129SKowhPxzce9wpcm3jFTepfbd8DSj3f3
cRaCy.com
Broad daylight fraud
I’m embarrassed. I’ve been around over 50 years. I’ve lived on 3 different continents. I majored in economics at university. And yet, until recently, I never realized that our (not so) modern day banking system is based upon legalized fraud. I mean I understood how the fractional reserve banking system works, but I never really questioned it. Like most, I just assumed that that is how the banking system works… end of story.
In case you are in the same boat as me, let me briefly explain. The history of banking goes back to the 16th century. At that time people used gold and silver coins as currency, but this got inconvenient – gold is heavy! It’s a pain to carry around. So some goldsmith had a bright idea – he said why not let me store your gold and I will provide you with certificates of ownership which you can then exchange for goods and services.
It worked great. However he soon noticed that at no time did everbody come and ask for their gold. This meant he could actually print more certificates than he had gold and silver to cover. This meant he could create his own money. We all know what the authorities call that practice today. If you or I try it we’ll be locked up in a cage by the powers that be.
So now that the goldsmiths had this great new way to get rich, what did they do with all that money? Well they lent it out, but of course it didn’t belong to the general public, it was their own money – even if it was fraudulently created. So they demanded interest on the loans. Not only did they lend it out to the public, but sovereign governments lined up too. It was a great way to fund wars and stuff like that.
The power and wealth this system gave to the goldsmiths basically allowed them to become what they are today – the big banks. They used their power to ensure that their system of fraud became law and that they were the only ones allowed to practice it. Fractional reserve banking was born, and today the banks rule the world.
