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The Ongoing International Banking Collapse
The recklessness and ruthless greed that led to the current ongoing banking collapse is just the culmination of iniquity that the parasitic banking system has been inflicting on the real economy over centuries, not just the last 20 years or so.
Here are some facts that you will not find in the media because hardly anyone knows them:
1. In the private bankers debt-based money system that we are made to use, 97% of money circulating was originally created as computer ledger entries by private commercial banks & building societies when we take out loans and mortgages. It has no tangible existence outside the banks interacting computer systems because we withdraw hardly any of it in the form of Government created cash. This system is replicated in very similar forms in virtually every developed country, the world over.
2. No borrowing in this system means no money. When the commercial banks lend “money” its NEW Number Money (existing as data only) they created the moment the amount appeared in the “borrower’s” account. No depositor is ever sent a letter saying their money is temporarily unavailable because its been lent to someone else. No-one else’s account was touched, reduced or affected. Meanwhile not one person in a hundred grasps the fact that our governments have all permitted private banks to create over 95 percent of our money supply bringing huge profits to them and endless debt to us. Obviously there will not be enough money to pay the interest as the interest has to come from the same source, (further money creation by private financial institutions with even more interest attached). So national and personal debt accelerates and the overall interest due also rises with time. This is the real reason why we are told the economy always has to grow. Present UK government debt mostly to the private banks is £0.5 Trillion, up from £90 Bn in 1980 and £26 Bn in 1960.
3. For government, taxing the people helps pay the interest bill and that is why overall taxation is always rising. Much of our taxes go straight into the pockets of the super-rich international bankers to pay the interest on the "money" (data) they have "lent" and created out of thin air.
4. Banks are allowed to create money OUT OF NOTHING at virtually NIL cost to them and charge all borrowing individuals, businesses and governments interest on it. This is because it only circulates as data between banks' computers and not as cash which they would have to pay the government for. This freely created intangible data "money" circulates when you get paid your salary by bank computer transfer or when you use your cards, direct debits, cheques, CHAPS payments etc. Look into "fractional reserve banking". Read the UK & US books "Grip of Death- A study of Modern Money, Debt Slavery & Destructive Economics" by Michael Rowbotham, (UK) OR "Web of debt- The Shocking Truth about our Money System & How We Can Break Free", by Ellen Brown (US).
Google "electronic money creation", "webofdebt", "prosperityUK", “Monetary Reform”.
I know its hard to get your mind round when none of our corporate media talks about it, hardly any MPs know about it and it goes against everything you've assumed or been taught. 99.99% of people assume that banks & building societies lend out money that their other customers have deposited, or that they've borrowed it from the Central Bank, (BoE in UK). We demand of our governments fair money systems. Money creation must be taken out of the hands of the money masters and into the hands of the people, "where it properly belongs." (Abraham Lincoln).
If you don't believe me & you don't want to bother researching the sources I have quoted then:
For a succinct explanation visit http://wwx.basicincome.con/basic_banks.htm
AND To watch an impressive explanatory FILM, (needs headphones):
visit http://wwx.youtube.con/watch?v=cy-fD78zyvI
OR Google "Money as Debt" to watch another 50 minute animated film.
Then Act.
Here are some facts that you will not find in the media because hardly anyone knows them:
1. In the private bankers debt-based money system that we are made to use, 97% of money circulating was originally created as computer ledger entries by private commercial banks & building societies when we take out loans and mortgages. It has no tangible existence outside the banks interacting computer systems because we withdraw hardly any of it in the form of Government created cash. This system is replicated in very similar forms in virtually every developed country, the world over.
2. No borrowing in this system means no money. When the commercial banks lend “money” its NEW Number Money (existing as data only) they created the moment the amount appeared in the “borrower’s” account. No depositor is ever sent a letter saying their money is temporarily unavailable because its been lent to someone else. No-one else’s account was touched, reduced or affected. Meanwhile not one person in a hundred grasps the fact that our governments have all permitted private banks to create over 95 percent of our money supply bringing huge profits to them and endless debt to us. Obviously there will not be enough money to pay the interest as the interest has to come from the same source, (further money creation by private financial institutions with even more interest attached). So national and personal debt accelerates and the overall interest due also rises with time. This is the real reason why we are told the economy always has to grow. Present UK government debt mostly to the private banks is £0.5 Trillion, up from £90 Bn in 1980 and £26 Bn in 1960.
3. For government, taxing the people helps pay the interest bill and that is why overall taxation is always rising. Much of our taxes go straight into the pockets of the super-rich international bankers to pay the interest on the "money" (data) they have "lent" and created out of thin air.
4. Banks are allowed to create money OUT OF NOTHING at virtually NIL cost to them and charge all borrowing individuals, businesses and governments interest on it. This is because it only circulates as data between banks' computers and not as cash which they would have to pay the government for. This freely created intangible data "money" circulates when you get paid your salary by bank computer transfer or when you use your cards, direct debits, cheques, CHAPS payments etc. Look into "fractional reserve banking". Read the UK & US books "Grip of Death- A study of Modern Money, Debt Slavery & Destructive Economics" by Michael Rowbotham, (UK) OR "Web of debt- The Shocking Truth about our Money System & How We Can Break Free", by Ellen Brown (US).
Google "electronic money creation", "webofdebt", "prosperityUK", “Monetary Reform”.
I know its hard to get your mind round when none of our corporate media talks about it, hardly any MPs know about it and it goes against everything you've assumed or been taught. 99.99% of people assume that banks & building societies lend out money that their other customers have deposited, or that they've borrowed it from the Central Bank, (BoE in UK). We demand of our governments fair money systems. Money creation must be taken out of the hands of the money masters and into the hands of the people, "where it properly belongs." (Abraham Lincoln).
If you don't believe me & you don't want to bother researching the sources I have quoted then:
For a succinct explanation visit http://wwx.basicincome.con/basic_banks.htm
AND To watch an impressive explanatory FILM, (needs headphones):
visit http://wwx.youtube.con/watch?v=cy-fD78zyvI
OR Google "Money as Debt" to watch another 50 minute animated film.
Then Act.
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Comments
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Tony,
Er, so what is the alternative? Barter?0 -
If you create money through debt you have to expect the top of the curve to loom up on you sometime. Sadly the top of the curve is now and there the only way is down for a while.
I think the only way forward is to vote communist and then emigrate.
I jest but there is no quick fix here.I am a former Broker, former IFA and former compliance officer, for my sins.
However, I have since seen the light.0 -
If you create money through debt you have to expect the top of the curve to loom up on you sometime. Sadly the top of the curve is now and there the only way is down for a while.
I think the only way forward is to vote communist and then emigrate.
I jest but there is no quick fix here.
Of course corruption and abuse of power was unheard of in communist run economies
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Tony,
Er, so what is the alternative? Barter?
So is it OK for a private group of people to take a % of everybody's wealth just for printing bits of paper that are backed by [strike]gold silver[/strike].. nothing. Bankers have become very very powerful over the decades even centuries. They have forced changes that allowed the fractional reserve banking system to create money from nothing,based on their assets by a factor of at least 10. Therefore this example can show their wealth growth:- A deposit of £100,000 will pay say 5% interest, banks will then lend this at say 7%, £2,000 profit. BUT banks will also create £900,000 to lend again at 7%, £63,000 profit. So from every £100,000 deposited at a bank, the bank can make £65,000 profit per year. Also there is £900,000 of created money that is being paid by from the value of real labour.
Below is an extract from a speech made in the House of Lords 1997.
All that new money bears interest paid either by us as individuals, by companies or by the Government. Today the Government pay over £30 billion annually in interest charges -- coincidentally about the same as the total money supply only 25 years ago. Governments since then have abdicated their responsibility for producing new money and controlling the money supply so that now they are marginalised. In 1971 government notes and coins accounted for 14 per cent of the money supply. Now it is only about 3.5 per cent.
AN ALTERNATIVE -- PHASING OUT THE NATIONAL DEBT
"If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good." Thomas Edison, The New York Times, December 6, 1921.
- Government could stop borrowing money at interest, and start creating it itself by spending it -- debt free -- into the economy on public projects and services, at the same time creating jobs and stimulating the economy.
- It already does this to a limited extent -- the amount it receives from banks when it sells cash to them is added to the public purse and is available for spending on public services and projects.
- For a start we could, at least, fund the interest payments on the National Debt by government created debt-free money, instead of by taxation -- as advocated by James Gibb Stuart in his book The Money Bomb
One note on this is that there is an Islamic banking system that prohibits the charging of a usury(interest). So maybe the wars in the middle east which are fuelling national debt have an added bonus that after stealing oil and earning billions from governments the banking system a rival Islamic system vilified and alienated.
There are alternatives, more people need to learnt this. Otherwise the "business cycle" of boom and bust punctuated by wars will always continue.main stream media is a propaganda machine for the establishment.0 -
Of course if this were true then banks would not need to lend to each other and the "credit crunch" would never have happened.........0
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worldwheeler, the result of the government spending that you advocate is inflation, a tax on all of us that reduces the value of our incomes by the inflation rate.
You're after a free lunch. That comes from increased productivity due to technology over time, not from people and governments spending money that they don't have.
You might also remember that most of the population owns the banks and gets a cut of their profits, via their pension plans and other investments. It's not evil bankers making the profits, it's us. And it's also us losing money when they go bankrupt.0 -
You might also remember that most of the population owns the banks and gets a cut of their profits, via their pension plans and other investments. It's not evil bankers making the profits, it's us. And it's also us losing money when they go bankrupt.
Quite right, but also an inconvenient truth that doesn't sit well with the nay-sayers.0 -
Of course if this were true then banks would not need to lend to each other and the "credit crunch" would never have happened.........
The fractional reserve banking system is exactly why there is a credit crunch. The system of unfettered credit produced massive inflation in the housing market over ten years. To sustain this borrowing banks inevitably end up lending to people who can not repay(sub prime). Disguising this these loans were packeted in a "financial tool" and sold on creating a hyper-bubble in the housing market. Again at sometime, just with a pyramid scheme, there is default and the whole system crumbles. The banks knew that if society has that much reliance on them that at the end they stood little chance of losing as governments (tax money) would bail them out. Even if they did they had years of £billion profits.
If governments control the money supply it uses then the tax payer would be relieved from massive amounts of interest it has to pay and if the governments got it wrong and inflation ensued then they would be voted out. Bankers are not elected or accountable to anyone.main stream media is a propaganda machine for the establishment.0 -
Inflation doesn't come from governments getting anything wrong. It comes about as the natural and normal consequence of adding more money than justified by economic growth. That's why there's a target for inflation in the UK that is about the same as the long term UK growth rate.
The banks haven't survived. We've seen several huge failures of the banks engaged in securitised mortgage lending.
There were two flaws in the securitised mortgage lending market: the originators (who make the loans to consumers) could sell all of their risk, so they had minimal incentive to engage in prudent lending. And the debt rating agencies got the risk level of these packaged loans wrong. The two combined to create a situation where it was possible to see large defaults. Add in increased interest rates to push some decline in property prices and the result was an large increase in defaults.
The short term profits are a problem for bonus systems, since they make it possible to collect bonuses for years then depart before the costs are paid.0 -
Inflation doesn't come from governments getting anything wrong. It comes about as the natural and normal consequence of adding more money than justified by economic growth. That's why there's a target for inflation in the UK that is about the same as the long term UK growth rate.
The banks haven't survived. We've seen several huge failures of the banks engaged in securitised mortgage lending.
There were two flaws in the securitised mortgage lending market: the originators (who make the loans to consumers) could sell all of their risk, so they had minimal incentive to engage in prudent lending. And the debt rating agencies got the risk level of these packaged loans wrong. The two combined to create a situation where it was possible to see large defaults. Add in increased interest rates to push some decline in property prices and the result was an large increase in defaults.
The short term profits are a problem for bonus systems, since they make it possible to collect bonuses for years then depart before the costs are paid.
An excellent post. The intelligent/dumb balance has now been restored :T0
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