On the banking issue

A self-declared Russian jew who is apparently living in the US asked me the following question a while ago:

1. what banking system would you like to have in place of the current one (btw,
the current system has its roots going back before Jews started really migrating
to this country)?

Now I don’t have any canned answers, but clearly the current banking system, based on fractional reserves, has to go.

I don’t quite remember how long ago I first encountered the claim that the prevailing system basically allows the banksters to create new money out of thin air when they borrow money to ordinary mortals, but I do remember my initial disbelief. The people can’t really be so stupid and ignorant to allow such a system that makes them servants of a parasitic elite class to exist now can they? But of course they can be (as my observations of the average person have confirmed time and time again).

One could say I still haven’t seen any rock solid evidence that that’s how the system really works, but the existence of nearly continuous inflation certainly in itself pretty much proves that the monetary base is expanding almost all the time. If it wouldn’t be expanding deflation would be the norm in an economy where productivity per person is rising. Then there are of course other things like the banker bailouts that indicate that it is the financial elite, not the political elite, that is in reality making the big decisions. And of course the fact that people like Greenspan and Bernanke so many other central banking figures are jews is hardly an inconsequential detail.

In addition, the crude rule which dictates that the higher the interest rate the central bankers set is, the lower the inflation is, also supports the claim that money is created when loans are given as naturally there will be less loan takers at higher interest rates and thus less money creation out of thin air*.

Anyway, what type of a banking system would I prefer? So far I think free market money would be the way to go. People should be able to use silver, gold and other commodities as money (and they shouldn’t be forced to accept fiat currency for their services). If the governments weren’t demanding taxes in fiat money and so forth fractional reserve banking might vanish rather naturally which would allow other things of value to be used as money. On the other hand it might be more acceptable to allow banks to operate on fractional reserve basis (with gold and silver deposits rather than fiat money) if the customers actually understood what that implies but I haven’t really made my mind on this issue yet.

I might also point out I’m certainly not totally comfortable with using for example gold as a money as long as people can profit from hugely wasteful and environmentally destructive mining ventures that add little value to the greater society (I guess even at current prices it may be cost effective to mine tons of material for just a gram of gold and to use all sorts of highly toxic substances in the refining process).

Finally, based on my reading on the history of the banking system jews certainly were rather instrumental in making the fractional reserve system the prevailing standard all over the world but I admit I’m not a serious historian quite yet.

*There are of course other factors than the interest rate which will affect how willingly the borrowers take big loans. It’s also conceivable that at times the bankers can conspire to keep loan giving to the minimum which will tend to reduce the rate of inflation (such as at the time of the banker bailout). Also, in general new money will tend to affect the rate of inflation with some delay.

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