Bankers steal the sovereign right of nations to create money.
Resources exist that are said to be the property of society as a whole, things like water and air. Money should be one of those community resources. Money is required in order to create and maintain a healthy, prosperous economy. Money should not be a privatized resource any more than water or air should be. One of the main reasons we establish government in the first place is we all need a way to protect the common resources from exploitation by selfish individuals. One of most important duties of government is to provide a sound monetary system for the benefit of all not just a greedy few.
Last week I covered the fraud of "fractional reserve banking," the nifty little rule that bankers made up that allows them to claim they have SUBSTANTIALLY more money than they actually have. For example, if a banker has a million dollars in customer deposits, he gets to say he really has ten million dollars. A banker can create nine extra million dollars just by making journal entries. Bankers do nothing to earn that nine million. They just say they have it and we allow them to get away with it. For those of you who missed last week's article you can read it here.
You'd think the enormous advantage the fractional reserve banking scam gives the bankers would make them happy little campers. Well . . . you'd be wrong. Predatory bankers are never satisfied. They are like hungry ghosts, beings that are impossible to satisfy. The one big problem with the fractional reserve banking scam is it can only be used on money currently in circulation. For example, if there were only a billion dollars in circulation and it was all deposited into one bank, that bank could only multiply that billion dollars ten times to make an additional nine billion dollars. To a banker, that just won't do.
There is another little snafu with the fractional reserve scam. The extra money they are allowed to create is lent out at interest. In other words, if they have a million in deposits, they can then say they have an extra nine million that they lend out at say ten percent interest. What they can't create is the money necessary to cover the interest. If a banker lends out nine million dollars at ten percent annual interest where is that nine hundred thousand dollars going to come from to pay the interest? The banker is allowed to create the nine million through the fractional reserve scam but they can't create the extra nine hundred thousand dollars to cover the interest payments. Every year more money is needed to cover interest payments. Over time, the interest owed increases exponentially, exceeding the money in circulation. Since money to cover the interest payments is never created, eventually the money in circulation can't even pay the interest much less the principle and the system collapses under its own weight of debt. It's inevitable with this fraudulent system. Not to worry though. Bankers are nothing if not devious. They have ways to prolong the inevitable.