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The International Banking Cartel: Most Secret of Secrets
Banking and International Finance
The function of a Central Bank, regardless of which country, is to “launder money” – to transform it from worthless paper into valuable capital through the labor of the people that borrow money and then repay the amount (principal and interest). It’s the act of repaying that breathes life into otherwise empty and valueless currency.
The money that is lent out is generated as electronic “virtual” currency – which is created inside computer programs used by the banks to record and account for these funds. Before this “virtual” currency is lent, it resides inside the banks computer accounting system as ephemeral digits – sometimes existing for only a few milliseconds before being transferred into the hands of the borrower. The borrower usually never sees any physical form of payment – the borrowed funds are transferred into the borrower’s account as electronic digits – giving the borrower the credit means to settle a transaction – usually a purchase of goods or services. The borrower must then find another source of cash – usually through some act of value-producing labor – to payback the loan to the bank. But the money that is being returned to the bank now has “real” value – not merely “virtual” value.
The Criminal Banking Cartel (CBC) – an international organized racketeering-mafia – does not make its money through the charging of interest on loans. This is a grand misnomer.
The interest that it collects on outstanding loans is only intended as a “facade” – a smoke screen – to hide the real mechanism behind their wealth. The true mechanism is a combination of Ponzi scheme and money laundering.
It is a “Ponzi” because they never use their own resources (money), but merely “flip” the depositor’s and debtor’s payments back into the “reserve” stash, to be loaned out again as debt – literally to be “given away” to new debtors to encourage the re-payment and recycling of the same money. It’s fake money – cash with no tangible value, other than what the public “believes on faith” – that the money has value because they can use it to buy goods and services. In other words, it has a “virtual value” determined by the marketplace where it can be used in exchange for goods and services – not because it directly represents value created by the bank. And it is the debtor that brings this cash to the marketplace as “borrowed” funds from a bank – since it is illegal to print your own money.
There are several important concepts in this description that need to be examined in detail. First, a clarification of “Ponzi” – there are certain elements here that are not normally thought of when the term is normally used to describe fraudulent activity. In actuality, any scheme where a broker merely passes money through from a source to a recipient – legally or illegally – without touching their own financial resources is a Ponzi. It’s the old game of taking a free ride, playing on someone else’s nickel.
So, a bank that takes in depositor’s money or debtor’s re-payment of a loan, and then uses these funds to operate a scheme of lending cash to new debtors is operating a Ponzi.
According to customary banking rules, a bank can loan out a percentage of its assets to earn interest income. What percentage? Years ago, a bank was required to hold onto 10% of a cash deposit (or re-payment) – allowing it to loan out the remaining 90% to customers. But this doesn’t take into account a financial concept called “fungibility” – where the total of all deposits and re-payments can be lumped together – if only temporarily – to create a single reserve asset. In this scheme, if a depositor gives the bank $100, the bank can hold onto that whole amount and count it as equivalent to that 10% required reserve, and then generate $900 in “virtual cash” that can be loaned out to debtors. But if a bank continuously did this with all of their cash deposits, it would soon run up a huge bubble of worthless “empty” dollars out in the hands of debtors. This would appear as “inflation” in the overall supply of money out on the street. With enough inflation, the value of the outstanding cash would devalue, and the mechanism would soon become counter-productive – the more cash you put into circulation, the less its value.
To counter-balance this, the banks run a money laundering scheme to pump value into otherwise worthless cash. The money they lend out has no value other than a perception of value in the mind of the borrower – it is “faith-based” economics – if you believe that it has value, then it does – at least in your mind.
So, the cash lent out has no real value, but the cash returned from debtors in re-payment of loans does have value. And it acquires that value because debtors are not allowed to print their own money – they must earn it by providing something of value in society’s marketplace – where exchange is based on “value for value” – every dollar extracted from a marketplace transaction is derived from someone creating value – work performed, goods exchanged, services rendered. The bankers merely sit around counting money, effectively producing nothing new in value, but their debtors work hard to repay their loans – breathing life and value into otherwise empty and worthless paper.
Let’s look closer at this phenomena of creating money out of thin air. Banks can merely “will” money into existence – a few taps on a computer keyboard, a digit here and there, and like magic – suddenly an account now has more cash than it had a few moments earlier.
Is this “legal” – can a bank create money as simply as this? Yes. But only banks – not private citizens, not even the government. The entire public at large cannot “make” money – that is, print their own cash. Every single dollar in their possession comes from one single source – it was borrowed from a bank. Your employer doesn’t print their own money – they borrow it through a line of credit at the bank. Customers pay for goods by handing over money that they have borrowed – and so it goes – hand to hand, each having first borrowed from a bank.
In other words, the big difference is a bank’s money has no value whatsoever – it is empty and void of anything tangible. It exists on a plane of reality solely in the perception of the public – the public “thinks” the bank’s money has tangible value, so therefor it does – but only in their minds’ eye – not in actual reality. It is up to the public to transform that hollow bank note into an instrument of value. It is the public that breathes life, force, energy into those otherwise worthless pieces of paper. In the process of exchanging cash for goods and services, that cash begins to build real value – the sweat and blood of people that must labor to earn that cash the hard way – through hours of hard work – in a classic sense: making order out of chaos – taking raw material and transforming it into something that is seen as desirable in the marketplace.
All money loaned out by the bank must be returned – and in that re-payment process, the money handed over to the bank now has real and tangible value – earned by the borrower. The banker never soils his hands in physical labor to build value into his worthless, empty cash – he defers that task to the borrower. This is one reason why bankers refer to their customers as “stupid two-legged animals” that come to them begging for cash – and then willing to enslave themselves to pay it back.
The International Banking Cartel: Most Secret of Secrets