Quelle fassadenkratzer.wordpress The creation of money by banks - license to legally scam? June 20, 2014 Actually, its good that people are our banking and Do not understand monetary system. Would they make it namely so we would be a revolution before tomorrow morning. (Henry Ford attributed) The vast majority of people assume that banks continue to lend only the money invested with them, so they are entrusted as a loan. In truth, banks are allowed to issue a multiple of it as a loan, even though they do not have so much money. You have the unique privilege even to create money from nothing and lend at interest. With every loan by a bank creates new money: book or deposit money, which appears on the current account as booking process and increases the money supply. What does this mean, and how can this be understood? The emergence of paper money Originally, the gold standard. A coin of pure gold had a real eigenvalue, which was a commodity which was ascribed to the same value exchanged. But the merchants went because of the danger of being robbed on the long trade routes, a growing tendency not carry the gold money, but for safetys sake to deposit at banks. In the London of the 17th century, this function had especially the goldsmiths. From them it receives a receipt, a bank note, on which the sum deposited was confirmed and with the template they could at any time to redeem their gold back. This security, which was associated with the bill, meant that she was gradually himself accepted as payment instead of gold. The receiver needed the bill no longer against the gold in the bank to redeem, but they were also more than cash. And so the bill was more and more the same confidence, the same purchasing power as gold, whose deposit she really just acknowledged. You could indeed any time be exchanged for gold. Thus, the paper money was created, but it was still fully covered by gold. (See Bernd Senf: The fog about the money, Kiel 2007, p 46) Well, it turned in the course of habituation to the initially fully covered banknotes out that, for example, only one in four went to the bank and cashed the bills in gold. Thus, the bank needed after the experience ready to keep only one quarter of the gold stocks for issue banknotes against the other three-quarters could borrow as credit to others against interest and thus earn more money. Yes, you got the idea, instead of the gold four times the amount of bills or to award more than loans, trusting that only every fourth bill would be presented for redemption. What are you reading? In place of the gold coin, which had an intrinsic value that occurred the paper money as a surrogate for the gold money just pointed and was initially covered by it. Then the paper money, with the promise of coverage and instant convertibility was connected was quadrupled and issued as a credit. Three quarters of them were no longer covered by gold money, they pretended such coverage only before. They were a nothing and were borrowed as appearance money or fake money that also have interest and compound interest were raised. However, the borrower had the fake money, which corresponded to no value, as well as back pay interest and compound interest by money, which had been developed by their performance. The thing, however, flew only when all holders of notes simultaneously rushed to the bank to cash the money order promised gold: Then three quarters were left empty. They were like a huge victim of fraud. The parallel in the modern monetary system This principle of credit creation out of nothing, the current monetary system perfected yet. Today there is no gold backing the money more. Its volume is based on the amount of goods and services of the currency area and price stability. It is based on the trust of the people, and for its stability, central banks have to worry. There is only the smallest part of cash, the biggest part is the book or deposit money (about 10:90). The deposit money is scooped by the central banks and commercial banks out of nowhere. This describes the German Federal Bank in its report Money and monetary policy as follows: Money is created by money creation. Both state central banks and private commercial banks can create money. In Euro money system arises primarily from lending, further characterized in that central banks or commercial banks buy assets such as gold, foreign currencies, real estate or securities. If the central bank a commercial bank granted a loan and crediting the amount to the account of the bank at the central bank, created central bank money. The commercial banks need it to fulfill their reserve requirements, to meet the demand for cash and for payments. The commercial banks can create money itself, the so-called scriptural. The money creation process by which commercial banks can be explained by the related postings: If a commercial bank to a customer a loan, they booked in its balance sheet on the asset side of a loan receivable from the customers - for example 100,000 euros. At the same time the Bank to the Customer on its current account, which is done on the liability side of bank balance sheet, 100,000 euros fine. This credit increases the deposits of customers on its current account - it creates deposit money, which increases the money supply. (Quoted in Oliver Janich: The Capitalist Conspiracy, Munich 2011, pp. 83, 84) Banks need to have enough cash for the customer stock, who want to withdraw their money. There currently is prescribed by the ECB a reserve of 1% of bank deposits, which means that a bank for 100 euros savings can be awarded 10,000 euros credit. Suppose that the customer can pay this amount in cash and buys for a motorcycle. The merchant will pay the money into his checking account at the bank. Their deposits increase by the accordingly so that they can grant additional one million euro loan. The expansion of the money supply is unlimited. (See the highly recommended Bestsellers by Matthias Weik & Marc Friedrich: The largest raid in history, Bastion-Luebbe TB, p 30 In this book, the impact of the monetary and banking system in the current financial crises are presented in detail.) The handlebars of the monetary system are well aware that this creation of money by banks is a continuation of that of the goldsmiths of the 17th century. In a brochure entitled Modern Money Mechanics of the Federal Reserve Bank of Chicago says on page three: It started with goldsmiths. Everyone soon found that it was much easier to use the safekeeping receipts directly as a means of payment. Then the bankers discovered that they could lend money simply by paying levies promise or banknotes (Goldqittungen) expenses to the borrower. In this way banks began to create money. More notes could be issued than there was gold or coins, because only a fraction of the notes were actually presented at any time for payments. Current accounts are the modern counterpart of bank notes. It was a small step from printing the notes out to make a book entry. (Quoted in Oliver Janich supra pp. 85, 86) O. Janich notes: The Federal Reserve admits that she has copied the fraudulent activities of the goldsmiths! It celebrates the fraud scheme as an important achievement modern banking. One small step for the Fed, but a giant leap for mankind! What is the scam? The problem of money scooped book of commercial banks So the bank money is created through a booking process, by an agreed credit in the relevant currency is credited as demand deposit to the checking account of the customer. There is something suddenly issued as money that was not previously available with the Bank as real money. There is no presumption also a loan that requires the terms according to a self-owned, which is now rented for a limited period. It is provided lending Art, the original meaning of the word according to (Lat. credere = believe) actually only on the belief that the assumption is based, that it was about money a. The banks disguise the fact that they post the credit once as a loan to the borrower and then as a liability at just the borrower. The economist Franz Hörmann from Vienna brought the following words to the point: The money has previously does not exist yet. It is an accounting record: requirement for liability. And both times to the same people, the borrower. And this is - Im accounting professor - rather perverse. Because the bank has a claim that they can pay interest, and she admits accounting law a same time that it has not yet been delivered. Because liability is to say: I am what I really wanted to deliver, guilty as before. And to justify a claim with their own guilt, is at least not very conclusive. (Am 27.10.2011 In Beckmann NDR, youtube/watch?v=Tp8BQgr1Tc4) The entry of the bank stands at de facto. There is a circle in it. These - common international - accounting practice, banks ask how Hörmann performs in a private report from 2013, not only an apparent contradiction to the legal definition of credit is, but contrary also, as Prof. Michael Schemmann already have found against the international accounting standards: Banks do not have any pre-existing cash reserves in the form of legal tender, they could give, except perhaps in minimal amounts, which represent only a fraction of their loan portfolios. In other words, banks create demand deposits out of nothing, and therefore these deposits remain a nothing. This habit was naturalized because publicly sworn auditor sign off on the practice described above by certify the financial statements of banks. This results in excessive credit expansion, moral hazard problems, asset bubbles, liquidity stress in the financial markets, bank-runs and, where appropriate, global financial crises (from Franz Hörmann. Arguments against the possibility of economic damage by banks in loan defaults ..., http: / / gerschneider.files.wordpress/2013/10/gutachten_giralgeldschoepfung-hocc88rmann.pdf) The money creation by commercial banks is thus a pure write to the banks accounts that have this over any cash. Likewise represent the repayment (repayment) or a loan default mere writes, causing the scooped out of nowhere money again disappears into nothingness. That money will be awarded by savers, is a mistaken belief that will be maintained by the banks in order to hide their personal gain as a result of money creation. (Horst Seiffert quoted from Hörmann ibid) Since in the Giral money is a purely informational and is not a material medium of exchange more, it meets the generally accepted three functions of money: exchange, measure of value and store of value, only a single. To exchange a unique identifier would be required, as have bills or electronic money as the Bitcoin with the serial number. Only objects with unique identity are purely logical grounds as a medium of exchange. Also, a store of value, it is not good, since it consists only in an uncertain booking request. Only can he be granted the function of the value scale (arithmetic means function). The granting of a mortgage loan in the amount of € 100.000, - would then, however, be interpreted economically so that the bank the value of the land at € 100.000, - is estimated and then this value writes (the value of the property of the borrower) to their accounts. Why this evaluation process should then be legally treated as a borrowing of legal tender, is not explainable. (Hörmann ibid, p 5) Gains and losses of commercial banks In the above-quoted by Horst Seiffert finding of taking advantage due to money creation is basically a scam. A mere accounting record of the banks without their own value are regularly compared with economic values of the borrower that this has to provide as collateral or pledge to the bank. It is a system of expropriation. In addition, the enormous profits of the banks comes to simple and compound interest to consider in more detail the Franz Hörmann draws attention (ibid., S, 6). The Bank provides a loan of 100,000 €, she just needs a reserve of 1% to own real money be available that therefore € 1,000. Raise them from the scooped out of nowhere loan of € 100,000 a rate of only 5%, the results in one year a profit (without compounding) of € 5,000. Thats five times the own money invested. So the bank makes a profit of 500%. In a granted credit from the overdraft of current account which currently are stately with 9.75% interest 975% profit. A loan from going beyond tolerated overdraft performs with 13.75% interest an incredible gain of 1,375%. To speak of usury would be a trivialization of the actual facts. (On the problem of compound interest: here) If the bank has a loss if a loan is not repaid? Since the full amount of credit not yet established as scriptural money before granting credit (he is indeed generated as book money only in lending), a bank can never suffer on credit default and a loss from an economic perspective. (Hörmann ibid, p 7) Therefore are not the repayments of the loans the essentials, but the interest income for the banks. The goal of the banks is to always keep customers as long as possible in the obligation to pay interest. (Weik / Friedrich: The largest raid, pp. 28, 29) Conclusion The world practiced by the lending of commercial banks electronic money creation leads to the pretense of payment (money exchange), the (lack of identity such as serial numbers and lack of legal basis) do not actually exist. This is an abuse of the international accounting regulations.Properties of ... money within the meaning of legal tender (money, coins or deposits from savers) are not used in this context as loans. Therefore, it is not in the book-entry money creation by commercial banks also loans in the legal sense, as a credit the Spice of own funds represents this own resources at the bank are not present, however, but are merely simulated by an incorrect amount. Consequently there be any economic loss the bank on credit default . (See supra Hörmann p. 10) For all these reasons, the creation of money must be withdrawn from the private banks. Then banks are again reduced to what their job really is to be an intermediary between savers and borrowers. This is also required by many technically competent monetary justice movements, such as the Monetative eV in Berlin and the full money initiative in Switzerland. Who should have the right to create money only if a state central bank or an organ of a self-governing economic life, must be answered by a broader socio-political point of view, however. (hl)
Posted on: Fri, 11 Jul 2014 05:27:33 +0000
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