Forum Post: The Banking System is on the Verge of Collapse
Posted 12 years ago on Dec. 7, 2011, 9:01 p.m. EST by Scout
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James Turk - The Banking System is on the Verge of Collapse
" “The story goes that a large French bank could not obtain funding and was on the verge of collapse. When a depositor withdraws money from a bank, the bank has to turn to other sources of funding or reduce its assets. Given the nervousness about insolvency concerns at many banks today, banks have few funding alternatives. Consequently, last week’s stop gap measure by the central banks is probably going to be short-lived.
Things aren’t any better on the other side of the Atlantic. I see that the US government debt increased $310 billion in the first 2 months of this fiscal year. This is approximately a $1.9 trillion increase. Clearly these kinds of numbers are not sustainable. Something has to give as we watch this slow motion train wreck, and in my view it will be more problems for the world’s currencies as confidence in governments and central banks continues to erode."
AND PLEASE DONT FORGET THIS GEM :-
" concerns about the collapse of the system are very real because governments have not yet come to grips with the fact that their capacity to borrow is limited " !!!
Isn't it ironic that the people (whose sovereign right it is to create credit, and have delegated corporations this right - in trust, to manage diligently) must find a budget (to be approved by politicians- financed by bankers) to pay an army to go after the bankers.
Bankers use the power to create credit WE gave them, to hire the best and brightest and most experienced legal minds in the nation to oppose the people, who wish to prosecute malfeasance, against the peoples TRUST. Bankers do this at no cost to themselves, simply by the expedient of honoring their own check.
Giving the power to create credit to private corporations was justified by the fear that politicians would, abuse our trust. I have no doubt, politicians would abuse our trust, but am now faced with the criminal behaviour of those we had hoped, could be trusted. We must apply at new paradigm. I believe and suggest "the power to create credit" must be taken back by us, the people. To be called Democratic Credit, it shall be a right alongside "right to life, justice, health, religion, education, .."
Let us put together a Charter that will allow people, and not corporations or shareholders to own banks, but individual "depositors"
Let the power to create be in service to the people to meet all our basic needs such as health, education, shelter, work. Let us build our communities and finally let the nation come to me, in the most democratic form off all, to ask me for the finance to deliver services that I think are necessary.
Do the 'Chartered Banks of the People" wish to finance an undeclared war in a foreign country that is not a security threat, but has valuable oil reserves. NO
Does the "Chartered Banks of the People" wish to finance alternative energy programmes, projects that will create millions of jobs for its people that will provide security, stabilize its currency against foreign reserve depletion, and avoid the deaths of its young men. YES
It does not require the destruction of one system for another; it does not require the risky change back to the "gold reserve standard" advocated by the next likely President of the United States, RP (How will the Banksters deal with him?)
All it requires is enough honest individuals to get together to form the first Chartered Bank of America, apply honest regulation, and LOBBY the people of America to give you a " Commercial Bank Trading Licence", currently only issued by the FED, a private consortium of bankers who control the "power to create credit" for the United States of America, the most powerful empire the world has seen in all history. The power to create credit, the most powerful force on the planet, a power if diligently applied and directed, can mitigate the damage we as a species is causing it and ourselves.
We do not need to battle the incredibly entrenched forces, but simply offer a humane alternative to ourselves. The time is now; the voice is the Occupy Movement - Worldwide Peace Ian
Great idea. I wish the OWS movement would push an effort like this because it is absolutely possible. Enough people are fed up now with the majority of our financial institutions and so the time is opportune for a "People's Bank".
Credit unions are good for that.
I think it'd be better if there was an OWS farm and we make our own food.
Interesting. My husband and I are creating a small farm on our property and selling some produce during the summer. We are trying to become self sufficient. At the rate things are going we may yet turn back into an agrarian society. Who else will feed us if not ourselves?
Credit Unions have no power to create credit so are no alternative to the present system of corporate ownership of the power to create credit. We must build an alternative that will ultimately replace what we have, not by force, but simply by being infinitely better.
If by credit you mean lending money, they do that.
This information is in respect of "Commercial Trading Banks", not Credit Unions or Savings Bank - these finacial institutions can only lend cash deposited with them. Trading Banks create credit as outlined below. It's time they knew! by Colin Barclay-Smith - 1955 Excerpts available in: search .www. Michael Journal - articles -social credit . may other articles on money and social credit
It's time the people knew the alarming facts. Test your own knowledge of these facts by the following questions:
Do you know that no bank lends money deposited with it?
Do you know that when a bank lends money it CREATES it out of nothing?
Do you know that bank loans are merely pen and ink entries in the credit columns of a bank's ledger? They have no other existence.
Do you know that practically all the money in the community comes into circulation as a debt to the banks?
Do you know that money loaned by a Government bank is just as much a debt to the people as if it were loaned from a private bank?
Do you know that “fixed deposits” are a plausible screen to hide the creation of credit?
Did it ever occur to you that the banks enjoy this unique facility of creating credit and putting the nation progressively into debt-bondage because they create FINANCIAL credit against the REAL credit created by the people?
Do you realize that every time a Government borrows money for a public work, the people are debited with the liability (in perpetuity), but are never credited with the value of the asset?
Do you know that every repayment of a bank loan cancels the amount of the loan out of existence?
Do you know that Treasury Notes are Government I.O.U.'s — national pawn tickets for pledging the assets of the country to the banks for the loan of OUR OWN financial credit?
Do you know that banks purchase bank sites, build premises, and acquire assets at no real cost whatever to themselves — by the simple process of honoring their own checks?
You may dismiss these affirmations as “incredible”, or “absurd”, but if you will read on, each one will be proved beyond all shadow of doubt.
Most of us have grown up with only the vaguest notions of money. We are fairly certain that it is the Government's right to print notes and mint coins. For the rest, our knowledge is distinctly foggy.
Most people, for example, labor under the impression that the only money in the community is notes, silver, and copper. But this is a very, very small part of the community's money.
In fact, notes, silver, and copper — legal tender — is used for less than five per cent of the total purchases made. Over 95 per cent of all business is done by checks.
This check currency is really bank-created money — bank credit — but it functions exactly the same as legal tender money. Banking authorities of world-wide repute state that banks can and do create credit up to nine or ten times their cash resources.
Banks go to great pains to perpetuate the fiction that they are merely “the custodians of their customers' deposits” — that they lend these deposits, and that their profit consists of the difference in the rate of interest which they pay to depositors, and the interest they receive from borrowers. Such an idea is quite wrong, and it is the popular acceptance of this major monetary fallacy which gives rise to most of the false notions upon the subject of money.
The facts about money are as follows: —
(1) Banks do not lend money deposited with them.
(2) Every bank loan or overdraft is a creation of entirely new money (credit), and is a clear addition to the amount of money in the community.
(3) No depositor's money is used when a bank lends money.
(4) Practically all the money in the community begins its life as an interest-bearing debt to the banks.
Let us remember that We The People are the economy. Without people there is only the broken abstract valuation of goods and services.
We the People , keep the whole edifice operating. The whole system survives on the basis of "faith"
Of course these days the people are so indebted that they can not make a run on the bank - to withdraw their money. Your banker will calmly inform you that your "deposit" , if there should anybody in such a situation, can not be withdrawn due to the fact it is held in security against house, car mortgage or personnel debt. Thats is why we do not see a "run" on the banks with this WFC, unlike 1930,s when people had savings.
Everything is fine, EU just voted to give more power to government.