What the Heck is Going on Out There? (Banking)


World Bank President James Wolfensohn speaking...

World Bank President James Wolfensohn speaking at the opening of the Annual Meetings’ Program of Seminars; Prague Congress Centre (Photo credit: Wikipedia)

As written in the “What the Heck is Going on Out There (Multinational Corporattions)”, which is part 1 of this article, I wrote that there  wasn’t enough money in the pockets of consumers to maintain high profits, and thus the Multinational Corporations went to the stock market to earn the profits high enough to keep the shareholders happy. This article is intended to help explain the other side of purchases  and to explain what is going on in the financial industry in today’s lousy economy.

There was a time when banks lent out their own money, but things have changed haven’t they. We do not know how things changed, the banking business is above scrutiny and awash with secrecy, and now the characters that brought about the changes are all dead and are not telling. We don’t know if the changes came about in Canada as a shell game or scullduggery, but thing certainly changed.

What is known is that the Banking Industry has changed massively and the powers over money creation, and therefore lending, and therefore over the lives of the People. The effects on the consumers has grown exponentially. What began as Banks lending their own money, and the money of the depositors became a game where the Banks could lend out 20 times the money that the bank could put down as a security deposit.

In simple English that means that a bank could lend out the same money 20 times, or put in a different way, the bank could lend out the same money to 20 people (some call this fractional reserve, others the multiplier). You could see how money could expand under such a formula, and how consumerism could explode. The result is easy to see, whereas when the banks could only lend their money and the money of depositors, and it took years to save and to buy anything, due to the lack of money as a resource. Expanded money seemed a boon to consumers, but there was to be a price to pay. Today, a consumer can merely walk into a store and lay down a card and walk out with whatever the person’s little heart desired, and the bank limit on the card could carry. In a word, for how much you a slave are able to pay back the ability to pay the sum back.

Today also, the only limit to a bank’s lending to consumers it the ability of the consumers to repay the loan. As according to Graeme Towers, the first Bank of Canada Governor, loans are merely a number entry. In Mr. Tower’s day it was a number written on a card, or on a ledger. Today when you take out a loan you are given a number, that amount that you agreed with the bank to borrow, which the bank then places into your bank account. It is not the banks money, and it is not the money of the depositors, it is merely a number typed into the bank’s computer, to the amount of money agreed to on the contract you signed with the bank.

One other point for you to know and understand is that 95% of the money that came into creation in Canada, came by way of a bank loan to a private individual, to a company, or a government. To confuse the point, economists will argue that that is not true, that some of the money would come into Canada via trade. That is why I stated it this way, “came into creation in Canada”. The other 5% came by way of money printed by the mint and put into circulation.

This means that interest is being paid for the vast majority of the money in circulation, in Canada, and therefore, and it is essential to know, it ends up that money has to be borrowed by someone , a government, or an industry to pay back the money in interest charges. That amounts to constantly borrowing money (by someone) to expand the money enough to pay back the interest owed to the banks.

 

This explains the massive profits to Canada’s banks, and it also explains why consumers are getting deeper and deeper in debt, and why so many people are either maxing out their credit limits, and why so many people are forced into bankruptcy. You can see it in the whole World, all those countries in massive debt and having to be bailed out. And we are only seeing the first salvoes of the economic carnage to come. The 5% debt-free money will not, can not pay for the interest charges of the lending of numbers.

 

Our banks are phoning us more now than ever in history because each bank is fighting to gain the last bits of our debt. Frankly, we are near the verge of being maxed out for debt, and anyone with any more room to carry more debt is phoned and hounded to borrow from them.   Credit cards

 

So the question is, where do the banks go from here, with us almost at our capacity of debt. The next step is for banks, and the Multinational Corporations to develop the 3rd World where there are new people, with the potential of getting an income and them becoming the consumers and then becoming debtors.

If you watch this You Tube clip, at approximate 6 minute mark the speaker, James Wolfensohn, (former president of The World Bank), states that in the past, the wealth of the West was 85% of the World’s wealth, while the 3rd World has about 15% of the World’s wealth. At about the 13 minute mark of the clip, Mr. Wolfensohn suggests that in the next 30 years, the West’s wealth will drop to 35% and the emerging nations would then have 65% of the World’s Wealth. Even someone with no imagination can imagine the change the West will experience as we are shifted into poverty.
Going back to an earlier metaphor, the banks are parasites that are sucking the West dry, but the emerging markets will become the new host of their parasitic activities. We, in the West will be sucked dry and spit out because Greed has it’s own vision, and no compassion, and no friend but for dollars. We who are recipients of their greed must learn of this and defend ourselves of their powers that OUR GOVERNMENTS gave them or our future cannot help but be bleak. In our indifference to controlling the representatives of our Government, we have allowed our Government to hand over control of the creation of money over to those who would do us harm, and they are harming us. The heads of the Financial Industry will toss us aside like dross. What bully has respect for him whom he abuses. We continue to be indifferent.

As James Wolfensohn pointed out, this will happen over the next 30 years, so it means we do have some time to put in changes that can begin to reverse this situation. The first thing that has to happen is for the public to become aware of this imminent danger (and that is why it is imperative that this message is sent out to everyone we know), and then we voters can understand the need to demand a change in our Economic Policy.  Consider this, economists dismiss the concern of debt on the Economy, but you and I live with this reality every day. But the system is managed by these economist, but Ben Bernanke  (Chairman of the US Federal Reserve (that is, contrary to popular belief, not owned by the American people)), and Mark Carney (formerly Governor of the Bank of Canada, and now the head of the Bank of England), these people with their 6 figure incomes have no concept of debt or what all of this debt is doing in the lives of the people living at the 99% end of society. I can only shake my head as I consider that these guys are controlling our Economies and do not know that debt matters. How is it that we can expand past our capacity to repay without a collapse. It is called bankruptcy, and haven’t enough countries gone down that road for them to notice this MINOR POINT. That is why the People HAVE to come to understand these concepts, enough to get control of them by voting in the right people to solve these problems. And again, as I have suggested as the solution to our political wows, I say for our financial wows, we MUST begin electing Representatives that are not affiliated with the Party System, because they are merely agents to the 1% agenda.

In all this complication I don’t want anyone to get the idea that I am opposed to the system of multiplying credit; I am not. The multiplying of credit was the means of the Bank of Canada bringing Canada out of the Depression (when the banks refused to do it for Canada’s then Prime Minister William Lyon Mackenzie – that was the impetuous for William Lyon Mackenzie buying some private banks and creating a Canada owned Bank of Canada). I learned of Social Credit about 40 years ago, and so I have understood that this debt system of Economics is not the only model of Economics out there. It is difficult for people who have their head swim at the present system to know that this is not the only way to do things. What is imperative for us to understand is, it is not the system of multiplying that is the difficulty and the harm to society, it is who controls the system. Our present money system it is driven by profits, thus debt to us the consumers. The other part of the solution is for the Bank of Canada to control the system and expand the credit; this would be the expansion of Debt-free money, as opposed to Debt-money lent out by profit seeking banks.  How the idea of voting for Independents (non-party) got into this is because it will only be Independents that will have the independence of changing the system.

Till then. We sit in a room with a hood put over our heads; someone keeps smacking us on the head with a stick, and no one has the smarts to take the hood off to see who is doing the smacking. We complain but do not try to stop the person from doing it. That’s how stupid is that.
(End of Article)

Important Articles to read:

https://pushinback.wordpress.com/2012/09/23/571/

https://pushinback.wordpress.com/2012/04/14/the-story-of-how-banks-credit-and-money-came-to-be/

 

Here are some famous quotes from some famous people, speaking on the topic of banking.

 

Congressman Patman: “Mr. Eccles, how did you get the money to buy those two billions of government securities?” Eccles: “We created it.” Patman: “Out of what?” Eccles: “Out of the right to issue credit money.” – Testimony of Marriner Eccles, Chairman of the Federal Reserve Board, before the House Banking and Currency Committee, 1941
(Anyone interested can contact me, we, in Canada, have an equivalent statement by Graeme Towers, Canada’s first Bank of Canada Governor in a 1939 Standing Committee on Banking and Commerce).

 

“Every effort has been made by the Federal Reserve Board to conceal its powers, but the truth is that the Federal Reserve System has usurped the government. It controls everything in congress and it controls all our foreign relations. It makes and breaks governments at will.” – Louis McFadden, Chairman of the House Committee on Banking and Currency

 

“I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. As a result of the war, corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands, and the Republic is destroyed. I feel at this moment more anxiety for the safety of my country than ever before, even in the midst of war. God grant that my suspicions may prove groundless.” – Abraham Lincoln, from a November 21, 1864 letter to Colonel William F. Elkins

 

“Banking was conceived in iniquity and born in sin. Bankers own the Earth. Take it away from them but leave them the power to create money, and, with the flick of a pen, they will create enough money to buy it back again. Take this great power away from them and all great fortunes like mine will disappear and they ought to disappear, for then this would be a better and happier world to live in. But, if you want to continue to be the slave of the bankers and pay the cost of your own slavery, then let the bankers continue to create money and control credit.” – Sir Josiah Stamp, President, Bank of England (2nd richest man in England)

 

“History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance.” – James Madison

 

“I am afraid that ordinary citizens will not like to be told that the banks can, and do, create and destroy money; and they who control the credit of the nation direct the policy of governments and hold in the hollow of their hands the destiny of the people.” – R. McKenna, Chairman, Midland Bank London

 

“It may appear that what goes on is happenstance, but the government most surely has planned it.” – Franklin Roosevelt

 

“If you don’t read the newspaper, you are uninformed; if you do read the newspaper, you are misinformed.” – Mark Twain

 

“The business of the journalist is to destroy the truth, to lie outright, to pervert, to vilify, to fawn at the feet of Mammon, and to sell his country and his race for his daily bread. You know it and I know it, so what folly is this toasting an independent press? We are the tools and vassals of rich men behind the scenes. They pull the strings and we dance.” – John Swinton, New York Times Chief of Staff
“One of the saddest lessons of history is this: If we’ve been bamboozled long enough, we tend to reject any evidence of the bamboozle. We’re no longer interested in finding out the truth. The bamboozle has captured us. It is simply too painful to acknowledge – even to ourselves – that we’ve been so credulous.” – Carl Sagan

 

“Only the small secrets need to be protected. The big ones are kept secret by public incredulity.” – Marshall McLuhan

 

“I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a monied aristocracy that has set the government at defiance. The issuing power of money should be taken away from the banks and restored to the people to whom it properly belongs.” – Thomas Jefferson

 

“The central bank is an institution of the most deadly hostility existing against the principles and form of our Constitution. I am an enemy to all banks discounting bills or notes for anything but coin. If the American people allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered.” – Thomas Jefferson. (Compare that to what is happening today)

 

“The Government should create, issue, and circulate all the currency and credits needed to satisfy the spending power of the Government and the buying power of consumers. By the adoption of these principles, the taxpayers will be saved immense sums of interest. Money will cease to be master and become the servant of humanity.” – Abraham Lincoln

 

“The great mass of people will more easily fall victim to a big lie than to a small one. What luck for rulers that men do not think.” – Adolf Hitler

 

“One of the saddest lessons of history is this: If we’ve been bamboozled long enough, we tend to reject any evidence of the bamboozle. We’re no longer interested in finding out the truth. The bamboozle has captured us. It is simply too painful to acknowledge – even to ourselves – that we’ve been so credulous.” – Carl Sagan

 

“The issue which has swept down the centuries and which will have to be fought sooner or later is the People vs. The Banks.” – Lord Acton, Lord Chief Justice of England, 1875

 

I’ll give the last words to someone at the center of the issue, one of the chief bankers himself. Give me control of a nations money supply, and I care not who makes it’s laws
Amschel Rothchilds

 

 

 

 

 

 

 

 

 

 

 

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About pushinback

Back in 1993, I attended an anti-Nafta rally in Ottawa along with over 110,000 others. But despite the overwhelming opposition to NAFTA, the steamroller rolled on. It was there that I came to understand the one vital thing that I have been preaching ever since. There are so many issues, and so many fighting each issue, we are all spinning our wheels, and wasting our time, talents and energy, because each election, we give the politicians our power and so the deck is stacked against us. I said it that day and I say it with more fervency today. We all have one issue that we share, and we should all stop fighting for our own issues and losing anyways, and we should fight to achieve that one thing that we all share. We Canadians all have to fight to finally get a say between elections. We need to fight to make politicians accountable to us, the people. If there is no accountability, and the people have no say between elections, we have no Democracy. My Blog is written to teach the reader the essential knowledge of freedom and Democracy. Please read, and learn. I am one person, but I leave you my witness that one person is not powerless, only first you must first learn and then act. Let the democratic revolution begin. Kindest regards, Rob McQueen
This entry was posted in 1% / 99%, Economic / Financial / Bank of Canada and tagged , , , , , , , . Bookmark the permalink.

5 Responses to What the Heck is Going on Out There? (Banking)

  1. nacainte says:

    Reblogged this on Awaken Longford and commented:
    And from Canada……

  2. Pingback: The Story of Money, Credit and Banks | pushinback

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