I am going to lay most of this information down into bullet points for this blog post, it may help with retaining the information, of which there is alot. The Privately-owned Central/Reserve Banks that are in place in 99% of all nations on Earth, and how they spread in an ideological manner from originally Gold or Silver based, Government-backed currencies, into ruinous Debt-based IOU's from the Rothschilds and their ilk. The vile, financially lose-lose situation every developed nation has fallen into, the banking systems and philosophies that have led us here are as much a slippery slope as Critical Theory itself, I believe. This is largely an explanation of financial systems and their (((evolution))), not a historically accurate description so don't expect it to be. You are learning of the form and function of modern finance, there are links to the real history at the bottom if you are interested.
WARNING: Big Complicated words used at times, grab your dictionary. Long blog, have time to read, i suggest you pay close attention to the imagery aswell, it's tailor made for this blog.
1.1. In the ancient past, gold was used as money in cycle between production and consumption in an economy.
1.2. It became expedient to vault it to keep it secure from theft.
1.3. Receipts issued for ownership begin to circulate, considered "as good as gold".
2.1. (((Vaulters))) who counterfeit are quickly discovered as fake receipts exist in excess to vaulted metal.
2.2. Only (((Vaulters))) who learn to avoid this malpractice survive onwards.
3.1. Vaulters realize they can make their stored money available as venture capital to bring forward productive potential to enterprises with ability but lacking means.
3.2. This is agreed with clients to share profit from interest.
4.1. This is used to invest in productive capital.
4.2. Manufacturing, building, logistics, agriculture, R&D, mining, etc.
5.1. This productive capital increases standards of living.
5.2. The currency is finite and thus deflationary.
5.3. E.g. A quarter ounce of silver buys you one loaf of bread today, 5 in 5 years.
6.1. This opportunity to loan to generate surplus provides an opportunity for counterfeiting.
6.2. This is because there is not enough information feedback on surplus.
6.3. E.g. How would you know if a quarter ounce of silver only buys you 2 loaves of bread in 5 years instead of 5?
6.4. Counterfeiting begins in the form of loans to siphon surplus.
6.5. Counterfeiting in this fashion incentivizes issuance of loans for its own sake instead of for viability of the investment.
6.6 Which eventually creates misallocation.
7.1. Adequate allocation in a complex system requires full information feedback for it to maintain an optimum homeostasis.
7.2. If you imagine cars on a road (be it a 30mph or 70mph zone) it's desirable to leave adequate room between cars to compensate for micro-misallocations to maintain optimum transit.
7.3. Similarly if you imagine:
7.3.1. The speed of the cars as the money supply circulating.
7.3.2. The distance between the cars as inverse to the money not circulating and thus set aside for productive venture capital formation and investment.
8.1. Counterfeiting to finance productive capital is akin to placing "more cars on the road".
8.2. Unfortunately because it is counterfeit it is cut off from the information feedback mechanisms of the market which pricing is supposed to provide.
9.1. This situation turns micro-level misallocations into macro-level misallocations.
9.2. This in turn creates business cycles wherein businesses fail (sounds familiar?).
10.1. These failures can result in the failure of the banking institution financing them.
10.2. Where they do not they can set-up a situation for such failures to affect banking institutions that survive this stage.
11.1. Upon failure of a business its outstanding debts are settled via the sale of capital and stock.
11.2. Enterprising institutions will realize in the process of derangement and reorganization which the market is forced into via their counterfeiting they can sell such capital and stock for a higher price if they time it properly.
11.3. I.e. they create a cycle of derangement and re-organization which can be gamed both by the derangement produced on the down-swing and misallocation creating enhanced demand on the upswing using excessive lending.
11.4. Speculation becomes profitable - i.e. buy low sell high.
12.1. Buying low and selling high is profitable however it isn't clear where the actual value for this process is coming from.
12.2. After all there is no actual production of value, no new creation of goods or services in this process, merely speculation.
12.3. The question is thus: Is it extractive or productive in terms of its profits?
13.1. The truth is its value ultimately comes from pressure on the value of labor in the cycles of derangement and reorganization of the economy.
13.2. I.e. it comes out of you.
13.3. This creates a vicious cycle of problem, reaction, solution where the bank profits. They loan too much, creating misallocation, from which they speculate on at the expense of labor.
13.4. It's as though over time they are a casino. Whatever speculation takes place it always ends up with them winning at the expense of the people less able to weather this disorganization.
14.1. This sort of rigged-casino style gambling / speculation is seriously profitable at the expense of those without capital or information. It's a game they always win.
14.2. As a result all such banks develop "investment" branches which start to speculate.
15.1. Because it's a game they always win over time, there is little disincentive to borrowing money from each other to increase leverage on bets made (given they always win).
15.2. Fees are paid for the use of borrowed capital to increase speculative bets.
15.3. This leverage is exactly akin to counterfeiting in its potential for creating misallocation.
16.1. Leverage turns good bets into great bets.
17.1. Because some leverage is good, more leverage is better.
17.2. Banks are prone to take leverage from anyone who will offer.
17.3. Because wins and safety of capital are guaranteed it's money for jam so everyone does.
18.3. Eventually it fucks up.
19.1. For creditors there are multiple options to this collapse.
19.2. One is to insist the institution backing up the investment arm pays for the amount staked.
19.3. They divide up what can and can't be paid.
19.4. Unfortunately whilst this leads to squabbles it also leads to secondary feedback.
19.5. The public at large loses faith in banking institutions and may start withdrawing their capital - which is no longer fully backed up.
20.1. One means of resolving this is for all parties to bail out the offender so the gambling game (siphoning from pressure on labor) may continue.
20.2. e.g. This happened in the case of Long Term Capital Management.
21.1. Or in the case of the sub-prime mortgage crisis, everyone is so inter-leveraged with everyone else there is no possible way for them to bail each other out.
21.2. So ultimately via TARP and QE (which has myriad effects on you) labor pays. Plebs pay. You pay. In order to bail this shitty system out.
22.1. Inevitably some institutions will fail.
22.2. This has disastrous derangement effects on the economy and cycle between consumers and producers banking with these various private institutions.
22.3. The average citizen (you) doesn't know any better and is pissed off.
22.4. At best they blame the government for this damage to the economy.
22.5. The politician knows nothing, spent too much time molesting children, they consult experts.
22.6. Guess where the experts come from…?
23.1. The expert portrays a picture of banking as though it operated on a productive, industrial Hamiltonian model of finance.
23.2. Whether they are doing this and lying intentionally or they've been lied to and absorbed it as part of their "education" is up for grabs - most mainstream education on this subject is horseshit.
24.1. The expert portrays a model of balancing the risk of investments for productive enterprise by using interest as a means of risk compensation.
24.2. So they propose a "central bank" which will operate on the same basis - charging interest to manage risk from failing financial institutions.
24.3. In return for this they have control over issuance of the money supply (outlawing all other issuance by banks) and thus total control over those institutions.
24.4. They also offer the prospect of lending on favorable terms to the government.
25.3. In this position they may lend to the government.
25.4. This is favorable to the government because they can borrow from the future to get elected on platforms of goodies now, paying for it via future taxes.
25.5. This occurs by pledging bonds to the central bank - a promise of future interest taken from tax revenue.
25.6. This is why today governments borrow their money from central banks in exchange for bonds backed by siphoning various sorts of tax from you.
26.3. As a result it demands an enhanced amount of growth - of income from the material environment.
26.4. In return for as long as there is the prospect of growth there is still the speeding up of the deployment of human energy and ingenuity in the form of capital brought forwards.
26.5. As with all good symbio-parasites, it's better to not be entirely negative in your effects.
27.1. Unfortunately as with every other attempt at illegitimately gaming the system, the M.O. of a parasite has issues.
27.2. If you exist via sponsoring unhealthy growth via the formation of industry, eventually you'll hit limiting factors on growth.
27.3. E.g. In the formation of industry there is a finite amount of land to your need for infinite growth.
27.4. This applies pressures for example on agriculture, which pushes up the price of food for an increasing workforce.
27.5. You can't have a workforce if they can't eat to survive, so you must pay more.
27.6. This creates the push for imperialism and exploration to acquire more land to feed the workforce at lower prices to increase productivity and thus infinite growth.
27.7. The (((parasite))) seeks to use the defensive military of its host political entity to increase its scope for growth to sustain itself.
28.1. Unfortunately imperialism for new resources merely postpones the compression of limiting factors on growth, it does not annul them.
28.2. The world is most assuredly (save for a select few places, Iran, North Korea for now, Russia partially) entirely under the control of a global financial empire - it's just culture and politics is still not quite administrated to reflect that.
28.3. As a result the same limits on growth as with before are eventually encountered.
29.1. Where there are such limits on growth alternatives can be found. After all, what is being capitalized on is not material itself but human energy.
29.2. Human beings can easily be riled up to hate each other over specious horseshit.
29.3. Their desires accordingly can be financed by creating growth which is in itself immediately offset by human destruction.
29.4. Provided this game is balanced and you fund both sides you siphon surplus and extract not from pressure on wages but via death. Military-Industrial-Complex style.
30.1. Unfortunately as with everything finite limitations emerge.
30.2. You cannot profit from wars which destroy yourself and the planet and people you siphon off of.
31.2. This system is then used to extract more and more via taxes to fund money issuance via loans.
31.3. It starts on the outside then it draws in.
32.1. Money issuance via loans made by a central bank in the form of the exchange of fiat for bonds is something everyone knows about.
32.2. It's exchanging human energy and ingenuity in the form of bonds for fiat, which at this point how does it even remotely resemble the Gold/Silver backed currencies it originated from?
32.3. Answer- it doesn't, which is why it's theft and extraction via an elaborate historical con, and you aren't taught about it in school or universities.
33.1. The mode of extraction wherein there is no prospect of growth is a net loss to the borrower.
33.2. It brings forward your life's earning potential minus interest.
33.3. Like a drug - feels good now, get sick later.
34.1. In other words you're at a net loss over your whole life - the symbio-parasite begins to switch from promotion of growth to siphon to extraction to cannibalize from you because your appreciation of time is poor.
35.1. Bringing forward earnings using debt can be useful if it is being used for productive endeavor with effort and ingenuity, this can increase your personal value production over time in excess of the costs of the loan.
36.1. For example you can see the distinction in student loans.
36.2. The notion was as we hit the limits on growth that that's what we'd do. We'd unlock people's ingenuity, "mana from heaven", and they'd become more educated and produce more value.
36.3. Unfortunately borrowing and then using it to study useful things is hard work and requires intelligence, most people are lazy idiots who never do anything productive or intelligent in their lives unless someone else has set it up for them to do.
36.4. So most people just borrow on the basis of consumption - the "fashion statement" of having a degree and being ever-so-intelligent. When really all they're doing is wasting time for a few years and borrowing for the pleasure of doing so, whilst studying incoherent nonsense which they can use to blame others for their stupidity, whilst inflating the qualifications necessary to get a job at Starbucks so now everyone has to get into debt just to get a job as a fucking sandwich artist.
37.1. Surprisingly and equivalently governments are equally short-term thinkers and just as likely to use money they borrow from your future children or grandchildren (given the debt service is so high your children might not even be able to afford children - UH OH, I think we have to help those poor refugees right guys? The ones right next door to the country we're also bombing) and waste it on unproductive bullshit. Unfortunately however the scale and timelines governments borrow on are inter-generational.
38.1. Unsurprisingly as this extraction kicks off in full swing the generation that benefits from the borrowing is loving it, meanwhile their kids get a little pissed off - make sure you teach them to hate each other so when they start getting mad they're not studying you, your system or how to fix it.
Is is for this reason amongst the blue-pilled population there is so much anger and anti status-quo sentiment starting to emerge, and it has been intentionally scattered, distracted from the actual cause and hijacked by those in your government/activist NGO on orders from those with all the (((Debt and Power))) sitting comfortably in the Central Banks. Making sure the livestock turn it on each other instead of using it to try to solve the problems with this system, or throw it all away and create, well, recreate a better one.
He who instituted the best new form of currency ever devised <3
"Money bearing compound interest increases at first slowly. But, the rate of increase being continually accelerated, it becomes in some time so rapid, as to mock all the powers of the imagination. One penny, put out at our Saviour’s birth at 5% compound interest, would, before this time, have increased to a greater sum than would be obtained in a 150 millions of Earths, all solid gold. But if put out to simple interest, it would, in the same time, have amounted to no more than 7 shillings 4½d."
- Richard Price, 1772 Appeal to the Public on the Subject of the National Debt
In other words compound growth on a finite planet is impossible, and we have started to hit its finite limits.
>The world's most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.
- Matt Tiabbi, Rolling Stone
But this symbio-parasite, which can't be removed without it killing you, requires constant growth to siphon, if it doesn't have that growth to siphon, it will simply start to cannibalise you.
That's what it's been doing for a while now.
1. It encouraged women into the workforce so there was more tax revenue to siphon, at the expensive of family structure and birth rates.
2. It masked the harm being done by encouraging people to borrow against their children's futures.
3. It masked the harm by creating wealth effects by inflating house prices with bubbles and immigration, empowering a single generation of already relatively prosperous people, whilst dooming anyone younger than them.
This is particularly noxious - credit bids up prices, people speculate and follow, borrowing more. But it's useless because unless you plan on sleeping in a tent, by the time you sell, all the other houses have gone up in price too. The only one who wins is the bank who gets a longer and deeper siphon of your life's income via mortgages or rent to pay off mortgages.
At this point we're all serfs tithing half if not more of our life's work to our new feudal lords, the banks, who live off of our surplus and barely allow us to subsist as we slave for them for nothing in return.
4. This increased debt service and slowed household formation chills birth rates as people can't afford houses, kids, or even to stop working. Previous commitments rely on an expanding debt serf force.
5. This is why they're so keen to bring in more "refugees" - to feed the debt service machine, who cares if it replaces you, your children and destroys your culture? The parasite consumes it all.
You sit and bitch about the symptoms, or are distracted by artificial conflicts, instead of going for the actual issue. However sometimes there is no need to be a one-man army, you can fight back in small ways, here's an example;
Work, get paid, visit your bank the next day, clear your account of everything but a safety net for monthly expenses, enjoy the face of the angry Jewish bank-teller when he hands you your money in cash, then deposit the whole shebang in your own personal safe, if you trust your neighborhood that is, if not that then maybe a bank safety deposit box, minus what you need for personal day to day spending (or convert it all into cryptocurrencies/physical gold/silver, but more risks and trouble with this method). Then, Tada! You've effectively destroyed most third parties meddling with your money, if enough people do it at this stage, you might even force credit institutes into bankruptcy, you prevented all the scams your bank is playing on you and the best of all…you forced the Jewish snake oil salesman to uphold his initial promise to keep your money safe.
There's loads of other ways to attack to, coordinated rent strikes amongst millennials living in housing/apartment complexes owned by corporations/government depts, entering corporate finance with malicious intent to destroy them from the inside, building up cashless communities using barter trade whenever possible, it's up to you.