Linked with Court Fool.Info, with G20 the Pittsburgh Summit 2009 , with G20 goes global. And also linked with Confessions of an Economic Hit Man, with The Money Masters, a long video, with Video-debates about Economy and Society, with DIRTY SECRETS OF THE TEMPLE, and with … and specially this publication (G. Edward Griffin’s The Creature of Jekyll Island).
Published on Court Fool.Info, by Rudo de Ruijter, not dated.
… Money does not belong to the state:
Most people believe, that money is created by the state. However, most governments have little or no say over their country’s money supply. Bankers have taken over this power. They have turned this medium of exchange into a lucrative way of taxing the population by collecting interest. Bankers permanently collect interest on nearly all the money in the world.
Money is created by commercial banks:
Commercial banks continually create money for loans. They do so simply by typing numbers into the bank accounts of borrowers, who then can spend it as if it were actual banknotes. Today the vast majority of all money only exists as numbers in bank accounts. By law, these numbers have the same value as banknotes and coins.
Each commercial bank is allowed to create new money this way. Behind the scene, hidden from the customers’ eyes, then starts the lucrative juggling act with other people’s money. In fact, the amounts that have been typed into the accounts are comparable to bad cheques. The bank itself does not have the money. When the borrower spends the typed amount by writing a cheque or a payment order, the bank will use other people’s money to pay for it. Unseen, this money is taken from the deposits and savings accounts from other customers. You can’t notice it. The numbers on your deposit and savings accounts remain unchanged. And by the time you want to dispose of your money again, there will be some loan that will be paid back to the bank, so you will never know about it. In many countries the minimum reserve banks must keep is fixed by law. (Often something like 10 percent.) Most of the times these reserves are then kept by the country’s central bank.
Because banks use other people’s money to back the new money they lend out, the amount of new money they can create, is limited. In practice around 90 percent of all money on deposit and savings accounts is used to back new money.
However, the money on deposit and savings accounts is also money that has been juggled out of the banker’s hat once. So, new “money created out of nothing” is backed by already existing “money created out of nothing”. But as long as nobody notices, the juggler gets applause. Let us have a look at the consequences.
The merry-go-round of loans: …
… Limits to growth:
The earth does not grow along with the expansion of our economies and the populations. For the first time in human history we encounter the limits. Of course we have no idea what to do. Church and state always used to preach growth. Bankers too like growth. Limits to the world population? No one in power dares to burn his fingers on that subject.
Where is that limit? That depends on what we want as humanity. If we want to reach the highest possible quality of life – for our children and grandchildren -, we should not burden the earth more than strictly necessary. We should strive for a smaller population. That would also take away the principle reason for conflicts and wars.
Today’s policy is completely opposite to the needs of a peaceful and sustainable society. The money system plays a key role. Reforms are necessary. The longer we wait, the more difficult it will become in the future.
Notes and references 1 to 30. (full huge long text).