Digital Marketing and Social Media Strategy

Banks Loan Money They Do Not Have

OMG! I just watched a video called Money As Debt by Paul Grignon that will blow your mind. If you owe any money you need to watch this.

I realize I trapped you there, because I have little doubt that anyone reading this blog is of no debt. In fact, dare I say that anyone I know (or you know) is of no debt.

Don’t let the running time on this video frighten you. It’s shorter than your average one hour television show, and I guarantee this will leave you more fulfilled (frightened and fulfilled).

Now assuming you’ve watched it, I would love to see your comments please. What needs to be done next?

Hat tip to @swoolverton for opening my eyes (and making me want to close them again).

Dave

http://www.davemadethat.com

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  • Oh yeah, I've actually seen this before– a few months ago, afaik. Good stuff, worth thinking about.

  • The confusing foundations of the fractional reserve monetary system have been well known for a long time. You consider your assets to be what you HAVE. The banks consider their assets to be what OTHERS HAVE and OWE the bank. Weird, but that's the way it has worked, more or less, for decades if not centuries.

    What's causing the current disruption has been the dergulation of the banks allowing them to take the concept to absurd extremes, most notably in the for of “over the counter derivative” securities like Credit Default Swaps. With CDSs, I can sell insurance to investors who are not even parties to the original transaction — and do it many times over.

    In the wake of the Great Depression, various regulations were put in place to prevent a recurrence. Most notably Glass-Steagal, which separated deposit-based banks from invesment banks. In the last 15-20 years, all those regulations have been discarded, and now we're right back where we started.

    So, yeah, money is debt and fractional banking is the foundation of the house of cards. But on that foundation the house has been built into a looming tower. And like that famous economist (and head of the British Mint for some time) Isaac Newton said, “what goes up….”

  • Wow, I had no idea you're so knowledgeable in this area. We'll have to talk more over breakfast soon. Kinda depressing, but certainly what we all need to understand in order to change this downward direction.

    Cheers,
    Dave

  • Well, and the primary issue with CDS is as you identify — they are functionally insurance. But they are new, and no one ever said [until now], umm, hey, CDS are insurance and therefore must be regulated like other insurance.

    Insurance requires a higher asset ratio [ie., more money on hand] for an insurer than a loan does for a bank. Because the presumption is that a certain number of insurance policies will be collected — larger than the number of bank loans that will typically default.

    I don't think all of the discarded regulations are bad. In fact, there are a couple still on the books fr the Depression I wish they'd get rid of. But our regulatory system simply has not kept up with financial innovation. And [don't tell anyone I said this] perhaps that's as it should be. It's not pretty to watch the sausage being made — nor to watch innovation at work.

  • I'm still getting my head around this all. Strangely, I am now craving
    sauages :-)

    So do changes need to be made before the world economy (further) goes
    down the toilet? Do you they will be made?

    D

  • the video was open my eyes

  • Bob Woolnough

    This is totally mind blowing. I had no idea that our s and other governments simply handed the countries to the bankers on a plate with a licence to rule the populace regardless of what the populace wants. To thinks that whomever we vote for in elections are really just puppets of the bankers is abhorrent and disgusting and there is no wonder nothing real is ever done for the creation of a good society and civilisation as it's all about the greed of a few. If there is a movement out there to change this then sign me up.

  • Thank you. I feel the same way too, it's frightening. D

  • Banks want to know that they will at least get part of their money back if you fail. If you do not have collateral to secure a commercial loan with

  • Approve.

  • max191

    Interesting blog. It would be great if you can provide more details about it. Thanks a load!
    regards
    charcoal grill

  • The only thing left to do is a. learn who we really are. b. call the bluff and exercise our rights. You may be interested in http://www.de-facto.org. It is a site that I have put up for info purpose. I'm not selling anything.

    Two methods: Claim of right (for those under the crown jurisdiction) to establish lawful excuse and an affidavit asking to see where the banks took a loss in their books.

  • Great thanks! I'll check your site out.
    D

  • The only thing left to do is a. learn who we really are. b. call the bluff and exercise our rights. You may be interested in http://www.de-facto.org. It is a site that I have put up for info purpose. I'm not selling anything.

    Two methods: Claim of right (for those under the crown jurisdiction) to establish lawful excuse and an affidavit asking to see where the banks took a loss in their books.

  • Great thanks! I'll check your site out.
    D

  • tradi

    When you sign a promissory note, and give it to the lender, you actually just gave the bank a loan. The bank accepts your note as a bank asset(just like cashing your pay check!). After the bank accepts your note, the bank ledgers the note onto its books, on the asset side, and the liability side of it's books. The bank then uses the CREATED CREDIT from your signature on the note from the liability side of its books, to fund the “loan”. You gave the bank a loan, and they gave you a loan. BALLANCE 0!!! This is the biggest scam in the world, and the poor folks that take a mortgage “loan”, pay the bank first with the promissory note, then, when the “loan” goes into default, the bank gets money from it's insurance company that it used to cover itself in case of a default (which thay are hopeing for), AND THEN THEY STEAL YOUR HOME!!! This is how virtually all mortgages are set up. The purpose is to enslave America, and steal our property. Who gets rich? The bankers of course. Not to mention, a key element of a contract is “consideration”. What did the bank risk???? Read more in TOP SECRET BANKERS MANUAL link: http://autismtreatmentnow.com/Secret_Banker%27s… by Tom Shauf, CPA trainer. Spread this news all across the nation as fast as you can!, before all our property is stolen!!! May God help us all!

  • tradi

    sorry about that last link, try this one, then click the pdf link….
    http://old.nabble.com/TOP-SECRET-BANKER'S-MANUA

  • tradi

    by the way, money as debt is a great movie, but your link is not working, you can get the video by going to google video, and serach MONEY AS DEBT in the search bar.

  • Thanks for letting me know.