As everyone who has accepted reality knows, the fraudulent concept we currently refer to as “money” is created out of thin air by commercial banks whenever you or I ask for a “loan” (see anniversary post from just yesterday: BANK ADMITS: MONEY IS FAKE, FICTIONAL, NOT REAL) These commercial banks—so-called because they literally sell “money” to us—do not lend money that they already have on hand and will have to do without until you or I repay them. No, the money they “loan” you doesn’t exist until you “borrow” it. In fact, it is your act of “borrowing” which creates the money which the bank—and the courts—will enforce as a “loan” to you.
It’s a totally fubar situation, is what it is. But maybe we’re getting that much closer to my personal dream, a dream I’m sure I share with millions of people—that my kids will not have to raise their kids under the heel of the banksters. And who is leading the way? The people that didn’t bail out the banks and did put bankers in jail: Iceland. A new report explains:
REYKJAVIK (AFP) – Iceland’s government said Tuesday it would consider a revolutionary monetary proposal removing the power of commercial banks to create money and handing it to the central bank.
The proposal, which would be a turnaround in the history of modern finance, was part of a report written by a lawmaker from the ruling centrist Progress Party, Frosti Sigurjonsson, entitled “A better monetary system for Iceland”.
“The findings will be an important contribution to the upcoming discussion, here and elsewhere, on money creation and monetary policy,” Prime Minister Sigmundur David Gunnlaugsson said.
The report, commissioned by the premier, is aimed at putting an end to a monetary system in place through a slew of financial crises, including the latest one in 2008.
In Iceland as in other modern market economies, the central bank controls the creation of banknotes and coins but not the creation of all money, which occurs as soon as a commercial bank offers a line of credit.
The central bank can only try to influence the money supply with its monetary policy tools.
Under the so-called Sovereign Money proposal, the country’s central bank would become the only creator of money.
This is so important because it shows that main pillar of self-issued currency—my solution to the same problem Iceland is addressing—is not juvenile fantasy on my part. That main pillar of self-issued currency? Take the power of money creation away from the banks. Where I differ from Iceland? Give that power to individuals, not a public bank or central banks. Why? Because money is a fictional concept that has to be created by someone, somewhere and given the last say, millenium or two, I tend to trust individuals more than governments.