Numbers game.

They add numbers to their accounts. But you are not allowed to do that. So, any number: you lose.

When governments stopped issuing metal money around 1900-20, bank notes were called 'Promissory Notes' because they could theoretically be redeemed in gold from reserves in bank's vaults. The banks lent out much more money than savers had deposited in them, and printed promissory notes whose total face value was many times greater than the value of the gold in their vaults. This was known as 'Fractional Reserve Banking' because the fraction kept in reserve was much smaller than the money value banks created out of nothing and spent or lent into circulation. Much worthless printed paper and many recycled numbers with imaginary intrinsic value were re-deposited, not by humble worker-savers, but by borrower capitalists who had made huge profits with their efficient industries, monopolies obtained by killing small competitors, and other clever combines.

The large sums invested by these capitalists earned far higher interest rates than those accorded to the little folk. Banks prefer to lend to the rich- such investments are safer, returns are larger, and bookkeeping is simpler. Capitalists could usually borrow at lower rates than humble folk- possibly even at lower rates than they paid on borrowed capital. Astronomical fortunes could be made in this way if money was recycled rapidly. Capitalists could also invest in each other, recycle dividends and capital similarly. So the rich could go on becoming richer by creating practically unlimited quantities of paper and number money, on company shares, with deficit spending and the like, while the little folk, who were incapable of creating money out of nothing, were swindled out of what little real value they had by taxation and inflation.

One can fool all of the people some of the time, and some of the people all of the time. But one cannot fool all of the people all of the time. The cartel's freedoms to monopolize energy, murder, and money creation cannot go on forever. Industrialized automation and economies of scale are passing their use-by dates. People are becoming fed up with advertising and planned obsolescence, over-consumption and taxation, seeing their sons sent off to die in foreign wars while they are thrown out of their homes, farms and jobs. The industrialized destruction of nature to produce a lot of rubbish nobody wants is becoming idiotic. The cartel-government socio-economic order has become obsolete.

Go to Site Menu

Go to Section Guide

Go to next section Global Warming