Wednesday, June 6, 2012

Money (3): Money Creation is in the Hands of Private Banks

Over 95% of money in circulation are forms of debt to the commercial bank. Confounded? Disbelieve? Rage?

This is one reason why the ever escalating mountain of debt (government, commercial and private) cannot be repaid. Paying down the debt means reducing the money supply and will trigger a severe recession. It is mind boggling, but it is absolutely true!

There is another factor - all loans carries interest. Try to figure out what this means. I will get back to this point later.

Now I want to bring your attention to a serious consequence of this bizarre banking system that is practiced all over the world:

Money Creation is in the Hands of Private Banks

What does it means to you an me? Please take your time to watch this 20 minutes video clip. Pause and rewind if you need to.

"The privatised creation of money by banks is at the root of debt, poverty, inequality, unaffordable housing. It makes our boom-and-bust economy completely unstable, and is also fuelling the environmental and energy crisis."

The mother of all privatization (piratization!) happened without the knowledge of the world population!

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." Henry Ford

Next:  Money (4): There are more Debt than Money in our Economy

No comments: