an Asset in the Right of the Commonwealth
and must be kept in circulation, so banks can have cash available for public use and all withdrawals
shall be free of repayments and interest.
.
All Banks shall provide the service but shall not purchase or create any currency, mortgages or loans.
Parliament, all Business, Banks and all Individual account holders shall own the value but not
the Treasury Script, notes and coins.
.
May withdraw part or all of the value in cash from the bank account and account holder must not
make out any Cheque to account holder, who is the same account holder or to a subsidiary
company of the same group.
.
All home buyers must live at or on place of residence a minimum of 24 months if purchased through
the bank. If account holder has enough deposit in account to purchase there shall be no restrictions.
.
Using Invoices  to withdraw for gambling; shall not be permitted.
If personal cheque or bank cheque has not been delivered must be returned to the bank.
 .
Please Note: Australian Constitution Chapter one Section 51: The Parliament shall, subject to the
Constitution, have power to make laws for the peace, order, and good government of the
Commonwealth with respect to subsections;
.
(iv.) Borrowing money on the public credit; (xii.) Currency, coinage, and legal tender;
(xiii.) Banking, the issue of paper money; and (xvi.) Bills of exchange and promissory notes.
.
Bonds and the selling of working stocks of notes and coin to commercial banks of which previously,
had been owned by the RBA; is an alteration of the Australian Constitution and will be stopped.
Bonds shall be transferred to and traded as Reserve Bank and Futures Exchange Bonds.
.
Part 4; The People's Mandate;
The Futures Market initiative:
.
Sydney Futures Exchange Clearing House acts as a central counter party to its members' trades
and will operate its Exchange Settlement (ES) Account exclusively on a real time gross settlement
(RTGS) basis. See Page 4, RTGS and Other Settlement Services.
 .
 Will Treasury Script effect Superannuation and other investments?
Will it effect the Futures Market?
.
If the investments includes Treasury Bonds and these are abolished;
yes, and that will include overseas markets as well.
.
Can the Treasury Bonds be replaced? -- Yes.
Reserve Bank and the Sydney Futures Exchange can initiate an agreement to issue Reserve Bank
Bonds a minimum of $50,000,000,000, financed by all investors.
.
Reserve Bank may issue Reserve Bank Bonds through it's existing Registry Services;
The core functions of this service cover the issue,
transfer and registration of securities,
the maintenance of ownership records,
the distribution of interest payments and
the redemption of securities at maturity.
and may have a face value of $1,000, 100,000 or $1,000,000.
may have interest paid every six months, may have a maturity date.
.
The Reserve Bank may use it's existing trading procedures, the Austraclear system operated by
SFE Corporation Limited, as they have done with the Treasury Bonds.
All existing Treasury Bonds shall be converted to Reserve Bank Bonds and no changes to any
existing investors holdings.
The Reserve Bank shall be the possession of the Commonwealth in the Right of the Commonwealth.
.
Reserve Bank Bonds Interest income may be secured by trading fees or other investments.
Money not required by the Exchange Settlement accounts may be used as interest payments to all
holders of the Reserve Bank Bonds.
See Domestic Dealing Arrangements and Exchange Settlement accounts page 2;
.
The Parliament, all banks and businesses and members of the public may apply to their bank to
purchase the Reserve Bank Bonds; no repayments or interest expense.
.
The Australian Office of Financial Management (AOFM);
Debt Issuance in Futures Market. This will cease as from the introduction of Treasury Script.
The Government recently publicly reviewed the future of the Commonwealth Government securities
market against a backdrop of financial market concern about the future viability of the market.
.
The Government released a discussion paper in October 2002 and invited written submissions from
interested stake holders. The outcome of the review was announced in the Budget in May 2003 with
the complete decision contained in Budget Statement No 7.
.
The review concluded that sufficient Treasury Bonds should be issued to support the Treasury bond
futures market; usually traded as 10 or 3 year Bonds.
.
Further, the Australian financial market may become less diversified and more vulnerable during
periods of instability. The issue of Reserve Bank Bonds, would be targeted to support the
Treasury bond futures market by replacing the Treasury bonds with the Reserve Bank Bonds.
.
Treasury debt issuance of the Treasury bond futures market will be abolished.
.
End of Supplying the Futures Market
.
Special Notes;
Dollar up; Prices of Exports up to overseas buyers.
Prices down for Imports in Australia.
.
Dollar down; Prices of Exports down to overseas buyers.
Prices up for Imports in Australia
.
Banks are the basis of; Bills of exchange and promissory notes, taxation, lending, loans,
mortgage and interest expense. Corporations, legislation and regulation costs.
.
Some people may say; The issue of Treasury Script sounds inflationary or "we will all be millionaires"
It should have nothing to do with how much money is available. Money is simply a token, which
enables people to exchange their goods and services without the complications of bartering.
.
Goods and services only have value when the People decide to use the money to pay for them.
It should be the government's job to ensure that there are enough tokens circulating to enable the
exchange of goods and services.
.
Administered responsibly, just as the State has issued debt free cash responsibly for many years,
the ability of Parliament to create its own debt free money could create real economic activity,
employment and wealth.
.
Benjamin Franklin wrote:
In 1750, this New England was very prosperous. Benjamin Franklin wrote: There was
abundance in the Colonies, and peace reigned on every border. It was difficult, even impossible,
to find a happier and more prosperous nation on all the surface of the globe.
.
Comfort prevailed in every home. The people in general, kept the highest moral standards,
and education was widely spread.  
In the Colonies, we issue our own paper money. It's called Colonial script. We issue it to pay the
Government's approved expenses and charities.
.
We make sure it's issued in proper proportion to make the goods pass easily from the producers to
the consumers. In other words, we make sure there is always adequate money in circulation for the
needs of the economy.
.
In this manner, by creating ourselves our own paper money, we control its purchasing power,
and we have no interest to pay, to anyone. You see, a legitimate government can spend money
into circulation, while banks can only lend significant amounts of their promissory bank notes,
for they can neither give away nor spend but a tiny fraction of the money the people need.
.
Thus, when your bankers here in England place money in circulation, there is always a debt
principal to be returned and interest (usury) to be paid.
The result is that you have always too little credit in circulation to give the workers full employment.
.
You do not have too many workers, you have too little money in circulation and that which
circulates, all bears the endless burden of unpayable debt and interest (usury).
.
.
Local industry, small business, and farming.
To set up an agreement between parliament and unions, to maintain wage stability, jobs growth
and a generous basic wage to every person over the age of 18 years and the remainder of their life.
.
Although superannuation will not be stopped it will not be needed by the People to provide for their
retirement because the People will be provided with a permanent basic wage for all adults and this
will be coupled with Parliament issue of Treasury Script, Methods one or two;
to cover other costs if their bank account has not enough value of funds to cover that cost.
A economy which integrates the global and the local. The economy to allow a level of globalization in
those areas that need to be open to competition, as well as a level of parliament support for industry,
small business and farming. To concentrate on Exporting more than is being imported and
a manufacturing base in Australia. Shall allow home grown small and medium businesses to thrive.
.
 If a large company buys a small company in a rural town or city, holds onto the company
for a period of time, then decides to sell or completely close the company, with the excuse that the
company is too small and earnings not large enough to compete within the global market; the
Living Souls shall receive parliamentary assistance or the parliament shall use the Constitution
Section 51 subsection 31 to aquire the company, given to the workers who shall be the owners.
.
 People and businesses defaulting loan repayments may cause business and people to apply for
bankruptcies or loss of collateral, usually property. A country can not have a strong economy if the
People have gone into debt, who have no jobs and receive pensions.
.
 The benefits of this arrangement is to allow greater social cohesion and strong local communities,
as well as a dynamic globally orientated economy. Debt Free System is a win, win system for all.
.
Australia would become the tax haven of the world where; overseas investments and setting up
companies in Australia would supply more liquidity, reducing the need for Treasury Script.
.
The introduction of robots and other like technology that will involve the reduced need for
human , labour the Debt Free System is looking into the future.
.
 A Debt Free system value of Australian coins and notes on issue will remain stable because the
currency will be recycled and backed by the productivity of the People, including Gold and Silver.
.
Constructed, authorized and printed by Mr. S. F. Broad
9 Waitara Ave, Keysborough. 3173. Phone 61 03 9798 5149.