Why Do Banks Make So Much Money?

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Temat: Gospodarka

Banks are the most heavily subsidised businesses in the world, specially protected by governments.

While the money runs out for the rest of us, the largest private banks still thrive. This

is because they get the biggest subsidy of them all - the licence to print money.

Hard to believe? Martin Wolf, the Chief Economics Editor at the Financial Times, said it recently:

"The essence of the contemporary monetary system is the creation of money, out of nothing,

by private banks' often foolish lending…"

You heard that right. Private banks create money out of nothing! Then they loan it to

us and ask for interest on top!

If you've ever wondered why the bank buildings around the world soar higher than any palace

or spire ever did, you now have the answer.

But the banks don't simply print money using secret printing presses in their basements.

They don't have to. Like so many other things these days, printing money has now gone digital.

With the popular use of debit cards, electronic fund transfers, and internet banking, only

3% of the money in the UK is now made of paper and metal coins. The other 97% is entirely

in computers. Electronic money is convenient for everyone, but it's especially convenient

for the private banks, since they own, run, and control the entire digital money system.

And what do they do with this special privilege? Do they channel new money, the blood supply

of the nation, towards the things we need like hospitals, schools, universities and

public transport?

Not if it doesn't make a profit for them. Instead they use their licence to print money

to gamble on the financial markets and pushing house prices out of reach of ordinary people

by pumping hundreds of billions of pounds into risky mortgages. This is exactly how

the banks caused the financial crisis, and now the rest of us are being asked to pay

for it.

If we can't afford to run hospitals and build schools, can we really afford to subsidise

the financial industry? Should we have to live with less so the bankers can have more?

This is ludicrous, and it's time to put a stop to it. The private banks can't be trusted

to hold the reins to our entire economy.

We need to take away the bank's power to create money out of nothing. This will stop them

from causing yet another financial meltdown and allow us to afford the crucial services

that we as a society need.

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