Warning about banks
This quote is often attributed to Thomas Jefferson:
I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
Pienso que las instituciones bancarias son más peligrosas para nuestras libertades que ejércitos enteros listos para el combate. Si el pueblo americano permite un día que los bancos privados controlen su moneda, los bancos y todas las instituciones que florecerán en torno a los bancos, privaran a la gente de toda posesión, primero por medio de la inflación, enseguida por la recesión, hasta el día en que sus hijos se despertarán sin casa y sin techo, sobre la tierra que sus padres conquistaron. (Not my translation)
You got this warning 200 years ago. I was told something similar by a primary school teacher, and I never forgot it. Today, it feels more true than ever.
Something for you to think about.
3 Answers
Endtimes description:
2 Timoteo 3:2
Reina Valera Contemporánea (RVC)
2 y que habrá hombres amantes de sí mismos, avaros, vanagloriosos, soberbios, blasfemos, desobedientes a los padres, ingratos, impíos,
2 Timothy 3:2
Today's New International Version (TNIV)
2 People will be lovers of themselves, lovers of money, boastful, proud, abusive, disobedient to their parents, ungrateful, unholy,
I doubt that private banks would do any worse than the Ferderal Reserve does now by printing up funny-money whenever they want to "inject money into the system" and thus, causing high inflation.
What Thomas Jefferson was concerned about is happening at this very moment and I'm sure he never considered that one day big business would control government as it does today. I'm not only thinking about it, I'm bloody scared!
PS: If you have the opportunity to get into a credit union, do it! They're much safer than banks, and they actually treat you like a valued individual because they're basically co-ops.
Here is the banker scam as I understand it: fractional reserve banking.
Let's call the physical cash that a bank has in their vault V (for vault cash). Now, as I understand it, every bank has its own account with a central bank. We'll call that money C (for central bank money). Now, total reserves...we'll call that R.
V + C = R
Now there is some ratio such that all reserves R must equal some percentage of all monies lent out by the bank. In practice, that percentage may be zero for small banks, but let's say it was 10% for all banks.
For simplicity's sake, let's say my bank doesn't have any reserves on account with a central bank. So, at this point in my post, my bank has NO reserves, NO assets at all. I will be their first depositor.
Let's say I deposit $1000 cash at my bank in a checking account, and I am the only depositor it has. My bank now has $1000 in reserves. It can now lend out 10 times that amount, or $10,000. (If you thought the bank could now only lend out $900, well, banks do not lend out cash...they cut checks or make an accounting entry to credit the borrower's checking account).
Now, a man, Mr. Johnson, comes in and wishes to borrow $10,000 to buy a car. Well, first he must open an account. This bank requires a starting balance of $100 to open a checking account. So, he deposits a $100 cash into his checking account. (Now the bank has $1,100 in cash. So far, this is the bank's ONLY asset. Since the bank must give me my $1000 anytime I want it (and the other fellow his $100), then the checking accounts are LIABILITIES from the bank's point of view. So, currently, the bank has a net value of $0.00 (assets = liabilities).
They take the Mr. Johnson's application and act like they are concerned about whether he can pay back such a loan...they let him sweat a bit...they come back...he is approved! All he has to do is sign a $10,000 note and they will "deposit" $10,000 into his new checking account. They will also hold the title to his car until the loan is paid off.
It is important to note that they have not taken ANY of my money to give to the fellow. They only have $1100 in deposits prior to loaning the man the "money."
Now, the $10,000 note is an ASSET from the bank's point of view. The bank now has a $11,100 in assets ($1100 in cash and a $10,000 note). To balance the $10,000 increase in assets, the bank need only increase their liabilities for good accounting...and they do this by making a simple accounting entry...and this accounting entry will make them able to cut a check for the car to the car company for $10,000. Then they also take possession of the title, which is worth $10,000.
Total Bank Assets = my cash deposit + Mr. Johnson's cash deposit + Mr. Johnson's note + the car title
Total Bank Assets = $1000 + $100 + $10,000 + $10,000 = $21,100
Total Bank Liabilities = my checking account + Mr. Johnson's checking account
Total Bank Liabilities = $1000 + $100 = $1100
Now here's the thing. The bank never spent a dime and made $20,000 just by getting Mr. Johnson to sign a $10,000 note and give them the car's title. But what if he pays only half and then defaults? Well they'll have the $5000 he paid in and they'll have a $5000 note plus they'll have his car's title. The bank will repossess the car and sell it. Let's say Mr. Johnson was fairly hard on his car and, since he was struggling financially, couldn't maintain it well. The bank gets only $1000 for the car. The bank also sells the remaining $5000 note to a collection agency for pennies on the dollar. Let's say they sell it for 10 cents on the dollar. So, they sell the remaining $5000 note for $500 to some collection agency (which will then harass Mr. Johnson endlessly for years trying to collect the full $5000).
In the end, the bank made $5000 in payments from Mr. Johnson, $1000 from sale of the car and $500 for sale of the note...that makes a total of $6500 the bank made on NOTHING!!!! But, still, they will run crying to the government saying they had lost $3500 when all they were trying to do was help Mr. Johnson and that they need to be bailed out or else the economy will get really bad and people will die starving in the streets. So, our government will then put the IRS's guns to our heads and make us, our children, and our children's children cough it up. The bank CEO gets his $4 quadrillion annual bonus and everybody's happy.
Well, that's the scam as I understand it, anyways. Feel free to disagree anyone/everyone. Or even to correct any misunderstandings of the system I may have.
I have just realized something (and I have puzzled over this off and on for a decade)...I have been overlooking the check clearing process. A transaction between two banks would require $10,000 be transferred from Bank A to Bank B.
Also, I am actually unsure how the bank counts the car's title. I know they kept my title and sent it to me after I paid my last payment...but I believe it was in my name the whole time, they just made sure they were in possession of it...that makes things easier should they need to repossess the car...but is it an asset to them? Or is it something not recorded on the books at all? Not sure. I'm guessing the latter, though, now that I think about it. Unless they held a lien against the title the whole time I was making payments. I just am not sure if it is counted as an asset to the bank or not while I am making payments (they also hold the deed to homes in mortgage...how to they account for those?...maybe not at all...if anyone knows, I'd love to know).
Anyway, I have only struck through all the above as comments have already been made to my post and I usually like people to see what it was a commenter was commenting about...no matter how embarrassing it might be to me. 
