#daylightrobbery

Without even getting into the creation of revenue out of thin air ($billions every year in the U.S. in various fees and fines), the daylight robbery of the banking system is constructed on the privilege of the banks to create money itself out of thin air.

That the lending of American and British banks is restrained by capital requirements (10.5% of risk-weighted assets, under Basel III), which were supposed to buffer systemic risk following the financial crisis, does not in any way prevent the banks from lending far in excess of reserves, as fractional-reserve banking has always permitted them to do.

For instance, if a bank receives $100 in new deposits and adds $10 of that to its reserves (as used to be the 10% reserve requirement) it lends the other $90; but the $100 deposit remains on the books as a liability, which means that the $90 lent out is new money created out of thin air that resides in someone else’s account. Then when this money is spent and ends up in other people’s accounts even more money can be created in the same money-multiplying way. The extent to which banks can lend un-backed by reserves is restricted not by reserves anymore but by capital, following Basel III, which is a restriction as low as a low reserve requirement would be. According to Joseph T. Salerno (2012), the institutional conditions in the U.S. today allow for each dollar of currency deposited in a bank to increase the U.S. money supply by up to a maximum of $10 (a bit less than that post–Basel III). 

This license of the banks to extend credit creates inflation, which over time transfers purchasing power from the public to the government and to banks and everyone else doing deals with the government. To create money out of thin air and then earn interest on it is a privilege effectively guaranteed by the central bank, which can print whatever quantity of money it needs to bail out any business or systemic failure created by excessive leveraging of credit extended against cash reserves. Thus the central bank is the base of all inflationary money creation, the practice of which can be stabilizing in the short term and disastrous in the long term (as we will soon see).

In a free market a central bank would not exist, since government-backed monopolies would not exist. Thus banks would have to be very cautious about extending credit, since excessively risky lending would result in the failure and shut down of the bank. Inflation would therefore be much lower and restrained by market forces instead of being an invisible (and potentially unlimited) tax determined by the policy of the central bank – that is, unelected “technocrats” with the exclusive power to dictate the money supply.

In a free market, without the existence of legal tender (enforced-monopoly usage of a sole currency), each bank would be responsible for its own brand of currency which would freely compete as any other product or service would.

In an ideally stable system, there would be no fractional-reserve banking. Banks would not create money out of thin air and instead would retain the full amount of cash deposited so that the demand deposits of all customers would be instantly and simultaneously redeemable. Banks would make money on credit instruments such as time deposits, since these have maturities that can be matched to loans, instead of on the inherent riskiness of short-maturing deposits backing long-maturing loans.

Daylight Robbery | Thief Caught on Camera in Broad Daylight! ☀️🎥

Daylight Robbery | Thief Caught on Camera in Broad Daylight! ☀️🎥

Armed robbers attacked and rob Bridget Otoo cement shop

Bridget Otoo, a Ghanaian journalist, has detailed how armed robbers stormed through her shop and stole her morning sales. In a Tweet, the newscaster revealed that two armed men on a motorcycle drew a gun on her shop attendant and made off with 500 cedis. “Two guys on a bike fired two warning shots and pulled the gun on my shop attendant and took the morning’s cash sales of 500 cedis. She’s safe…