In the request frugality, the fiscal system gives plutocrat from the positive saviors ( i.e. depositors) to the negative saviors ( i.e. people with deficit of finances which need loans to buy propertyetc.). Likewise, the fiscal systems greasenon-cash payments. from individualities or legal realities.
The fiscal system has by law a monopoly of services. Only banks can accept deposits, only insurance companies can give insurance services and collective finances operation can be done better by a large bank rather than by an individual investor. Read about EDD banking!
How plutocrat is created
In the history, one of the reasons the ancient Greek countries were strong was the capability to produce their own currency. In the times of Pericles, the tableware Drachma was the reserve currency of that period. The same applied for the golden currency of Philippe from Macedonia. Each of these currencies could have been changed with a certain quantum of gold.
Currently, Fed creates USD and ECB Euro which both is edict plutocratI.e plutocrat with no natural value that has been established as real plutocrat by government regulation and we, thus, have to accept it as real plutocrat. Central banks circulate coins and paper plutocrat in utmost countries that they’re just 5-15 of the plutocrat force, the rest is virtual plutocrat, an account data entry.
Depending on the quantum of plutocrat central banks produce, we live in a extremity or we’ve profitable development. It should be noted that central banks aren’t state banks but private companies. The countries have given the right of issuing plutocrat to private bankers. In turn, these private central banks advance the countries with interest and thus, have profitable and of course, political power.
The paper plutocrat circulated in a country is actually public debt i.e. countries owe plutocrat to the private central bankers and the payment of this debt is assured by issuing bonds. The bond given by the government to private central bankers for debt prepayment is the levies assessed on people. The bigger public debt is the bigger the levies, the more common people suffer.
The chairpersons of these central banks can not be fired by the governments and don’t report to the governments. In Europe, they report to ECB which sets the financial policy of EU. ECB isn’t controlled by the European Parliament or the European Commission.
The state or borrower issues bonds, in other words, it accepts that it has an equal quantum of debt to the central bank which grounded on this acceptance creates plutocrat from zero and lends it with interest. This plutocrat is advanced through an counting entry still, interest rate doesn’t live as plutocrat in any form, it’s just on the loan contract scores. Read about Jcpenney credit card!
This is the reason why global debt is bigger than real or counting debt. Thus, people come slaves since they’ve to work to get real plutocrat to pay off debts either public or individual debts. Veritably many bones manage to pay off the loan but the rest get busted and lose everything.
When a country has its own currency as it’s the case of the USA and other countries, it can” oblige” central bank to accept its state bonds and advance the state with interest. Thus, a country ruin is avoided since the central bank acts as a lender of last resort. ECB is another case since it doesn’t advance Eurozone member- countries. The virtuality of a Europe safe bond leaves the Eurozone countries at the mercy of the” requests”which by being hysterical of not getting their plutocrat back they put high interest rates.
Still, relatively lately the European safe bonds have gained ground despite the differences in Europe policymakers whereas the Germans are the main cause for not having this bond since they don’t want public scores to be single European bones. There’s also another reason ( presumably the most serious bone) which is that by having this bond, Euro as a currency would be devalued and Germany’s borrowing interest rates would rise.
In the USA effects are different since the state borrows its own currency (USD) from Fed so original currency is devalued and thus state debt is devalued. When a currency is devalued the products of a country come cheaper without reducing stipend but imported products come more precious.
A country which has a strong primary ( husbandry) and secondary ( assiduity) sector can come more competitive by having its own currency handed that it has its own energy sources i.e. it should be energy sufficient. Banks with between$ 16 million and$122.3 million in deposits have a reserve demand of 3, and banks with over$122.3 million in deposits have a reserve demand of 10.
Thus, if all depositors decide to take their plutocrat from the banks at the same time, banks can not give it to them and bankrun is created. At this point, it should be mentioned that for each USD, Euro etc deposited in a bank, the banking system creates and lends ten.
Banks produce plutocrat each time they give loans and the plutocrat they produce is plutocrat that appears on the computer screen, not real plutocrat deposited in the bank’s storeroom that lends it. Still, the bank lends virtual plutocrat but gets real plutocrat plus interest from the borrower.
As Professor Mark Joob stated no- bone can escape from paying interest rates. When someone borrows plutocrat from the bank, s/ he has to pay interest rates for the loan but all who pay levies and buy goods and services pay the interest rate of the original borrower since levies have to be collected to pay the interest rates of the public debt.
All companies and individualities that vend goods and services have to include the cost of loans in their prices and this way the whole society subsidizes banks although part of this subvention is given as interest rate to depositors.
Professor Mark Joob goes on and writes that the interest rate paid to the banks is a subvention to them since the edict/ account plutocrat they produce is considered as legal plutocrat. This is why bankers have these large hires and this is why the banking sector is so huge, it’s because the society subsidizes banks.
Concerning interest rates, poor people generally have further loans than savings whereas rich people have further saving than loans. When interest rates are paid, plutocrat is transferred from poor to the rich thus, interest rates are favourable for wealth accumulation.
Marketable banks gain from investments and from the difference between interest rates for deposits and interest rates for loans. When interest rate is added regularly to the original investment, it brings further interest since there’s emulsion interest which increases exponentially original capital. Real plutocrat by itself isn’t increased since this interest rate isn’t deduced from product.
Only mortal labour can produce interest rate of adding value but there’s a downcast pressure for hires bring and at the same time increase of productivity. This happens because mortal labour needs to satisfy the demands of exponentially increased emulsion interest.
The borrower has to work to get the real plutocrat, in other words, banks advance virtual plutocrat and get real plutocrat in return. Since the advanced plutocrat is further than the real one, the banks should produce new plutocrat in the form of loans and credits.
When they increase the volume of plutocrat there’s growth ( still, indeed in this case with the specific banking and financial system debt is also increased) but when they want to produce a extremity, they stop giving loans and due to the lack of plutocrat a lot of people void and depression thresholds.
This is a” clever trick”created by the bankers who have noticed that they can advance further plutocrat than the bone they’ve since depositors would not take their plutocrat, altogether and at the same time, from the banks. This is called fractional reserve banking.
The description given by Quickonomics for fractional reserve banking is the following”Fractional reserve banking is a banking system in which banks only hold a bit of the plutocrat their guests deposit as reserves. This allows them to use the rest of it to make loans and thereby basically produce new plutocrat. This gives marketable banks the power to directly affect plutocrat force. In fact, indeed though central banks are in charge of controlling plutocrat force, utmost of the plutocrat in ultramodern husbandry is created by marketable banks through fractional reserve banking”.
Are savings defended?
In the case of Italian debt as in the case of Greek debt, we’ve heard from politicians ( actually paid workers by the bankers) that they want to cover people’s savings. Still, are these savings defended in this financial and banking system? The answer is a simple NO. As mentioned, the banks have low reserves in cash. This is the reason that they need their guests’ trust.
In case of a bankrun there would face liquidity problems and they would ruin. There are deposit guarantee schemes that repay, under EU rules, that cover depositors’savings by guaranteeing deposits of over to€ but in case of chain responses, marketable banks need to be saved by the governments and central banks act as lenders’of last resort.
The profitable system as it’s shaped by the power of banks isn’t feasible and it doesn’t serve mortal values similar as freedom, justice and republic. It’s illogical and should be incontinently changed if we want humanity to survive.