Banking has played a major part in the economic downfall of Australia.
Because Money Creation is the sole domain of banking, and because this money creation has been placed in private hands since 1923, the Nation of Australia not been permitted to share in the wealth creation that toil and enterprise should bestow on a country.
From its inception in 1912 until the death of Denison Miller in 1923, the CommonWealth Bank worked for the benefit of each and every Australian. This Peoples Bank financed the war effort and post war development at low interest rates for the benefit of the Nation.
This brief period temporarily broke the stranglehold that private banking held over the impoverished people of Australia.
Over 90% of what we call Money is issued as debt to the banking system. Only a small amount is issued by the Government via capital works programs where money created by the printing press is injected into the economy.
Banks do not lend the money of their depositors.
They create the money that they lend when they issue a loan, no one ever has their account reduced when loans are made!
This money comes into existence every time the banks lend and disappears every time the debt is repaid to them. So that if industry tries to repay, the money of the nation disappears. This is what makes prosperity so dangerous as it destroys money just when it is most needed and precipitates a slump.
No person has money in a bank. A credit on a bank ledger is not money; it is simply legal evidence of the bank's indebtedness, which may, or may not be paid like any other debts.
It is commonly supposed that Banks borrow money from one person to lend to another, whereas in fact, Banks are not dealers in money.
The sole function of Banking is to create and issue credit!
Therefore a Banks profit is derived exclusively from the issue of credit in excess of the specie held in reserve.
Banking is the fundamental essence of finance, and finance should be a governmental function.
King O'Malley: A peoples bank [Government Bank] should possess the financial power to maintain legitimate credits during world panics as to uphold normal valuations of property, and thereby preserve the honest business people, and keep the wheels of industry in motion, and the workers fully employed at living wages.
I also claim that such governmental system of banking is necessary to enable the Commonwealth to compete in the world's markets, finance its obligations, liquidate its debts, stop borrowing, increase national production and exportation by lower rates of interest to producers and traders.
Besides loss of a life's savings by the insolvency of banks, bankruptcy of solvent debtors, distress of families reduced from affluence to beggary, lack of employment, a bed on the bare ground in summer, and the plank of a police station in winter, soup kitchens and other incidents of the panic are no part of the freedom of the people.
Contraction and falling prices oppress the poor, ruin the middle classes, and increase the power and affluence of the wealthy.
Those who control large amounts of money are able to take advantage of the distress of others to accumulate vast wealth for themselves.
Public knowledge on how deceptive banking practises are is not helped by the extra intrigue of Central Banking.
