The Biggest Secret About Banking Has Just Gone Mainstream
Banks Create Money Out of Thin Air … Conferring Enormous Windfall Profits At the Expense of the People
We’ve pointed out for 4
1/2 years that
banks create money out of thin air. Specifically, it has now been conclusively proven that
loans come first … and then deposits FOLLOW.This is the most important secret about modern banking … because it
debunks one of the biggest myths preventing a strong economy, challenges one of the main
pork barrel profit centers for big banks … and
opens up incredible opportunities for a prosperous economy.This
odd and counter-intuitive – but crucially important – truth has now
gone mainstream …Specifically, the Financial Times’ Martin Wolf – one of
the world’s most influential mainstream financial writers -
says that,
since banks create money out of thin air, they should be stripped of
this power, and limited to normal depository functions. Wolf indicates
the centrality and importance of the issue with his subtitle:
The giant hole at the heart of our market economies needs to be plugged.
And Business Insider – the
world’s most popular financial news blog – is currently running this as its top two front page stories:
(Read the Business Insider stories
here and
here.)If we reclaimed the power to create credit from the too big to fail banks,
we would all be much wealthier…
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