Banks don’t actually need any capital base at all, they can make money up from the thin air at will (setting aside the dictates of the BIS which is biased on the side of the banks) and gift it or loan it at .01% interest to deserving business and so promote the creation of wealth. It’s the natural way of doing things. We’ve been bought up with a set of beliefs themselves entirely artificial and wholly against our interests so that an artificial economic elite may be created and sustained. This is what’s causing the the current poverty and this is what’s going to have to end. We are witnessing a global banking dynasty, its very existence unsuspected by the majority, in its death throes. I don’t know what the immediate future might hold but I’m sure of one thing; it ain’t gonna be pretty 🙁
BB
Hi there …
Do you think that’s fair? “they can make money up from the thin air at will ”
Do you think that “the current poverty” is due to “from the thin air” system?
Don’t you think that the accounting basic stating asset = liability caused that to happen?
I think that last is accounting fraud. There seem to be two standards of accounting, one for governments and banks and an entirely separate one for the general public and business. That’s wrong and it always has been, it’s just a cover for the fact that governments and banks can create legal tender and you and I can’t. They pretend they run on the same basis you and I do but they don’t, there’s a different set of accounting rules for them. On the thin air at will thing, I’m suggesting that the banks loan/create money whenever they want to on the basis that their brother banks will cover their backsides with a covering loan/creation to make up the reserves to the level where they should have been before the loan/creation was made (all this talkof loan/creation becomes confusing, we don’t really have a word for this in the language). There’s a study by two Nobel Prize-winning economists which supports that, there’s a link to it somewhere on the Economania site, I believe. I think the current poverty is certainly due to the banking system which has been a fraud from the beginning. I don’t believe we should ban FRB though, I think we should learn from the principle and introduce money where it’s needed to support enterprise in whatever quantity as appropriate. That’s money, not necessarily credit.
BB