We have all read the “web of debt” by Ellen Brown or “testa e croce” by Giorgio Ruffolo, or any good similar book on Money Creation and the debt driven economy..We have all bought this books and read something about money creation…
This statement above is just rhetoric crap and is true in 0,00000000001 % of cases at best, so finally we are even more lucky than the famous 1% of the Oligarchy.
In brief, the tale of the modern banking – the Washington Consensus as the ultimate crap- goes from the First Fraud on. First fraud?, no,no lets call it a fraud by safekeeping;
The Goldsmith`s fraud as the beginning of the Civilization
In not so far and distant times the goldsmith or any similar characters had the means to safe keep the money which was in a form of silver and gold and to guard it against the thieves.The safe was the place.While “safekeeping” this money on behalf of the customers and others, they noticed that , in a year, only 10% maximum of customers came to reclaim the safe keeping gold and silver belonging to them.
And so they started to give away the I Owe You -IOY- letters to the borrowers, pretending they had the cover for the sum lent.The Debt driven economy started, and it started as a fraud.
Certainly the Goldsmiths did not declare to the client borrower or to the client on behalf they were safekeeping the money that the IOY were based and backed on the gold and silver which was not in the legal possession of the Goldsmith. The cunning character was just hoping that only 10 % of clients would come and claim the gold, in meantime he was lending something which was not his property. Even WORSE, he was giving IOY on behalf of something he had no right to give. In fact, the beginning of the Fractional reserve banking was already creating money out of thin air and pretending it was backed by Reserves.
A Fraud.That is the start of this civilization.
And here dear reader, when Witchdoctor mentions Reserves, you , clever as you are, understands where this tale is leading to…
The fractional reserve banking was having reserves, just like described in 16 shots at the OK Corral. But it did not lend the reserves, the reserves where there to cover the missing shot,i.e, if the 16th shot- credit- loan went bust and not repaid (bad credit) the 6,66 (100 divided by 15, hehe) number of the beast as a reserve was there to cover the goldsmiths exposure and not get bankrupt, hopefully.Nothing else.
All lending was in the beginning just creating money out of thin air, and was never backed by gold in a full reserve banking or similar . So, dear reader, just forget the fake news when the dollar or any Paper Money- IOY- was backed by gold. Fake.Fake.fake.
NOW they say that banks do not lend reserves.HAHA!!! WTF! Have you ever seen a banker lending his own money? Or a construction tycoon (like the book the “man in full” by Tom Wolfe) building with his own money? !
The only news in this non fractional banking is, that they, the banks do not need reserves, they are 0,0000000. In a fractional banking the benkers had some reserves for the rainy loan., now it is nil. The banks borrow reserves if they need them. And here we see a fright or an underneath, underground panic in the debt driven economy. If one goldsmith runs out of good credit, if he gets to much NPL-non performing loans in this mumbo jumbo lingo, or better if he is going broke in his double keeping entry books, then he asks for a loan from the other goldsmiths-banks and if they say no, no loan, or if more of them bankers get into trouble the Domino Effect starts—– and it is over.The number of NPL is mostly underestimated, for good reasons and is also hard to estimate, it is all in the hands of the banks… That is why the Eurozone proposes to freeze the personal accounts in such a scenario, not because they need reserves, but because they have none.PuFF!! It is all smoke.
As in Bretton Woods agreement the Dollar was declared to be 35 dollars fixed exchange a gold ounce and if you are medium clever that means that dollar was gold and was worth 35 dollars an ounce and it was not meaning that you get gold on behalf of it, because it will all go bust as in any fractional false reserve, it means that dollar was gold. ALL the other Members of the Bretton Woods agreement just agreed that they will exchange their own currency at this rate and they ,logically ,agreed that they are not the measure of One Ounce of Gold. The Only measure for that was the Dollar and so the Dollar become Gold.In God they trust?The agreement did not say that the pound or other currencies were the measure, they were measured by the Dollar.
The Water is WET!
It took almost 800 hundred years of hard labor that ,first the Bank Of England-BOE- and after, more than 3 years after (the Germans always need to check and it takes time, in fact 800 years), even the Bundesbank noticed (!!! well, this is a real tale!) that banks make the Money, and that banks make the money out of thin air! That almost all money comes in existence as a loan/ credit!
They should have asked the Goldsmith on that behalf in times when this central banks were established, but no, they waited and waited, deeply studying the money…. bollocks. Fake news. Unbelievable.
The Water is Wet!
The Bundesbank case is the interesting one.Very , very. When they finally discovered that banks put the money in existence when somebody is taking a loan, how they can still advocate for austerity measures ,especially now when they finally understand what is the money supply? But maybe they will need another 800 years to reach that mathematical conclusion of how shrinking money supply in any form destroys the economy.
Or is even this a fake news and they know it very well, considering not as a last argument the huge salary they get paid every month for such discoveries.
Why so late declaring that water is wet?
The reason for such a late discovery is maybe in the fact that already too many people know how it goes.And the masters have to control the flow of the events, cover backs and lead the game.The next reason is that, by acknowledging that money is created by banks as a loan, they acknowledge the existence of all huge and overwhelming financial pyramid, incomensurabily proportionate to this simple loan making and having a non calculable leverage, so high it is,and it is Based on a Simple Loan for Your fridge. Even if the money supply or your fridge loan are just peanuts, the whole Pyramid sits on your new fridge.The whole world financial sector and it derivatives in any form sit on your new fridge. Are you proud or shit scared? And when the time comes, they just say to you that your money is not safe and they will step in, but how they will step in is not said.maybe by confiscating and turning it all digital for ever, giving special access, giving the right to revoke, or starting to make it by the Central banks but they do not say in which order, magnitude or for whom. We can just imagine it will not be for us.
The tale is not over;
Money came in existence maybe less than 3000 years ago. It came first in existence as an Anonymous Money, there was no King stamped on it, no State or Empire behind it. It was just a nice shell with declared value in Polynesia. Or a piece of silver with a given and declared value as in Sumeria.You could trade it all over where the influence of trade was in place.
It is coming around , anonymous, in a digital form.
And the First Money was the State Money, Lydia and as rich as Croesus, the saying goes even here in Witchdoctors place today. And the Greeks and the Romans. The State or the Authority was Coining the Money. They were first.
They lasted much longer than the Washington Consensus debt driven economy with the private banks money creation.Not that Witchdoctor wants to close banks, no, but there is another model of coining money, just around the corner, in near history.
The History is coming to get YOU.
copyright 2017 Witchdoctor