Sunday 11 December 2016

WHY THE WAR ON CASH IS NECESSARY ???

The central banks create cash from an exchange with the State .... An IOU for the Central Banks means a Money supply for the State .....

Cash has a public guarantee , so a too massive money supply could mean a loss of credibility of the State .....

Each private banks is owning an account at the Central Bank. The Central Bank gives the private banks the cash they need for the ATMs and to cover the loans.... They need to keep a minimum Capital to create new credits.

If we delete Cash, it could be a good news too for the private banks .... because each of them is related with the Central Bank .... So, if money remain only bits on a computer, deposits and withdraw will be always IN BALANCE..... No Capital  will be OUT the banking system. 

Since the Industrial Revolution, the worldwide economy is based on the wages and consumption ..... The massive increase of the world population the last 150 years is probably also related with the Fractional Reserve Banking system ..... Money created out of nothing have been a massive support for the economic trust and the technological progress.... 

HOWEVER, FOR 10 YEARS , THIS FINANCIAL PARADIGM GOES NOWHERE ....

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