This video is a follow on from the other video I’ve done on the Central Bank currency creation operation, If you haven’t seen that video, I would recommend you doing so before watching this one.
Let’s pick up where we left off.
Central Banking is a complete con
The title of Episode 4 of Mike Maloney’s series “the Hidden Secrets of Money” is “The Biggest Scam in the History of Mankind”.
And he’s absolutely right in saying this.
In my opinion, Central Banking is a complete con.
I have gone into detail about this in other videos, so I won’t go into great detail here.
No need for Central Banks
What I will say is that, to my way of thinking, there is no need for Central Banks to exist – Why?
Well, let’s look at the fund raising operation again, but this time only considering the essential elements, rather than describing the operation that currently takes place, as we did in the previous video.
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Basically, in order to raise funds what the Government does, is to take from the future to pay for the present.
By selling Bonds, the Government raises funds to pay for present commitments.
And it has to pay back this debt in the future in accord with maturity date of the Bond and it also has to pay the interest payments whenever they are due.
The maturity dates and interest payments are all calculated in the original price of the Bond, but that is, for now, by the by.
How is this debt paid back? Well, this debt is paid back by future taxation. It’s the populace that pays for Government debt in the form of taxation.
Reducing all this still further, we can say that the Government is borrowing from the future and also, more importantly, it’s borrowing from the tax paying public.
So, what then are we left with? … Well, it’s the populace that is actually funding the Government and this is done by means of taxation. These then are the essential elements of the operation.
And what does this mean? It means that the people are the ones “bank rolling” the Government.
This is the crux of the matter - the most important point to consider.
And so, if the Government is borrowing funds from the populace, why have a Central Bank?
Why have a third party be involved in this operation, when there is no need for it?
For those of you in the audience who are more visually orientated, I have an analogy. It’s like creating a diversion on a major highway when there is no need for one. The cars are obliged to take this diversion even though the highway is perfectly serviceable – there are no roadworks taking place and there is no other problem, like an accident, or some such. There is then no need for the traffic to be diverted. The diversion serves no purpose … for the people.
Given this, we can ask the question … What purpose does the Central Bank serve?
Especially if we consider that the raising of funds can be carried out by Governments without the need for a Central Bank.
A Central Bank serves no purpose. It’s entirely unnecessary in this operation. I
