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Introduction: Bank-Money

December 3, 2015

Introduction: Bank-Money

‘BANK ROBBERY’ is not a book about how to rob a bank: it’s about how banks rob us. The title sounds a bit sensationalist: perhaps people think it’s not meant to be taken too seriously. Banks don’t actually rob us, surely: they provide a service – even if they do charge too much, and behave badly when they think they can get away with it.

But actually, the title is to be taken literally. Robbery means ‘theft backed up by violence, or by threat of violence’. The theft in banking is that banks create money out of nothing for the use of themselves and selected others: the overall effect of this is a continual transfer of assets from the rest of us to governments and a financial elite. The violence, or threat of violence, is what the state may use, to back up the rule of law: in this case, to enforce the laws that allow banks to create money.

It’s obvious to most people that if there is to be a functioning rule of law, the State must be able to use force when necessary to back it up. So it’s our responsibility, as citizens and voters, to make sure that the laws are just. In the West, we tend to assume that if an unjust law does exist it will soon be changed, because public opinion will not put up with it.

There have been many unjust laws in our history: the Corn Laws, laws supporting the slave trade, laws about who is entitled to vote, laws about the property rights of married women are a few examples. Many of these unjust laws lasted for generations before they were changed or repealed.

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