The Mystery of Banking

Even people who want to learn more about the world we live in are just too busy ensuring that they and their families survive: they don’t have time to research much and in most cases only have the output of mainstream media outlets to inform them. In recent years I have been lucky in two ways. Firstly, I have time to read or hear writers who aren’t normally published in your morning newspaper or interviewed on television or radio, and secondly, I live in an era where, because of the Internet, access to these writers is easier than it has ever been before. It is strange indeed that this era of easy access to the divergent views and opinions of humanity coincides with an era in which most workers have less leisure time than working people have had for decades.

One of the things that most of us accept as normal is banking. Most of us probably think that we know all we need to about it, and I used to be among that number. In the last few years I have realised, thanks to several experts published or broadcast by alternative media, that I didn’t understand banking at all, even though I worked in the industry (as a computer programmer) for seven years. No doubt the most important things I didn’t know are probably known to all economists, but I’ve never studied economics and I’ve never talked to an economist about banking. When I mention these things to non-economists, they react as if they think I am mad, so I conclude that I am not the only one who has a lot to learn about banking. A very useful article about Fractional Reserve Banking, has just appeared on Lew Rockwell’s website. If you don’t already know about Fractional Reserve Banking, make sure you are sitting down when you read it. Once you understand that subject, things like inflation and the mess the banks got into a couple of years ago, will be more understandable.

That article advertises a book called The Mystery of Banking, by the same author. I’ve just ordered it from Amazon. After I’ve read it, I’ll probably know even more, but the downside is that the extra knowledge will probably make me even more angry. I am finding out that the world is not quite what I thought it was. On second thoughts, perhaps that previous sentence doesn’t need the word ‘quite’?

I first published this piece on my then website on 20th September 2010.

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