The relinquishing of the public’s right to issue its own currency – Part 1

It is apparent to me that the issuing of the worlds currency is in the hands of private corporations. Consider how else do you get a situation where all the worlds governments, business’s and individuals can be in debt? some 500 trillion notional according the bank of international settlements. Is planet Earth in debt to Mars? So if not who is the debt owed? these are some intuitive questions anyone can ask without the need for any knowledge of fiance or the economy.

So the traditional idea of a bank that is the belief of the general public at this time is that people deposit their money at banks therefore when you want a loan you goto the banks because they have all the deposits and you borrow what would essentially be other peoples money at a risk to the bank hence the charging of interest to cover the risk.  So that would be the generally held belief of the public implied by them when borrowing from banks. However this could not be further from the truth. What actually happens when borrowing from the banks is as follows:-

  • You enter the bank and request to borrow lets say $100,000
  • The bank checks to see if your capable of paying back
  • They present you with a loan agreement, which stipulates you must pay back this debt in legal tender only, failure to do so gives them the right to foreclose your property. (note you cannot payback in anything other than what they stipulate, gold, silver, services, alternative currency’s, whatever, therefore forcing people to exchange their time and energy for their private credit only, further insuring their monopoly)
  • Key point coming up, the loan agreement you are about to sign is known within law as a promissory note and it is this piece of paper (instrument) that is the thing of value in banking, it is what you commonly hear of as bank assets.
  • The bank takes this newly desposited asset places it in their vault (because it is the actual thing of value) and are now able to increase their networth by exactly how much the promissory note is worth because they now have one more person out there who is willing to exchange their time and energy for their private credit.
  • Because their assets have now increased by $100,000 the local commercial bank that received the asset can now apply to its central bank to extend to it the equivalent amount in liability’s (public credit) what you know as money. However the reserves that the central bank forwards to its commercial branch bank are created from nothing out of thin air on their computer. Why did they create it from nothing? because they now have an asset to back it up namely your promissory note which is attached to your time and energy. So on a deeper level you can see that all money is debt and all money is not simply backed by nothing as many people like to say but it is in fact backed by the time and energy of people business’s and governments, its backed by a promise.

I will explain in a later post the detriment of this system although I trust its apparent already but for now I will address only the private ownership of this system.

So I hope you see how that works and that the banks are not actually lending you anything. And thus this is precisely how you get a situation where the whole world can be in debt, and in truth the world really is in debt to a foreign entity because the international banking cartel is not native to any nation.

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