How The Big Banks Run The World -- At Your Expense
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But, down the line, the big payoff is to get us thinking much more carefully about the way the world really works, and why. Once you start thinking about how money is created and who gets to use that power and for what purpose, some very, very interesting questions indeed begin to follow.
To be sure, the story gets more complicated when you bring in global trade, finance, the Chinese, and so forth: A serious move in the way posed by the Public Banking people would have major implications for global finance, and the role of the US - and the US dollar - in the global system.
But this, too, is one of the purposes of taking such proposals seriously - and the importance of starting a far-reaching new debate not only about money and the US system, but the fragility of the entire superstructure of global finance these days.
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(By the way, one estimate is that roughly 25 percent of the world's banking systems allow central banks to extend credit directly to governments; another 37 percent allow short-term advances. These include some of the fast charging so-called "BRIC[S]" countries such as India and South Africa, as well as Malaysia, the United Arab Emirates, Israel and Japan.)
If you want to have some fun with this - before you get angry at the rip-offs - take a look at the video of 12 year-old Victoria Grant explaining the same thing for Canada. There is a reason why it went viral and has been seen by more than a million people.
We had a hugely positive response to this article of Gar's, and wanted to see if you'd be interested in reposting it on Alternet...
How Big Banks Run the World - at Your
The recent Public Banking conference held in Philadelphia offered a message that is at once so simple - but also so bold - it is hard for most Americans to pause long enough to understand how profoundly their thinking had been corralled by the masters of finance - in ways far, far, far more insidious and powerful than even the latest financial crisis suggests.
To understand what has happened, however, you first have to take a minute to shake a few cobwebs out of your brain about "money" - and how it is created and by whom and for whose benefit.
Money is "created"? Yes, obviously so - or did you imagine there is some fixed pile of "money" some place that exists once and for all and for all times?
Think about it: If that were true, it would be impossible for the economy ever to change and grow. If the "money supply" were not increased over time, the original economy of, say, 1776 - which served about 2.5 million Americans - would still define the amount of "money" we would have to work with today.
(And yes, going back further, if money were not increased - i.e. "created" - the amount that existed even in a far smaller economy prior to 1776 would be all there was and is, even down to today.)
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Once you realize money must be and is regularly created and expanded, then the interesting questions begin to occur - like "How is it done?" and "Who benefits from it?"
Step One: Most people think of "money" as something real, something that is kind of like gold or silver or anything that has intrinsic value. Allowing for a very, very few minor exceptions, that is simply not what "money" is.