When a bank lends a sum ten times using the same warranty, this is a crime in both instances. It is a common crime (larceny, unfaithful trustee) and is a crime against humanity, as this procedure inflates the market, devalues the currency and forces the community to pay for an account that is not theirs (even those who do not use the services of a bank). Let’s face it: You deposit $ 10,000 in the bank, demand deposits in cash. The bank can now borrow that $ 10,000 to someone else, as it has your deposit as guarantee. Now, after lending your 10,000, the bank has its 10,000 (in cash) and another 10 ,000 to receive in the medium term, then the bank incorporates this receivable in its assets and is replaced by 20,000. Now the bank can borrow 20,000 to a third person, guaranteed (ballast) by the 10,000 in cash and 10,000 in receivables. But after borrow 20,000 the bank also incorporates this receivable to its active, so now he has 40,000. Magic? No, only the bank doing what he does best, creating money out of nothing. Now the bank can lend 40,000, guaranteed 10,000 in cash and 30,000 in receivables. Can you understand now how the bank ‘creates’ money out of nothing? This is what is called ‘Play Capital”. Much more, every time you, ordinary citizen, make a deposit in cash in the bank, any bank, any country, you are endorsing this practice. And still much more, you are indirectly contributing to the generation of inflation, because you are providing the bank an asset in kind, over which the bank can implement this harmful practice. And when inflation gets out of control, you always blame the government for mismanagement when in fact governments have debts with banks and who pays the bill is you, the taxpayer.
Just twenty years ago this practice was unimaginable, for there were regulations in the global financial system. And you know who dropped all regulations that prevented this type of practice, and other even more harmful? The education system, large universities through its officers, principals and teachers. Watch the documentary “INSIDE JOB” by Charles Fergusson and you’ll understand. Remember that if you, ordinary citizens, sell the same car for ten different people without delivering to any, you will be prosecuted for embezzlement crimes and will be immediately arrested, as the unfaithful depositary is a crime which takes you to jail in less than 24 hours (as well as non-payment of child support) [Brazil]. But the banks do it all the time around the world and nothing happens to them. See more details about market deregulation, watching in full the documentary INSIDE JOB (Link below).
http://vimeo.com/39018226 (Inside Job – Full documentary)
Academic people being paid by financial and trade institutions, to write reports and ‘academic’ analyzes in defense of deregulation of markets and financial products, using universities to disseminate ideas and doctrines that benefit the great financial interests, formatting the minds of students. It is the “power” overwhelming knowledge.
Marcia Alles – Venancio Aires / RS (Brazil)
Imagine that you have a commercial or industrial establishment, with machinery equipment, furniture and goods valued at $ 500,000 (five hundred thousand). As a good citizen, you decide to take out insurance to protect your business in the event of a claim. An insurance is like a bet: you’re betting that during the coming year there will be a NO claim on your property. And you pay for it, an amount called premium. Well, if nothing happens during the year, you lose the money paid (premium), but on the other hand, your property is there, intact. Nothing happened, no claim. In short, insurance is a bet that you would like to lose forever. It turns out that with the deregulation of markets, there is always a few smart speculators always online that, when they realize that you have made an insurance for your property, they do too (famous derivatives). That is, without you knowledge, five, ten or fifteen people (smart speculators), are also making an insurance for your property, but with one important difference: they are betting on the claim. If your property suffer a fire, for example, you immediately start the procedures for the insurance and satisfy liability for damages. But as you are a good citizen, for you and only for you who did honestly insurance, there will be a bureaucracy and a series of procedures and skills to perform and it will take at least ten days. But at the time you start the procedures, speculators immediately learn that your property was injured and more immediately yet, they lay their hands on the money. Now imagine, to say a modest number, that fifteen people received the insurer before you, and broke the insurer. And that just happened on the first day after you delivered to the insurance reimbursement process because speculators are online all the time, remember? Days later, a representative of the insurer come to inform you that unfortunately the insurer may not comply with the insurance payment because it broke and you will have to bear the loss alone. In other words, you end up losing everything. Your life, your savings, your business, your job, everything. That’s what happened in 2008 largely affecting several countries around the world. And it is still happening …
Banks are sycophants until the customer fall into their traps. Then they become cruel and merciless. Considering their “modus operandi”, banks should not charge fees to their account holders and savers, quite the contrary: they should pay them dividends, after all, it is from the deposits of their customers that banks can earn obscene profits. A true Karpman Drama Triangle, where the Bank plays the role of ‘Rescuer’, flattering and offering credit when the customer does not need but it is just enough to occur a short delay in the payment of installments for the Bank to change immediately its role, becoming the ‘Persecutor’, charging mercilessly fees, fines and obscene interest in a nasty psychological game where who plays the role of “Victim” is always the ‘account holder or Saver’, also called sucker.