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Top 5 Absurdities of the Credit Crunch

November 6, 2011

The absurd tends to be tragicomical. Comical because of the shortsightedness involved, tragic because of the painful consequences of folly.

And nothing is more tragicomical than this whole sordid Credit Crunch business.

Please don’t be insulted if you are still falling for one or more of the absurdities below. We all have believed in all of them.

1. We need the banks!
The basic line that politicians and Central Banks use to explain their bail outs of fraudulent, insolvent and bankrupt banks is, that without the banks we would have no money supply. Which we need to avoid a return to barter.
Our money supply is the outstanding credit of banks: every dollar or euro is a debt to the bank. Every new dollar of credit increases the money supply, every payed off dollar of debt is taken out of circulation, leading to a smaller money supply.
So if the banks can’t provide new credit because they don’t have enough capital for their fractional reserve trick, the money supply dwindles, with depression as a result.
That’s why we need to cough up tens of trillions in easy credit and hand outs, otherwise the banks would no longer be able to maintain the current money supply.

But of course: if a bank can create credit, anybody can. For instance the Government. It could open some state banks to provide interest free credit. Or it could even print some debt free money, preferably in the form of Social Credit. Even citizens can just open up their own regional or online currency and find businesses and consumers to work with that cash.

1b. We need to cough up Trillions to have money!
This basically is the same point as the previous one, but I still feel it belongs in this list, because it widens our perspective. Think about this: our money is nothing but paper with some ink slapped on it. Or bits and bytes in computer programs. The idea that we need to pay up trillions upon trillions, just to have some paper and bytes circulate is so mindbogglingly stupid it just stops my brain every time I realize this.

2. Penny Wise, Pound Foolish
They don’t mind going in to Bank of America, take out a mortgage, which this bank creates with a few computerized book entries at zero cost and then they pay hundreds of thousands of dollars in interest on this mortgage for the next thirty years.
But when this Bank slaps a $5 dollar fee on their debit card, within a month a million turn to credit unions.
What is it with us people? I know Public Education is supposed to turn us into complete morons, but the scale of success of this Education system is simply amazing all the same.

Of course, an additional absurdity shown by this case is the pathological greed by these banks. They cannot even restrain themselves from plundering a few dollars extra, killing their own Goose with Golden Eggs in the process.

3. We need Gold to correct the problem!
So people are starting to find out that money is created by banks through credit. They say it is unfair that banks create money out of nothing and make interest on it. So they want to end ‘money creation’.

Instead of taking it one step further: if the credit can be provided at zero cost, it should cost nothing. We have this great printing press that can provide us with interest free mortgages and we want to replace that with Gold so we can continue paying interest?!

4. This ‘monetary system’ and this credit crunch are NOT conspiracies!
Yes, that really is pretty absurd. The notion that those that are raking in all these trillions would not know why they do so or would have nothing to do with the fact is really very, very stupid.
Normal people routinely get jail time for ‘conspiracy to commit murder’, ‘conspiracy to sell narcotics’, ‘conspiracy to defraud this or that agency’, but when a bunch of bankers and politicians plunder untold billions, you’re a conspiracy nut if you suggest they might actually have intended this.

5. The Credit Crunch is just a symptom of the greatest absurdity of them all.
Because although people are understandably angry about the horrific cost of these bailouts, they were already paying trillions per year in interest in return for credit that was created out of nothing through bookkeeping. Through interest the Banking Cartel managed to use their control of the money supply to completely enslave us. We lose more than half of our income through interest.

The greatest absurdity mankind has ever seen is the fact that the Bankers have managed to buy up the whole world monopolizing the cheapest commodity of them all: currency.

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