Comments on This is the Dead Land, this is Cactus Land: The Moral Hazard of Modern Banking: How Banks Cre...

In France, the government (Treasury) can not borro...

2011-11-19T19:36:48.876-08:00

In France, the government (Treasury) can not borrow from the Central Bank of France, but must loan from the commercial banks. It started in 1973, with a law named "Pompidou Rothschild bill". Pompidou was a French president, and was Rothschild bank employee before becoming the president.

So, from 1973, France is borrowing money and - pays an interest on it. In between 1979 and 2008, France paid the total amount of 1.305 bn of euro as an interest on National Debt. The total amount of National Debt of France was 1.327 bn euro in 2008.

It means that the total debt of this country equals to the interests paid to the private banks.

Well done, banksters...

The OP has it wrong. Banks do not loan money. Neve...

2011-06-14T18:28:08.671-07:00

The OP has it wrong.
Banks do not loan money.
Never did.
Banks are in the business of "extending credit".
The extension of credit is hypothecated through ones signature.
The bank extends the nominal borrowers credit via a new account opened "through" his name.
So....
when you pay the bank off then, how come you do not claim the money you just gifted the bank?
The bank never loaned anything to you of value.
That is why no bank can show harm when, cornered by someone in foreclosure.
Judge C. Boyko spoke of this when he tossed the banks out of court on their heads back in '07.

The bankers greatest fear is getting this in the m...

2011-06-09T22:53:51.548-07:00

The bankers greatest fear is getting this in the mail....

To Whom it may concern:

I would like to make arrangements to settle the above referenced matter.
Please provide me with your statement of the amount owing as of ___(pick date 2 weeks out for example)___, together with your assurance that you will accept payment in direct and immediate exchange for the original instrument of indebtedness in its original form.

Thank you very much.

___________________________
by: authorized party

http://forum.worldfreemansociety.org/viewtopic.php?f=51&t=4809

"The government could create money AT NO INTE...

2011-06-09T17:44:08.787-07:00

"The government could create money AT NO INTEREST for projects. Lincoln did it to finance the civil war. We have been scammed and because the banksters create the money, they have an ample supply to buy the government, the media, and they run the insurance companies as well as the oil companies. How do you like your serfdom?"

And

"Interest is what has killed the beast, not fractional lending or fiat. No matter what "standard" you use, you still must create money out of thin air -- that's how money works.

In short, it's the interest that powers the world-wide fascist system that is bent upon enslaving generations to come."

Well said...and the solution is so easy, so obvious..imagine, thought experiment, a hacker eliminates all debt in the world, public and private (we put in a caveat for all physical people holding government bonds, they get up to a $1 million maximum cash out, the grandma who bought treasuries etc.) and we replace leveraged money with real money. You want to fight a war, you better raise taxes to pay for it.

US GDP pays in the range of 3.5 Trillion, or about 10% of GDP in interest, that does not include principal....in a few seconds, you have a balanced budget, and a booming economy, there are other problems, obviously, and a very strict monetary regime would have to be put in place to control inflation.. but more less, we free the world from bankers and the the war mongers they bankroll with fake money.

What we need is public money. You touched on moral...

2011-06-09T15:56:19.344-07:00

What we need is public money. You touched on morality in your piece -- how did you miss WHO authorizes the money printing?

Banks say Congress gave them the power in 1913. Congress says the People gave them said power in 1789. (American version, other gulags differ.) What do the (sovereign) People say?

Interest is what has killed the beast, not fractional lending or fiat. No matter what "standard" you use, you still must create money out of thin air -- that's how money works.

In short, it's the interest that powers the world-wide fascist system that is bent upon enslaving generations to come.

Think about this: If it's their money, and it is, then you must do what they say in order to get some.

If it were your money, you might do as you please.

Usury kills.

Stephen Zarlenga and Dr. Michael Hudson are both e...

2011-06-09T10:17:51.031-07:00

Stephen Zarlenga and Dr. Michael Hudson are both economists who have studied this. Unlike the useless economists that come out of the University of Chicago, these men will tell you the truth. If Iceland is in debt, Ireland is in debt, Greece is in debt, the U.S. is in debt--who is everyone in debt to? Just saying.... uhh, watch "Inside Job" for the answers.

Anonymous above says it is a "complexity of l...

2011-06-09T10:12:44.814-07:00

Anonymous above says it is a "complexity of language." Actually, it is very simple. We have given private banksters a cartel on creating money. The Federal Reserve is a private banking cartel owned by private stockholders. The government could create money AT NO INTEREST for projects. Lincoln did it to finance the civil war. We have been scammed and because the banksters create the money, they have an ample supply to buy the government, the media, and they run the insurance companies as well as the oil companies. How do you like your serfdom?

Gold is no answer either, it has huge storage cost...

2011-06-09T09:32:12.739-07:00

Gold is no answer either, it has huge storage costs, high buy-sell differential, isn't convenient, and is easily counterfeited, stolen, seized, or confiscated. And it can't be eaten or put to good use or earn rent.
The problem is people have been lazy and stupid and covetous - they worked the company job for years and have hundreds of thousands saved up in the bank or on wall street which they hope will retain its value. It won't, those phantom "savings" will all evaporate to zero when the dollar crashes. They will tell us the problem was too many different central banks and too much fraud -- the solution is one world currency and a secure biometric financial ID tattoo on the right hand or forehead for all buying or selling. Where did we hear that before? (Hint: Revelation 13:18).

Banking cartels, yet another violation of our righ...

2011-06-09T07:30:11.259-07:00

Banking cartels, yet another violation of our rights. Add it to the list of gov’t violations of our rights:
They violate the 1st Amendment by placing protesters in cages, banning books like “America Deceived II” and censoring the internet.
They violate the 2nd Amendment by confiscating guns.
They violate the 4th and 5th Amendment by molesting airline passengers.
They violate the entire Constitution by starting undeclared wars for foreign countries.
Impeach Obama, vote for Ron Paul.
(Last link of Banned Book): iuniverse.com/Bookstore/BookDetail.aspx?BookId=SKU-000190526

'All Fiat money returns to its intrinsic value...

2011-06-09T07:26:50.248-07:00

'All Fiat money returns to its intrinsic value.
Zero.'

-Voltaire

The issue here is the complexity language terms wh...

2011-06-09T04:42:10.761-07:00

The issue here is the complexity language terms when applied to a real-world idea of economics rather than a simple case of apparent 'bank irresponsibility' for creating money 'out of thin air'. The moral hazard lies equally with both the borrower and lender who are required in an 'act of faith' to speculate on future exchange of value between the borrower and his peers and the initial guarantor, the Bank. Potential for moral hazard lies with all parties, as much borrower as lender! What is the alternative though? A socialist-style system where individuals are allotted housing by the State? The moral hazard mentioned in the article always lies with the real-life sense of responsibility held by the individual. Banks do not force loans onto people, people should be responsible for how much they take on in terms of debt. People may say 'house prices are ridiculous', 'debt levels are insane', but, as the article rightly states, debt is a set against a store of value! Debt, call it what you wish, works!

Are these banking practises legal? If not, who is...

2011-06-09T00:36:35.160-07:00

Are these banking practises legal? If not, who is going to file a lawsuit against bankers in general?

Agree with Mr.Castellano.The fractonal reserve ban...

2011-06-02T05:33:59.128-07:00

Agree with Mr.Castellano.The fractonal reserve banking is run by the world elites that neither we nor Mr.Bonomo will ever belong to........ it is not in our power to change a thing.Why worry about it? There are better thing in life than worry about changing a system where nothing depends on you!

Hi Greg, Thanks for the kind words. Once the bank...

2011-06-02T02:45:47.264-07:00

Hi Greg,

Thanks for the kind words. Once the bank credits Jack's account for the loan amount, they then write a bank check for the amount needed to close for Jill, Jack never gets access to the money..once I saw a bank manager come in with cash. Whether it is cash or a check, or transfer really doesn' matter.

Tyler, good question. I lean toward the Libertarian side of things, so I would prefer a private banking system where the banks where basically money agents. Of course in this case, loans would be significantly more expensive, but, we would eliminate the inflation caused by this system. Remember, the monetary inflation caused by fractional reserve banking robs us all of probably close to 5% of our money each year..creating the rat race of always needing more.

But, if you put a gun to my head and forced me to nationalize one industry, the first one I would nationalize would be banking. Check out Herman Daly, interesting economist who has written on this topic.

But remember, the big gorilla no one wants to face is what to do with all the debt, public, private, and unfunded liablities. They cannot be paid, so their will either be a default, or massive inflation. This is the question we must all face, and soon.

Ladies and gentlemen, this is how the story goes. ...

2011-06-01T22:40:23.917-07:00

Ladies and gentlemen, this is how the story goes. So, why should anyone worry about anything in this world, even less for money. Obviously we need money to make transactions but there are far better things for life to live see and enjoy: a wonderful family, a lovely view, the galaxy and the apparent complexity of the whole Universe... so let's not waste time in useless worries. Let's keep it marching on with a smile in the face and a firm step-by-step.

God bless you all

Robert. I am a Canadian University student. Do you...

2011-06-01T16:50:56.144-07:00

Robert. I am a Canadian University student. Do you believe that a government operated national banking system is possible? Do you think it would solve any problems, or be an even bigger mess than we currently have?

Robert, Excellent article, and something that woul...

2011-06-01T16:47:00.926-07:00

Robert,
Excellent article, and something that would no doubt have a large impact on our economy if it was more widely understood by the general public. I've always realized that the largest banks did this, but I have a question about your Jack and Jill example.
If the money is truly created out of thin air, where does the cash come from at closing to pay off Jill's (or the lien holder's) interest in the property?
Greg W., Tucson, AZ