Saturday 22 November 2014

Please allow me to simplify the monetary system by which we are dictated:
Money is pumped into the system by pushing interest rates down and making lots of loans…
Due to there being a lot of units of exchange in circulation lots of money changes hands which generates much economic activity that generates jobs…
As more and more money is spent there is more and more demand thus companies take out loans of non-existent money to increase their production…
More employment causes people’s confidence to grow, they see companies prosper; they spend more money and buy bigger houses…
Then the banks change the rules; interest rates rise…
The criteria for taking out a loan from the bank is made more stringent thus fewer loans are taken…
Now a larger part of people’s income is taken up by paying off the higher interest rates, thus no longer being circulated in the consumer market…
Less money being spent therefore fewer commodities consumed…
Company profits reduce due to lack of spending and many go out of business, causing loss of jobs…
People losing jobs can no longer pay their high interest mortgages…                                           

As people forfeit on their repayments and are deemed bankrupt, the banks accumulate the real wealth: property, land and resources…
All that the banks actually did was lend out non-existent figures on a screen…
This fraudulent economic cycle has been going on for centuries; the real wealth of the world has been accumulated into the hands of a few elitist bankers…

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