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Thread: Banking is Fraud; Be Mad - From a Banker.

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  1. #1
    Join Date Aug 2017
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    Lightbulb Banking is Fraud; Be Mad - From a Banker.

    Introduction

    Hello,

    A little bit about myself: I am a banker. I've read both Marx and Rothbard. I understand the working-class struggle, and I'm genuinely concerned for their future.

    We aren't very different, Marxists and Capitalists, we just believe in different ways to solve the same problems.

    Anyways, to give you some context, you should be frustrated.

    I've seen the ins and outs of private equity, investment banking, and commercial banking.

    Since the working class do not deal with investment banking or private equity, its effects on them is not as profound.

    It is without a doubt that modern day deposit (commercial) banking is fraud.

    The banking system is at the heart of most of the woes of 'Capitalism'.

    The Central Bank, the crux of the banking system, is simply a tool that acts as a cartelizer of commercial banks, allowing for their perpetual and fraudulent expansion of bank credit.

    Relying upon the central bank, the banking system commits its fraud via inflation, utilising the fractional reserve system to steal from the wages of workers, the savings of your grandparents, and the pensions of retirees.

    (Might I note that Central Banking is a tenet of Marxism? Centralisation of credit in the hands of the State - this can be discussed seperately)

    Robbing the Workers

    I'd like to explain how you're getting screwed, by the likes of me, and how you can prevent it.

    Let me be honest. Sometimes I feel bad, raping the working class' wallets, squeezing every dime out of their pockets, and fleecing pensioners, savers, and retirees.

    Then again, they're too busy punching red-necks to really understand who the true culprit is - we create class antagonism, we set the worker up against the worker, and view petty minds punching each other 80 floors above the ground all from a cooled terrance in a crisp suit.

    Moreover, the commoners never understand the intricacies of banking, and when I say 'intricacies' I mean fraud and deceit.

    What's more, is that the government legalizes and actively supports this fraud.

    How Robbery is Perpetrated

    Here is how it is perpetrated:

    Historically, “banking” was rooted in bailment – the practice of storing someone else’s goods.

    The depositor would leave his items for safe keeping with the warehouse and have a ticket issued.

    This ticket pledged that his article would be redeemable on demand. After the receipt-holder presented his ticket and paid a storage fee, the warehouse would return his item.

    Some goods, however, are relatively homogenous and indistinguishable. Grain is homogenous.

    An individual storing 100 bushels of grain at a warehouse for safe keeping does not care whether the same bushels of grain he particularly left with the warehouseman are redeemed; he just needs 100 bushels of grain back.

    Unfortunately, this lack of caring enables the warehouseman to embezzle the items/funds entrusted with him.

    The warehouseman is a cunning and calculating figure. Since he knows not all his customers will demand their grain at the same time, he may maneuver within a margin, profiting off his customer’s property.

    At any given time, he have only 90% of the bushels he claims to have available for redemption; at other times, he may have 50%, 40%, 30%, 10%, or even 0%.

    The warehouseman may choose to live it up – selling his customer’s grain and spending the money on yachts, cars, or booze.

    However, if he is caught violating their trust, his customers will immediately demand their grain back; thus, running him out of business.

    The warehouseman can engage in another, less obvious, form of fraud and deception.

    Rather than cashing-in his customer’s grain, he can instead issue fake warehouse receipts. Warehouse receipts backed by nothing but identical to the genuine receipts in all aspects.

    He can then lend these receipts out to borrowers, collecting interest on claims to property he never had.


    If the borrower is able to pay the interest on the loan, the warehouseman made money on nothing but deceit and trickery – he lent out claims on grain he never had.

    If the borrower is unable to pay the interest on the loan, the warehouseman can seize tangible asset whose value equivalent to the loan he made from the borrower. Regardless, the warehouseman profits.
    Replace the warehouseman with a banker, the grain with paper money, and you arrive at the state of the modern banking system.

    Remember this: Under this system, the bankers, we, always win.

    How to Prevent it.

    This is where we differ. The only reason I'm writing this post is because I occasionally feel bad - I feel human, on occasion.

    There are two ways you can insulate yourself from this robbery, the robbery we practice upon the gulled public.

    The first solution is one you will most likely not organize around, as its pillar is the bane of your political belief.

    1. Demand a monetary system rooted in private property ethic. This means the introduction of a 100% Reserve system - say no to the fractional reserve system!

    Under free market auspices, the basis of fractional reserve banking would be much less sound.

    The creation of illusory bank notes as standard cash would lead to banks potentially losing reserves to each other; hence, some or all banks would eventually be forced to contract and go under.

    The threat of a bank run would lead to sounder banking practices and a general tendency towards holding ample reserves to cover obligations.

    To harmonize the succinct expansion of bank credit, the central bank acts as a guarantor, instilling a false sense of confidence in the duped public that their money is sitting in the bank’s vaults, waiting to be claimed on-demand.

    This enables commercial banks to lend money they do not have (9:1), leading to a perpetual cycle of artificial booms and busts.

    Remember this: All recessions are BANKER recessions.

    2. Voluntarily and peacefully exit the system.

    You are only under our control if you use our paper, which, if I admit truly, is absolutely worthless.

    In the words of Voltaire, "All fiat currency eventually returns to its intrinsic value - zero".

    A crisis will dawn upon those who hold fiat dollars, and hyper inflation will impoverish the country, especially the workers. Remember these words.

    Land owners, property holders, and asset owners will benefit at the expense of the working class - Wages are paid in dollars, but dollars chase assets, we will come out of it unscathed.

    Remove yourself through the adoption of cryptocurrency.

    If I could sum it up: Bitcoin is money, everything else is credit

    Peacefully stop using fiat currency and adopt uncontrollable, fully-auditable, and decentralized currency - buy Bitcoin. Bitcoin is the only currency rooted in private property ethic.

    I will answer questions you have. I will help you with Bitcoin if you so choose to. This alternative requires secession at the individual level, and so I'd be willing to personally help anyone get started, maintaining my anonymity, of course.

    I know there will be people who comment with threats - I understand your pain. Be thankful I'm here to help.


    I wasn't sure where to post this, seeing as I am Capitalist and I am restricted to this forum. Move it to wherever you'd like. Delete it if it suits your fancy. Just don't say I didn't warn you, because the others won't.




  2. #2
    Join Date Mar 2009
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    Bitcoin has a lot of flaws. Every transaction is recorded and tracable, it is getting harder to obtain it anonymously, and it lacks legitimate uses. I remember it from the time it first hit the news and someone paid like 26,000 BTC for a pizza, then it was worth more than gold like a year ago. I wish there was a crypto currency that was widespread and anonymously obtained but of course I'm sure it would be outlawed.
  3. #3
    Join Date Mar 2008
    Location traveling (U.S.)
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    This is a legitimate, libertarian-nationalist-type critique of how exchange values work within the context of *banking*, but this critique doesn't break cleanly away from capitalism *altogether*. Instead it just suggests *reforming* it, while not-addressing how exchange values are *sourced* in the first place.

    The libertarian worldview only acknowledges material values *after* they've been produced and are then available for ownership-privileged *exchanges*, as finished *commodities* (of goods and services), or resulting monetary *profits* from the same.

    The *revolutionary* position on-the-other-hand is able to address *how* value is originally created, and *where* it comes from, *before* any value-for-value exchanges take place by those *owning* commodity-values and *deciding* substantial economic trajectories of capital.


    [11] Labor & Capital, Wages & Dividends






    [23] A Business Perspective on the Declining Rate of Profit






    So, in brief, it's human *labor* that creates the surplus labor value that is automatically, systematically expropriated by capitalist ownership, all *before* any exchange values of goods and services are formally assigned, through the process of market-based commodity exchanges (M-C-M').

    Will labor be required in the *future*, for continued material productivity and the ongoing formation of market-situated exchange values? If so, then labor must be supplied *today* with sufficient compensation for the work it produces, otherwise it won't be able to even *survive* to that point in the future, intact -- this then requires the *reproduction* of labor, by itself, going-forward (raising children, and educating and training them for relevant work roles for the future).

    But, even with this 'necessary labor value' (for ongoing labor self-sustainability), labor is consistently *exploited* because it's never paid in wages what the products of its labor are worth on the market. This initial *sourcing* of labor value is completely ignored by the libertarian worldview, since it instead prefers to recognize only capital ownership privileges and secondary *exchange* values, *after* the commodities have been initially produced by the work of laborers, imbuing those commodities with an initial valuation from the expropriation of surplus labor value -- effectively a *bribe* to private ownership of the means of mass production for its participation in the material-productive process.

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