Banksters Paradise - The Land Of The Fees & The Home Of The Slave
If you are brave enough to turn on the news in any country, you're always bombarded with stories of petty crime and how the establishment is working to keep these criminals off the street, drug dealers, Human traffickers and thieves are still the focal points of the news. Yet, they are such a little impact on the world economy, so why does it get so much press?
To distract you from the real gangsters, or banksters robbing at such large scales it would make any criminal organisation look like a charity. Yes, criminal organisations can earn millions, but here we're talking Billions and Trillions.
Image source: - flickriver.com
Banks don't produce anything
Banks and bankers do not produce anything that helps the economy all they are there for is to assist the transport of capital from one person or entity to another in exchange for goods and services. They are also there to provide a transaction and settlement layer that assumes liability for the interaction between the two parties (buyer and seller).
They would remain in business by attracting consumers to save their money with them in exchange for management services and an interest rate paid to build up a strong balance sheet.
Sitting on all that capital would mean nothing they had to get it to work for them, so they loan it to consumers to buy homes, cars and start businesses. They would make money on the interest paid on top of the repayment of the principle.
It's a simple system that works, and if they tried anything funny consumers could pull out their capital, and they would collapse, it was a self-regulating system.
Banks got greedy
Not satisfied with the system that couldn't scale to make enormous profits for the individuals within the banks, they decided to move the goalposts and see if we would notice and we didn't. Instead of being a facilitator of capital, they become the ruler of money.
Instead of assisting businesses to grow the economy, they actively compete for money and choke out production over time.
The financial economy breakaway
- They started to add all sorts of financial products that benefit them more than the consumer
- They began adding fees for all their services
- They started taking debt and turning it into investment opportunities and selling their balance sheet to investors
- They became publically traded companies.
These methods were multiple over time as no one complained or pulled their money out and allowed them to grow into the rulers of the economy. It's no secret the wealthiest people in the world are bankers or invested in banks, and why is that? How do you become costly when you're part of an institution that has no real products that produce anything?
All they have done becomes selective over who gets the money, and individual companies benefit while smaller businesses are eradicated from the economy.
The financial economy has now three or even four times larger than that of the actual production economy and yet no ones batting an eye. People are getting rich on paper and not creating real wealth that the world can benefit from and are missing the point.
Yes, the poor today may be better off than 100 years ago, but you cannot claim that is because of a healthy economy. It just so happens that its the effect of the times. I think its such rubbish to attribute this fake paper wealth to how our society has progressed when we don't know where we would have been if we had a real free market.
How much good can a billionaire do that 1000 millionaires across the world couldn't do far better? I have no problem with someone being a billionaire or having a billion-dollar balance sheet to lend into the economy. I have a problem with the fact that it is highly inefficiency and puts a funnel/chokehold over who gets capital and who doesn't.
It selectively props up specific industries over others. If you a Billionaire because of merit by all means, but if you're a billionaire because of some creative accounting and first access to the money printer, there is no merit in that.
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