do YOU know what money IS(N’T)? [Updated 06/02/2009]
WARNING: Do not carry on reading if you are happy and comfortable with your present understanding of what money REALLY is(n’t).
If you haven’t come across what money is and how its created before, this will completely change the way you see the world when you fully comprehend what is happening and what in fact, has been happening for a very long time.
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“The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it (p15). The process by which banks create money is so simple that the mind is repelled.” – John Kenneth Galbraith, Money: Whence it came, where it went – 1975, p29. Link: WikiQuote
Considering how “important” money is to our everyday lives, have you ever wondered why we are not taught anything, other than how to count it in school? How many people do YOU know that are aware of how exactly “money” is created? Who decided that we don’t need to be taught? Why is the subject of the “creation of money” never in the media? Pretty important questions eh!
… have you ever wondered … ??
HOW PRIVATE, COMMERCIAL, NATIONAL and INTERNATIONAL MONEY is CREATED
abridged from the works of Michael Rowbotham
The financial system currently adopted by all nations is often described as “debt based”, since the process of going into debt is relied upon almost exclusively to create and supply money to their economies. By the action of lending to borrowers, commercial banks create credit and advance this to industry, consumers and governments. This “bank credit” circulates in the broader economy until such time as the loan is repaid. Such “bank credit” now forms 96% of the money stock in most industrial nations, with a mere 4% the notes and coins created by government, and free from a parallel debt.
Thus, almost the entire money stock is supported in circulation by vast debts in four main sectors….
- Private debts eg. mortgages, loans, overdrafts, credit-purchases
- Industrial and commercial debts
- Government “national” debts
- International, including Third World debt
The supply of money is a direct product of borrowing, and debt maintains this money in circulation. Modern debt is, in aggregate, quite unrepayable. Furthermore, difficulty is experienced in the repayment of individual debts in all four sectors.
The Drive Behind Globalisation, 1998, pp 3-4.
How does it feel losing your home because you haven’t paid back something that doesn’t exist and never did, an illusion, or to give it it’s proper title “accounting” .
Its an illusion to us, but a deception by *********** (you fill in the blank), and that deception causes massive unnecessary suffering worldwide. All those times we’ve heard the politicians say “there’s no money for this” and “there’s no money for that” and we believed them … WHAT BLOODY IGNORANT FOOLS WE HAVE BEEN.
Parliamentary discussions regarding the Gold Standard:
Gold Standard Act 1925 – Hansard
In 1931 England left the Gold Standard because Parliament were worried about so much gold leaving the country. The consequence was (and is) that it left us with NOTHING OF WORTH backing our money.
Behind that piece of paper there used to be gold. But gold is no longer there, and to-day there is behind that piece of paper, other pieces of paper, namely Government securities, and the Bank of England holds those Government securities as a security for our currency notes. Link: Hansard
Once you could take a ten pound note to a bank and exchange it for £10 worth of gold (something of value). After leaving the gold standard there was (and again, is) nothing of value backing our money, no gold, no silver, no tin, no potatoes … nothing. The only thing you can exchange a £10 note for now is smaller monies that equal £10 or a damaged £10 for a new one.
We really must get out of our heads the idea that money is a reality in any sense of the word. It is purely a calculation, and this calculation will have to be made very quickly and very often in the course of the next few weeks. Link: Hansard
Banks lend by creating credit. They create the means of payment, out of nothing. – Ralph M. Hawtery (Former Secretary of the British Treasury). Link: WikiQuote
So what happens when you go to a bank and ask for a loan? Do they lend you THEIR money? Nope.
There are, therefore, profits in the Bank of England note issue, and there are certainly further profits for commercial banks in lending money which they have not got, in making an entry in their books crediting a borrower with the amount of the loan and proceeding to charge him interest on it. I wish I could lend money I have not got, but they will not let me do it, and if I tried to do it I should be prosecuted either as a forger or as a coiner—I do not know which, but I should certainly be prosecuted. This is a very profitable business for the people concerned. Link: Hansard
Your signature on a loan application (contract) is in effect your approval for the bank to create currency as if by magic …out of nothing … phffft …just like that. I bet you have to work a bit harder to pay it back than they did to create it eh!
Thus the commercial bank, to the extent that it has less notes, demonetised under this Bill, is able to create its own form of currency, which is loans, which are advantageous to itself and profitable to itself because the paper which it creates out of nothing bears interest. It has substituted £1 or 10s. notes, on which it had to pay interest to the Bank of England, with bills, commercial or Treasury, on which it charges interest, and it has done that without in any way upsetting its safety ratio, being the conventional fraction of which I spoke just now. Link: Hansard
And what if you CAN’T pay it back? Well, you’re in (very serious — they say) trouble aren’t you.
What happens when you spend your “money”?
Could it be that it filters it’s way back to the bank(er)s. Think about it.
So life goes on, based on a non existent currency and everything’s hunky dory. We create the currency, it filters through our everyday lives, then up to the bank(er)s.
… but, if it’s non existent and we manage to get along OK(ish) thinking that it exists, do we really need to keep this idea going? It’s our THINKING that it exists, that keeps our everyday lives going, NOT the fact that money is worth anything.
That being the case, we can get along quite nicely, or in reality even better, without the use of money as we understand it now … WE ALREADY ARE because it’s NOT as we understand it now!!!!
WE, OR RATHER YOU IF YOU IF YOU DIDN’T ALREADY KNOW, JUST NEED TO REALISE IT … and talk about it with others that don’t already know.
Money Myths – Exposing The Truth About Money Creation * Highly recommended video cast series.
Financial Services (Regulation of Deposits and Lending) Bill 2010-11:
Douglas Carswell describes how BANKS LEGALLY OWN YOUR MONEY ONCE IT’S LEFT IN THEIR CARE and, use it to create money OUT OF THIN AIR! More: Money Out of Thin Air – Another “Official” Source
Money As Debt:
Edge TV interviews Mark Cocking (Fellow of the Institute of Bankers) and Dominic Frisby (Money Week, Commodity Watch Radio):
English Banking 1550 – 2009 – Part 1:
Continued here … English Banking 1550 – 2009
A Passage To Freedom:
Link: A Passage to Freedom
Here is a little something for you to ponder over: