The existing bank system is fraudulent.

 

A bank under the existing system is a special type of lender which unlike other lenders, promises those who fund it (i.e. depositors) that they cannot possibly lose money. If any other lender does that (e.g. a pension fund, mutual fund or unit trust), those responsible are prosecuted, and for the obvious reason that loaned out money is never totally safe. Ergo the money of those who fund those lenders cannot be totally safe either.

So why do banks get away with it? Well there’s two reasons. First, a large majority of economists don’t understand the above relatively simple point. Maybe that’s understandable in the case of economists who have not studied banks. But it’s inexcusable in the case of those who have.

Second, banks devote a huge amount of effort to hoodwinking and brainwashing politicians into supporting the existing bank system, and that’s easily done: the average politician has a hundred things to think about other than banks.