For many years I have been at least somewhat familiar with how the actual banking industry works. This includes banking relationships with the Federal Reserve, and both relationships to Congress, the Comptroller of the Currency, and organizations such as the World Bank and Intl. Monetary Fund. Banks in the US, and most places in the world, run on a Fractional Reserve System. It is the dominant system. This changes the basic nature of WHAT currency IS. A banker holds a million dollars in the vault, but can legally loan out up to, say, twenty million. Currency becomes fiat, it is backed by nothing but hope. Now, I used to think utilitarian on this idea…whatever makes the economy flourish best sounds good, I’d say. And everything seemed fine.
Things have changed today. Banks have been, and are being revealed as decks of cards on a windy day with a storm approaching. Not good. Essentially, money is EXCHANGE. It makes trade simple, thus promoting trade, and prosperity. But when money itself can be created through fiat currency creation, government monetization of debt, and fractional reserve centralized banking, it becomes itself OUT- EXCHANGE. Faith in credit becomes bliss in tinker-tom-foolery. Money makes debt, which makes still more debt, which creates even more debt on top of it.
It is logic upsided, Alice, through the looking-glass, Dorothy, roaming Oz.
Boobus Domesticus wanders the earth unawoken by this disaster in the making. Borrow, borrow, borrow. Bubble, bubble, bubble. The current US economy is in much worse shape than high finance wants you to know. They still want you spending and borrowing. Not only is social security a Ponzi scheme. The entire world banking system is a Ponzi Scheme. The average US citizen, owing 10,000 dollars in NON MORTGAGE consumer debt, say on, credit cards, consumer loans, lawnmowers, snow-machines, motorcycles, appliances, vacations, ect…is an unwitting participant. Banks essentially do not LOAN money, they create money from debt out of previous debt on money. This is the very definition of unsustainable. In this system, if there was NO DEBT, there would be NO money. This is an alarming idea.
If you are in debt, pay it. If there is no money per a future crisis, what can you give to pay your debt? Your time. How can you pay back your time? By working to pay the eternal interest on your existing debt. This is known as forced labor, or slavery. Slaves do not just appear, a slave is created by going into some (even limited) form of agreement with his master (s). If you are not sure who your masters are, ask your lender who holds the loan on your house or car or other. Then ask or find out who holds that loan. How does one break a bond to a master one cannot identify? Who benefits from a system like this? The slave? Nope, the Masters benefit. Wake up, before it’s too late.
In a Republic, banking is private, conditions are buyer beware, and the pillars of which all money rests are production, transparency, and integrity. Like God, banking is dead. The Hail Mary (full o’ grace) pass ended out in the bleachers.