This is another spell for my Grimoire.
Sometimes it is very difficult for me to understand how there are still many people, many of whom are very educated, who ignore the perversity of the banking system that has governed us for many years, enriching very few people and impoverishing the rest of the world population. And all this endorsed by Central Banks, made up of bureaucrats who issue papers that lose value almost immediately after leaving the machine.
About 200 years ago, after the French Revolution and later with the Industrial Revolution, a global oligopolistic system began to develop in which various corporations manage the whole world consumption (food, energy, pharma, medicine, education, entertainment, transportation, religion, mass media, textiles, "science"), fed by banks that load fuel into their tanks, endorsed by Central Banks that sign the outrages that these banks commit inventing money in circulation, and all supervised by a series of so-called International Organizations that act as the " last word” on issues related to how it should be consumed, where and when. Above all, the BIS, Bank for International Settlements, which originated after the First World War, shines immaculately, approving or disapproving of what its lackeys at higher levels do.
Apocalypse now ?!
Indeed
In this post, I am going to refer only to banks. My only intention is to show as clearly as possible how the invention of cryptocurrencies has come to get us out of the jaws of the seven-headed monster that, all of us who are alive at this moment, have received as "normal" and "legal", in regarding the handling and custody of the payments we receive from third parties for our work.
Wealth is not destroyed: it is transferred. Between 2020 and 2030, the largest transfer of wealth in the history of mankind will take place. Almost all of the fiat money created by the so-called MMT, Modern Monetary Theory, is going to be transferred to an ecosystem that supports a new class of asset that humanity did not know until now, which are cryptocurrencies.
In reality, fiat money issued by a centralized administration is a tool used, in this case, by governments, to steal our freedom and our time. Instead of storing value, it steals it.
Governments hate gold because they can neither issue nor control it.
For that they invented the fiat impression, to have control and to be able to anesthetize the herd with a huge hallucination, like those produced by prohibited substances.
Since governments can discretely print their currencies, there is a permanent transfer of wealth from your bank account to the government and to the financial/speculative sector in general.
The vast majority of people believe that a fiat note is backed by an amount of gold in a bank vault and that the government, in its capacity as administrator, holds the amount of gold in direct proportion to the amount of money in circulation.
We all participate in a huge shared hallucination that tells us that tomorrow that paper with the face of a supposed hero that we call a bill, will continue to have value, and that if we go to the supermarket and present it, someone will give us a dozen eggs.
In the modern economy, money is made up of three components: Currency, Bank Deposits, and Central Bank Reserves. Most of the money on the planet is made up of bank deposits, created by commercial banks for themselves.
The currency of an economy (fiat money) is made up mostly of banknotes, specifically between 90% and 95%. Of this amount, almost everything is in the hands of households and companies and only a small amount is in the possession of commercial banks. The currency is an asset for households and companies, and, in return, a debt for central banks.
The currency is a debt of the central banks with all of us, with all the characters that interact in an economy. But cash is a very small amount of money in circulation, in fact, it is a tiny amount.
Where is the rest?
In bank deposits. When you deposit cash in the bank you are in fact reducing the debt/risk of the Central Bank by the same amount as the cash you deposit. The currency is "guaranteed" by the Central Bank, it is a debt for it, therefore, if you return cash, you reduce its risk. And when you take money out of your checking account to pay something, you reduce the risk of the commercial bank where you have the account.
When a bank grants a loan, it is creating a deposit with the final recipient, and in the end, it is creating money in circulation.
“The bank does not have the money it claims to be lending you, it is creating it and you are going to have to pay it back. “
Commercial banks create money because the deposits (your checking account) are only a promise of payment and with that promise of payment they create other deposits through credits.