Whitstable Politics: Money Reform

24 June 2009

One of the unfortunate side-effects of the current scandal over MPs expenses is that it seems to have taken people’s minds off that other group of perennial fiddlers, the banks.

The difference is, of course, that whereas MPs expenses amount to thousands of pounds, bankers bonus’ are measured in the millions. And whereas MP’s perks consist of such day-to-day items as floating duck islands and cleaner moats, the ultimate outcome of the present banking system is nothing less than total domination of the whole world by a few powerful institutions.

Everywhere you go you see the same thing. In the middle of every major city, in every country, there are huge buildings of glass and steel which tower above the city landscape like imperious statements of wealth and power. Invariably these buildings are banks.

How did the banks grow so big and come to dominate our world?

How come we have let them?

The process is insidious. Most money in existence does not consist of the notes and coins we carry about in our pockets, but is in the form of debt to banks. The banks create this money out of thin air. This is the simple and startling fact. The money we owe did not exist until the moment we signed the contract to pay it back.

Money as debt

This is known as Fractional Reserve Banking. Banks do not only lend out money deposited with them by savers, but are legally entitled to lend out many, many times this figure.

Thus banks create money. They create money as debt. They create money as debt and then charge interest on it. Thus our money is already devalued even at the moment it is created, since the amount lent out is always less than the amount which has to be paid back.

This is the cause of inflation and it forces us to borrow even more money to cover the difference. Thus there can never be enough money in the entire world to pay off all the debts owed to the banks, and the banks will, in the end, own everything.

And here’s you worrying about MP’s floating duck islands.

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Comments 7 comments

Bard of Ely profile image

Bard of Ely 7 years ago from Lisbon, Portugal

Excellent hub and the whole matter explained in simple terms! The world is run by the banking families.

Whitstable Views profile image

Whitstable Views 7 years ago from Whitstable, UK Author

Hi Steve, check out the link to the Money Reform Party. It's very interesting.

JamaGenee profile image

JamaGenee 7 years ago from Central Oklahoma

Money out of thin air. Yes! That's what banks do. Unforunately, when you and I do it, it's called an overdraft...and we have to pay a fee to the bank too. They've really got us coming and going, don't they?

LondonGirl profile image

LondonGirl 7 years ago from London

I think part of the current problem is that absolutely no-one actually understands what is happening, it's got too complicated

Amanda Severn profile image

Amanda Severn 7 years ago from UK

Chris, this is a short and sweet version of CWB's hub on usury. I like it! It's a great conjuring trick this, money from thin air. If we all shook off the shackles of debt, do you think the banks might implode? The banks certainly have a lot to answer for.

Whitstable Views profile image

Whitstable Views 7 years ago from Whitstable, UK Author

Amanda, the reason why the story is so short is that it's based upon my Whitstable Gazette column: exactly 350 words long, no more, no less. It's an art in itself to be able to say anything in that number of words. Glad you think I managed it.

LG, no it's not at all complicated. The complexities are there to cover up the simple fraud that is going on: banks create money out of thin air and then charge us interest on it. It's the process by which banks (and bankers) grow immensely rich at the expense of the world economy as a whole.

Hi JamaGenee, yes, they've got us both ways on this. But the big question is, why do we let them them do it?

Premium Finance 7 years ago

great explanation of how banks create money out of thin air. thumbs up on su!!

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