Wednesday, 13 August 2008

There Is Only One Bank!

Well, one bank in each country at any rate.

The structure of the banks is a masterpeice of plausible deniability and faux competition. In the centre we have a central bank, and then it's immediate franchises, then their franchises, then on down to the local high street bank.

The local HSBC is a branch of the Bank of England. So is it's apparent competitor accross the street, the Natwest, Barclays or whatnot. This is poorly understood by the people who work for these organisations, this hydra like system.

What is also rarely understood is that all the money remains the property of the issuing bank at all times. You and me just get to use it. Again, what people think is happening and what is actually occuring are light years apart - this is the sort of creative misunderstanding that banking thrives upon.

What happens when we take a loan out of a HSBC branch and it then gets deposited at..say...a Natwest branch?

It has been returned to it's owner. Now there is no debt.

Everyone who is repaying a mortgage or a loan or a credit card bill is working for free at the direction of the bankers.

11 comments:

Anonymous said...

"What is also rarely understood is that all the money remains the property of the issuing bank at all times."


Don't you think a statement like this deserves some justification?! Why does it remain the property of the issuing bank at all times?

Otherwise enjoying the blog. Thought provoking stuff!

Injin said...

Justification??

When I can just stick out ranty opinion instead??

Oh..I see....

The reason they remain the property of the issuing bank is because it is impossible to buy them. Think about it - how could you possibly buy one?

You'd have to use another banknote.

Builder said...

How are you defining "buy a bank note" in this alternate universe?

In this alternate universe why cant i buy bank notes with my own labour?

Injin said...

Why on earth would the bankers sell you them?

They've got you trapped, why would they let you free?

No, no, if you want to work you can go to one of their friends in industry and do an 8 hour day for some of their paper tokens.

Nothing to do with the bankers atl all, of course. lol

Builder said...

Now you seem to be saying that a bank note is not a paper token and these bank notes cannot be sold?

So i need to ask you how you are defining bank note if you do not mean money in general circulation?

I think we need to begin with clearness about the building blocks that exist in this alternate universe.

Injin said...

I already defined them in my first post- they are "stay out of jail" cards.

http://injinsalternativeuniverse.blogspot.com/2008/08/financial-system-basics.html

Builder said...

Well therein lies our problem i think. You tend to use a private language which makes communication very difficult.

So the words "Bank note" means a threat of imprisonment if you dont pay taxes using fiat money?

And paper tokens refers to fiat money itself?

Anonymous said...

"No, no, if you want to work you can go to one of their friends in industry and do an 8 hour day for some of their paper tokens."

If all banknotes are owned by the issuing banks how are friends in industry able to sell them?

Injin said...

They don't sell them.

Anonymous said...

If you exchange an 8 hour day for some of their paper tokens why haven’t they been sold?

Injin said...

Afaik you can only sell what you own.

The bankers retain ownership of the notes at all times.

You work, you get USE of the notes.