The Story of Money, Credit and Banks

Consider the mess the world is in, with all the collapsing economies, and then see if this story doesn’t have relevance to the mess today.

The story of banks began in medieval times, more specifically, during the Crusades. The Crusade was a war where kings and noblemen themselves, of a number of European countries, traveled a great distance to the Middle East. Being away for many years at a time, kings had to find a way to protect there gold, jewels etc. while away; their whole army would be taken, if some precaution was not taken, a small number of men could have scaled the king’s castle and stolen all his fortune. So kings and noblemen alike left their gold with goldsmiths for its protection.

At handing over the gold, the owner of the gold would be given a note or receipt for the deposit, as proof of possession. Being that the depositors were gone for so long, the gold stayed with the goldsmith for many years, but something quite unexpected happened. Gold was so heavy and burdensome to haul around, so those who possessed the gold gave the notes to someone else for the purchase of property, rather than to have the gold picked up from one fellow and then merely deposited again from another. This meant that the gold sat for many more years without anyone actually taking it into their own possession.


Some underhanded goldsmith got the notion to write up a note for himself and found that with it he could purchase property and goods with it. He had found himself the goose that lays the golden eggs, but he had to keep it secret or he was surely to be found out and executed by an angry king or nobleman. As time went on he became a rich and powerful.

If the goldsmiths weren’t onto a good enough thing, someone began writing up notes and giving it to borrowers and they collected interest on the sum lent.

As time went on goldsmithing would become a different industry altogether. What began as the goldsmithing trade morphed into a bank and as it grew, into a banking industry. Today we still have traces of that very system still in existence. Paper money may still be referred to as Bank Notes, and until 50 years ago the value of money was pegged to gold and the system was referred to as the Gold Standard.Gold bars and bullion

English: One dollar banknote issued by the Col...

English: One dollar banknote issued by the Colonial Bank of Canada, Toronto. (Photo credit: Wikipedia)

My reason for writing this blog is to get Canadians realize that banks have been given the right to create money from our Government. Now if our Government has the power to give banks the right create money then Canada also has the power to create money for itself. The question that shouts out for an answer is, when Canada is paying $40billion a year to pay for money that they have borrowed from banks, why don’t they create the money for us themselves? Your tax dollars are being emptied out of your pockets because Canada has chosen to borrow money when our elected representative could easily, and better create it through the Bank of Canada. The Government of Canada made a law to nationalize the Bank of Canada back in 1938. This allowed the Bank of Canada to do what all banks do – to create money – only, if you create money for yourself (as a Nation) You do not owe money to anyone. You cannot owe yourself money. So why do your and my Government borrow our money from Private Banks? That is a question we should talk about until every voter is talking about it and then ask our politicians, particularly before we cast our ballots next election.

And after we have done our budgeting and seen that we are only one paycheque away from money trouble, remember this. You would still have most of the dollars that you pay for taxes in your pocket if in 1974 Trudeau didn’t start borrowing Canada’s money from Private Banks rather than from the Bank of Canada. Now ask yourself “Who is Government there for? For the People, or for the profits of the  Multinationals and the greed of the Private Banks?


Other articles that you will want to read and pass on to educate your friends:

3 Economists Say Canada Needs to Get Debt-free Money From the Bank of Canada

What the Heck is Going on Out There (Banking)

Poverty amid plenty.... of Rich Elitists

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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 Economic / Financial / Bank of Canada, Uncategorized and tagged , , , , , , , , , , , . Bookmark the permalink.

One Response to The Story of Money, Credit and Banks

  1. Pingback: Alternative Economies – A Must to Listen to Understand the Money System | pushinback

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