I Need You're Help!

I need help explaining how bad the bank's really are. .

I have a friend who works in the banking industry (very low in the ranks) And he just doesnt understand how they create money out of nowhere. . And in all realness, neither do I, I know parts, but not allot. . . I know enough to say the need monitoring more, etc.

I would like somebody to point out some issue's, the main issues as to why they're bad.

I also understand Fiat money, me knowing the basis of Fiat money makes me want change, i just need to know more! so i can wake more people up! thanks in advance.

reply to post by n00bUK

There are probably hundreds of clips on youtube dealing with the topic but I personally found Zeitgeist The Movie (the 1st one) to give a fairly comprehensive explanation of how the financial systems work but it is a long watch. Very interesting though. Its a freely downloadable movie or you can stream it directly from their site. Zeitgeist The Movie
ETA Its not too complicated once you get your head round it.

Governments need money which it gets from a central bank and the bank gets an equal amount of value in government bonds back. Here's the trick. The banks lend that money to the government at interest. So if the government borrows ten million, eventually when the bankers get their money back it will be ten million plus the interest. The thing is, the interest does not exist as physical money in the system and can therefore never be repaid, until the government takes another loan. As far as I can work out, most of the financial help that people like the IMF and World Bank are doing is just forcing huge loans onto a country.

Another part it is the fractional reserve banking. If a bank has 10 dollars in its vault, it is actually legally allowed to lend out 100 dollars. Money it dosn't physically have. When all the bad "investments" start to crash...well, I'm sure you get the picture.

I am not an economist but I believe the race for financial growth is also at least partly to blame for this mess. Companies only ever want more.

reply to post by n00bUK

I have a friend who works in the banking industry (very low in the ranks) And he just doesnt understand how they create money out of nowhere. . And in all realness, neither do I, I know parts, but not allot. . . I know enough to say the need monitoring more, etc.

The banks don't really create money out of thin air (except maybe when it comes to loans). The FED creates the money. And all money can only come from one place: thin air. The problem is not really that they create money out of thin air, it's that they have a complete monopoly over the production of currency, and they aren't even a true federal entity (a true central bank would issue interest free currency like the central bank in Libya, or should I say the old one before the rebels set up a new one). So they attach debt to the loans which the US is constantly asking for, but the problem is, if the US needs to pay back more than it borrowed, the extra money can only come from one place: the Federal Reserve. So what does that mean? It means the FED needs to print more money. And all money they release has interest attached. It's an absurd loop of debt that is absolutely impossible to escape.

Watch Zeitgeist and all will be clear.

Here are the 3 Zeitgeist movies, completely free to watch:

Zeitgeist


Zeitgeist: Addendum


Zeitgeist: Moving Forward

But to answer your question more precisely, if your friend works for a small bank or credit union then he is fine. If he's working for one of the big evil mofo's such as BoA or CitiBank then he is only supporting the puppet masters. Just look at all the mortgages they couldn't even prove, yet they are forcing people to pay up. Then they increase their fees dramatically and cause a bunch of people to close their accounts, then they starting pulling devious stunts to stop people from closing their accounts. However they did eventually back down on the fee increases.

And if you want to get into bank loans some more, Zeitgeist also talks about how the banks don't really put up a legitimate form of "consideration" when they give out loans. I'm not sure if that's true these days, but there was a man a while back who challenged the foreclosure of his mortgage in court, and won the case because he could prove that the bank never really had the money to begin with, they were simply offering a theoretical liability, and not a legitimate form of consideration.

reply to post by ChaoticOrder

If I remember rightly, the argument he used in court went along the lines of...
"The money I supposedly owe never existed. How, therefore, can I owe the bank this money?"
He won. I might have the legal/economic technicalities wrong but the result remains the same. Free house.

Additional: Zeitgeist was probably my real wake up film. Religion, money, business and more. It connected a lot of dots for me that I had truly never thought of in that way before. Its as fresh now as the day it was released. Kudos to ChaoticOrder for giving you three nice easy clicky links to something like 8 hours of the most cerebral docu's you will ever watch.