Forums Forums National News OMG This looks really SERIOUS!!!!

https://en.wikipedia.org/wiki/Money_creation

Another alternative view .

They haven't given you anything, its a loan not a gift, they have created nothing, it goes out, it comes back, its sum is zero. They have paid £1000 for a £1000(+) asset, the asset being your debt, there is no creation involved except a self-cancelling credit and debit.

Now if the bank gave you £1,0000 as a gift, that would come from a fund. The interest they pay you on savings comes from a fund. The interest they charge you on a loan goes to a fund.

The bank gives the gift to itself, not to you. As I have explained. The money has been created. The fact that the bank has to wait for you to pay back the £1,000 is ok by them. When you have done so they will have £1,000 that they didn't have before. You are not worse off. You have had the use of £1000 which presumably you can use to earn more than £1,000. Any interest they charge is incidental.

I know it sounds incredible if this is new to you, but it is perfectly true. I think it was Galbraith who observed that the method used by banks to create money is so simple that the mind is repelled by it.

You may like this Youtube video that explains how the system evolved. Its American, but the same thing applies to other countries too.

https://www.youtube.com/watch?v=cuiGwpVjJcM

Its creating money much in the same way as a post-dated cheque does, the overall balance is still zero when you look at the complete system.

No. The overall balance has permanently gone up. The bank has created another £1,000. If they were feeling generous they could say you don't have to pay it back, and you would be £1.000 richer. They would be no p[oorer, and neither would anyone else. There would be £1,000 more money in circulation.

They won't let you off the debt of course. THEY want the £1,000 they have created, so they insist you pay it back. But whoever has it, the amount in circulation has gone up by £1,000 pounds.

I know it's incredible - you and I get thrown in jail for printing money - but banks are allowed to do it every time they make a loan. It doesn't have to be a depositor's cash that is loaned. They just create more money.

Have a look at a great docu film on youtube called " meltdown : the next financial crash " or " four horsemen"
Were due another major recession soon.
The uks been bankrupt for over a decade and revolving door mps wont make a difference.
Were treading water as always.
Banks are totally bent. Always will be. Look at citibank public fraud in late 90s onwards. Riots in the streets.
In the usa if the IRS ask to see the 4 private comps who run banks usa plc paperwork / accounts etc
They can say NO ,shows u where the power is.
Meltdown doc shows bush in 2002 flooding housing with taxpayers money. So the usa paid for their own property bubble recession. Thats how sick it is.
Banks where de regulated so much by labour its gone far over the other way round.
Always remember the taxpayer is the cash cow & ultimate fool to take the hit on all the govs parasite moves & incompetence.

The film is from 2012 - The rich are still getting richer, the poor ,poorer, the banks/ economy screwers just get more inventive and smarter. Nothing much changes ,it just comes back in disguise.
As a species, human beings are so selfish and amoral they are disgusting and I dont see that changing quickly either.