{"id":45388,"date":"2019-04-15T08:56:13","date_gmt":"2019-04-15T13:56:13","guid":{"rendered":"https:\/\/olduvai.ca\/?p=45388"},"modified":"2019-04-15T08:56:19","modified_gmt":"2019-04-15T13:56:19","slug":"chapter-7-secrets-ignorance-and-lies-money-credit-and-debt-2","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=45388","title":{"rendered":"Chapter 7: Secrets, Ignorance and Lies: Money, Credit and Debt"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.cobdencentre.org\/2019\/04\/chapter-7-secrets-ignorance-and-lies-money-credit-and-debt-2\/\">CHAPTER 7: SECRETS, IGNORANCE AND LIES: MONEY, CREDIT AND DEBT.<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><em>\u201cThe tyranny of fraud is not less oppressive than that of force.\u201d&nbsp;<\/em>John Taylor of Caroline, Virginia (1814).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Our money system relies on people not understanding it. If people understood it, they would demand reform.<a href=\"https:\/\/www.cobdencentre.org\/2019\/04\/chapter-7-secrets-ignorance-and-lies-money-credit-and-debt-2\/#_ftn1\"><sup>[1]<\/sup><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The most outrageous falsehoods are propagated daily about money and banking. Here are one or two examples:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2018A commercial bank is fundamentally nothing more than a middleman to put these two groups of people (<em>investors and entrepreneurs<\/em>) together in an efficient way\u2019.<a href=\"https:\/\/www.cobdencentre.org\/2019\/04\/chapter-7-secrets-ignorance-and-lies-money-credit-and-debt-2\/#_ftn2\"><sup>[2]<\/sup><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This untruth is repeated regularly in education and the media, and most people believe it. The \u2018middleman\u2019 story is denied repeatedly and explicitly by authorities who know about the system, and are honest.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here are some authoritative denials of the \u2018middleman\u2019 narrative:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Bank of England: \u201cOne common misconception is that banks act simply as intermediaries, lending out the deposits that savers place with them\u2026[this] ignores the fact that, in reality in the modern economy, commercial banks are the creators of deposit money. \u2026Rather than banks lending out deposits that are placed with them, the act of lending creates deposits \u2013 the reverse of the sequence typically described in textbooks.\u201d<a href=\"https:\/\/www.cobdencentre.org\/2019\/04\/chapter-7-secrets-ignorance-and-lies-money-credit-and-debt-2\/#_ftn3\"><sup>[3]<\/sup><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Abbott Payson Usher (<em>20<sup>th<\/sup>&nbsp;century banking historian<\/em>): \u2018The essential function of a banking system is the creation of credit, whether in the form of the current accounts of depositors, or in the form of notes. The form of credit is less important than the fact of credit creation.\u2019<a href=\"https:\/\/www.cobdencentre.org\/2019\/04\/chapter-7-secrets-ignorance-and-lies-money-credit-and-debt-2\/#_ftn4\"><sup>[4]<\/sup><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Joseph Schumpeter (<em>economist<\/em>): \u2018It is much more realistic to say that the banks \u2018create credit\u2019, that is, that they create deposits in their act of lending, than to say they lend the deposits that have been entrusted to them.\u2019<a href=\"https:\/\/www.cobdencentre.org\/2019\/04\/chapter-7-secrets-ignorance-and-lies-money-credit-and-debt-2\/#_ftn5\"><sup>[5]<\/sup><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>CHAPTER 7: SECRETS, IGNORANCE AND LIES: MONEY, CREDIT AND DEBT. \u201cThe tyranny of fraud is not less oppressive than that of force.\u201d&nbsp;John Taylor of Caroline, Virginia (1814). Our money system relies on people not understanding it. If people understood it, they would demand reform.[1] The most outrageous falsehoods are propagated daily about money and banking. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,6],"tags":[7380,23755,24089,1426,536],"class_list":["post-45388","post","type-post","status-publish","format-standard","hentry","category-economics","category-liberty","tag-cobden-centre","tag-falsehoods","tag-ivo-mosley","tag-misinformation","tag-money"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45388","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=45388"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45388\/revisions"}],"predecessor-version":[{"id":45389,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45388\/revisions\/45389"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=45388"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=45388"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=45388"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}