Chapter 24 - Random Blog Rants on Banking

Dr. Michael Hudson 2010

Finance is the new form of warfare -- without the expense of a military overhead and an occupation against unwilling hosts. It is a competition in credit creation to buy foreign resources, real estate, public and privatized infrastructure, bonds and corporate stock ownership. Who needs an army when you can obtain the usual objective (monetary wealth and asset appropriation) simply by financial means? [240]

bloggerone - 2 years ago

The banksters have an overwhelming financial advantage to fund the politicians that agree with them. The banksters can bribe and intimidate, and finally, can assassinate those politicians that they can not corrupt. The REALITY we live in is the RESULT of that process. All of our "successful" politicians have careers because they are puppets. The mass media are part of that overall problem, as are the school systems. Therefore, we are very, very, very seriously screwed, and up the creek without a paddle!

bloggertwo - 2 years ago

Positive Money say the Bank of England would create (or not create) debt-free money each month, free from political influence. This money would be spent into the economy by the government. Over time, debt money would be replaced by debt-free money. Banks could lend existing money, not create new debt money as they do now. For those who think the present system is not inflationary, a 300% increase in UK house prices from 1997 to 2007 is very inflationary (not caused by population increase or housing shortages, I do social surveys and 1 property in 20 is currently empty). House prices have increased by 100 times since the late 1950s. Most of the increase is caused by expansion of the money supply by the banking system. Someone's house price increase is another person's larger mortgage. Each generation borrows more to buy the same asset, so this fuels wage and price inflation.


The supreme organized crime group, the biggest gangsters, are the banksters. Collectively, the international bankers are trillionaire mass murders. They are able to control the power of governments, by controlling their money supplies, without having to be responsible or accountable for actually doing that. It helps them that their friends own the mass media, and indeed, the school system was also controlled through the imposition of systematic lying by omission regarding all of the most important social facts!


Still...that was the ground work for the next step...which is having the Chinese Yuan replace the dollar as the world's reserve currency. China has been buying more gold than world production since 2008. They now have over 4000 tons of it that we know of. I wonder what lengths the US will go to once China begins to replace the dollar as the world's reserve currency? The only way the world will buy into that is if China sets a 100% gold reserve ratio. Thus, the gold grabbing.


What most fail to recognise is that "money" (currency) creation does not occur at the central bank, who then loan to banks at ZIRP rates. As Steve Keen has well argued (endogenous money), and as published by the Federal Reserve Bank of Chicago, "money" creation occurs at the level of commercial banks, via the offering (temptation) of "loans" of electronic bookkeeping entries ... with a rate of usury loaded on top; usury being the key debt-repayment component which is NOT created at the time of creating the principal. Principal + usury can only be repaid via the banks/financial system issuing ever more loans-at-usury into the economy. If the aggregate of all principal + interest owing were called in at once, there is insufficient "money" to settle all debts. On close inspection, it is self-evident that usury-based "money" is a brilliant "trickle UP" Ponzi scheme, designed to redistribute real wealth (esp. land title) from the masses of working people, UP into the ownership of the bankster class.

Jason Jeffrey 1992

The most sinister and anti-social feature about bank-deposit money is that it has no existence. The banks owe the public for a total amount of money which does not exist. In buying and selling, implemented by cheque transactions, there is a mere change in the party to the whom the money is owed by the banks. As the one depositor's account is debited, the other is credited and the banks can go on owing for it all the time.

The whole profit of the issuance of money has provided the capital of the great banking business as it exists today. Starting with nothing whatever of their own, they have got the whole world into their debt irredeemably, by a trick. [241]

Jason Jeffrey

We are ruled by a capitalist Bank-owned Mammon that has usurped the mantle of government, and set about to pauperise and control the people. It is now a centralised power-hungry apparatus which promotes war, steals the people's wealth and uses every type of propaganda to keep its position.

The Banker realises that an under-educated, ignorant and confused population is easier to subvert than a healthy and intelligent people. The ruling Establishment therefore promotes all manner of degeneracy, decadence and corruption including drug use, sexual perversion and trivialities. [241]

Tom J Kennedy 18 November 2014

The exacting of interest (which ought to be correctly defined as usury) on debtor's loans and mortgages has been so universally accepted for so long that any suggestion that diverts attention from the usual understanding of such is likely to be considered as outright heresy.

This false teaching has been accepted by the multiple millions of debtors (individuals, families, businesses, governments, countries etc.) who are unknowingly subservient to their greedy creditors. [242]

Tommy LaRiba Kennedy 12 November 2014

It is important to understand that if one individual or business is fortunate to be able to earn sufficient money to pay back the principal and the usury, it follows that another individual or business will be short of funds and face bankruptcy or foreclosure. This is the reality of the design flaw of usury. There is simply not enough money circulating in the monetary system for the sum of all our loans/mortgages to be paid back. [243]

Tommy LaRiba Kennedy

Indeed, it is the exacting of usury by creditors, on loans and mortgages to debtors that causes devastation, destruction, poverty, scarcity, lack and even death - both locally and globally. Who are these debtors? They are individuals, families, small to medium-sized businesses, major trans-national corporations, provinces, states, towns, cities, municipalities and even countries.

Tommy LaRiba Kennedy

But guaranteed, not all debtors will be able to repay both the principal and usury portion of their mortgages - simply because by design, there is a shortage of dollars in the economic system of debt money.

Simon Thorpe

And 57.1% of all Public sector debt in the Eurozone (€5.2 trillion of the €9 trillion at the end of 2013) is entirely explained by the interest payments made on government debt since 1995.

Simon Thorpe

So, we can certainly expect massive resistance from the Bankers. They will fight like wild-cats to keep their gravy train on the rails. And, since you were previously vice chairman and managing director of Goldman Sachs International (2002-5), it's just possible that you may be more interested in protecting the interests of your friends in the Banking sector than helping European Citizens.

Simon Thorpe

Interestingly, this fact that commercial banks simply create our money supply out of thin air when they make loans, was stated with mindblowing clarity in a video last year by Bernard Maris, the French Economist massacred this week in the offices of Charlie Hebdo.

Simon Thorpe

The fact is that there is no justification for allowing the money creation process to be the exclusive priviledge of commercial banks. Indeed, even economists at the IMF demonstrated that taking money creation away from commercial banks and transferring that responsibility to central banks makes perfect sense. Specifically, they proved all four of Irving Fisher's claims for such a system when he proposed the so-called Chicago plan in the 1930s, namely

  1. Much better control of a major source of business cycle fluctuations, sudden increases and contractions of Bank Credit and of the supply of bank-created money.
  2. Complete elimination of bank runs.
  3. Dramatic reduction of the (net) public debt.
  4. Dramatic reduction of private debt, as money creation no longer requires simultaneous debt creation.

Look at the bubbles; bubble after bubble, which is partly because of inflation as people search for someplace to put their money to stop the erosion of their hard-earned income (stocks, real-estate, gold, etc.; for example, when stocks plummeted in 1999, people fled to real-estate. But, by 2006, that bubble burst too, and people fled back to stocks and other things) [244]

[240] Dr. Michael Hudson in Counterpunch 2010-10]

[241] Jason Jeffrey at New Dawn No. 16 (November-December 1992)]