Banks need Boundaries! Banken in die Schranken!

Banks need Boundaries!

The money we use day-to-day was and is created as debt, by private banks. Banks create money out of thin air when someone takes out a loan, a mortgage, or uses a credit card.[1] They enter numbers in the person's account, and make a note of the same number in their own books, to record how much this person owes them. Repaying a loan means deleting both those numbers.

We are not taught this at school, and it even differs in some important aspects from the picture that is given to university students, so let's take some more time to break it down.

How money works = How debt works! ...and debt in some languages = guilt!
Those of us "smart" enough to have invested some of their debt in a prestigious university eduction do indeed learn the truth, drip by drip, on a need-to-know basis. This ensures complicity. The students are simultaneously brainwashed not to question the framework as such, despite glaringly obvious evidence of its failure.

One of the great lies of our time is that central banks control our money supply. When asked by its own national television whether it has any control at all over the money supply, the Swiss National Bank neglected to comment. (SRF Eco 28.1.2013)
The best governments can hope for is indirect control. It is private banks who have their finger on the button when it comes to creating OUR money. This fact is undisputed: no money goes into circulation without a bank's seal of approval.[2] It's the commercial banks that say YES or NO to any given loan. Not the central banks. Commercial banks have the initiative, the high ground.[3] Commercial banks are also known as private banks or high-street banks, not what we call 'Private Banking'.[4]

What the bank then does to justify this creative act is meet certain legal requirements, such as keeping a certain amount of hard currency: cash or electronic money ('reserves') it can rent cheaply from the central bank. It must also deposit some securities with the central bank. Such laws and regulations supposedly provide us, through the state, with some degree of control over our money supply. But it's a big fig leaf. Here's why:

Remember Occupy? Huge bandwidth of sentiments, very little results. Maybe something could have been achieved through dialogue, BUT: Rulers are not in the business of sharing information, and then sitting down with us to draft out a new system, in the interest of the people. They dispense information in a way that makes their job doable (make it home in one piece), and then sit down with the smart guys. That's why financial crises occur regularly, without significant change to the basic mechanism by which our money is created. This won't happen until we LEARN TO PERSIST AND ASK THE RIGHT QUESTIONS.

by Michael K for Banks need Boundaries!


  1. Banks also create money when they go shopping, e.g. for real estate or other assets. That's the main reason they own all the best buildings downtown, even after all the bailouts, while public buildings, roads and other services fall apart.
  2. You've probably heard of countries (such as Italy) getting into trouble when banks decide to raise interest rates. Banks are reluctant to lend in a climate less friendly to other businesses owned by the same gang, so up goes the price of money: the interest rate. "For the government to permit banks to issue money, borrow that money, and pay interest on it is idiotic." William F. Hixson
  3. That's why it makes zero sense to attack central banks, or the Fed System. "As long as politics is the shadow cast on society by big business, the [reduction] of the shadow will not change the substance."
  4. That's another corporate service, known in the German-speaking world as 'Privatbank'. These don't create and destroy money, but will under certain conditions help you hide it, see Tax Havens.
    Positive note: they do keep money creation separate from investment, at least until they participate in the major commercial banks via shares, etc.
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