The current banking system is inherently flawed and is heading for downfall, a downfall that is going to have a worldwide impact. The people of the world need to see & acknowledge the problems with the banking industry, and make moves now, to remedy the situation.
The first problem with the bank’s is their power to create money out of thin air.
Most people find this hard to believe because of the years of PR & marketing material that the banks have been pumping out. The key piece of legislation is the Bills of Exchange act. This act basically says that two people can write a value on a piece of paper, sign it and then the paper has that value. A practical example of this that most people would be familiar with is an “offer to purchase” that starts the mortgage process. You and the bank sign the offer to purchase. They then take that piece of paper and use a creative accounting entry to add it to their books as an asset. They then lend you the money against this asset. They do not have the money to lend you, you create the money when you sign that offer! This is how they create money out of thin air, a bit like the power of God!
The other major flaw in the system is that everything is interest based & they control the interest rate!
Any money that they lend out has to be paid back with interest. BUT the bank only creates the money they lend you, they do not create the money to cover the interest. Therefore the amount that has to be re-paid will always be greater than the amount of money in the system, and the difference between the two keeps growing. So where does the money for the interest come from? The awful truth is that it comes from the losers, the people who default and lose their house, car etc. The bank takes back those assets, which always have a greater value than the debt and convert it into money again. Which they then loan out again, at interest. And so on…
This is a cycle that is designed to keep people as slaves to the machine. We will pay most of what we earn to the banksters during our lifetime and the odds of ever getting ahead (generating an old age nest egg) are seriously stacked against us. We need to see this problem right now and start looking for/implimenting solutions.
One immediate solution that needs to come into effect is taking back the power to create money. In 1913, with the introduction of the reserve banking system, the banks took control of the power to create money. The people need to take back this power. Creation of currency should be a shared human right. We need to lobby goverment and law makers now to take this power away from the banks, and return it to it’s rightful owners, the people.
We also need to research and develop interest free solutions. If I borrow your car, I return your car. I cannot return more than your car! The same applies to money. If I borrow money, I should only have to return what I borrow, no more than that. We need to create financial vehicles that can do this, financial vehicles that will replace the current, corrupt banks. If we’re lucky, they’ll bankrupt the banks:)
Come on people, wake up. This is already a crisis situation.