The Great Banking Scam: How it Works

Behind the complexity lies a criminal scam of breathtaking cruelty

by Steve Cook

World Banking Explained in less than two Minutes

This video is pretty good. But it leaves out an important fundamental that underlies banking’s power: how come banks have a licence to print money? For a simple explanation of that and what it means, read the short article after the video

The Great Banking Scam: Here’s How it Works, Using a Simple Analogy

  • Imagine a guy called Joe.
  • He owns a printing press in his basement.
  • One day the government gives Joe a licence to print money on his printing press.
  • In fact it gives the licence exclusively to Joe.
  • No-one else has a licence to print money, not even the government.
  • Joe starts printing money on his printing press.
  • He is the only one printing money.
  • He prints billions upon billions of pounds.
  • Each pound he prints, he LENDS to someone else (Pete, Tom, Jane and Mary and so on) at interest.
  • Pete, Tom, Jane and Mary spend the money they borrowed off Joe, which Joe just printed on his printing press so he could lend it to them. That way the newly-printed money enters circulation.
  • All the money in circulation came into being in this way: by Joe printing it on his printing press and lending it to someone so they can go spend it.
  • The only limits upon how much money Joe can create out of nothing is he can print as much as he wants so long as someone wants to borrow it.
  • Of course, lots of people want to borrow money off Joe because without Joe and his printing press there IS no money.
  • BUT, Joe had loaned the money to  Pete, Tom, Jane and Mary and they must pay it back.
  • And they must pay it back at interest.
  • If the interest is, say, 10%, and they borrowed, say, one million pounds, then they must pay back £1.1 million.
  • In other words, they must pay back more money than was created in the first place.
  • As this is the only way the economy is supplied with money, the economy as a whole experiences a continual scarcity of money. There is always more debt in circulation than there is money with which to repay the debt.There is never quite enough of it to go around.
  • Imagine a bath that is being filled from a tap but the bath has a drain that is rigged to always be slightly bigger than the tap so that the bath always drains out faster than it fills up. The tap is turned on harder and harder and harder but as it does so, the bath drains away faster and faster and faster.
  • When they pay back the loan and interest, Pete, Tom, Jane and Mary are EVEN SHORTER of money than they were to begin with.
  • So they ask Joe to lend them even more money.
  • When they pay that back, at interest, they are now even shorter of money and must borrow even more off Joe who is only too happy to oblige.
  • Joe represents the banking cartels.
  • Pete, Tom, Jane and Mary represent the consumer, business and government.
  • The system has ever-escalating debt and perpetual money shortage built into it.
  • It makes Joe very very rich simply by virtue of having the sole licence to print our means of exchange and then lend it into circulation for his private profit.
  • In fact it gradually delivers into Joe’s hands all the wealth in the economy.
  • How wealthy would YOU be if you had the exclusive right to print money and then lend at interest to borrowers all the money you printed?
  • How much power would you have?
  • Because the money in circulation is a loan that must be paid back, Joe still owns it. He therefore owns all the money in existence.
  • He also controls the tap of money supply, which he can switch on and off at will and because he can decide to whom he is willing to lend money (and thus help prosper) and from whom he will withhold money (and thus ruin) he can shape the nature and development of the economy.
  • And thus those he favours, the entities that are of the same mind or to his liking, will tend to flourish and rise to dominate the slanted economic playing field he has created.

And this simplified illustration gives you the essence of the parasitic operation the criminal bankster cartels are running, the venal slight of hand upon which their entire power and unimaginable unearned wealth reside.

It is also the scam sucking our economies down into needless ruin in an era of unprecedented ingenuity and productive capability.
I am sorry to have to tell you this but this economic ineptitude is unsustainable.
If we reform it, we have every chance of bringing about a Golden Age on this planet.
If we do nothing, we will perish.
About Steve Cook 2244 Articles
Director, UK Reloaded

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