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A Simple Primer on Banking – What You Were Never Meant to Know



Posted: Sunday, November 06, 2011

by e
Dhammabucha Rocksprings Meditation

If we really understood banking, we would immediately cash in our deposits and buy gold. But we don’t do this because we believe that the banking system is legitimate. It is not.

For example; let’s say that everyone tomorrow demanded their deposits from all the banks in the country. Since the banks only hold, at best, 10% of deposits in actual cash by law, the banks would all have to close their doors.

Of course your deposits are insured by the FDIC, so the government would have to print about 3 trillion dollars to pay off the depositors and get the banks up and running again.

Then, if the depositors turned around and re-deposited the 3 trillion, this would increase the money supply by 30 trillion, because of the Ponzi scheme apparatus of banks – they create 10 times their actual deposits out of thin air by loaning out 10 times the deposit amounts, hoping that again, everyone won’t want their money back all at once! This is a Ponzi scheme.

Once this 3 trillion is re-deposited and increases the money supply by 30 trillion, then of course the dollar will inflate rapidly causing its irrelevance and subsequent failure due to hyperinflation. This would happen very quickly.

In order to get back in business, the government would then issue new currency to re-establish the banking system, while all holders of the old  hyper inflated currency would be left holding the bag – in essence, lose everything.

The banks win again!

What has kept this scheme afloat for all these decades? Nothing but faith. We have faith that everyone won’t ask for their money back all at once. Why should they? They would only do that is for some reason that faith is compromised.

Part of the banking systems success and longevity is secrecy. Common people have no idea how the central bank and the government gamble with their money. If we knew how fragile and how insecure the entire world banking system is, we would all of course get as far away from it as possible.

And this is the present problem – the Ponzi scheme is being exposed. Exposure to the truth about banking is the Pandora’s Box that will open and regurgitate unspeakable goblins.

Once the stampede begins, if it does, it will begin unexpectedly like a Black Swan before anyone can react, and the entire system will collapse like a house of cards overnight.

Why will this happen now since the banking illusion has persisted all these years? It’s because of transparency, truth. Not only are people slowly waking up to the manipulations of financiers, they are understanding that these manipulations are a con, a shell game, and nothing that honest, hard working people should have anything to do with.

There is a better way.

That better way takes the cream of the profits that the financiers have skimmed for a hundred years and puts it back in control of the people.

This is easy to do – just set up a legitimate, national not for profit money exchange operated by the people so that they can securely deposit their money and use electronic transactions, and let the banks fend for themselves. No more FDIC insurance, no more central bank, no more government bail outs. The banks are on their own and let the depositor beware.

This could be a start of a new America with honest people in charge.        

   

  
E. Raymond Rock (anagarika eddie) is a meditation teacher at DhammaRocksprings Theravada Buddhist Meditation Retreat Center: http://www.dhammarocksprings.org and author of “A Year to Enlightenment: http://www.amazon.com/Year-Enlightenment-Steps-Enriching-Living/dp/1564148912

He lived at Wat Pah Nanachat under Ajahn Chah as a Buddhist monk (novice) and at Wat Pah Baan Taad under Ajahn Maha Boowa and Wat Pah Daan Wi Weg under Ajahn Tui as a fully ordained Buddhist monk (bhikkhu). He was a postulant at Shasta Abbey, a Zen Buddhist monastery in northern California under Roshi Kennett; and a Theravada Buddhist anagarika at both Amaravati Monastery in the UK and Bodhinyanarama Monastery in New Zealand, both under Ajahn Sumedho. The author has meditated with the Korean Master Sueng Sahn Sunim; with Bhante Gunaratana at the Bhavana Society in West Virginia; and with the Tibetan Master Trungpa Rinpoche in Boulder, Colorado. He has practiced at the Insight Meditation Society and the Zen Center in San Francisco.
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Top-level comments on this article: (1 total)
» left by David Levitt
 185 days ago.
29 fans.
The essence of capitalism is that the poor subsidize the rich. The engine is reinvestment into the workforce which finances the government through taxation to build and maintain the countries infrastructure and investment in products and services which fuel the economy. The disconnect is in the reinvestment in the workforce which government was hired to protect the interests of the people and level the playing field between labor and business. Of course our Supreme Court in it's vision and wisdom granted personhood to corporations giving them an equal yet extremely well funded voice in our legislative branch of government. In a perfect world these justices would be prosecuted for treason and hung from the gallows below, but once again we are treated to a much less than perfect world. The downfall of our system was the establishment of the symbiotic relationship between the church and the government (the rich) that has taught otherwise good citizens to worship the economic elite in the hope that one day they will die and be accepted into the circle of wealth. That's Christianities version of 23 virgins or something like that. Peace my brother.
» left by e 184 days 13 hours ago.
132 fans.
And we continue down the same old path with new regulations being watered down and complicated, ergo loopholes. It won't change until there is either a collapse of the system, which has to happen sooner or later when the borrowing dries up, or a revolution of the middle class. A collapse would be kinder, a revolution would be chaotic and surely violent. Thanks David.
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