A crucial question throughout the history of capitalism is who owns the right to create new money and how it is allowed to happen. The story is largely about the struggle for this right.
Creating money belongs to the most ingenious system in our human history for the development of our prosperity. There was a time when money was debt free with no interest.
Today, most states are indebted to privately owned central banks when money is to be printed.
Before money existed, jobs were exchanged between each other through e.g. the exchange between the hunter's and the artisan's goods. Salt that was in demand could be used as a means of payment with many involved.
Then came the time when money was in metal, which became the medium of exchange and which was then lent out by money changers to be paid with interest. This profession eventually evolved into the bankers
In the 1000th century came the promissory note that evolved through the mortgage receipt that turned into a loan from the future. We went from gold to debt with money created out of thin air.
The process is now based on banks being able to lend almost all the money they receive. Some, a few percent, must be kept as cash reserves at the central bank. It is called fractional reserves and the system is called Fractional Reserve Banking.
How big this reserve is varies between different countries. In several other places, however, this reserve requirement is zero. In theory, then, the banks' production of money could continue indefinitely.
The coins historically represent debt-free money. The coin was minted or minted in metal and carried its own value through a certain content of a sought-after metal. During the Middle Ages, Swedish cities could mint silver marks that were passable all over Europe. They were a kind of early euro. A very simple system in international trade.
Cologne mark 233,85 grams
Copenhagen mark 248,47 grams
Skaramark 210,47 grams
Stockholm mark 204,62 grams
Linköping land 217,02 grams
DEBT FREE MONEY
Only the nation should own the right to create NEW money. The United States tried to establish that right as early as 1690 and sought to form a national central bank that issued its money to realize the free nation. The young colonies printed paper money without a gold or silver standard. They were called Colonial Script.
“In the colonies we issue our own money. It is called Colonial Script. We issue these in the right proportion to the demands of trade and industry which means that the products pass easily from producer to consumer. In this way we create for our own banknotes. We control its purchasing power, and we pay no interest to anyone.”, Benjamin Franklin, in 1763, the Bank of England answered the question of the great prosperity of America.
Thus, the nation would avoid paying interest costs to a private central bank. What enormous debt has this not created?
Franklin's statement led to the American Revolution, which put North America deeply in debt and forced the United States to borrow for war materials. Revolution and war are the guilt trap. They then ended up in the clutches of the Bank of England. Three presidents such as Thomas Jefferson in 1828, Abraham Lincoln in 1862 and John F Kennedy in 1963 have since tried to create a national bank. This battle the US lost. The superpower is now controlled by another superpower.
DEBT MONEY
Debt is now an obvious feature of the economy in order for new money to circulate. A debt means that there is a creditor and someone who is responsible for the debt. If there were no one willing to accept the debt burden and the interest payments for new capital, the community economy would quickly cease to function. Behind it, however, is a corrupt economic and political game with deep vested interests.
It has happened in history in 4 ways that describe the world's most cunning fraud:
The creation of the note (debt note) and mass production of, among other things, the dollar out of thin air.
Fractional reserve banking. About 10% of the money volume is secured in a gold reserve. The dollar's gold reserve disappeared in 1971. Sweden has 0% in reserve
Government bonds instead of the gold standard. The people become debt bearers, which confirms the social origins of money. Now there are also a number of securities with hidden risks.
Market values (imaginary profits)
However, central banks cannot create any amount of money. Too much new money risks eroding its value, purchasing power begins to decline, inflation is a fact. Therefore, the central banks closely monitor the development of prices. At the same time, there was a huge deregulation of the financial sector worldwide, which allowed banks to create new types of securities and rapidly increase their lending in a variety of ways.
Money changers have historically created a financial and monetary system based on debt money. New financial values are created through someone's indebtedness and everyone has to bear part of the burden in some way.
This banking revolution of creating money out of thin air with interest began in the 1000th century.
Since then, an ever-increasing proportion of our money has been created through the banks' lending, that is, new money has been created through lending. The financial sector has subsequently developed and grown as new forms of debt obligations have been invented and built on from the outside with a debt as a base.
The financial lab's way of developing securities with hidden risk is very extensive. CBO, CDO, CDS, CMO, MBS, ABS, CFD, etc. The list of three-syllable financial innovations can be made very long. The list of those who really understand them is all the shorter.
Recessions and depressions only occur because central banks manipulate the money supply, to keep more and more in their hands and less and less in the hands of the people. We can see in the rearview mirror of history what has happened.
The privately owned banking empire with central banks has basically put the nations of the world in debt. Money consumption increased through various types of loans for the development of society and business, in consumption and speculation on real estate and securities. But also to the destructive activities surrounding the arms trade and loans for revolutions and wars over the centuries. A profitable business for an exclusive group of people outside ethics and above national laws in a total lawlessness like modern day vampires.