How Governments, the FED and the Banks take Your Money

I came across this excellent video on the “Countering Propaganda” website. Take a look at the excellent 41 minute video, “Film: Money, Banking and the Federal Reserve.

I have not had time to review the whole site because there is so much information on it. At first look there seem to be a whole bunch of “conspiracy theory videos and articles. But this film makes good sense and is informative….

As always it is a matter of cutting through the mass of information and evaluating what can help you understand what is happening and is likely to happen to your Nest Egg based on the Monetary Systems controlled by governments around the world today.

Simply put I am fast coming to the view that until governments put firewalls between themselves and the financial industry and stop the the incestuous relationship of job swapping, we the people will continue to have our nest egg put at enormous risk as a cash coffer for risky investments by the big banks.

Banks should not be in the Fund Management business or the broking business either. In 2007 Westpac an Australian Bank reported that it’s Wealth Management Division (Mostly Nest Eggs of Australian workers forced by government decree to hand over 9% of their income) was it’s most profitable division and made more money than its traditional banking division.

If that did not ring alarm bells in the regulators I don’t know what will.

Also because of the fractional reserve banking system banks can loan money to such a degree that they can become highly leveraged. They only have to keep a very small percentage of deposits on hand at any time. This is not the environment where the nations retirement money should be stored for safe keeping for 40 years.

Even now the big four banks are busy taking over smaller fund managers and pushing for the “rationalisation of the industry” to increase competition by reducing the number of fund managers. That’s right they want to reduce the number in order to increase the competition – go figure…

The reason that the funds are not competitive is that for most people it is just too hard to get information on their fund, or to move their money easily from one fund to another, and tax implications make it hard too.

Good regulations should include legislating that Banks should not be allowed to trade or speculate in any listed equity or derivative. They should stick to banking in the traditional sense,

“In general terms, the business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money in order to earn a profit.”

because they have a special business relationship with the economic well-being of a country and should not be speculating with their customers’ deposits, their own money or their fund managers funds.

They are not businesses so much as facilitators of business. There are no banks on the Game of Monopoly board. But there is a bank without which the game would not be possible.

After seeing the film read everything you can by Henry Hazlitt. Try the free download of “Man vs. The Welfare State“.

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