Email from: Stephen Williamson
Sent: Wednesday, 18 September 2013 2:02 PM
Subject: Thanks for the chat, Tim :-)
Hi Tim, Hi everyone
Yes, thanks for the chat Tim. Here's that page below, tracking inflation, firstly in Britain, next in the US (in comparison with Australia). I've shared this page before, I've made a few adjustments recently. Appreciate all/any comments
But now with seven billion people in the world, and with all the many, many wealthy ones worldwide who are storing the **$16 trillion in US Treasury notes and bonds as the basis of their current wealth, we are truly in uncharted territory at present.
**$35 trillion in 2024
Numerous prophecies and recommendations, but it's not simple stopping a juggernaut like this, regardless of the experts.
Blessings all :-) Steve
Extract from Forbes on Sep 20th: From QE1- Nov2008 through QE3- Sep2012 as of now the Federal Reserve has increased its balance sheet from $900 billion to **$3.7 trillion today. Here is a primer on the mechanics. The Fed currently purchases $40 billion in mortgage backed securities (private debt) and $45 billion in treasuries (govt bonds) each month. The Fed has no excess money or reserves … so they simply fire up the printing presses and print out of thin air $85 billion of new money each and every month. This is money that goes directly into the money supply. Nobody knows the ultimate denouement of money printing on this scale.
**Ended (temporarily) Oct2014 at $4½ trillion
But lower interest rates and increased inflation in "more hospitable yield environments" are inevitable.
Click here for the history of money, silver and gold, in scripture.
Click here for Australia's banks, the Big Four.
Click here for US in 2024.
where d=denarius or pence or cents, s=shilling (12 pence), £=Libra-pondo (240 pence).
30AD (time of Christ) 1d per day (i.e. one penny for working in a vineyard). It contained about 4 grams of silver and 240 drachma (a mina of 60 shekels) in Israel was thus just under one kilogram or 1/60th of a talent. In Rome the much lighter Libra-pondo of 12 ounces weighed perhaps 329 grams.
By 275 AD, the level of silver in the denarius coin had dropped to zero. In 312 AD, Constantine issued a new gold coin, the solidus, and silver coin, the miliarense, and shifted the Roman capital to Constantinople (now Istanbul) in the east, with merchants being forbidden to use these coins outside the kingdom.
East of the Roman Empire was the Persian Empire, where silver and gold coinage was in abundance from trade with Rome, Arabia, China and India. These were drachma coins, later called dirhams, still with 3 to 3½ grams of silver, and issued from their capital at Ctesiphon, (near ancient Babylon and close to modern day Baghdad). Click here for a brief ten-page history of the world (with hyperlinks) as the Muslim caliphates took power.
And with the lack of access to coinage in the west, numerous trade agreements vanished. Invasions by Goths, Vandals, Huns, Lombards and Vikings followed, capturing slaves which they traded for Eastern silver. But at the same time, decentralised government, manorialism and monasteries sprang up everywhere. In Anglo-Saxon Britain, the standard coin for daily wages became the sceatta, pronounced as "shatter". It had about 1.3 grams of silver, with 20 sceattas i.e. 26 grams being worth one scillinga (pronounced as "shillinga"), or one Roman ounce.
790 AD King Offa of Mercia in England joins forces with Charlemagne in France. With a silver mint having been established at Dorestad on the Rhine with access to a significant quantity of silver, the penny (pfennig) was reintroduced at a set weight of just under 1½ grams of silver, replacing the lighter sceatta. The shilling was revalued to be worth 12 pennies. The standard £ Libra-pondo (later known in England as the Tower-weight or Tower-pound) continued to have 240 pennies, or 20 shillings. It contained about 350 grams or exactly 12 "tower" ounces in silver. The tower system was referenced to a standard prototype found in the Tower of London.
See this page for a family timeline of daily wages from 1261 - 1780.
1261 Tuppence or 2 silver pennies per day. Halfpennies and farthings are also now in production with a proportional level of silver. Note that with the prices for goods on the continent requiring less silver, the level of silver in the penny at times could be reduced to as low as 1.3 grams, though any reduction produced considerable complaints. English coins were much envied in Europe for their weight and good metal content, with English halfpennies being copied on the continent.
For further background to what was happening over there, click here for the gold florin, issued originally from Florence in 1252.
1351 Threepence or 3 silver pennies per day.
1401 Fourpence per day. In 1412, the level of silver in the penny is reduced to about 1.0 gram.
1541 6½d (Sixpence ha'penny) per day, the rise of Protestantism opposed to the Holy Roman Empire, in 1568-1648 the
1583 8½d (Eightpence ha'penny) per day. Halfpennies and farthings now become copper in content, and legal tender up to the value of sixpence.
1640 10d (Tenpence) per day
1780 18d (One shilling and sixpence) per day — inflation starts to take off. What with the French seven year war 1756-1763, the American Revolution in 1776, the French Revolution in 1789 and the rise of Napoleon, there is considerable instability, a shortage of labour and silver, with paper money having to be printed to pay government wages and expenses. When pennies do end up getting reminted, their content is now all copper and the basic silver coin becomes the threepence.
1865 Three shillings and ninepence per day click here was the wage for a common labourer in London working a 10 hour day and a six day week.
This period also saw the rise of income tax as a taxation measure. Prior to this, invading a neighbouring country, bribes, extortion, customs duties, sales taxes on certain goods (e.g. alcoholic beverages) and property taxes (based on, say, number of windows) were the main sources of income for governments. Click on each country to see some of its income tax background.
America Britain France Germany Italy Russia Japan India China Australia
With Australian federation in 1901, each state enacted "early closing time" legislation for shops and factories that set working hours at a maximum of 8 hours per day.
In 1907, the Commonwealth of Australia established the "basic minimum wage" at two pounds and two shillings (42 shillings) per week for unskilled full-time workers, 21 years and older.
In 1910, the Australian pound note and shilling was issued for the first time, pegged to the UK currency. £1 contained 7.32 grams of fine gold and 1 shilling contained about 6 grams of sterling silver. After World War One and the Great Depression of 1929-1930, the peg between our currencies was dropped. In 1931 it was reapplied at 80% of the value of the UK currency. The US dollar contained about 24 grams of silver, and in 1931 £1 UK was valued at about $US5.00, and thus £1 AU was valued at $US4.00.
In 1940, the UK currency devalued against the US to 80% of its value, where £1 UK = $US4.00
In 1949 it devalued to about 70% of that value, where £1 UK = $US2.80.
The Australian currency followed suit and so in 1949, £1 AU was worth $US2.24.
In 1966 ten shillings, the value of our new dollar, was worth $US1.12. Since that time we have either been fixed or floating, in line with the US dollar.
Click here for a second graph, showing the US dollar against the Swiss Franc since WW2. The Franc's stability for many years in relation to gold valued it at 19 US cents after WW1 and at 23 US cents after WW2. In 2020 it is just above par with the US dollar.
Click here to view the following as a separate page
| Australia Basic Wage Fair Work Commission Wikipedia State Library Victoria Fair Work Australia Youth U16 36.8% 16yrs 47.3% 17yrs 57.8% 18yrs 68.3% 19yrs 82.5% 20yrs 97.7% Adult | US Govt Debt US Treasury |
|---|---|
| 1788 One shilling and sixpence per day | $70 million |
| 1797 During Napoleonic wars UK suspends gold payments until 1821 | |
| 1835 | $33 thousand its lowest ever |
| 1865 Farm Labourer two shillings and sixpence per day Carpenter 10 shillings per day | $2 billion US suspends gold payments following American Civil War. 1862-1879 |
| 1907 Seven shillings per day or £2.2.0 per week Basic Award to support a "man, his wife, and three children" | $2 billion |
| 1914 During WW1 both UK and Australia suspend gold payments until 1925 | |
| 1922 £4.10.0 per week with widespread price rises following the First World War Paper money (i.e. a promise backed by 80 tonnes in gold reserves) had become all the rage following the Australian Notes Act of 1910 enabling banknotes issued via Australian Govt Treasury and cancelling those more fallible banknotes of individual banks | $25 billion, through the enormous expenditure of First World War and the setting up of the League of Nations |
| 1928 £4.9.6 per week | $18 billion |
| 1930 £3.1.1 per week during the Great Depression The 6 day week became a 5½ day (44 hour) week Australia & UK suspend gold payments In 1935 the Printers Union wins one week of paid leave | Drops to $16 billion in 1930 then rapidly increases under Roosevelt's "New Deal" |
| 1938 £4.1.0 per week | $40 billion Fair Labour Standards Act under President Roosevelt establishes a basic wage of 25 cents per hour i.e. $US10 for a 40 hour week. Equivalent to £2.10.0 in Australia, with the US dollar worth 5 shillings. In 1940 and WW2 it rose to 6s.2d. |
| 1946 £5.0.0 per week In 1945 the Annual Holidays Act provides two weeks of paid leave | $250 billion due to WW2, followed by the US setting up United Nations and providing help to West Germany, Japan, South Korea, other economies worldwide |
| 1947 £7.2.0 per week In 1948 the 5 day week introduced | |
| 1950 £8.2.0 per week | With the 1949 devaluation of UK and AU currencies, the US dollar in Australia now had become 8s.11d. |
| 1953 £11.16.0 per week with considerable inflation following the Second World War Between 1951-1955 Qld, NSW and Victoria passed legislation granting 13 weeks long service leave to all employees with 15 years or more service, a benefit unique to Australia | |
| 1960 £13.16.0 per week | $300 billion |
| 1961 £14.8.0 per week In 1963 Commonwealth Industrial Court adopts three weeks paid leave | |
| 1966 $32.80 (£16.8.0) per week In 1966, the AU dollar was launched, worth 10 shillings | |
| 1967 $40 (£20) per week ($1.00 per hour) | |
| 1969 $54 per week In October 1968 the minimum hourly wage was $1.35 | $350 billion |
In 1971, President Nixon cancelled the fixed US dollar to gold exchange rate for central banks since 1934 at US$35 per ounce
Click here for our experience in Australia with Gough Whitlam's "seat of the pants" government Dec 1972 - Nov 1975. Free Universities, Free Medical, wow.
| Australia Basic Wage | US Govt Debt |
|---|---|
| 1972 $80 per week In 1974 four weeks paid leave plus 17½% loading | $450 billion |
| 1976 $102 per week Wages have tripled over 10 years through "stagflation" | $620 billion |
| 1978 $120.80 per week | $770 billion |
| 1980 $134.80 per week
In 1983 the 38 hour week introduced | $1 trillion |
| 1987 $178.24 per week | |
| 1990 $214.49 per week | $3 trillion |
| 1995 $284.45 per week | |
| 1997 $359.40 per week | In 1999 UK issued their first nation-wide basic wage at £3.60 per hour £144 for a 40 hour week (ca $360 in Australia) |
| 2000 $400.40 per week | $6 trillion |
| 2010 $569.90 per week | $13 trillion |
| 2020 $753.80 per week | $27 trillion |
| 2024 $915.80 per week plus 11½% compulsory superannuation according to ABC nearly the highest in the world | $32 33 34 going on $35 trillion. In January 2023, Treasury technically "bumped up" against $31.4 trillion, the previous limit. In Jul 2024 it was estimated at $35 trillion.
Federal minimum wage rose from 25 cents per hour in 1938 to $7.25 per hour in 2009, but has not been raised since. That's $US290 per week (and in Australia equivalent to $AU445.00 in 2024). Note too that many states have legislated much higher minimum wages. |
Just before midnight on Friday 22 March 2024 in Republican dominated US Congress, an approved increase provided funding for key federal agencies including Homeland Security, Justice, State and Treasury until about September. It largely tracks with an agreement in May 2023 which suspended the debt ceiling into January 2025 so the US government could continue paying its bills.
Back to Australia. In July 2024 $915.80 per week, which becomes $183.16 per day, which is 260 times the seven shillings daily wage of 1907.
A fair increase in inflation over these 117 years. At that 260 fold rate of increase, and accelerating another 56 times as this was the acceleration factor over the 4.67 increase that occurred between 1780 and 1907, by 2141 we could all be earning over $1 million per day.
Not bad.
Prior wages in UK: in 1640 (10d daily), in 1583 (8½d), in 1541 (6½d), in 1401 (4d), in 1351 (3d), in 1261 (2d), earlier for perhaps 1,200 years (1d).
Yes, at these times, may we keep our eye on the Lord. Let our eye be single, having "dove's eyes".
** End of article
Click here to view the following as a separate page
Mishnaic Hebrew Hamon-accumulation,uproar,disquiet Psa 39:6
Based on List by UBS and Credit Suisse published in 2023
plus List of countries by number of households
| Country ▲▼ | Households (millions) | Household Wealth $US (trillions) | Average Wealth $US |
|---|---|---|---|
| US | 132 | 140 | 1,060,000 |
| China | 522 | 84 | 161,000 |
| Japan | 55 | 22 | 400,000 |
| Germany | 40 | 17 | 425,000 |
| UK | 29 | 16 | 550,000 |
| France | 30 | 16 | 533,000 |
| India | 300 | 15 | 50,000 |
| Canada | 15 | 11 | 733,000 |
| Italy | 25 | 11 | 440,000 |
| South Korea | 23 | 10 | 435,000 |
| Australia | 10 | 10 | 1,000,000 |
| Spain | 17 | 8 | 470,000 |
| Taiwan | 9 | 5 | 555,000 |
| Netherlands | 8 | 5 | 625,000 |
| Mexico | 34 | 5 | 147,000 |
| Switzerland | 4 | 5 | 1,250,000 |
| Brazil | 64 | 4 | 62,500 |
| Russia | 56 | 4 | 71,400 |
| *Others (155 countries) | 937 | $66 trillion | 71,200 |
| **Total | 2300 | $454 trillion | 197,000 |
Below are two lists based on the IMF List 2023 of debtor and creditor nations by Net international investment position.
According to the IMF, the International Investment Position (IIP) is a statistical statement that shows at a point in time the value of financial assets (bonds, money market or other account holdings, equity stakes and financial derivatives) of residents of an economy that are claims on nonresidents, or are gold bullion held as reserve assets – and the liabilities of residents of an economy to nonresidents.
In the US, their assets total $34.399 trillion, and liabilities $54.252 trillion, far ahead of any other economy, a nett figure in the red of $19.853 trillion.
List One - 40 creditor nations
Totalling $ trillion
*Probably higher. There is a discrepancy of $6.846 trillion between dollars invested by creditor nations, and dollars in debt by debtor nations. Gold reserves, plus SDR reserves in the IMF and the Bank for International Settlements should normally make the creditor total higher. However unregulated Eurobonds — first issued in London in 1963 — with Eurodollars in 2016 estimated at $13 trillion & others may account for this figure. Secrets.
List Two - 89 debtor nations
Totalling $ trillion
Regarding Australia's debtor nation status in 8th position, ever since we were first settled we've relied on other countries to invest in us to help us get going. And our public service has always been somewhat top heavy.
See a recent chart below for how much we are individually and corporately in debt to "managed funds" (in Australia as well as overseas).
Revelation 17:5 And upon her forehead was a name written, MYSTERY, BABYLON THE GREAT, THE MOTHER OF HARLOTS AND ABOMINATIONS (foul stenches) OF THE EARTH.
Click here re the Four Horsemen, Simon the Pharisee, Judas, and Paul's attitude to taking up a collection.
Click here re the History of Money and click here re the History of Inflation.
On May 28, 2014 6:49 PM, "Stephen Williamson" wrote:
Subject: Chatting about mammon - the great "mamma" this morning :-)
Australia's Federal Net debt in bonds is now about $270 billion
Total State and Territory debt in bonds about $230 billion
(Federal and State net debt reached $784 billion in 2022-23)
Private company debt in bonds about $720 billion
So, bonds investment: $1.22 trillion
Total private housing debt about $870 billion
Total investment housing debt about $410 billion
So, housing: $1.28 trillion
Private credit card debt and personal borrowings $140 billion
Private company borrowings from banks, etc about $730 billion
So, other borrowings: .87 trillion
Total Australian Debt $3.37 trillion,
roughly, in May 2013
according to an article (no longer available) at www.news.com.au /national /quality-over-quantity-matters-in-debt/story
So who is in the black?
| Various Australian Managed Funds (excluding "cross-investments") — superannuation (about 75% of the total), public unit trusts&life insurance (about 25% of the total) ABS Link $2.3 trillion in 2014 $3.8 trillion in 2023 | $2.3 trillion |
| Gross: Overseas investors (in Australia residents)
DFAT Link $3.2 trillion in 2014 $4.6 trillion in 2023 click here for a recent AFR article | |
| less: Australian investors (in overseas resident)
DFAT Link $2.2 trillion in 2014 $3.8 trillion in 2023 | |
| Nett from Overseas Investment ABS Link: $1.0 trillion | $1.0 trillion |
| Leaving a balance, roughly, for banks and other investors in Australia to supply: | $70 billion |
| Total: | $3.37 trillion |
Yep, we've relied hugely on overseas investment since 1788 — starting with those famous IOU's written in 1793 for 7,500 bottles of overseas rum, authorized by the British Regiment's Paymaster — but with so much now available in our own superannuation and insurance and trust funds, the percentage of nett overseas investment has actually dropped.
So, while Mr Abbott and Mr Hockey are doubtless wise in endeavouring to, very gradually, reduce the $300 billion owing in federal bonds, those other figures do help to bring it all into a better perspective, with all the shouting that's going on.
Thank you Lord, yes, to rest in you, to look to you, our loving heavenly Father, for each coming day's needs.
"give us day by day, the bread for each coming day" as several translations put it.
Blessings all :-) Steve
And at the end of the day, as the scripture says, each one of us has to bear his own load, whether as individuals, company directors or politicians. Ahh the Lord knows.
Now the following email has had its figures adjusted to reflect some of the latest stats in 2022.
Note its use of the word "currency" is as follows:
1. M0 (including MB): Banknotes and coins in circulation and in bank vaults and in ATMs, plus the additional exchange settlement banking reserves in gold and government bonds that have been deposited by individual banks in their Reserve Bank. According to these links this is a small amount relatively speaking, in Australia it's about $565 billion, in the US it's about $6 trillion.
2. M1: Currency in customers "pockets" outside the bank vaults, plus on demand cheque and savings bank deposits. In Australia it's about $1.6 trillion, in the US about $18 trillion.
3. M2 and M3: All deposits (including M1) via managed funds in banks and money markets, a much larger figure. In Australia it's about $2.7 trillion — while the US Federal Reserve only reports M2, which is M1 + near deposits, about $20 trillion.
The figures below are estimates only.
On July 20, 2013 3:42 PM, "Stephen Williamson" wrote:
Subject: Where's all the money :-)
Hi all
With computers, we're certainly a long way from the gold / silver standard the world used for thousands of years. Again, appreciate any feedback.
| Region | Gross Assets | Debt | Nett |
|---|---|---|---|
| North America (USA and Canada) | €79 trillion | €15 trillion | €64 trillion |
| Latin America | €3½ trillion | €1 trillion | €2½ trillion |
| Western Europe | €36 trillion | €11 trillion | €25 trillion |
| Eastern Europe (includes Turkey and Russia) | €2½ trillion | €1 trillion | €1½ trillion |
| Asia (includes Israel) | €47 trillion | €12 trillion | €35 trillion |
| €3.758 trillion | €1.633 trillion | €2.125 trillion
| |
Allianz
This table (click here for a full list of countries) is based on each region's gross financial household assets measured in euros by Allianz – currency stocks and bonds at current market values, with a separate column for debt, including mortgage debt. Total gross assets equals €172 trillion. Nett assets €130 trillion.
Its list of countries does not include Africa or the Middle East (other than Turkey, Israel and South Africa).
In Australia perhaps 90% of total debt is property loans, however current house and land values are not included in Gross Assets.
Credit Suisse
Click here for a full list of countries (including Africa and Middle East) showing Total Net Wealth (assets less liabilities) in US dollars by Credit Suisse US $114 trillion China $64 trillion Australia $7 trillion.
In contrast with Allianz it includes Non-Financial private assets, mostly House and Land at current values. Total wealth overall equals $US360 trillion.
Click here to view the Credit Suisse report as a PDF file.
Finally, Australian Households Total Net Wealth, including current house and land values (in AU dollars) is $AU 10 trillion, spread over 10 million households. An average net wealth of $AU 1 million per household, with the Australian Federal Government having a AAA credit rating worldwide.
From: chris Turner
Sent: Sunday, July 21, 2013 11:47 AM
steve
how would the us and uk gold reserves affect these figures?
chris
Click here for a history of the world's gold reserves by country over the past 170 years.
From: Stephen Williamson
Sent: Sunday, July 21, 2013 6:14 PM
Hi Chris
I didn't take account of it. The US records theirs as 8,000 tonnes at a book value of $35 an ounce, about $9 or $10 billion dollars, but that's very theoretical, its true market value may be closer to $350 billion if they were to exchange any of it. But still it's a lot less than $1 trillion.
It is more than any other one country, but apparently they haven't touched it for ages. So it's very minimal.
With regard to foreign exchange reserve assets held by all countries' central banks, it's a pretty small amount, a total of about **12 trillion dollars all up worldwide, 65% is now held simply in US dollar paper, 25% in euro paper, and the last 10% in that IMF animal which the Chinese like, a basket of currencies which the IMF call "special drawing rights" (and some UK pounds, Japanese yen, and a small amount in gold), yes, and other precious metals.
**A June 2014 report puts $US6.7 trillion as 57% of total reserves i.e. $US11.75 trillion
https://en.wikipedia.org/wiki/List of countries by foreign-exchange reserves
Some further thoughts.
Hmm, so ok, back in 1944, the UK didn't have much, but the US gold reserves and the Bretton Woods political agreement certainly gave the US government back then a massive leading edge:
Firstly in taking charge of winning the war, and
Secondly in assisting countries like Japan, South Korea, Germany, etc to recover.
And also helping Israel become a nation. Simply by printing the paper to underwrite the loans, and also in providing military help to help the governments rebuild their economies.
Of course it meant the US Govt was going massively into debt, from about $16 billion in 1930 to about $250 billion by 1950.
Mostly everyone else was happy to let them do it, though Mr Stalin in particular wasn't too pleased at the edge it gave the US politically. And numerous Islamic countries got very cranky, as Israel, as a political entity, didn't align with that worldview recorded in the Koran. Very emotionally upsetting for many of their leaders and preachers.
And a lot of US people weren't too pleased either, at how their generosity was being repaid, both in the press, and in numerous new wars. So, of course, since 1971, when the US decided to stop allowing foreign governments to exchange US paper dollar reserves any further at that cheap price of $35 an ounce, a price that was by then far, far too low from the market's point of view, yes, I think the rules have changed enormously.
So, to sum up, yes, gold reserves look good on paper, having a lot, back in 1971 when countries everywhere acknowledged that gold standard, (and were happy to make a profit at the US's expense), but according to that article above, it would indicate that gold holdings now have historical significance only.
Interestingly, it's been dropping heaps in price just recently (in 2013 from $US1700 to $US1200), there's a lot of worried people out there wanting to put their money somewhere else.
Blessings Steve
From: chris Turner
Sent: Monday, July 22, 2013 7:26 PM
Hi Steve
For thought...The 2 major governmental assets are 1/tax's and 2/ crown land. I am not sure if the nations books include these amount.(I think not ).more food for thought
Chris
From: Stephen Williamson
Sent: Monday, July 22, 2013 9:19 PM
Subject: Re: Where's all the money :-) and future tax income and crown land
Hi Chris
Yes you're right, neither are included, I did think about it a fair bit, but of course it's present day value could be argued about "ad infinitum" :-). And there's also all that physical infrastructure (buildings and land) and non-monetary assets that are owned outright by each country, collectively. But of course that generally ends up costing money. Part of our responsibilities before the Lord, hey :-)
But coming back to your point about the government, with the US government printing bonds as freely as they are at present, I thought they were useful figures, currently they've printed **$16 trillion in US bonds, and they're currently printing $85 billion in extra money every month, calling it "quantitative easing".
**$31-$35 trillion in 2023-2024
So I guess that's based on that potential future income.
From: chris Turner
Sent: Monday, July 22, 2013 9:31 PM
Hi Steve
Enjoyed this report.I am a believer in diligently knowing the state of your flocks as proverbs declares.I am also learning to improve my skills in sustainably managing debt and income.
Regards
Chris
From: Stephen Williamson
Sent: Monday, July 22, 2013 10:09 PM
Subject: Thanks bro
Appreciate the encouragement ;-) Steve
Stephen Williamson Computing Services Pty Ltd
www.swcs.com.au/aboutus.asp
** End of article