How did this thing with paper money all start? Where and when did banks come into the picture?
Those are two questions not many people ask themselves, but should. The history of paper money is pretty interesting, and in a perspective it is easy to see who gains from the money system and who doesn’t. Already before I start explaining the phenomenon of money I can reveal, as you already may have suspected, that the gainer is not you!
Money is an illusion; and even more so in the electronic age. The fact is that you work your whole life for money that doesn’t actually exist. But as long as the illusion is still put there, the system works. The problem is that people like you and I are working hard, often for low pay, while the only ones that benefit are the bankers.
So how does it work? Well, if you have $1,000, you can go ahead and lend it to someone. If a bank has $1,000, it can lend up to ten times that amount and charge interest on it. This means there is only $1,000 in actual, physical money, but somehow, like magic the bank is now owed over $10,000. Where did the rest of the money come from? From an illusion that the bank created. The $9,000 plus are not covered by anything; this money doesn’t exist, and never did. So if all people and businesses in the country would take out all their money from their banks at the same time, the banks would not only end up with a zero balance, but in huge negative. They would go bankrupt in a second, because the real money in the banks is just a fraction of what the bank has in circulation, by charging interest on money that is non-existent.
When a person or a Company borrows money from a bank, the bank does not print new notes, or mint new coins. The clerk just types figures into a computer screen and the loan is set up! From that very moment, you are legally bound to repay back the bank what never existed initially. The lie is that the figures on the computer screen represent the value of gold and/or silver. If this is true, does the bank have a big stock of gold and silver somewhere that covers all the money they are lending to people? The answer is no!
The paper money and the computer digits are just an illusion created by the Bankers to create money out of nothing, which makes their own wealth grow exponentially, and help them gain control over people and society, as the bankers are also borrowing money to the government and charging interest, which puts the government in debt. The extension of this is that the bankers actually control the state as long as they can keep the government in debt. Theoretically, they can tell the government to pay them back in a specific amount of time, and if the government can’t do that (because they don’t have the money to pay off the interest) the banks can give them an ultimatum that suits their purpose. Therefore, the REAL power is with the International Bankers. It is the illusion of money that rules the world.
What happens when you can’t pay back the amount of money that does not exist and never existed? Well, the bank can take legal actions and come and take your belongings until you have paid back the amount you owed (and yet never owed), including interest that was never backed up by anything real.
If a criminal falsifies bank notes and spreads them around, it is a crime, and if he is caught he will go to jail. On the other hand, this is what the banks are doing on a daily basis; in huge quantities. The criminal is creating money out of nothing and he is penalized; the bankers are creating money out of nothing and they call it banking.