Whats wrong with our banks – how we can fix banks?

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The UK is envied the world over for its Financial Banking Industry, a model sector that many try to emulate. To think that all might not be rosy in its garden was once unimaginable. But times now are very different - compared to the past, when Banks were respected and revered. The world of Finance has changed greatly.

In recent times, since the banking troubles began, a number of British banks had to be bailed out by the UK Govt to “save” them, costing the taxpayers hundreds of billions of pounds. Some were allowed to fail. So many pundits have already asked why and how it happened, and it has been debated ad nauseam. Things that threaten human life are mostly designed by nature. Earthquakes, landslides, Tsunamis, and meteor strikes. The financial crash was man made and caused by wild uncontrolled speculation, sub prime lending , and on complicated abstract financial deals called Derivatives and Credit Default Swaps which are traded and exchanged on no open markets, but secret murky grey markets where rules don’t normally apply, regulation is too relaxed or non-existent - and the Banks decide how much gravity need apply (if at all) to this semii-artificial world of speculation. It is as far removed from reality as sci-fi can get, but its set very much in reality. Just as the crash, the lay offs, the closures, the job losses and the evictions and Human Cost have painfully proved.

Father Ted from the hit Comedy series...
Father Ted from the hit Comedy series...

What needs to change in Banking to get it working again? Is another dip in the World’s financial fortunes about to occur? Are Governments willing to go far enough to make the real changes or will Government as usual take nearly forever to change the systemic problems in Banking? And risk another financial catastrophe happening? Can the World Survive another Financial Hit?

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By the second half of 2010, the UK government printed approximately £200 million of brand new money and gave it straight to the Banks. Despite it being supposedly intended for businesses, it was used to speculate on the markets and keep banks earning money.

What is needed to change Banking is All New Rules and New Immutable Boundaries for Banks. Immutable as in – no going beyond them. The Markets are showing signs of a possible dip downwards in Bank Shares again, and some of the money given to Banks has been lost and cannot be recovered. To many – the Banks who gambled against the market and lost are being seen as a bad Bet themselves. Business Banks are running scared. Banking services have taken a serious credibility hit. To most observers, Banking has become a nightmarish World where financial reason and logic have all but vanished.

Private Banking has been busily paying itself handsomely in the good times and since things got bad. They still give themselves High Bonuses, and Banks still get more State Aid from the new UK Coalition Government than any other business or industry. But why? And do they deserve it?

The Top 10 Banks in the UK are gambling with £1.1 Trillion – this is eye-popping quantities of money that they simply do not have. Finance is seen as supposedly the “Goose” that lays the “Golden Eggs”. Banks defend themselves by claiming they are crucial to the Economy. So are they? Well, they gave £193 Billion in taxes in the 6 years to 2008, although Manufacturing and Industry contributed £378 Billion to the economy. So Banks don’t deserve special status surely. In fact their net contribution in taxes in the UK is Negative.

How have Banks helped the Economy itself by lending? Surprisingly Banks only gave British Manufacturing a paltry 3% in Finance. So no eBook readers or iPods or Mp3 Players or Googles were ever born as a result of Benevolent Bankers. No massive life-saving inventions or equipment was ever created with Banking assistance. No Cancer cures or treatments have resulted from the Massive Bank Profits made each year. No utilities – no roads – no hospitals or schools. No water treatment facilities or sewage systems or bridges. The Banks are knee-deep in money, but for WHAT?

John Hurt on a table in the film "ALIEN" with the alien wrapped on his face. Removing it will kill him, yet it keeps him alive. His life depends on it. This is a good analogy for Banks as Predators and their manic need to survive at all cost.
John Hurt on a table in the film "ALIEN" with the alien wrapped on his face. Removing it will kill him, yet it keeps him alive. His life depends on it. This is a good analogy for Banks as Predators and their manic need to survive at all cost.

It transpires that 75% of Bank finance was shelled out as Mortgages. So Banks were Massively leaning in favour of Property and Housing. In effect, Banks have not given out money for any productive purpose except paying themselves – not the economy. What about employing people? All businesses grow and so employ ever more staff. In 1991 UK Banking employed 1 million people. In 2008, it was amazingly still level at 1 million staff. Banks it seems don’t invest in or support Business or Services, and so they are not an exceptional case when it comes to the Government giving them more than anyone else. Remember that Banks are still largely Not Lending Money. If in bad and difficult times the Banks do not lend to Businesses, this borderline Anti-Capital Behaviour is almost High Street Piracy. So how and why is it continuing?

Many Economists see Business as the Choice Target that should be Protected and Not Banks. At a time when Entrepreneurs and Industry Innovators need Investors to develop ideas and products – the Banks turn away and refuse them business.

The banks are not Helpers of the Large Economy. They build and make nothing, just profits. The Banks are clearly only out for themselves and care nothing for the economy. So they should not be seen as ever being “the Economy”. They hold Government to ransom by threatening to put their business offshore in other countries. The Banks are acting like Fire-fighters who arrive to put the fire out but refuse to turn on the hoses and water taps, and this is wholesale home-grown financial Terrorism in another form.

They are truly playing with Fire. Banks act like flies that live off everything, but in themselves - they buzz around and serve no purpose other than benefit their own existence and propagate their own species. Banks only invest in other Banks. Banks once used to eschew Capitalism and hold it up as the Ultimate Aim of All Developed Societies. Now, banks have ruined the concept of Capitalism, and shat on it from a height.

Just as American Banking tends to coyly rule with an invisible hand in Governance circles – thanks to vested interests – like Goldman Sachs Top employees winning Top Government jobs (Hank Paulsen, Geithner, etc – all former Heads of that self-same one Financial business... Goldman Sachs) – leaving observers to jokingly refer to Government in America as “Government Goldman” – the UK has its own cosy club of Bankers and politicians who band together and dictate policy. Banks not only buy shares in Banks, the UK Government buys shares in Banks too, so become endowed and dependent on them to be successful and profitable. (The UK Government invests in Tobacco Companies and yet also regulates the Cigarette Industry and health Warnings on packets of Cancerous Cigarettes – in true double standard fashion.) We call this being Poacher and Game-Keeper. An obvious contradiction in terms and perhaps an Impossibility. Like banks, the Government wants it both ways. Government officially are required to stay away from Banking and does not compete in their Banking Business.

Bank of Dave, how a businessman started his own bank

"...I never had any desire to be a banker. My company sells minibuses and I have a lot of very good customers who I've known for a long time. Once the credit crunch hit in 2008, these people couldn't get a loan from the banks they had been with for years and therefore couldn't afford to get a new minibus. That threatened to be a very big problem for my business..."

Read here how a business man from Burnley in the Uk set up his own bank from nothing, and how Channel 4 TV filmed his every step, and with surprising results.

And the media play their part too. In the UK they are very accommodating to the main Political Agenda, seldom speaking out against the Stupidity of the Financial positions taken. People who talk out against the “System” are shouted down and branded as Cranks. Secretly Banks tell buyers of Houses and Properties not to disclose their Financial Debts, just as they did during the past years when the money was rolling in. And the World bought it. Right up to the point where it all went wrong.

Apparently it is okay for Banks to invest in Mortgages and Derivatives and Credit Default Swaps, but not invest in Enterprise and Industry, thus retarding the shape the country has been taking, turning the country into a drug dependent  slave for their cash, the heroin in the equation. Massive complacency and relaxation of the rules (from the Government) ensured that Banks had God-like near invincibility, until the crash came. And then there is the peculiar case of that embarrassing Bischoff Report and the curious cosy relationship between the City of London Corporation and Banks in Britain. The Bischoff Report looked into Banking to see what changes needed to be made to make it work better, some years ago, and it decided that nothing should change, all before the Crash came. The Report threw standards and precautions out the window. Derivatives were allowed to be traded with virtually no rules or conditions in place. As long as banks paid their taxes, all was well. 2009 saw Bischoff change his tune, but by then the damage was done.

The Report was “helped” by the input of a mix of Banking officials and politicians. The City of London Corporation’s status is almost like the way the Vatican works in Rome, a State within a State in Britain’s capital. This square mile consists of the single Biggest Lobby organisation that constantly works in Favour of the Banks and everything they want. And they usually get it.

The City of London is the Biggest Advocate of Banking UK Plc. Even the Lord Mayor Boris Johnston has a special Diplomatic passport to promote Finance / banking for them. It grew up and matured during the last 800 years in the UK, and this Insider Group represents Banking at all levels. Former Member of Parliament Ruth Kelly now works for the bank HSBC, and there are Bankers from Britain’s biggest banks (such as Lloyds) that now serve in the Regulators Area or the Central Bank. There is In-breeding between these two Entities - Government and Banking. And it raises a grave question.

How can Government truly regulate Banks, when they have far too many positions and relationships of dependency on each other. Can Government truly look after Taxpayers and ordinary citizens while simultaneously looking after their friends and cousins the Banks? Surely Government is playing two sides in this game? Banks and Government are always more closer than most people realise.

What changes have to be made? What will Banking need to do to fix the problems it helped to cause?

A Pre-nuptial Agreement between the Banks and Us. In simple English, a pre-marital contract outlining their obligations and rules of Behaviour prior to any transactions taking place between them and the rest of us. This must be done for our own protection. Banks must be more accountable. What is also needed is for Big Banks to be Broken Up into Smaller Banks. If Smaller Banks fail, the Risk is reduced, and so protects Us all the More. Limit the risk and thus limit the damage. The Bailed out Banks must be broken up into smaller Banks, good and bad ones and the bad ones wound down. A new Not-for-Profit Organisation should be established to gather public money from Banks (it could even be a tax on types of banking practice or product) and used purely for donation to Business and Industry. Business should be the Top of the Societal Finance Tree. It should be structured on Social and Business Needs and not Banking Profits, as these are never used to enhance our lives or futures, (except for bricks and mortar) - merely gambled on the financial risk-heavy roulette that broke the backs of Lehman Brothers and Bear Sterns in the USA. If Banks were forced to invest in Business and Enterprise – they would take greater care in never gambling against it, for fear of losing that money.

The Banks up to now have been behaving like Fire-fighters who arrive to put the fire out but refuse to turn on the water taps, and this is wholesale home-grown financial Terrorism in another form. It’s time to wake up to reality. Banks must lend to Enterprises and Businesses. By lending to Enterprise, the businesses can grow – get more customers and create more jobs. And that rising tide will raise all boats, even the leaky ones. This will have an instant positive effect on the economy. Where there is a will, there is a way.

Why are Governments not Hammering the Banks over this? Banks have a clear run when it comes to dominating their own industry. They have no competition, and are un-concerned by rules or regulations. Credit Unions in the UK are hindered from getting into many of the cosy elite growth areas that are exclusive to Banks. Governments also invest in Banks. (Remember the Tobacco analogy earlier.)

So put in tighter regulations.
Especially bank rules of an "Icelandic" nature.
Cap Bonuses.
Give Banks competition.

Government should provide suitable “Threats” of a Financial Nature for errant behaviour in Banking. Sub Prime lending should be tightly regulated or just outlawed. More Penalties against Bad Banking Practice should be Imposed. The Definition of Bad Practice and Criminality should be laid out in Criminal and Financial statutes. Banks are not required to invest compulsorily in Business and Venture Capital. Or Funds that promote New Business Start-Ups. That too needs to change. Banks must learn to share.

The Sale and Control of Derivatives must be totally overhauled. It must be traded in a public and open Regulated Market, not a vast grey market as currently exists. And equally, the dodgy system of "shorting", though somewhat outside the scope of banking - should be more tightly monitored - or simply stopped.

And Government and Banks need to keep a healthy distance from each other. An independent body should regulate the clear space between them, a “Firewall” in effect. So practices in Politics also needs to change and become more Authority Driven. The system needs tweaking and fine-tuning. Laws should allow businesses and individuals to take legal action against Banks that breach rules of agreement and Pre-nuptial arrangements set by both sides in any banking transaction. Banking should be treated like any other Business.

No one in the UK ever went to prison for the Financial Destruction and Damage caused in the past few years. This is despite the huge Multi-billion Pound losses encountered by everyone, and the massive unemployment. Banks should be made to pay for much of the welfare cost of the Jobless. Criminal Laws must be updated and made stronger. No one should be above the Law. Regulators need to have powers to deal aggressively with Miscreants in Banking. Eliminate the ability of Miscreants to flourish in this industry, and it will function better.

Business people and ordinary people are putting their lives and their homes on the line to survive. It is time for the Government and Banks to reciprocate in kind.

Finance and Banking is a very complex area, and beyond the understanding of many people. There is much more to this picture than this one hub can deal with. This Hub has been simplified to make certain ideas easier to understand. Given the recent Libor Interest rate rigging scandal that yet again showed UK banks in a poor light, serious actions need to be taken to stop the systemic breaking of rules. There is no point in laying down the law and putting in rules if they are just going to be ignored. The world and its markets are not deaf dumb and blind to these things.

If Banking does not embrace Change, then we are doomed to repeat the mistakes of the past. The choices are there, and it’s time for the Leaders to take action.

(Amended 2013)

Text (c) Copyright 2010, 2011, 2012, 2013 Cassy Mantis.
Small extract from Guardian newspaper (inset) is copyright of Guardian Newspaper, with link provided.

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Comments 33 comments

TattoGuy 6 years ago

The banks in the UK are overstretched Cassy, in the next few years we are going to pay dearly for the welfare state, mass immigration from EU Countries who are milking this country dry plus if you are an alcoholic the goverment will pay you over 200 a week plus extra money for your rent.

I am all for EU immigrants coming here to work but here in N Ireland we have a mini nation of welfare state trained immigrants who trust me in 10 years time if not stopped will destroy this country. I agree about the banks but the UK has bigger problems ahead, I don't know about you but I begrudge paying tax to pay for some no hoper that will bleed this country dry. It needs to be stopped, and soon, rant over, enjoy yer weekend xoxo


Cheeky Girl profile image

Cheeky Girl 6 years ago from UK and Nerujenia Author

Hello Art! The banks sure are over-stretched. They are in dire straits! Yes, the welfare will cream us, especially with so many out of work. That's why some cuntries are putting their own nationalities first when it comes to jobs and prospects. The immigants will cause problems unless they have work to do. As for begrudging the paying of taxes! Aaah! If only I had a wish at my command for that! Heh! Death and taxes! This we can all bet on. By restricting people coming into the UK based on their Skills, and qualifications, that will halp ensure that we get the right skilled people for the right jobs.

Now, based on what you said about alcohol, think I saw a keg of beer somewhere around earlier! I think I'll make a start on it! £200? Wow! I must be mad working for a living! What was I thinking!! LOL! What will they pay me or taking up smoking as well?

I am kiddng here of course! Anyway, always nice to get a rant now and then! Good to do that!

Really have it in for those bunch of Bankers though! Have a great wekend, moi friend! XOX


De Greek profile image

De Greek 6 years ago from UK

In the UK banks are actually allowed to charge interest of over 21% in some instances. Other licensed lenders advertise on TV mind you, small loans at the equivalent of 26o%. This is insane usury designed to make banks rich with the approval of the state. Too many politicians are in teh pockets of the banks to make the simple change that will do away with this: Put a cap on interest rates to a MAXIMUM OF 8%. And don't tell me that this is anti-capitalist.


Cheeky Girl profile image

Cheeky Girl 6 years ago from UK and Nerujenia Author

Hy De Greek: you make some good points here. Einstein said the best thing man ever invented was "Compound Interest". He was right. And it's part of everyday life with banks and savings and investments. I have seen adverts on TV which seem to challenge the belief that banks have "no money" and are not lending to anyone. And as stated in the hub here, the politicians are very cosy with the banks.

Your idea on capping interest rates is interesting. Even if it would scare off bigger investors, it would tame some of the insanity we have had in recent years with mass speculation and over-pricing! We don't want to go back to the crazy things of the past 5 - 7 years! Just mention the word "Bubble" and watch people scatter.

Cheers!


Dolores Monet profile image

Dolores Monet 6 years ago from East Coast, United States

Cheeky Girl - why are governments not hammering the banks over this? Because they have all the money and they are in control. Our governments are merely puppets of big Money. It's like the stock market. A corporation buys up its competition, closes the smaller company, lays everybody off and the stock goes up. It's class war.


cindyvine profile image

cindyvine 6 years ago from Kyiv, Ukraine

Best to start keeping money in a shoe box under the bed as we did years ago.


Cheeky Girl profile image

Cheeky Girl 6 years ago from UK and Nerujenia Author

Hy Dolores: we are agreed on this! Our govt is a total puppet to the banks. It's a sad but inevitable truth of the system we live in today. And no one really questions it or asks the pertinent questions. Hence my reason for putting this hub together. Class war is a good way of describing it. Thanks for the comments!

Cindyvine: I think the bank account or savings is safe. The banks are too dependent on the savings market to ever do any harm or anything stupid. They'd be out of business tomorrow if anything ever happened to people's savings. So don't go putting money in a box, it's only a target for burglars. That said, there is more than one kind of financial thief as this hub shows...


blaise25 profile image

blaise25 6 years ago from close to you...

Ha the cycle of life, the inflow and outflow..Yup, banks have the big control but no matter how much they annoy us, we can't just let them go. Like a girl can't go out without a purse..hahaha We pretty fuckin sure we need them and they freaking need us. So both will survive if both shows TLC ;)

This is another great hub moi friend. Logical and a brilliant eye-opener. It shows too you're bankable :)

XO Blaise


Cheeky Girl profile image

Cheeky Girl 6 years ago from UK and Nerujenia Author

Hy Blaise. The analogy of the purse is funny, and for us women - yes, it is necessary. We do have a relationship of "dependency" on banks. But it is wrong and questionable for them to take advantage of it. SOme Banks want - for example - to get back into sub prime lending again, some want to offer us 125% of the value of a property or home! Out of the frying pan...

I am just trying to explain what went wrong and how it might be still possible to save the Banks and their reputation. In this world, Blaise, name is everything. That is how Northern Rock had to be bailed out by the Govt, there was a run on the Bank, because it was a brand people no longer trusted.

Thanks for these comments, moi friend. Bankable - me? You are trying to make me blush here! Heh! No matter what is happening in the weird world of finance, I hope life is okay with you - have a great day. Take care. XOX


Kaie Arwen profile image

Kaie Arwen 6 years ago

Cheeky Girl- Bail outs are happening everywhere, banks are inept, and the world's economies are falling a apart. I don't think we can fix them, and part of me thinks that are an abundance of people working against fixing them if it's indeed a possibility.

If I get any extra money......... it's going in a shoe box; my grandpa may have been right all along! Thanks ~ Kaie


Cheeky Girl profile image

Cheeky Girl 6 years ago from UK and Nerujenia Author

Hello Kaie: I agree that the banks are inept, amazingly so, in fact. What cannot be fixed is simply not fit for purpose, and so should be wound down. You are right, there is a lot of people working against the banks ever being fixed. It is becoming desperate for many out there who are looking for any light at the end of the tunnel. Always appreciate your comments, my friend! Cheers!


Cheeky Girl profile image

Cheeky Girl 6 years ago from UK and Nerujenia Author

Hello Kaie: I agree that the banks are inept, amazingly so, in fact. What cannot be fixed is simply not fit for purpose, and so should be wound down. You are right, there is a lot of people working against the banks ever being fixed. It is becoming desperate for many out there who are looking for any light at the end of the tunnel. Always appreciate your comments, my friend! Cheers!


sweetie1 profile image

sweetie1 6 years ago from India

Banks are not financial institution but also they have public faith and that is why people put in their lives earning in the banks. Unfortunately Greed of banks tarnished their image and broke the faith of public. In india thanks god our financial institutions dont have this much freedom and has to work inside govt rules thus no bank lost money and if lost then very small amount so no bail out was needed.


Cheeky Girl profile image

Cheeky Girl 6 years ago from UK and Nerujenia Author

Hello sweetie: yes banks seem to forget that besides other things, they provide a public service to us all. When they got greedy and people lost their faith in them when the banks refused to lend, it was like the mother taking the milk away from the baby in a way. "Bad Parent Syndrome" almost, in a way. Yes, India has been relatively unscathed by these events. I hope it learns from the mistakes made by others! India deserves to go far! It is a country with many aspirations, and should have them come true. I hope it does - for all the people's sake. Cheers, sweetie!


Neil Sperling profile image

Neil Sperling 6 years ago from Port Dover Ontario Canada

Good Hub - I went to the bank to open another account yesterday - the chap asked me why? - I said "the old one has no money in it!"

Oh to win a lotto - LOL


Cheeky Girl profile image

Cheeky Girl 6 years ago from UK and Nerujenia Author

Neil, I get that all the time. I could swear I had cash in moi account the other day, and now it just ups and goes! It's like a puppy, that money. I'll have to put a bell on it or something! Lol! Cheers! Hope you are having a great day!


prettydarkhorse profile image

prettydarkhorse 6 years ago from US

Heh, the gov't are slaves to the banking corp., and it is never the same again, Huh. Banking, movies, games you ROCK, you can write anything, Maita


Cheeky Girl profile image

Cheeky Girl 6 years ago from UK and Nerujenia Author

Hy Maita! Well, not so much slaves as co-conspirators there, but yes, I get what you mean. They are waaaay too cosy and it is obvious! Um, write anything - me? Well, I wish I could! Hehe! There's some things that do challenge me, however! However, I love the compliment! Cheers, Maita! Have a great weekend, moi friend! I have done that link now! Ingat ka!!


nextstopjupiter profile image

nextstopjupiter 6 years ago from here, there and everywhere

Let´s turn the big banks into big bangs, and the world will be a better, more peaceful place. The problem is, that the politicians are the slaves of this corrupt financial system. Before the introduction of the financial system social structures based on cooperation existed, but these structures were destroyed by the financial system, cooperation was replaced by competition. Thanks for this hub!


Cheeky Girl profile image

Cheeky Girl 6 years ago from UK and Nerujenia Author

Hy nexttojupiter: you make a very excellent point here. Cooperation gave way to competition, and it suits the financial system, and we have become dependent on it for survival. But it is only one way of doing it. There are other as yet untried possibilities...though perhaps more the case of future science fiction rather than future fact. Thanks for this. Glad to see you here!


prasetio30 profile image

prasetio30 6 years ago from malang-indonesia

Good information from you. I just save my money in the bank. I do not expect much to make a profit. Sometimes I am worried the the bank collapse, but I have good choice. I put my money in the government bank. We get a lot of support to cover our investment. I get new knowledge here. Thanks for showing me about this. ~prasetio


Cheeky Girl profile image

Cheeky Girl 6 years ago from UK and Nerujenia Author

Hello prasetio: Nice to see you again, and thanks for saying this. You are right, the Govt bank is safe and so is your money. Bottom line, if the Banks went under, the Govt would take the brunt of it. Banks may come and go, but Govts are the in best business anywhere, the business of Governance, and can always get loans and money. So Hopefully it will pay dividends for you. Wishing a you a sweet day, prasetio. Take care always! :)


Joe Blogs523 5 years ago

This is the BEsT EVER thing I read about Banks. Jesus, you know a lot about banks. They are robbing bastards. I will check out your articles. You are more than just a sexy chick. Respect you more cheeky girl. But you sure rock my boat bigtime, babe. Xx


Cheeky Girl profile image

Cheeky Girl 5 years ago from UK and Nerujenia Author

Hy Joe, um, more Finance than Banks per se. I take it you are not a Banking Fan, then? LOL! Well thank you for the flattery, but I am already taken. Feel free to check my many hubs and leave a comment for me, okay. Love the comments here too! :)


mulberry1 profile image

mulberry1 5 years ago

A misery that so many of us share in other countries too. The government doesn't really control us, banks do (and a few large corporations). Unfortunately, we have an entire political party here that is able to convince half of the population that supporting the banks and a few very rich corporations is paramount...even to the extent that they shouldn't be regulated. Amazing the bonuses they get, even when they fail miserably. Those big payouts only serve to encourage bankers to take reckless risks to show good short term results on paper. When I look at the list of the 50 richest individuals in the US... Most of them are money movers, not entrepreneurs. It's wrong on so many levels.


Cheeky Girl profile image

Cheeky Girl 5 years ago from UK and Nerujenia Author

Hy mulberry1, yes the banks appear to have far more control over us because we let them have that control. And why? A perfectly good question, since this last 2 years has taught us that this is bad for us all, since we cannot trust them. They all lied about how bad their problems were, and always understated the massive financial deep holes they dug for themselves. When the Govt. okay's the bonuses for the bank, that was a signal to continue on with what they were doing. Which proves that Govts lie to everyone, and everyone gets caught by it - hook line and sinker. That's what we get for trusting them. Look on them all as gamblers, it is easier to see it that way, and then ask yourself, would you give them money if you knew all they wanted to do was gamble with it? Of course not! Entrepreneurs at least create employment and give something back to society, while money movers only seem to take. Great comment here! Mann thanks for this! :)


A Little TRUTH profile image

A Little TRUTH 5 years ago

You bring up many good points about banks, and I agree that banking is the most serous problem on earth today. And, yes, banks control the governments since they control the money. However, your hub seem to be missing some important pieces of the puzzle. Many of the excellent questions and issues you raise become more comprehensible if the following facts are considered:

- Banks do not have any money. They have "assets" and "liabilities" and these have to balance out to zero at the end of the day. This is standard Accounting.

- Banks do not loan money. If you want a "loan", they have you sign a Note, which they then deposit in an account. The Note then becomes "money", like the Notes in your wallet. This is where they get the "money" to loan you, it didn't exist before you signed the note.

- Banks own the Mainstream Media, and make sure that what goes on the news is what they want people to be getting riled up about and spending their time with.

- Banks own the Education System, and make sure that the children learn what they want them to learn, and don't do too much thinking.

- Banks own or control whatever they need to, in order to further their agenda. "Money" is not an issue, since they can create all they need with the flick of a pen, based on their own banking rules.

Some of this might seem like unbelievable “conspiracy theory”, but if you research these, you will find them to be true.

The situation is the same in any country that has a Central Bank. The Americans used to be wise to this about 100 years ago, and wouldn't allow a Central Bank. That's why the latest, and current, Central Bank there had to call themselves the "Federal Reserve System" in order to get started.

There are currently many solutions in the works, worldwide, to end this mess. To see what some of these solutions are, or to validate any of the above claims, please see the references and footnotes at the bottom of my hub "Biggest Scam Ever - Millions Affected".


Cheeky Girl profile image

Cheeky Girl 5 years ago from UK and Nerujenia Author

Hy and thanks for the big comment on my hub. I don't intend this hub as a detailed manual of banking, that is not the purpose and should not be referred as such. Just to simplify things for everyone's sake - let us both agree that Banks for the most part DO LOAN money. Trying to imply that they don't is a bit like saying that birds don't actually fly, that it is the mere amount of air under their wings that does it. It's the same thing in the end.

Semantics aside, you make some salient points...as Banks are involved in everything, and we can't exist without Banks. But some Banks will inevitably get into areas where to make a profit seems to sometimes override all other rational behavior.

Regarding the Central Banks, the European Central Bank is currently buying up Bonds to try save the Euro Currency. There are many technical and legal opinions that question the ethics of allowing such a thing. Yet, if it did not intervene, the Euro currency would be badly damaged by what is currently happening in the respective markets. So sometimes rules are bent in order to save a currency. But at what point will a Central Bank realise that doing one thing for one currency might work counter to the benefit of another currency, such as the almighty Dollar?

The world of Finance is riddled with many rules, some good, some not good, and authorities mostly do good, it seems. The major issue I raised here is why Banks don't do more for manufacturing and for job creation and development of new markets and industries.

Many have commented on how we need more jobs for people. What we need is also more Job creators, and Banks are well placed to help with this. But I wonder do they really want to do this, or do they just want to help the Bank? The amounts they loaned to people to buy houses is massive compared to the amounts they lend to small to medium sized businesses.

There is a lot that could be said about this and many other things relating to Banks, but then this hub would become a large Book! LOL! Thank you for the excellent comments!


A Little TRUTH profile image

A Little TRUTH 5 years ago

Cheeky Girl, thanks for your response to my comment, and for helping people to become aware of how activities of the banks are devastating the people of the world.

I cannot, however, agree with you that banks loan money - not even "for the most part". I admit that it is difficult for many to believe, or even give a second thought to the idea that "Banks do not loan money". That is why, in my comment above, I sited a hub that has references for anyone who wishes to validate this and other statements.

Before any further insistence that banks do loan money, I would appreciate if you would either 1)Check out some of the references I sited, 2)If most of your information comes from the mainstream media (which I believe you agree is owned/controlled by the banks) consider that this information is manipulated so that from childhood, everyone's beliefs are in line with what the banks want them to be, 3)Do your own research (outside of bank manipulated data) and feel free to let us know what you find or, 4)Keep it simple and just check out a little booklet published by the Federal Reserve Bank of Chicago called "Modern Money Mechanics". This booklet is now out of print, probably because it has too much truth for public consumption today, but is freely available on the internet.

Again, as I said in my above comment, many of the excellent questions and problems that you bring up in your article can be comprehended much better if we get some of the underlying facts straight without being swayed by the deception of the mainstream media or educational system. This is what I wish to add to your informative and thought provoking hub.


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Cheeky Girl 5 years ago from UK and Nerujenia Author

I think that your request for people to believe that Banks do not loan money out to people is frankly... a big ask. It flies in the face of everything I know and many will concur, no matter what way anyone dresses up that information.

People are welcome to check out your sources of information.

I work in the financial sector, and I will draw my own conclusions as to how the financial system works. The media does cast a shadow in the Banking sector, but I don't assign the media too much power when it comes to every single bit of information available in the public domain.

It is wrong to assign the source of my information as coming from the media. Your core assertion leans in this direction. I am always happy to correct any errors in my research if I find any. I trust you will do likewise. My hub - though an opinion piece, is also backed up with sufficient facts, and is a necessary discourse on the state of British Banking, and focuses on key problem areas relating to their responsibilities, and that of Government, and where key problems lie in the banking system.

Bear in mind that since it was written, some new events in Banking have occurred also. But the underlying historical events are contextual and are essentially correct. I also hold a Masters Degree in Finance. This hub is all my own research.

Can I suggest that if you have enough information on a particular topic such as the one above - that you write a hub about it, so we can all read it and comment accordingly. Thanks.


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Cheeky Girl 5 years ago from UK and Nerujenia Author

Thanks for the comments.


theking2020 4 years ago

Great article


Cheeky Girl profile image

Cheeky Girl 4 years ago from UK and Nerujenia Author

Hy theking, interesting name! Cheers! Thanks for reading! :)

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