Never as in recent months has the word "conspirator" been used to indicate a concept or dystonic information with the Dominant Thought or Single Thought. Anything that is not supported by the common thinking on which the person has never paid attention - first, and has not asked questions or gone looking for information about it - afterwards, is labelled by most as a conspiracy argument and ends there.
One of the taboo subjects of our society, on which it is based, lives or survives, is the money or the CD. Monetary System. This is pointed out by most people as a difficult to understand subject taught at the University and generally considered as an undeserved matter of attention because it is accepted by everyone as it is and most likely, no friend, relative, colleague or partner has ever raised doubts or questions about how the money works and also this will be regulated, controlled by those who have to comply with strict rules imposed.
Many years ago I started asking myself questions about money and since then everything has changed within me and in the way I see our society. I started without realizing a difficult path whose deepening, strangely enough, nobody cared about! How did the money we use every day really work? My "new eyes" saw all around me Nature, the Earth, appear as generators of real wealth but in the eyes of our society, instead, simply a cost, a burden.
Some of the questions I had no answer to were "what is money? How does it really work? What constitutes real wealth? And above all "who creates the money?" "how does he create it?". So I started a very difficult period because the answers I was looking for conflicted with my university education and what I had been taught and to build something new you have to start from the foundations, you can't build something new on an inadequate basis. So I had to forget what I had learned in years of university and start from scratch!
What is money really? Who makes it? How do you create it? These questions have tormented me for months and for those who approach the subject with new eyes, it should be pointed out that in this subject complication is the enemy of clarity. Simplifying one arrives at seeing Reality. The complication is, among many things, smoke in our eyes to prevent us from seeing.
By now I rarely talk about these issues because to my great disappointment nobody is interested in them, even those who understand this mechanism tend to forget it in a relatively short time. If you have a clear understanding of how the Monetary System works you will probably no longer need to read the newspaper or listen to the news because you will understand that in today's Single Thought System the concept of how money works has wrong bases that are constantly and implicitly repeated, consciously or unconsciously, by politicians, journalists, family fathers, professors and teachers. But a lie repeated endlessly will never become true! And when someone goes to raise the issue and provide a different version from the generally accepted one, he will most likely be attacked and accused of being a plotter!
The Three Questions
By looking around you, you can identify three types of tools that we use as money in our System. Metallic coinage (the so-called Monetine), Banknotes and Bank Credit. Usually no one or almost no one can identify the three types, the majority even (including professionals with a degree and experts in the "sector") has difficulty with the third type: Bank Credit calling it the virtual or checks or credit cards or names so ridiculous that I do not remember.
Monetine, notes and bank credit. What percentage are they in circulation? Are they public or private? The function of the money is obviously public, but the function is also followed by the ownership, the property in our System?
The coins are of course created by the State Mint and are peacefully public, there has been talk for a long time that their cost of realization is higher than their nominal value! They cost more than they are worth! One day they might disappear, perhaps.
The banknotes, on the other hand, open up very interesting scenarios that those who want to know more about, for example, how the note bank was born historically (banknote). The banknotes are issued by the Central Banking System and this creates the first difficulties in identifying the nature of the Central Banks (public or private?) but I will leave this topic open for the moment.
The third component is called bank credit, this big unknown. Unnamed and unnamed. Certainly of a private nature, but what percentage is this in relation to notes and coins? Also to this question rarely getting the correct answer which is between 2% and 3%. But what is bank credit and how is it born?
They teach us at the university that the bank acts as an intermediary and precisely that the main economic function performed by the bank consists in transferring financial resources (i.e. money) from those who have them to those who lack them, acting as counterpart of each of them.
This function, said brokerage, is exercised through the raising of funds from savers and the granting of loans to businesses and households, for their investment and consumption needs. ( https://www.bancaditalia.it/servizi-cittadino/cultura-finanziaria/informazioni-base/banca/index.html )
If we continue to question ourselves on this issue, we should ask ourselves to what extent a bank can do this intermediation, does the bank lend what it owns? Does it lend less than it owns or more? Bearing in mind, however, that in order for a bank to lend, it needs a person who is willing to take on a debt voluntarily.
To understand the extent to which a bank can lend, it is necessary to understand the concept of Fractional Reserve. According to Wikipedia, in the past centuries, jewelers, who received gold on deposit, understood that only a small part of the gold received on deposit could be kept in the safe, because new deposits of precious metal usually exceeded gold withdrawals and only on rare occasions did the
contrary. To deal with the latter, the jewellers kept part of the gold received as a reserve, using the remaining portion of the gold for profitable uses. The same rules, applied to currency, apply to modern banks which are the evolution of the jewellers' activity. The purpose of the reserve is therefore to oblige banks to guarantee a minimum level of liquidity, which must satisfy the normal operations of institutions.
https://it.wikipedia.org/wiki/Riserva_frazionaria
Therefore, a bank holds only a small portion of deposits as long as withdrawals are less than deposits in order to maintain an operational cash balance.
So you noticed the first problem? If the definition of a bank is that of an intermediary between savers and those who need a loan and if the bank can lend more than deposits, can we define an "intermediary" bank that acts as an intermediary as declared by the Bank of Italy?
Over the years, the so-called fractional reserve requirement has gradually decreased, thus increasing the banks' ability to "lend". A reserve level of 50% means that a bank can lend twice the value of its deposits, at the end of the 1990s the reserve was 10% to reach the current 1%. 1% means that a bank can lend up to 100 times (but that is much more for those who want to go deeper https://www.ecb.europa.eu/mopo/implement/mr/html/calc.en.html ).
So summing up a bank can create money for multiple times the deposits. How can a bank make money? Here's the best part, because the one who makes the money is the one who... voluntarily goes to a bank to apply for a loan. The act of promising to pay a certain amount over time or at a certain maturity is the moment when the money is created. A promise of payment against which the bank creates an accounting entry that anticipates a part of the money that will be repaid with interest at the agreed due date.
So how does money come into our society? Money comes from debt, from someone else's debt. Any amount in circulation is matched by an equivalent debt somewhere else! Money and debt are two sides of the same coin.
Perchè nella nostra società esistono più debiti che danaro? Perchè nascendo il danaro dal prestito e dovendo un prestito essere restituito con interessi il Sistema del debito deve espandersi esponenzialmente semplicemente per continuare ad esistere.
This is a System of Monetary Slavery where it is no longer the Human Being at the Center with his energy, his intelligence, his strength to create value for himself and for others, but a System of so-called legal tender currency or fiat currency that to continue to exist parasite our energies of which we are unaware slaves.
Summing up: in our System at least 97% of the money we use is "created" by private organizations: banks. Money is born from debt and is itself a debt of someone else.
Arnaldo Spicacci Minervini