Richard Werner: Banking & The Economy
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- Опубликовано: 19 авг 2024
- Banks have a pivotal function in the economy, they are the main creators of the money supply. In granting or issuing so called 'loans' to their customers they create the money that is essential to make the modern economy work. In fact says Prof Werner: 'there is no such thing as a bank loan' he says what happens is credit creation, when banks make the money (credit ) needed out of nothing.
He explains how the system works, whereby, from a miniscule deposit of funds a huge amount of money is created.
This video should be compulsory viewing for every man woman and child.
Richard Werner is one of the best around when it comes to explaining money
Richard Werner is a lying fraudster.
Steven Keen is great also. Both are telling it like it is.
If a private person did what banks do he would be sentenced to prison as common thief.
Thank you excellent video. We must stop this legalize fraud.
The exemple given by Mr Werner imply a velocity way higher than what is observed in reality. Read abount another concept : Money Supply. The velocity changes according to the type of money you're talking about (The different types of money are typically classified as "M"s)
Isn't it will create a rush to lend to people, to fill 9,500 in Balance sheet, which might create some bubble?
Thank you.
wait, at first richard says that 990% of the original deposit of 100 - which r used as the reserves - r lent out, but then he states that the money lent is newly created by the bank.
so does the bank actually or even need a deposit to create money, or doesnt the bank require any deposits at all for creating money out of nothing?
he makes it sound as if the deposit plays some kind of "crucial part" (even though just fractional haha)
Well, I was considering creating an electronic (online and with cards) medium of exchange and a non-profit organization in which the members would elect representatives to control the amount of medium, etc. This 'money' would be only for people joining the organization. I found somewhere that there are similar things in the real world where companies create their own 'money' to exchange goods and/or services because they don't have to pay taxes. Legality and taxes worry me.
Who gives up lawful consideration of value in a purported loan ?
then $100 changed hands in course of a year, even though there is only $50 in this little economy. That $100 level is possible because each dollar was spent an average of twice a year, which is to say that the velocity was 2 / yr.
If all the banks would lend 9900 pounds for each 100 pounds deposit, they would have a really hard time balancing their balance sheet at the end of the year : the client who gets a loan generaly take the money out of the bank to buy something. The important concept that Mr Werner is not mentioning is the Velocity of Circulation (or Velocity of Money).
It balances quite alright: the loan is an asset, the "deposit" in the client's bank account is the liability.
@chelonia1663 Indeed you are correct mate interest is terminal , we are dealing with nothing more than modern day money changers who steal & launder circulation flogging factional multiplication off as money creation when really its a secondary consequence of the banks purposed obfuscation of our very own promissory obligations we have to each other .
What Richard Werner is talking about, the obfuscation of the promissory note, is actually illegal in the US constitution article 1 section 8 clause 5. Only congress can manage money creation.
Yet the central banks do it everyday!
the mises channel here on youtube and their website has a lot about this, PositiveMoneyUK too.
I want to know is it legal for a group of people to create their own medium of exchange and use it between themselves? Surely the governments can't forbid people to do that?
The whole thing lies with the banks what they do. Read what economist Richard Werner says. If you
don’t like reading he has the video in youtube on his lecture. Read carefully and paid strict attention to
the last section.
Richard Andreas Werner is a German academic, economist and
professor at the University of Southampton. Werner is a monetary and
development economist
“I will tell you key points about
banks. In case you thought banks lend
money, they take deposits and lend money.
You are wrong. Banking was developed, modern banking was developed, in
the United Kingdom in the 17th century and the legal facts are very clear but
not very well known. Banks do not take
deposits and banks do not lend money.
That's a fact.
How is that possible? How is that possible? Well, legally they do
not take deposits. They borrow from the
public, because your money at the bank is not on deposit. It’s not held in custody, it's not a
bailment.
What is it legally? You have lent money to the bank. So the
expression in banking are designed to mislead what's really happening. Who is
the owner of this money? It is the banks, you are just a general creditor. Which is very different from the impression
given when we use the term deposit.
What about lending surely
banks lend money? No they don’t. No bank has ever lent any money. How is that
possible? What does a bank do?
Banks purchase securities and
they don’t pay up. That's what they
do. How is that? Well if you go to the bank and you borrow
money you sign a loan contract. Very crucial. Your signature creates the money
supply.
Because the bank legally will
consider the loan contract a promissory note. And that is what is considered
legally, is a promissory note. Just like the bank of England Note, central bank
money, paper money, is a promissory note from the central bank. And the bank purchases this contract. That
is what they do, they purchase the loan contract. Now they owe you money. You say I dont care about the mechanics, give
me the money. The banker will say we will put it in your account. You will find
it in your bank account. Well what is a
bank account? It is not a deposit. Its a
record of the bank's debt to the public.
It is a record of the bank's debt to the new borrower, and they show you
the record of how much money they owe you. That is it, they don’t pay up. And this is how the money supply is created.
So let’s go in sequence:
Step one: You go to the bank and you sign the loan
contract, say a thousand pounds. This
will be recorded in the bank balance sheet as an increase in bank assets. The bank, will then, record its debt to the
borrower. But it will do some accountant trick.
It should really say this is an accounts payable item. Something that the bank has to pay but it has
not yet paid. But it won’t record as an accounts payable. If you talk to a
bank's accountant they are horrified “No you cannot use an expression like
accounts payable in a bank” And do you know why? Because they recorded it as customer
deposit. They show it on the bank's
liability side as a customer deposit.
But nobody has deposited it, the customer has not deposited for
sure. The customer is borrowing it. The
bank has not deposited either. It is
added to the money supply, and this is how 97% of the money supply is created
out of nothing on the basis of a signature and of course on the credit of the
borrower. That is money creation. So no money is transferred from anywhere else
to the borrowers account.”
Economist RICHARD WERNER
Do you just go around posting this pile of garbage on all vids to do with money and banking? You posted it to my vid too. Werner is a fraud. He is a lair.
Why are you commenting on my post? I am interesting in learning and not propaganda.
you are the fraud and the liar.
how would a real bank loan work? an example?
like from a savings Bank?
Everybody should ask their friends about this and be amazed by how little people know about the biggest scam in the world, Fractional reserve banking.
What is the into song?
its nice that basically bank create money with a clik on a computer...but people who have to pay back that loan in 20 years...basiclaay will pay double of the original amout because of the interest.... and to do so people work hard and make sacrifice....and if you are not able to do that bank take you r house away and your money.....this is a Crime
Money is simply supported by the faith of the people using it. There are lots of local currency schemes in Britain (with vary degrees of success) and most significantly there is Bitcoin. I doubt the establishment likes Bitcoin very much, but it is designed to be impossible to shut down, I'm sure will find out if that is true in due course.
@kinasek 2 miles? per year? Two what per year? You try to make it more complex than it is, it seems. All the money stays in the banks digitally anyway. For the bank there's no difference if money is in your or my account, no? The velocity of transferring money to each other does not make a difference imo.
Briefly, from Wikipedia :
If, for example, in a very small economy, a farmer and a mechanic, with just $50 between them, buy goods and services from each other in just three transactions over the course of a year
Farmer spends $50 on tractor repair from mechanic.
Mechanic buys $40 of corn from farmer.
Mechanic spends $10 on barn cats from farmer
If banks can create money when the make loans why do they go bankrupt or insolvent when those loans are not paid back? It is after all simply money that the back made up.
Banks go bankrupt in numbers. another words if their books show 3 million dollars in liabilities they still have to balance their books. Another words their books have to show someone servicing the 3 million dollar liabilities.
What is happening is that Oligarchy banks use the bad economy and policy to bankrupt smaller banks so they can take over the assets. The Oligarchy banks (jp morgan chase, citigroup, etc) pretend they dont want to over bankrupt banks but the truth is that this is what they wanted to do in the first place. They put on a show to mislead you.
Even accepting that bank loans are money, banks do not create it out of thin air. No bank can lend more than it has, either as deposits or what it has itself borrowed.
There is one bank that can create money out of thin air and that is the government-owned or controlled central bank. It does so by mere decision, by creating more "fiat" ("let it be") money and introduces it into circulation by using it to buy government bonds off commercial banks ("quantitative easing" is a variety of this).
"No bank can lend more than it has" You are not understanding that the reason it can lend more than it has taken as deposits if because it is creating money.
You shouldn´t trust the official story about the central banking system. Because it is being told by the upholders of the system itself. And they want to stay in power at any cost. In fact, their version has been a lie since 1668, when the corruption began in Sweden. And that is where the system must finally be destroyed, in the fiery chasm from whence it came. Oh yes, Tolkien knew all about this stuff, that´s why his books are filled with references. Isengard is IG Farben, Palantir refers to the telecom infrastructure of Ericsson, Barad-dur is the Old Stockholm Telephone Tower, Montagu Ring Norman can be considered to be the inspiration for Sauron and the Bank for International Settlements is the One Bank to Rule Them All.
Tom Bombadil seems to be a metaphor for the mentality of Swedish people, who have remained oblivious to the fact that the corruption began here. And just like he wasn´t affected by the Ring, we weren´t affected by the two World Wars. In fact, the Wallenberg family, who is in total control of our society, manufactured both wars and more or less all wars since. Not entirely on their own but they have certainly played a key part in the Deep State since at least 1905. And that´s before the Federal Reserve Act was passed, something they needed to finance WW1 properly.
The murder of the Archduke is another official story, the true motivations behind the war was that Abdulhamid II:s railroads threatened their monopoly on trade, which was established with the East India companies. And to completely annihilate this threat, they made sure that the Middle East was left in a state of chaos, with the Sykes-Picot Agreement and the Balfour Declaration. And even now, a century later, peace in the Middle East seems impossible to achieve. The first one to sign the Agreement was Lenin, who had financial backing from various oligarchs of Sweden too.
And we were pretty much the backbone of the Nazi economy, the Wallenberg´s were behind IG Farben too. There wouldn´t have been any war effort without the Swedish steel, not in the long run. Creating wars through propaganda and subversion, in order to sell weapons to both sides (while infiltrating both sides), is what Sweden has been doing since the Congress of Vienna in 1815. That´s hardly neutral. And together with Crypto AG, the Swedish Wallenberg-owned company Ericsson managed to take control over most intelligence agencies. Ericsson has poisoned and infiltrated 184 countries.
Well, if you control the information, the economy and the kinetic military activities you control all aspects of modern warfare. And the root of the problem is the interest that is applied to loans every time the banks create new money. Because it generates a demand for economic growth, in order to pay for old loans the banks need to create new ones and so on and so on. Public consumption cannot grow expontially in this way and certainly not at this rate, so war and drugs have been pillars to uphold the system for centuries. But debt SAtURatiON will make sure that this dynasty finally comes to an end. It´s either that or WW3, something that might prolong a dying system for a few more decades. The system actually sealed its fate in 1931 when BIS was founded.
@kinasek balance sheet? The books are cooked of course; and then they tell us that it is toooo complicated for us to understand! hahaha!
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is this a kind of hypocethation?
The banks do not create money out of nothing, they convert the customer's promissory note into a new amount of deposit. Finally who actually creates, prints or who creates the computer digits money is irrelevant, its who gives value to the money that is relevant; and the customers gives value to the money and interest charges cannot be applied because there is no loan, its and exchange of promises, the dollar bills or Computer Generated Electronic Digits is money and a promise to pay as dollar bills are promise to pay. The man who works and creates wealth gives value to the money not the banks.
I would recommend Zeitgeist and Free People´s Movement Episode 14, the latter is only 18 minutes long. It might not change your perspective but then again it might.