The Truth About Banking

                                                                                         

How the mysteries of high finance conceal the theft of other people's wealth.

The mystery starts with the secret mandate, used by banks, to issue new money as 'credit'. That sounds so innocuous, and so meaningless, that its full significance does not register with anyone. Credit, in this context, means, (according to the Oxford English Dictionary), 'the sum of money at a person's disposal at a bank.'

Therefore, when new money is issued as credit by a bank, a sum of new money is placed at the disposal of the bank's client. 'New money', mark you, not money which already exists, but 'new' money freshly created by tapping its existence into a computer at the bank.

Unbelievably dishonest, and quite ridiculously simple. Create brand new, newly born, freshly conceived, counterfeit money by tapping the keys of a computer, as authorised by the Government. That is how banks make money, and then they lend this money and charge interest for its use.

From the viewpoint of the banker the only problem with this set-up is, "How do you persuade people to go into debt and use credit?"

It can cost a lot of money to fully utilise the secret mandate of being allowed to issue new money as credit. But bankers turn that to their advantage by getting people to invest in the credit trade.

It looks ridiculous on the face of it - that it is possible to sell debts at a profit. But by the time a bank's client is spending his life earning money to service his debt, all the work of the banker has been done, and the income from the interest on the debt is very valuable. The 'credit' has become 'debt', which can now be sold at very considerable profit.

This gives a totally new tranche to the credit industry and accounts for the massive profits the big banks can brag about. It also intensifies the mystery of banking, and makes it virtually impossible for anyone to see the dishonesty and corruption upon which high finance flourishes. The profits to be made, out of fully exploiting the few magic words "Banks are allowed to issue new money as credit", are so huge that they make the South Seas Bubble look like a game of marbles.

Do not waste time, as I have done, trying to understand all this. All you have to do is make sure that your M.P. helps our Government to restore unto itself the sole right to create and issue new money.

Your M.P. will need to handle the standard 'monetarist' conviction that Government printing money is inflationary through rational expectations of the public. This, of course, is banking propaganda put out to convince us that Governments can never be trusted. But the bankers themselves say, "We care not who makes the laws, provided we are allowed to control the money supply."

That secret mandate gives the bankers complete control of money, they actually create it. That puts them above the Law, above Parliament, by their own admission. Hardly surprising that politicians can appear to be dishonest, when they are actually under the rule of the bankers.

About the author:
Dr Hamlyn is a founding member of the Royal College of General Practitioners, a veteran of WW II, retired farmer and practicing medical doctor. He is a prolific and articulate voice on the subject of monetary reform.
http://www.monetaryreform.org



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