REVEALED: Central Banks Explain How They Control Money
Susanne Posel

Recently, the Bank of England (BoE) released a report entitled "Money Creation in the Modern Economy" which outlines that most people do not understand how banking works and the populist ideology regarding financial business is correct.

Through fractional reserve banking (FRB), technocrats are able to get away with dangerous lending practices; however the central banks continuously feed printed fiat into the system at the request of smaller banks.

Central banks were intended to regulate fiat supplies within nations and control inflation, as the story goes.

Printing fiat and not printing too much is the oversight role of the central bank. They are supposed to fund private economic trends and not governments through purchasing treasury bonds.

In 2012, quantitative easing round 3 turned into QE Infinity because the Federal Reserve Bank under former chair Ben Bernanke purchased mortgage-backed securities (MBS) at $85 billion per month which is now being tapered back.

The report reads: “Rather than banks receiving deposits when households save and then lending them out, bank lending creates deposits. In normal times, the central bank does not fix the amount of money in circulation, nor is central bank money ‘multiplied up’ into more loans and deposits.”

However, the truth about banking practices is a bit different than the story we have been told.

Basically, the bank loans out money created from deposits. The money is actually an IOU.

Central banks are tasked with granting the ability of other banks to issue IOUs which are then accepted as legal tender.

This process can go ad infinitum as long as the banks have borrowers.

Because printed fiat always ends up back into the bank's hands, every loan is considered a deposit.

Central banks give smaller banks as much fiat as is requested because this practice creates the rate of interest which is the cost of money to the citizens of nations through government trickle-down.

Based on this system, technocratic institutions are actually subject to the borrowing patterns of governments, citizens and corporations.

In other words, the more a government is willing to borrow, the more stable the banking system becomes. Instability arises from inability or unwillingness to borrow fiat from banks.

In reality, the public's spending, i.e. crowding out, is necessary private investment central banks and the BoE admits in the report that they do fund governments through this process.

The rules governing global economics is controlled by 85 people who hold the same amount of the wealth as half of the world's population.

In January Oxfam released a report which explained how this wealth is unequally distributed:

• Globally, the richest individuals and companies hide trillions of dollars away from the tax man in a web of tax havens around the world. It is estimated that $21 trillion is held unrecorded and off-shore
  
  
• In the US, years of financial deregulation directly correlates to the increase in the income share of the top one per cent which is now at its highest level since the eve of the Great Depression
  
  
• In India, the number of billionaires increased tenfold in the past decade, aided by a highly regressive tax structure and the wealthy exploiting their government connections, while spending on the poorest remains remarkably low;
  
  
• In Europe, austerity has been imposed on the poor and middle classes under huge pressure from financial markets whose wealthy investors have benefited from state bailouts of financial institutions
  
  
• In Africa, global corporations – particularly those in extractive industries – exploit their influence to avoid taxes and royalties, reducing the resources available to governments to fight poverty

Oxfam expressed their "concerned that, left unchecked, the effects are potentially immutable, and will lead to ‘opportunity capture’ — in which the lowest tax rates, the best education, and the best healthcare are claimed by the children of the rich. This creates dynamic and mutually reinforcing cycles of advantage that are transmitted across generations.”

Two years ago, the Swiss Federal Institute (SFI) in Zurich released a study entitled "The Network of Global Corporate Control" that proves a small consortiums of corporations – mainly banks – run the world.

A mere 147 corporations which form a "super entity" have control 40% of the world's wealth; which is the real economy. These mega-corporations are at the center of the global economy.

The banks found to be most influential include:

• Barclays
• Goldman Sachs
• JPMorgan Chase & Co
• Vanguard Group
• UBS
• Deutsche Bank
• Bank of New York Melon Corp
• Morgan Stanley
• Bank of America Corp
• Société Générale

However as the connections to the controlling groups are networked throughout the world, they become the catalyst for global financial collapse.

The financial crash of 2008 can be traced back to these tightly-knit networks.

Future disasters can also be projected based on this analysis because of the "connectedness" of these influential entities which are only 147 corporations.

www.occupycorporatism.com