That's quite an indictment of banks and the bank system, so let us take a closer look at what triggered the liquidity crunch, now grown into a major recession around the world and spoiling numerous peoples' lives.
Money is made by the banking system out of nothing. This is incorrect, but it is's the way it is, sadly. It is then lent at interest to all sections of the community - big businesses, small and medium sized businesses, central authorities, international institutions, nationalised industries, banks themselves ( gigantic and tiny ) and, of course, personal citizens.
This makes it unrepayable debt. Anyone or any institution of whatever nature that manages to repay its debts plus interest does so at the price of other borrowers not being able to do so. Historically regimes, even with their power of taxation, have not been in a position to pay back the money they have borrowed. The core lending is shoved into a pile and called the'national debt' or'treasury bonds', or something like that.
Because this debt is unrepayable the whole system is infeasible in the longer term. Sure, it can appear to be working for long periods, while lending is accelerating and the quantity of money in circulation is therefore keeping reasonably constant in spite of large amounts being withdrawn through no credit check payday loans payments.
But after a few years the system always threatens to collapse, because there's a limit to the quantity of phoney money the banks can lend before their stockpile of real money - gold in previous times, now more likely treasury bills and other securities - threatens to dry up and destroy the solvency of the banks themselves.
Indeed, a huge number of banks have collapsed in spite of calling a halt to further lending and in spite of billions having been pumped into the bank system by leading governments like the U. S. and Great Britain. As this is being written ( late July 2009 ) there are still banks in the usa folding, and this is in spite of the latest stock exchange rally.
The sole folk benefiting from all of this are the really large banking homes like the Rothschilds and J.P.Morgan. Even Goldman Sachs, now back in profit and paying its fund executives obscene bonuses with taxpayers' cash, is in really deadly waters.
It's obvious from even a brief survey of the situation that the system of having private bankers control the currency, a positively crucial control lever of any economy, is sheer lunacy. Personal bankers use the awesome power vested in them for their own enrichment and power, and the evil'hidden agenda' they pursue in their quest for global domination.
In Great Britain they had this power unopposed since 1694, when the United Kingdom central bank, the Bank of England, was set up. It kept its name even after the UK was formed from the union with Scotland and Eire some years on.
In the US there were many criminal attempts to foist a central bank on the new republic early in the nineteenth century but each time those attempts were at last defied. But in 1913, on Christmas Eve, while most people were going home to their families for the Christmas vacation, a tiny group of criminal plotters let by Nelson Aldrich, a corrupt senator whose daughter married a Rothschild, managed to get the Fed Reserve Bill passed before only a handful of senators, and economically enslave the U. S.
Since then, naturally, the States has suffered the Great Depression of the 1930s, many financial panics ( that the Fed Act of 1913 was meant to put an end to ), and a rising level of public and private debt. The mighty commercial engine of the US has steadily been withered away and is now in serious danger of complete collapse.
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