Banking today, Part II
OK, here we go, part two.
The banking system you thought you knew about.
Why is Ireland in the crapper? And understanding why we are there; The Central Bank of Ireland.
The Central Bank Act 1942 which came into effect on 1 February 1943 renamed the Currency Commission the Central Bank of Ireland, although the organisation did not at that time acquire many of the characteristics of a central bank:
- it was not given custody of the cash reserves of the commercial banks
- it had no statutory power to restrict credit, though it could promote it
- the Bank of Ireland remained the government’s banker
- the conditions for influencing credit through open-market operations did not yet exist
- Ireland’s external monetary reserves were largely held as external assets of the commercial banks
- This seriously limited the banks’ ability to run an independent monetary policy.
O’Kelly was appointed Minister of Finance in 1939. He secured the passing of The Central Bank Act in 1942. On 17 July 1942 at the fifth and final stage of the Dail debate on the “Central Banking Bill”. He argued that the owner of the credit issued by the Central Bank of Ireland, should be the private property of the joint stock banker and not the property of the people of Ireland. This debate was carried out when only five Deputies were present in the Dáil.
And it was put into law.
The Bank of Ireland is not The Bank of Ireland, it is a private registered company! Don’t get confused. The Bank of England is not the Bank of England, it has shareholders, it’s a company and private, very private for that matter.
Deposits, they offer lower interest.
Loan accounts, they earn higher interest for the bank, the difference between the two is what the bank makes, and it pays the bills. That’s what you believed was banking?
Wrong and you knew that was coming, very wrong.
Your signature and promise to pay and promise to pay the interest is where the bank conjures up that money. Take a loan and they add that figure to your account by the push of a button. That money does not exist, sounds far fetched, not at all, read on.
Coins and notes have been in use for a millennium; the fractional reserve banking and Fiat currency have not. It took a lot of Vipers a lot of strategic moves to get it there and they ain’t going to give it up lightly.
Stop for a moment and think about the amount of money out there. Is there too much money floating around, is it possible that the really is that much money?
Look at the corporate world, the profits, the pay packets, pensions. Look at the institutions; the EU, the IMF, The UN, NATO. Then drop down to governments, county council, Quango’s.
Think on that, you must come up with:- the money being used can’t be the old fashioned ‘Gold Backed’ money, there can’t be that much gold, you are right.
The money we use today is fictional and is created by the Bank at a ratio of 9 – 1. Fractional Banking at its best.
Paper money was a receipt that could be redeemed for a fixed weight of gold or silver. £1 I promise to pay the barer, it was on all of our notes. But go and try and get your Sterling Silver. That is why UK money is ‘Sterling’, it was backed by Silver and not Gold.
Note that the €uro has no such statement “I promise to pay the barer”, there is nothing on the €uro note. Since the Federal Reserve Act the America notes say “this note is legal tender for all debt, public or private”.
You can now only redeem your note for another note or goods.
How much money is out there, well in the good old days the only money in circulation was what the bank could backup with its Gold deposit. Today’s money has no backup and is created out of debt.
Lets take a new bank, the Bank of Byron; nice new building using my investors money, I join the central bank of England, that entitles me to only cover just 8% of the total amount I loan out!!!!! Brilliant, just 8%, that’s the way to go, I don’t need to cover 100% of any money I loan.
So day one of my new bank, the doors open and Joe Soap, my first customer comes in, he wants 10K to but a car, loan approved and off he goes.
I type into his account 10 thousand pounds, hit the button and there is his money. Can I, as a bank cover that money, NO. I just need to cover 8%.
So off he goes and buys his car, with cash, NO, don’t be daft, the cash in use is just pocket money. Try and take out 10K and spend 10K, they would try to lock you up for money laundering.
So step number 2, the seller put her £10,000.00 into her account and here is where the magic begins. Remember that ratio of 9-1, well it’s back. The Bank can now create a new loan of £9,000.00, reserving just £1,000.00. and so on and so on, it’s the law, well, banking law. Make a deposit and your bank gets to loan the 9-1 ratio.
The only time this stops working is when you take out money and don’t deposit it somewhere else. This is fun, I can make money by just pushing a button. It won’t be long before I have the biggest building and pay packet in town, ah and don’t forget those bonuses.
“I am afraid that ordinary people will not like to be told that the bank and not governments create money and they who control money direct the policy of governments and hold in their hands the destiny of the people”. R. Mc Kenna, Midland Bank of England.
Think on this, the only real piece of worth in the banking transaction is the ‘guarantee’ you have put up.
However to the bank that signed contract is for the bank, a portable, exchangeable, saleable piece of paper. It is an IOU and a form of money.
A loan in the real world means the lender has something to lend. No point in me promising to lend you a hammer or giving you a piece of paper with a hammer on it. You could not knock a nail in with it.
So lets side track and do some basic maths. I bought a house in the UK, the house cost £28K (a long time ago, ah), the mortgage repayments were £366.00 per month. Times that by 12 months and that’s £4,392.00 a yr or thereabouts. Now the mortgage ran over a 25-year period, that’s a whopping £109,800.00 I have paid for just £28K. Not a bad days work. We all know this fact, it is just nice to put it down again, for what it is ‘usury’.
So back to Fiat Currency, it is a system that is about to fail, it is un-rational and inevitable to fail.
One, the Government borrows its money from the Banks, and at high interest rates, depending on how ‘you’ are perceived. Good bet/bad bet.
The government pays this interest by raising the money in taxes!!!!!!!
Why can’t we go back to when the government issued its own money, debt free money. Just think how far your money would go within the government system if we had no interest to pay on that money. All of the money would go into hospitals, roads, local county council etc.
Two, why not create money that circulates permanently and does not require accelerated growth, as does Fiat Money.
Every major religion forbids usury, “money only real duty is to facilitate the exchange of goods and any form of making money from just having money is usury and immoral”.
Are we being over taxed to run the country or to pay the Bankers their interest? Inflation is really a tax on interest and money.
Lets go back to a time when the Government of the day releases an amount of money needed to run the country, collect its taxes but not one cent would need to go on paying interest! Your taxes would go to where it was supposed to go, RUNNING THE FUCKIN COUNTRY.
The war of independence in the US was in truth a story of America trying to free itself from the €uropean central bank, this battle was lost in 1913 by Woodrow when he signed the Federal Reserve Act and Fractional Reserve Banking came into effect.
Something very big is at stake here, enough to get a few Presidents assassinated, a Roman Caesar, a Swedish Royal and a that guy found under Black Friars Bridge.
Go have a look at how Iceland is doing, again, it is not in the mainstream media, God forbid we find out the truth!
How to capture a people; it’s called wealth destruction.
You buy your house early, you pay what it is worth, say €100 thousand. Times get good, house prices start to go up, then by some miracle it skyrocket, your house is now worth €300 thousand and its only been 4 years. Some bright spark tells us all to release the equity and invest. We do (or we take out mortgages for overpriced houses), we takeout an equity loan of €200K. But what is invest!!!!!!!! Here is the problem; we, and that’s most of us, invest in the new bathroom, kitchen and the all important holiday.
Investment is ‘giving a return’, most did not buy anything that would give a return!
But because times are so good and money is freely available you can get loans, mortgages, cars (and over 7 years!!!!!!), it’s just a phone call away. A house in your area sells for above the norm’, €100K, well that is what sets the bar and we are all looking for the fool to pay over the odds. It becomes the norm’.
All of a sudden the guy next door gets into trouble and can’t make his repayment, ‘boom’ big trouble. The bank steps in and takes the house. They send it off to auction, but it only raised €200K, boom the bar is reset. So we have a house of €100K plus the equity loan of €200K, yep the maths are not taxing, that’s €300K, so the bank is down €100K. times that by the amount of people in Ireland and you have your answer. That is, in a nutshell, how we were duped into a dept crisis, coupled with Fractional Reserve Banking (no real money).
I would suppose the bank does not really care, the Central Bank will bail them out, it was written into law in 1942.
