Banking on cash

Learn about money: Ilampirai (left) with his Tamil translation work 'Panamaaga Maarum Kadan' of Paul Grignon's documentary 'Money as Debt' with S. Kamala Kannan, President of Cinema Club of Coimbatore. Photo:M.Periasamy.   | Photo Credit: M_PERIASAMY


Ilampirai’s book ‘Panamaaga Maarum Kadan’ gives a frightening account of what debt can do to the economy

How did the Americans solve the subprime mortgage crisis, and the subsequent recession of 2008? They introduced NINJA loans for people who had no income, no job and no assets. “Ultimately, the banks recovered their money but the people were on the streets stripped off their collaterals,” explains Ilampirai, author of Panamaaga Maarum Kadan, a Tamil translation of Paul Grignon’s documentary Money as Debt.

Cinema Club of Coimbatore released the book and kick started a discussion on the economy.

“We always initiate a discussion on contemporary issues. With the falling rupee, inflation, and poor GDP, we thought it’s time we created awareness on money, the banking system and how it drives the economy,” says S. Kamala Kannan, president of the club. He believes such discussions and debates pave the way for change.

Money as Debt, a three-part 150-minute documentary series on money and banking systems, discusses the history of money and how the current banking system (which is fraudulent) evolved.

Kamala Kannan says the book is an answer to questions such as ‘Is gold used as money?’ ‘Does the Federal Reserve System print and control the currencies?’ ‘Why the dollar affects the Indian rupee?’

“During the 2008 recession, the American government bailed out top five banks including J.P. Morgan and Goldman Sachs. The banks recovered but people suffered. The same model is replicated here. The downfall of the rupee is just the beginning of a looming economic crisis that awaits us,” he warns.

Decoding economy

Ilampirai started work on the book while doing his post graduation at the Madras School of Economics. It took him two years to decode the grammar of economy into simple terms. “We want to take it to schools and colleges across Tamil Nadu and also explore options such as audio books, and a documentary from the Indian perspective too for a better reach,” says the UPSC aspirant. He is also set to pursue his PhD in Monetary Economics in Jawaharlal Nehru University, Delhi.

The author says globally, only five percent of the money is physical cash while the remaining 95 per cent is debts, created by banks without any backup. “Most banks are empty-handed. They create money out of thin air based on an exchange of promises. They have the power to make virtual cash. We swipe the cards, and then sweat it out and repay as cash. Our earnings become physical cash. The system sustains based on this. Once, we stop working the boom will burst. It’s a gamble that connects earnings of people, the economy and in turn the society,” he says.

He suggests money should be driven by value and not as a commodity so that there is no room for fluctuation, internationally.

Indian examples

In the original work, the author explains the process of how banks, for example, with reserves of as little as Rs.2 crores lend money to the tune of Rs.9 crores. Ilampirai explains this with examples of Indian banks.

“The banking system started rolling with the Bank of England, and then it was replicated by bankers in the U.S., and later in Asia and Africa. It sustains because people work and generate cash. The system of creating money is fraudulent. And, there is no backup value for currency. Every common man should be aware of this. That is when it becomes people’s economy.”

The book published by Mugam Publications will be available at book stores in Tamil Nadu.

For copies, call Prasanna at 91590-33939.

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Printable version | Feb 24, 2017 9:02:29 PM |