Fractional Reserve Banking: “It Isn’t an Act of God.”

--“Well, uh… Commissioner, Mr. President, I rise again, I’m afraid, to make the same old hoary speech that I’ve been making here for several years, and that is…”

Wait. Hold that thought for a moment.

Before we go into this man’s “hoary” speech, here’s a little background: These are the words of Godfrey Bloom, a Member of the European Parliament.

They were spoken during a Parliament debate back in 2013.

The title of the debate is “Banking union: single supervisory mechanism.” [You’ll find the the video link at the end of today’s episode.]

“It is my opinion,” Godfrey goes on, “that you do not really understand the concept of banking. All the banks are broke. Bank Santander. Deutsche Bank. Royal Bank of Scotland. They’re all broke.

“And why are they broke?” he asks.

“It isn’t an act of God. It isn’t some sort of tsunami. They’re broke because we have a system called fractional reserve banking. Which means that banks can lend money that they don’t actually have.”

Fractional Reserve Banking!

“It’s a criminal scandal and it’s been going on for too long.”

“To add to that problem,” Bloom says, “you have moral hazard. A very significant moral hazard from the political sphere. And most of the problem starts in politics.

“And central banks which are part of the same political system.

“We have counterfeiting, sometimes called “quantitative easing.” But counterfeiting by any other name: the artificial printing of money. Which if any ordinary person did, they’ll go to jail for a very long time. And yet governments and central banks do it all the time.

“Central banks repress the amount of interest rates are, so that we don’t have the real cost of money. And yet we blame the retail banks for manipulating LIBOR. The sheer affrontery here is actually quite astonishing. It’s central banks. It’s central banks that manipulate interest rates, Commissioner.

“And plus, underneath all this, we talk loosely, in a rather cavalier fashion do we not, about deposit guarantees! So when banks go broke through their own incompetence and chicanery, the taxpayer picks up the tab!

“It’s theft from the taxpayer!

“And until we start sending bankers, and I include central bankers, and politicians to prison for this outrage, it will continue!”

[Mic drop]

--Yes, the monetary system is rigged. On a global scale. For that reason, despite all the things you can do to lessen the impact of the moneyweb, there never seems to be a way to fully detach.

The problem is simple to see. It’s nothing more than top-down control of the monetary system.

Unfortunately, many fall for the illusion that it’s there for our own good. To “stabilize” us from… we guess… ourselves (are we getting that right?).

While those at the top of this artificial food chain, nick by nick, pick our pockets clean.

Our philosophy, though, is that nothing is static. Everything changes. Permanence is always devoured by impermanence.

Old systems get replaced by better systems all the time.

No big deal.

--“We are entering an age,” our friend Juan S. Galt said in his recent Anarchapulco speech,  “that has never been possible before.

“Where you can escape the jurisdiction of money, of the country that you’re living in, and move your assets to a new jurisdiction.”

From the Darknet, we feel inclined to add, you can even pick from a whole slew of jurisdictions privately, from the comfort of your own couch.

“You can pick out of many different currencies to use to store your value,” says Galt, “to buy whatever you want to buy… this is the future that we’re moving towards.

“Before, the Federal Reserve dictated like kings how your money is governed. Now, without even living in the country, you can just move your money to crypto and decide by which rules you want your finances to occur.”

--Yes, we’re on about the cryptomarkets again. But we’re not talking theoretically here.

Cryptomarkets work. We need only look at the online drug trade for proof of concept.

The black market, as you know, is always a step ahead of the game. (Because, of course, it has to be.)

So it’s only natural that the drug market — a thriving international black market — would be first to discover the vast benefits of cryptomarkets.

How do the Darknet markets function exactly? What do they look like? Are they safe? Reliable?

We’ll get to all of that in tomorrow’s episode. And show you one Darknet marketplace that’s starting to powder its nose — prepping itself for the mainstream.

Stay tuned.

Until then, here’s the full two-minute video of Godfrey Bloom’s central bank busting. Enjoy.

Chris Campbell
Managing editor, Laissez Faire Today

Chris Campbell

Written By Chris Campbell

Chris Campbell is the Managing editor of Laissez Faire Today. Before joining Agora Financial, he was a researcher and contributor to SilverDoctors.com.