A great article from Charles Hugh Smith appeared on Zero Hedge today. It’s titled “The Changing World Of Work 2: Financialization = Insecurity,” which perfectly encapsulates the entire problem faced by society. That is, financialization is the enemy of the working man and woman, even though we workers are taught to believe that financialization is our friend. After all, we workers don’t have the money to buy the things we need—shelter, transportation, education, etc.—so the benevolent financial institutions will help us, because they have plenty of money to lend. That’s the myth.
The reality is that the banks and financial institutions create money out of thin air (which is a generally-accepted shorthand way to describe what actually happens, which is that we self-issue our own currency but are legally forced to treat it as loans from a bank) as a means to control the populace and pick winners and losers. This is admitted by the banks themselves—see “BANK ADMITS: MONEY IS FAKE, FICTIONAL, NOT REAL,” and “BANK SAYS: IF YOU BELIEVE BANKS LEND DEPOSITS, YOU ARE WRONG” for starters.
This has never been a secret—it’s always been admitted in Federal Reserve publications such as “Modern Money Mechanics.” It’s just not taught in school, and purposely so. Even the Bank of England said last year that money creation is described incorrectly in textbooks:
“This article explains how, rather than banks lending out deposits that are placed with them, the act of lending creates deposits — the reverse of the sequence typically described in textbooks.(3)”
But as the fake recovery (i.e., the continuing slide into economic ruin) continues and deepens, people who would never have believed before that money is fake are waking up. And even those who might have known before all this that money is fake—such as commenters at Zero Hedge—still tended to believe and argue that the problem wasn’t that money itself is fake, just that the system of distributing it needs to be fixed. So I was heartened to see this comment thread on the Charles Hugh Smith story mentioned above:
I think the real problem is people are far too stupid to handle or use money properly. I mean…just look at it. Marxism is looking better every day at this point.
No, the real problem is that money isn’t real.
That is why, if we’re going to require money in society, its fake nature has to be acknowledged. It can’t be treated as real and as if a bank took a risk “lending” money when in fact it was the very act of “borrowing” that “created” the money in the first place—that is, banks don’t lend pre-existing money to you or to me.
You may find these other LRM articles informative on this same topic of the world awakening to the fact that money is fake:
LIBERTY ROAD MEDIA 