Money manipulators
The Tories are quick to blame unions for harming the public, but who created the global financial crisis, house price crisis and massive wealth gap? The Tories’ rich capitalist friends, which they never get a grip on.
Why do they allow bankers to extract large amounts of money into their own greedy pockets when banks only ever create debt? Ask any politician to explain the 2014 Bank of England statement: “Just as taking out a new loan creates money, the repayment of bank loans destroys money.”
I doubt there is a politician on the planet that can explain how this works, or the immense implications of this. It means money only exists as debt. Banks only make a profit by charging interest on this, which means they demand back more money than is being created.
The banking system therefore has to pour more money into the system in the form of debt to get back the loan plus the interest.
The whole banking system is therefore based on perpetual debt creation at a rate greater than it is paid off, giving the illusion of created profit money when it is actually all debt money.
This is why money is continually devalued and doesn’t buy as much as it did years ago. It is why central banks aim for a theoretical inflation of two per cent, though the financial system is too complex, murky and secretive for any financial numbers to be accurately measured. They don’t even include house prices in inflation figures.
The whole monetary system is, in my opinion, a massive fraud, which is probably why the public have never been told that money doesn’t come from banks or a limited money supply because it is created as it is borrowed – created by the borrower signing a legally enforceable contract promising to pay back the agreed amount.
Money is nothing but a debt contract borrowed from the future. It is not created by jobs, businesses and lauded entrepreneurs, it is a stream of continuous debt creation into which everyone dips, and which is wide open to obscene manipulation, because nobody understands the system.
I was brought up in the 50s and 60s when people didn’t believe in living on credit. There was no talk of credit scores and housing ladders.
These have been invented to get people obsessed with borrowing. Credit score companies are paid to do this and now have millions of followers.
A few years ago, one of these started putting out adverts showing people’s possessions and surroundings becoming magically transformed into something more luxurious just by swiping a finger across a smartphone to improve their credit score.
When I complained to the advertising authority about this, only one other person had complained about it encouraging reckless debt creation. When these complaints went to the ASA council for judgement, they were rejected with the claim that the ads were “light-hearted”. I thought, well roll on the next financial crisis and we can all have a laugh.
They will ban ads that take the mickey out of male and female gender but won’t ban ads that brainwash a whole generation into thinking it’s normal to live on credit. In the BBC programme: The Decade The Rich Won, one young banker said he made more money in one day than his father made in his career! The more borrowing that banks enable the more debt money flows into this perpetual debt stream and so the more is available to be extracted by the type of money manipulators that Christ described as a “den of thieves” – who now rule the whole world!
Gordon Sanderson, sent via email.
Money is nothing but a debt contract borrowed from the future