The UK's Ridiculous Money System
What is money in the UK? It is cash and deposits. What is money backed by in the UK? PROMISES.
So HM Government goes to the Bank of England (notice the lack of HM) which is a private bank and sells the bank a bond. The Bank of England buys this with money it just creates and this money is given to HM Government. The BoE now has a security which shows that the government will repay the money with interest. The collateral for this “loan” are the citizens of the United Kingdom. Their tax payments will allow HM Government to gradually repay the interest on the “loan”.
This system is ridiculous. Why HM Government would actually WANT to have to borrow money from a private bank and pay it back with interest when it could just create the money itself is beyond me. The government has the power to print money debt free yet it does not. This indicates a conspiracy to me.
Ok so the same principle applies when you take out a mortgage. You sign a promisory note (bond) and you effectively sell this note to the bank as they then pay you the money by creating it out of nothing. The promisory note is an asset to the bank because from that they can get money from you and interest.
The scam here is that the banks all create money from nothing, through simply crediting your bank account using a computer. The paper money is created by the Bank of England and given to these banks in exchange for debits to the banks reserve accounts. So all money comes into existence through debt. You give your signature to the bank and that is the only real thing of value here as it can be backed by collateral PLUS your promise to pay plus interest. Then once the bank has monetized the signature they charge you interest on money that YOU CREATED THROUGH YOUR SIGNATURE!
Unbelievable
So HM Government goes to the Bank of England (notice the lack of HM) which is a private bank and sells the bank a bond. The Bank of England buys this with money it just creates and this money is given to HM Government. The BoE now has a security which shows that the government will repay the money with interest. The collateral for this “loan” are the citizens of the United Kingdom. Their tax payments will allow HM Government to gradually repay the interest on the “loan”.
This system is ridiculous. Why HM Government would actually WANT to have to borrow money from a private bank and pay it back with interest when it could just create the money itself is beyond me. The government has the power to print money debt free yet it does not. This indicates a conspiracy to me.
Ok so the same principle applies when you take out a mortgage. You sign a promisory note (bond) and you effectively sell this note to the bank as they then pay you the money by creating it out of nothing. The promisory note is an asset to the bank because from that they can get money from you and interest.
The scam here is that the banks all create money from nothing, through simply crediting your bank account using a computer. The paper money is created by the Bank of England and given to these banks in exchange for debits to the banks reserve accounts. So all money comes into existence through debt. You give your signature to the bank and that is the only real thing of value here as it can be backed by collateral PLUS your promise to pay plus interest. Then once the bank has monetized the signature they charge you interest on money that YOU CREATED THROUGH YOUR SIGNATURE!
Unbelievable
