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An interesting article in today's Guardian magazine rails against the abuse of the populace by the banks.

Focuses mainly on rip-off charges, but the last few hundred words, incredibly, are devoted to the subject of monetary reform.

I don't think thre article is available online, so here are a few excerpts.

"consumers collectively owe >£1 trillion, rising at 8% per year. Bankruptcies at all time high. 4m households have more debt than they can afford. Where is all this extra credit coming from?

The answer say money reformers, is obvious: it is created by the banks. 3% of M4 is created by the government, in the form of notes and coins. The remainder is bank created credit.

There used to be limitations on lending, such as requiring banks to hold cash reserves and the "corset" which required banks to hold special deposits at the BoE if they loaned beyond specified limits. The corset was removed in 1979 and the cash reserve requirement in 1981 - which goes some way to explaining the explosion in credit.

The privelege to create money awards the sector a tidy subsidy. James Robertson, ex-civil servant and former director of the Inter-Bank Research Organisation, estimates banks in the UK make around £21bn in interest by being allowed to issue money in the form of debt.

Why should banks make money from something governments could do - put money into circulation. Robertson and others argue that central banks could create "credit" money - just like the banks do now - but put it into the economy, interest free, to be used as the government sees fit, much as it does now with tax revenues.

money reform is not a new concept - Abraham Lincoln proposed it also.

Proposals in the current system tend to get tarred as hippy or cranky. In 2002 and 2003, two labour MPs tried to raise the subject in parliament. They were comprehensively dismissed. One of them, Austin Mitchell, says: "The government response is to avoid this subject like the plague. It is seen as witchcraft".

The fact is, we have long since ceded all powers of money-thinking to the money experts - who may have a vested interest in keeping us money-illiterate. Even if we do not accept the reformer's ideas on how money is really created, such an economic blindspot applies at every level - we know that the banks are in some way fleecing us, but we are too bored by money matters to do anything about it. And if we collude, by apathetic default, in a bamboozlement over our own personal finances, what chance is there of our understanding the greater movement of money, of having a real say in the nation's economy?"

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Also in this article was a claim that the government encouraged banks to make risky loans during "booms" with the restriction on competition seen as some sort of reward that made this worthwhile for the banks. The massive profits they can make during good times off-setting the losses in terms of bad debt. If true it would explain a lot of what is going on with the property market right now.

Billy Shears

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<snip>

The fact is, we have long since ceded all powers of money-thinking to the money experts - who may have a vested interest in keeping us money-illiterate.

<snip>

Funny - I was thinking about this the other day. I've never watched or heard of a TV program explaining how money works - it would be a revelation to the entire nation (poetic or what?). It could explain how money is created (ie, is magic'd out of thin air), fractional reserve banking, the origins of money, how gold fits into the equation etc.

It would be interesting to see if the good old Beeb would be "allowed" to let the nation know the truth. I find it amazing the number of people who still think that the pound is fully backed by gold - infact almost all of them think this is true.

Regards,

crude

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If you have a spare 3 hours the money masters video explains a lot on those bankers and their modern history. An amazingly informative life changing understanding is there for all who have the time and inclination.

A must watch if you have an interest in how we're being conned by the banking system.

http://www.thedossier.ukonline.co.uk/video_drugsmoney.htm

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Funny - I was thinking about this the other day. I've never watched or heard of a TV program explaining how money works - it would be a revelation to the entire nation (poetic or what?). It could explain how money is created (ie, is magic'd out of thin air), fractional reserve banking, the origins of money, how gold fits into the equation etc.

It would be interesting to see if the good old Beeb would be "allowed" to let the nation know the truth. I find it amazing the number of people who still think that the pound is fully backed by gold - infact almost all of them think this is true.

If everyone knew how the system worked then it wouldn't... work. Paper money is called an "hallucination" for a good reason, so long as the majority of people cannot see beyond the farce everything is ok.

The closet the Beeb has ever got to this is Adam Hart-Davis tottering around the BoE museum and talking about the amazing things the Stuarts done for us, he mentions a dodgy debt from 1694, shows us a money-stick and that's your lot.

UK History sometimes shows "Great Political Mistakes: Atlee - The Triumph of the Dollar", no doubt intersperced with adverts from loan sharks.

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If you have a spare 3 hours the money masters video explains a lot on those bankers and their modern history. An amazingly informative life changing understanding is there for all who have the time and inclination.

A must watch if you have an interest in how we're being conned by the banking system.

http://www.thedossier.ukonline.co.uk/video_drugsmoney.htm

I've watched the Money Masters vid - very interesting it was too...

I was thinking about something more mainstream which was readily available for the masses to view - maybe a Horizon program or something of a similar ilk

crude

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I've watched the Money Masters vid - very interesting it was too...

I was thinking about something more mainstream which was readily available for the masses to view - maybe a Horizon program or something of a similar ilk

Yeah, they could have lots of sharp editing and cool sound effects showing a block of gold at twenty different angles with five different camera filters and then a speeded up time lapse of people walking down Threadneedle Street with the camera at an obtuse angle and a purple sky. Not to mention a shocked voice-over not telling you anything in particular, but taking an eternity to do so with endless rhetorical questions and sub-clauses.

Politics and anti-Americanism has infected everything at the Beeb, hence endless editions of Horizon on a bunch of nutcases that still believe in biblical prophecy and a flat earth.

Edited by BuyingBear

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In the immortal words of Bon Jovi, "Keep The Faith".

From the song "Everybody's bitching 'cause they can't get enough".

The High Priests(esses) never fully reveal the mystery.

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I've watched the Money Masters vid - very interesting it was too...

I was thinking about something more mainstream which was readily available for the masses to view - maybe a Horizon program or something of a similar ilk

crude

I would be cautious about taking the money masters video too seriously. There are problems with the system for sure, but the video goes too far in the conspiracy theory direction. I don't believe that any individuals are responsible, it is a complex system with its own momentum in my opinion.

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  • 335 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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