Meg Lee Chin

Banks are allowed to print money from nothing.

This practise evolved from medieval times where people stored their gold in the vault of the local goldsmith and got a paper receipt. The goldsmith was allowed to loan the gold out and charge interest. This was the birth of banking.

Over time everyone started to trade their receipts for goods and services. This was the birth of paper money.

Bankers discovered that people rarely came in to redeem their receipts for gold. Therefore they started issuing more loans than there was gold in the vaults. This put more money in circulation. This was the birth of fractional reserve banking.

Loans were made to the most reliable and productive members of the community. These people created jobs, traded goods and the local economy boomed. This was the birth of neo-liberal economics which is based on rewarding the most productive.

But the bankers got greedy and printed up too many receipts. Word spread that there was not enough gold in the vaults. People rushed to cash in their receipts all out once. This was the first bank run. With no one to issue loans, money disappeared from circulation. The local economy collapsed.

Governments stepped in to regulate. Banks were still allowed to create phony receipts for non-existent gold. But the amount of money created vs. gold held in reserve was limited to a certain ratio.

IE: A ten to one ratio meant a bank with £100 in deposits could loan out £1000 and charge interest on the full £1000. (Often this ratio is even higher).

The legal right to charge interest on fake gold receipts made bankers rich. Eventually their power usurped that of governments. Bankers formed a cartel and forced a law requiring the government to borrow from them rather than create the money themselves. This was the birth of central banking.

Soon nearly every government on Earth was forced to accept a central bank. This was the start of the New World Order.

As Marx predicted, power seeks more power and concentrates into fewer and fewer hands. In a perpetual quest for even more, banks began indulging in risky investments. We witnessed the results in the financial crisis of 2008. Deemed "too big to fail" the banks were bailed out with taxpayer money.

Hence money flowed from society's most to least productive members. These are the recipients of entrenched, inherited and rentier wealth. They make money simply by having money. Ironically this directly contradicts the principles of neo-liberal capitalism and is unsustainable. Eventually the financial parasites of banking will kill the host.

But why didn't the governments just do allow the banks to fail and circulate money into the economy themselves? Why don't they simply create money and save billions in interest payments to the banks?

Just ask Abraham Lincoln and John F. Kennedy. They both tried and failed.

But politicians are merely middlemen. They are beholden to the system which put them in place. The real power lies in the hands of the individual. We can bypass the banking cartels using alternative digital currencies, gold and silver.

Just say "no" to concentrated power.