Blog 2 66 Nelson: Escaping the Dystopian Tsunami Pt 2

Blog 2 - 66  Escaping the Dystopian Tsunami  Part 2

The best way to review a Joyce Nelson book on the world money “system” has to be to quote it.

So here are some samples:

1. How our money is created: not by governments “printing“ it. That is just a figure of speech, and applies to about 2% of the money we use - the cash in your pocket.

Quoting Nelson  p54 (referring to the Swiss Initiative to reactive their state-owned bank.)

Fractional Reserve p54

  "The [Swiss] Initiative targets what’s called “fractional reserve banking”, whereby a private bank creates money out of thin air by creating loans based on a mere fraction held on deposit. For example, a bank may have $1 billion on deposit from savers, but under fractional reserve banking, it can lend out that $1 billion ten times or more simultaneously, and collect interest on that $10 billion (or more) worth of loans - all without having more than a fraction (that first $billion) on deposit to back up the loans."

John Kenneth Galbraith’s comment on it: (Look him up; his credentials are impeccable and huge.)

         “The process by which banks create money is so simple that the mind is repelled. Where something so important is involved, a deeper mystery seems only decent.”

That is to say, anybody - yes, that’s you and me - anybody can understand how most of the world’s money comes into existence. Private Banks loan it into existence - and collect interest on it. A government’s taxation is chickenfeed compared to the banking industry’s taxation on the money you use every day.

And this is the single most important thing to understand about the world economy. We are all using borrowed money (and paying the private banks interest for the privilege/convenience/necessity of having money to use. "We" includes everybody except those who deal exclusively in cash. Cash is the only money which does not have to be rented at interest. (The private banks are trying to do away with that 2% cash, of course.)

P.27  " The good news is that there is nothing to prevent cities and provinces from setting up their own public banks to bypass the Canadian Infrastructure Bank* "privatization bank", or simply to control their own capital, rather than handing it over to Bay Street or Wall Street banksters while paying millions in fees to them",

*Canadian Infrastructure Bank.  A bank set up by the current Canadian government, totally free from government control  to finance large infrastructure projects, which may or may not, be profitable investments). The stated object is to get the three biggest Canadian pension funds to buy into them.

More to come….