In our current new era of cryptocurrency, built on the blockchain, we are becoming more familiar with the concept of digital money, beyond paper notes and coins. However, most money today is already digital, just like that used via Visa or debit card. It’s numbers in a computer which we use to run the economy. Here in part two I want to show further how fraudulent the current monetary system is, and how this is the biggest global crime and actual tool of enslavement wielded by a small group of elite banking families and their staff, some of whom are unaware themselves of what their masters are actually up to.
The illusion
Most people think that the government or its central bank issues the new money into circulation but that’s not the case. It’s private banks that create the vast majority of new money in circulation. And also decide how it is allocated. The official terminology for this accounting entry is “commercial bank money”. So when banks issue loans to the public, they create new commercial bank money. When a customer repays a loan, commercial bank money is destroyed. The banks then keep the interest as profit.
There are a lot of misconceptions about the way banks work. A poll by the Cobden Centre in the UK about a decade ago found that 30% of people think that when you put your money into a bank, it just stays there and is safe. This is how we were taught as children with our piggy bank. Another 60% assume that when you put your money in, that money is being moved across to someone who wants to borrow it. But banks don’t work like that either.
“It’s basically an accounting trick...Banks create money. They don’t lend it...when a bank gives out what is called a loan, it basically pretends that you have deposited the money...it has to invent the liability...this is how the money supply is created.” Prof Richard Werner
The illusionists
Today in the UK for example, as well as other developed countries, money creation and control is largely in the hands of private banks. About 97% of money that’s created is created as bank “debt money” you might call it, where banks issue money into circulation as loans. It’s not a conspiracy theory, it’s the way the Bank of England describes the process.
“When banks make loans they ‘create’ additional deposits for those that have borrowed the money.”
Paul Tucker, Deputy Governor Bank of England (BOE quarterly bulletin 2007 Q3 vol 47 no 3)
Most economists realize how money works but if you don’t and think that everybody saving will help the economy, you’re wrong because what really happens if we all start saving is that the amount of money in the economy shrinks and we have a recession. And money is the very center of the economy. If you don’t understand where it comes from, who creates it and how, then you will never understand the entire economy.
How massive is the illusion?
Creating electronic money is much more profitable than creating cash because there is no production cost at all. Now while the UK Treasury may have created 18 billion British Pounds over a decade, the banks themselves have actually created 1.2 trillion Pounds. In this way between 1998 and 2007 the UK money supply tripled.
On 9 March 2009, the Federal Reserve governor, Ben Bernanke gave the first broadcast interview ever for someone in his position. The day before that he had bailed out AIG for $160 billion, which is an insurance company, not even a bank. This is during the last global recession. So when the journalist interviewing Bernanke asked him where he got the $160 billion he said
“It’s not taxpayer’s money. The banks have accounts with the Fed..so to lend to the bank we simply use the computer to mark up the size of the account they have with the Fed. So it is much more akin, though not exactly the same, to printing money than it is to borrowing.”
Banks in other words simply create new money whenever they extend credit, buy existing assets, or make payments on their own account, which mostly involves expanding their assets. When you try to explain how money works, there is often an almost built-in refusal to accept that such a bizarre situation could actually exist. Banks create money out of thin air...?
By 2008 the outstanding loan portfolio of bank created credit, aka commercial bank money, stood at 2 trillion UK Pounds. Back in 1982 the ratio of notes and coins to bank deposits was 1:12. By 2010 it was 1:37. In other words there was 1 Pound of physical currency (government treasury money) for every 37 Pounds of digital currency (bank created money).
In the 10 years prior to the 2007 crisis, the UK commercial bank money supply expanded by between 7% to 10% every year. This means doubling the money supply every 10 years. The amount of money being created out of nothing is just incredible. And this, dear reader is the real crime, the crux of the matter. This is why prices go up. It’s because your money’s value goes down as banks create more of it out of nothing.
Conclusion
The banks are stealing your ability to buy food and essentials like this, they are making you poorer. And the new money they create is being distributed according to how the bankers see fit, not the government or any humanitarian agency or anyone in society. We are being systematically robbed of purchasing power daily as banks continue their fraudulent, immoral and – in my mind – criminal system throughout the world.
Unless we end this banking system, we will never ever escape the inflation eating away at our personal wealth, our hard earned money. We will never end debt and the slavery it imposes on us. The debt can never be repaid using this system of creating more of it every time imaginary money is created. There will always be more debt then money. It’s time for us all to become aware of what is going on in the world of money, of what the system actually is into which we are born.
We take for granted the financial shackles with which we are born, and think it is normal. Well it isn’t, and it’s up to us, the masses, to take back our power from the global banking elite slave masters. How long will you continue to live in debt, and hand an ever increasing debt to your children. The national debt, the global debt shared by each country, is the yoke imposed upon us by the criminal elite bankers and I will no longer suffer these fools gladly. Who has the courage to join me? Give up using banks, boycott the banks, use cryptocurrency instead. The revolution has already begun.
