I would like to thank Nonsensikvadrat for helping me translating this to English.
The system is broke – but how can that be if the private banks are able to create their own money?
This is a very valid question that creates a lot of confusion and it needs to be answered. The simple answer is:
Banks do not create money, they only create debt.
The understanding of this is critical, for herein lies the answer. Banks create debt, they do not lend anything to anyone, nor do they create money.
The numbers that appear on bank accounts are not the result of the bank lending the account owner this amount of money, it is the result of two simultaneously created fictitious debts. The banks debt to the account owner is the amount on the account, and the account owners debt to the bank is the agreement the bank made him/her sign.
No money has been created, nothing has been lent to anyone, all that has happened is the creation of two fictitious debts between the customer and the bank.
Hence banks can not create money, so they do the next best thing. The try to convince people that their debt (the amount on the bank account) is actually money. As long as they succeed in doing this, the trick is never exposed. If, however, enough people catch on and start demanding to get the actual money by withdrawing cash from ATM:s for instance, it quickly becomes apparent that the amount on their account is only the banks debt, their promise to pay this amount of money, not the money itself.
So again (and I’m sorry if this get a bit repetitive); banks do not create money, they only create debt. Hence, the banking system are exactly as indebted as all their customers combined.
Further, let us prove that banks do not lend anything:
a) The bank account of the customer is actually what the customer lends to the bank. In other words, the account is the banks debt to the customer, nothing more, nothing less. The customer can demand that the bank pay him this amount of money by withdrawing it from an ATM for instance.
b) Hence, the “loan” from the bank that ends up on the customers account is in fact the banks debt to the customer.
In other words, the money the bank claimed to have deposited on the customers account as a “loan” is immediately borrowed back by the bank. If you lend someone something and immediately borrow it back, did you really lend anything?
Again: what the bank really does is to create a fictitious debt to the customer (the amount on his or her account) and a debt to the bank (the agreement the customer signs), no money is lent to anyone.
The banking cartels strategy is therefore:
1) The bank “lends” money it does not have to the customer, makes him believe the money is in the account, then borrow this nonexistent money back.
2) Make the customer believe this nonexistent money is his debt to the bank that has to be repaid no matter what.
3) Hide the fact that the bank borrowed this nonexistent money they “typed into” the customers account back, and thereby making it their debt to the customer.
4) Keep telling the customer that they do have money on their accounts even though they do not because the bank has actually borrowed it back.
5) Create a system that allows banks to transfer their debts (the amount on the customers accounts) to and from each other by means of a central bank. Only members of the banking cartel can access the “digital cash” that they use to compensate each other for “taking over” each others debt to customers. This way, no member of the banking cartel ever has to actually pay their debts to the customers. Customers think that they actually transfer money to each others bank accounts, but all they are doing is moving bank debts around. In other words, they gain or loose some bank debts to or from their accounts, NOT money. The banks simply don’t have the money if the customers make to many withdrawals at the same time, so the banks are as broke as the rest of society and totally dependent on keeping their debt within the banking ”swap debt” system.
6) Ban the use of cash. Since this is the only way for the customer to demand the bank to pay up, a cashless society means a complete debt writeoff for the banks.
Summary and conclusion:
So the digital ”payment” system is actually not a payment system at all – it’s a ”bank debt swap system”. Customers don’t pay each other money through the banking systems accounts – they swaps bank debts so the banking system as a cartel don’t have to pay their debts to customers. The banks simply don’t have the money if the customers make to many withdrawals at the same time, so the banks are as broke as the rest of society and totally dependent on keeping their debt within the banking ”debt swap” system.
“of all the many ways of organising banking, the worst is the one we have today.”
Mervyn King, Chef för Bank of England