All Banks are Insolvent / Bankrupt

The whole banking system is one big octopus with its slimy tentacles in everything. The existence of the central bank and fractional reserve banking permits commercial banks to generate credit, which is not backed up by real funding. It is credit created out of thin air. All banks are today insolvent, hence the Repo Markets now being run by Central Bank money. Welcome to The Atlantis Report. A bank has current creditors: on the whole, these are people like you and me who have our salaries or savings paid or deposited into our accounts on our behalf. We do not actually “own our money” that is stored in the bank. The bank does. This may come as a surprise to you. However, this is a very well established point of law. Since 1811, this has been the case. So you and I are the current creditors to the bank, i.e., we are owed money by the bank. In fact, your bank statement is just an IOU from the bank, acknowledging that it owes you however much it says on the statement on demand. Depositors are unsecured creditors on the bank's balance sheet. Riddle me this: when you take out a credit card, the bank is the unsecured creditor, and the debt is unsecured. They charge us quite a bit of interest, from 19 percent to 22 percent Yet when we loan the bank our cash via deposits, what is the interest that we unsecured creditors receive? 1 percent at best! The assets of the bank are those people to whom the bank has lent its Your money to, i.e., all the borrowers of loans. As has been so clearly displayed during the 2008 crisis, they have lent their money out (formerly your money) over 33 times on average to borrowers. So when more than 1 of 33 of us clients of a bank wish to withdraw our money that is on-demand, the bank cannot pay it back as it does not have it. As for banks, deposits are loans from the depositor to the bank. They represent liabilities of the bank. It is true that the assets of the bank (such as loans, securities, and reserves) are assets of the bank. Banks are solvent only if the assets are more significant than the liabilities. The idea that a bank, or any other firm, is insolvent only because something might happen is absurd. There are many things that might happen to a bank, making it unable to pay off its liabilities. For a bank, if none of its creditors could pay off its existing loans, it would fail. It could happen. It is happening all the time. The scenario where many depositors want payment now and the bank cannot borrow new money now, and it cannot sell-off. For a bank, if none of its creditors could pay off its existing loans, it would fail. On average, if more than one person in 33 in the banking system walks into a bank to get “their” money, the whole system collapses. If a bank defaults, then depositors of all sorts don’t get paid in full. The people who get to the bank first, at least, before it closes its doors, get paid in full. Then, after it is closed, no one gets anything until the bank is liquidated. The assets are sold off. Whatever reserves rain in the bank, plus the liquidation value of all the other assets–loans and the like, determine what all the depositors get. The whole the system will collapse if just 3% of depositors remove their money. Ignores the possibility that the banks might convince the other 97% of the population to put more money into banks. And, of course, it assumes the quantity of the monetary base is constant. Why should it be? If the quantity of base money is constant, and there is an increase in the demand for it, then its price must rise. But it serves as a unit of account; this requires other prices, including wages, to fall. And so, increases in the demand for the monetary base are very disruptive to the economy. Many businesses will fail if the disruption is significant enough. Including the banks. The bankers are granted absolute legal protection to perpetuate their fraud and crime, at the direct expense of the law-abiding citizens of that society. When the economic crisis of 2008 caused the near-collapse of the banks -- they were on their knees, begging for help. Now that the workers and the government need them to return the favor -- their answer is to kick us all in the teeth. The Big Bank crime syndicate had their servants in our puppet-governments tear-up the legal distinction between “banking” (institutionalized fraud) and “investing”; regulated gambling. Overnight, our banks were transformed into bank-casinos. Not only were these “banks” lending-out funds which grossly exceeded their current assets, but they were also gambling with these funds, and at even higher ratios of leveraged fraud. The result of combining extreme fraud with extreme financial recklessness was the Crash of ’08. The Big Banks literally “blew up” the Western financial system with their desperate, reckless gambling . The Gambling which began with the deposits which they claimed to be holding as trustees. Instead of our governments punishing these Big Banks for their extreme, reckless fraud, they rewarded them. Using our money, these Traitor Governments indemnified the Big Banks for every cent of their reckless, fraudulent gambling. Then they did something much, much worse. Our Traitor Governments bowed to the will of their banker Overlords and dubbed these institutions of fraud/crime as being “too big to fail.” Translation? Instead of preventing these institutions of financial crime from continuing their reckless gambling, they promised to pay off all of the banksters’ gambling debts, forever. There is nothing wrong with private bank money creation from bank loans; you just need to know how the system works. The central banks started to reveal all in 2014. Thirty-five years too late for the neoliberal globalization project. Financial liberalization was an idiotic idea. Our knowledge of privately created money has been going backward since 1856. Credit creation theory -> fractional reserve theory -> financial intermediation theory A lost century in economics: Three theories of banking and the conclusive evidence. Policymakers, like Ben Bernanke, thought banks were financial intermediaries and this was a terrible mistake. Bank credit lets you bring future prosperity into today. This can be very useful: #1. You don’t want to spend your life saving for a house to move in when you are about 50. #2. Business and industry can invest and expand today, and pay that money back later It can be useful, but it can also be dangerous if you not careful. Japan had a debt-fuelled real estate boom in the 1980s, and its economy has been flat-lining ever since as they pay back all that debt. They hadn’t realized that the boom times of the late 1980s would impoverish them the next thirty years. During globalization, policymakers thought banks were financial intermediaries and so they couldn’t see how bank credit impoverished the future. Banks loans create money, and debt repayments to banks destroy wealth, and this rather haphazard process produces 97% of the money supply. Bankers get to create money out of nothing, through bank loans and get to charge interest on it. What could possibly go wrong ! Bankers do need to ensure the vast majority of that money gets paid back, and this is where they keep falling flat on their faces. Banking requires prudent lending. If someone can’t repay a loan, they need to repossess that asset and sell it to recoup that money. If they use bank loans to inflate asset prices, they get into a world of trouble when those asset prices collapse. It’s nearly $14 trillion pyramids of super leveraged toxic assets built on the back of $1.4 trillion of US sub-prime loans and dispersed throughout the world. When this little lot lost almost all its value overnight, the Western banking system became insolvent. Wall Street can turn a typical asset price bubble into something that will take out the global economy using leverage. Bankers create money out of nothing, and the monetary system requires that nearly all that money they loaned out gets paid back. Bank credit is a claim on future prosperity, and when you realize all that debt can’t be paid back, a financial black hole opens up, as it did in 2008. Like the UK before 1980 and you use bank credit to increase the productive capacity of the economy. Before 1980 – banks lending into the right places that result in GDP growth ; business and industry, creating new products and services in the economy. After 1980 – banks lending into the wrong places that don’t result in GDP growth ; real estate and financial speculation. And what happened in 1979? The UK eliminated corset controls on banking in 1979, and the banks invaded the mortgage market, and this is where the problem started. No matter how you paint the picture, the farmer, farmhands, and farm equipment makers all work for the infinite money bankers who require their Fake Money to be used as a marker for all debts. So with interest, taxes, and inflation, all money eventually returns to the bankers, because the bankers own all the money and land at the start of and end of the game of Monopoly. Today all business investments require Fake Money loans or investment capital, that money belongs to the Bankers and eventually, all their money returns to them via consumption of utilities, energy, food, financial transactions, laws, taxes, etc. Printing money only inflicts more damage and, therefore, should never be considered as a means to help the economy. Also, even if the central bank were to be successful in preventing a fall in the money supply, this would not be able to avoid an economic slump if the pool of real funding is falling. Our current system of banking is an abomination and should be ended. The only reason we could say the system is near its end is that the Powers that be are keeping the money away from the mass of people. They are choking the system out. It can all be fixed. People in charge are playing games with us while they steal from us. Accountability is what they are all running from both Fiscal and LEGAL, and they don't want to get locked up. 10 years of hookers, blow, mal-investment and its all gone. The price of steak has doubled while your wages have not. Your pensions are about to implode. The FED wants to repeat. Main Street is doomed. QE is one thing and one thing only: Asset Theft.















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