So How Much Money Have Privately Owned Banks Counterfeited!

“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered…I believe that banking institutions are more dangerous to our liberties than standing armies… The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.” Thomas Jefferson

In 1844 the British Government made it illegal for anyone to print their own bank notes.
Under New Zealand law the Treasury is the only issuer of notes and coins. But these laws haven’t been updated to account for the fact that almost all money now is electronic.
Because of this loophole, banks worldwide now have the power to create money, effectively out of nothing. Positive Money NZ

Banks are creating money out of thin air through issuing loans and or selling financial products and re-hypoticating real world assets many times over.

They are in other words using a loophole in the law to counterfeit money thereby diluting the money supply causing inflation. When they close the tap they cause deflation by which they ruin millions of people, small businesses and the bigger ones too. They buy, again with counterfeit money, all the assets people are being forced to sell for pennies on the dollar and start the next cycle leaving chaos and misery in their wake!

Here is how much money they are creating and have created in the past:

M4-Base-Money-GraphAs you see the amount of money created by banks is enormous compared by what reserve banks (another topic of interest) have created in actual coins and paper money. In fact 97% of all money is digital and is created by the banks.

The curve is also telling. In 1978 the US took the $ of the gold standard meaning there was nothing of value (If you think gold is valuable) backing the $ any more and as you see the money created by the banks rises steeply over the next 10 years. In fact the money supply more than quadruples! The Graph is in pounds because the graph is is issued England but we are talking about a global banking system here!

In 1990 the US announces it’s the largest gold producing Nation (we only have their word for it) and this is celebrated by doubling the money supply over the next 10 years.

The rise in bank money, as opposite to democratically population owned generated currencies, accelerates to a staggering level over the next 10 years and only tapers off when the banks get caught out in 2008 when part of their Ponzi scheme became exposed after the 2008 Lehman brothers collapse and mortgage derivatives showed that there was something terribly fishy going on in the banking sector.

So what did the banks do with all that money they created out of nothing? Who did they loan it out too? Here is the next graph:
Sectoral-LendingAs you see, most of that newly minted money was spend on either mortgages or secured loans i.e. on real world assets to be confiscated when the borrower can’t pay it back. In the housing sector around the globe this has lead and is still leading to ever rising house prices.

Secondly they spend it mostly on…. banking business! I.e. on themselves as in bonusses, financial products such as speculative derivatives etc.

Thirdly they spend it on Commercial property such as commercial real estate, shares in corporations  etc and

Fourthly they lend it to us the people to be able to buy products from the same companies they have shares in.

As you see the percentage of money that went to loans either to the public sector or privately owned businesses not related to the banking sector remained almost unchanged over the last 18 years meaning that most of the money now resides in the banking sector while the people and businesses who need the money the most are unable to run smaller businesses and this is squeezing the “real” economy.


6 thoughts on “So How Much Money Have Privately Owned Banks Counterfeited!

    • No they haven’t.

      The only way we can end this is by ending the reserve bank system, take back the right to print money by the treasury only and put the bankers in jail where they belong and that includes Don Brash Who wrote the Reserve Bank act signed by Lange in 1989!

      • Ev – NZF just recently adopted a new policy, so the great news is that they support putting an end to the madness. The only media on it was here:

        This is the policy wording: “That, The Reserve Bank of New Zealand (RBNZ) will be tasked with complete and sole responsibility for issuing our nation’s electronic money supply in addition to the role it already plays with our notes and coins. Banking corporations will no longer be able to create credit (which is monetised at drawdown) but will function solely as intermediaries in the lending process. The RBNZ will be solely responsible for issuing New Zealand’s money supply, free of debt, as a sovereign, New Zealand owned, non-commercial entity in a democratic, transparent and accountable manner”

        The RBNZ is wholly Govt owned in NZ, so it makes sense that they would issue the currency, as they are not privately owned.

        • That is directly misleading “A ” NZF as the govt does not own and control the NZRB, the Crown own the NZRB and its profiting subsidiaries.

          “Contrary to popular belief the Crown is not the Royal Family (known as ‘The firm’) or the British Monarch. The Crown is the private corporate city State of London. It has a council of twelve members who rule the corporation under a mayor called the Lord Mayor. The Lord Mayor and his twelve-member council serve as prophecies or representatives who sit in for thirteen of the world’s wealthiest, most powerful banking families. This ring of thirteen ruling families includes the Rothschild family, the Warburg family, the Oppenheimer family, and the Schiff family. These families and their descendants run the Crown Corporation of London. The Crown Corporation holds the title to worldwide Crown land in Crown colonies like Canada, Australia, and New Zealand”
          The Crown is comprised of a committee of 12 banks headed by the Bank of England (House of Rothschild).”

  1. And most NZers know the last time you got a pound for a pound was the 50’s wool boom from there creative accounting began after the boom was over refer to the last moral stand on the present read Brooksley Bourne’s story

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