Monday, October 3, 2022

"Now is the time to take back control of money"


That's the position of Neil Oliver, whom we've met in these pages on many previous occasions.  I think he makes a strong case.  Here's his video presentation, followed by an excerpt from the transcript.

Mr. Oliver notes:

Let’s imagine you want to borrow 200k to buy a house. When you go to the bank and ask for that money, the banker doesn’t give you existing funds, cash from a drawer for instance. Instead, he creates that 200k out of nowhere – money that previously did not exist. That money is not backed by anything real – no gold or anything else. It is conjured out of nowhere and exists now only because the banker says it does. He then says you have to pay him back the 200k plus – let’s say for the sake of example – another 200k in interest.

He is allowed to credit your account with money that did not exist until you asked for it and he pressed digits on a keyboard … and then he invites himself to charge you whatever interest he wants on that previously non-existent sum. Talk about a fool-proof way to make money. This is how all money is created in our world and this is why so many people are made to live crippled by debt. Every year the British people pay tens of billions of pounds to private bankers as interest on something that DID NOT EXIST IN THE FIRST PLACE.

How could I be sure, but I suspect that if you or I were to attempt something similar, we would be thrown in jail before our feet touched the ground.

William Paterson, cofounder of the Bank of England in 1694, noted that:

“… the Bank hath benefit of interest on all moneys which it creates out of nothing.”

1694 … that’s at least as long as this has been going on … how long we’ve been submitting to debt created by a handful of rich people to keep everyone else under their control.

There's much more at the link, and it's well worth reading.  Recommended.



glasslass said...

At Fort Knox there is 4581.5 tonnes of gold in Fort Knox is entirely owned by The U.S. Department of the Treasury.
The United States owns 8,133.5 tonnes of gold.
It estimate that China's total gold holdings are upwards of 30,000 tonnes. This includes both state-owned and privately owned gold, but it's estimated that around half of it is owned by the state.
Gold vaults in England hold around 400,000 bars of gold, worth over £200 billion. That makes the Bank of England the second largest keeper of gold in the world (the New York Federal Reserve tops the list).
U.S. Reserve Assets in 2019 Totaled 2019 129,479 making us the worlds largest holder of gold.
China is the only one being a speculation.
Yes your banker is putting assets in the form of gold behind your loan. The gold the banker put on the line is based on your personal record and the asset being secured. If you fail to pay the loan they must pay the cost to maintain the home and cost associated with selling. They can then write off the rest but at no time will the feds (US) allow there 'bad' loans to fall below 5% of assets or they get a visit prior to closure.
You could debate the value of gold as with anything you sell for a price. Different argument.
OK, out of that rabbit hole.

Francis Turner said...

Oliver is not quite correct, at least not regarding Western banks - banks in China are indeed as he describes. If he were correct then a ton of recent gyrations in the UK and Europe would not have happened and banks like Credit Suisse and Deutsche Bank would not (could not) be in the difficulties they are reported to be in.

Fundamentally banks make long term loans (e.g. mortgages, car loans) based on their possession of lots of short term pots of money (their deposit/savings customers' accounts). They have to account for every dollar they pay out in a loan and if it can't come from money in a customer account they have to borrow it from another institution.

I am not an expert so I may have the details wrong, but my understanding is that at the end of the business day every bank, S&L, building society or other regulated financial institution must have the books balance. That's why banks loan each other money over night. When an institution gets into trouble (coff Credit Suisse coff) they find that other banks are unwilling to lend them money overnight for fear that they won't in fact repay it in the morning. Or that they will only lend them money at rates that are otherwise only seen by Guidovitch and his Comrades in Russia making payday loans.

Banks etc. are required to keep a fraction of their customer's deposits in cash or equivalent and are expected to lend the rest out. One of the reasons for the recent UK market gyrations is that log term government bonds, which generally count as "cash equivalent" for various financial institutions, sharply fluctuated (dropped) in price. Thus there were effectively margin calls that required these institutions to sell other assets in order to maintain the required amount of cash or equivalent.

Justin_O_Guy said...

If I borrow $200,000.00 to buy a house, No, I don't get the cash.
The guy Selling the house gets the cash. It's still a crooked system. Check out the YouTube videos by G.Edward Griffin, or read
Creature from Jekyll Island.
The Federal Reserve is not well understood by many. Henry Ford said shortly after they created it that
If the American people understood how the economy works there would likely be revolution by morning.
He was not an idiot.