Comments on: All money is a confidence trick

By: Leo

Leo — Mon, 02 Jun 2008 12:41:43 +0000

How many people realize that banks create money out of thin air? Or how many people know that they create their own loans?
When you apply for a loan and you fill out the application form the banks use this information to create a promissory note which they give to themselves and create the loan given that you have promissed to pay back this loan. They now have your repayments + interest and they also have the Promissory note to invest with.
How much a fool are we as it is illegal to create money out of thin air, this also goes for credit cards, as it is illegal to create credit. At law you must have a loss to claim that you are owed funds/credit debt. From which account did the bank loan you your credit funds? What loss did they sustain? Ask them to show you where is their loss? From which bank account did they lend you the funds from? eg:- Account no 111 balance before loan 1,111,111 dollars after loan of 111,111 dollars = 1,000,000.00 . At law they must be able to prove their loss and if their was no loss shown then you owe no debt to them.

By: Mike

Mike — Thu, 10 Apr 2008 08:47:52 +0000

Here is a good video that explains this concept, called “Money As Debt”:
http://video.google.com.au/videoplay?docid=-9050474362583451279

By: How money is created « Steuergerechtigkeit - Justice fiscale! ATTAC %

How money is created « Steuergerechtigkeit - Justice fiscale! ATTAC % — Tue, 06 Nov 2007 20:56:11 +0000

[...] novembre 6th, 2007 Ich habe diesen spannenden Blog bei Richard Murphy gelesen. Ich wollte ihn mit euch teilen, zumindest mit denjenigen, die Englisch lesen. Quelle: http://www.taxresearch.org.uk/Blog/2007/09/18/all-money-is-a-confidence-trick/ [...]

By: alastair harris

alastair harris — Wed, 19 Sep 2007 13:07:27 +0000

I understand that they are still queueing! And who said it had to make sense?

By: Tax Research LLP

Tax Research LLP — Wed, 19 Sep 2007 12:36:31 +0000

Meaningless

As the people who queued outside Northern Rock showed - money is not a means of exchange when there is no intrinsic worth

When worth was restored they went away. So your causality makes no sense

By: alastair harris

alastair harris — Wed, 19 Sep 2007 12:20:23 +0000

actually, what it shows is that debt is one way of measuring the money supply. Of course there are other measures. Perhaps it would help if you start by considering money as a means of exchange, rather than as an absolute with an intrinsic worth?

By: Tax Research LLP

Tax Research LLP — Wed, 19 Sep 2007 10:40:08 +0000

Alistair

The funds movement is subsequent to the creation of the ‘money, not a part of it.

What it does show though is that all money is in fact debt.

Richard

By: Tax Research UK / Time to reclaim money for the benefit of us all

Tax Research UK / Time to reclaim money for the benefit of us all — Wed, 19 Sep 2007 10:37:05 +0000

[...] All money is a confidence trick [...]

By: alastair harris

alastair harris — Wed, 19 Sep 2007 08:11:23 +0000

Hi Richard. I think there is a small mistake in your analysis. You state “Note there’s no cash involved in this process at all. It’s just an accounting trick. Nothing more.” In fact it is most likely that there will be a transfer of funds from the lending institution, and they actually have to have funds to be able to make that transfer. I would agree that funds is not the same as cash. I think you mean physical bank notes? But presumably you are aware that no currency is underwritten by gold or precious metals of similar value. As it happens I believe that it is only governments that are able to issue money backed up only by a promise.

When I were a lad the Economist published a series of articles for students, including as a call a particularly good one on the banking system. I don’t know if these are still in print.

By: Tax Research LLP

Tax Research LLP — Tue, 18 Sep 2007 13:45:43 +0000

Rob

I agree - a good book

Richard