97% Owned
Unveiling the Power Dynamics of Money
The Foundation of Financial Discrepancy
In an eye-opening documentary titled "97% Owned," the smoke is cleared on a startling truth about the UK's monetary system. The core revelation? A whopping 97% of the nation's money supply is not minted through government institutions or the central bank but fabricated by commercial banks via loans. This realization ushers us into a complex web of financial power and manipulation that dictates the economic landscape of the United Kingdom.
What This Means for the Economy
The Genesis of Money: A Debt-Based System
The process through which money enters the UK economy is predominantly through credit creation by commercial banks. This aspect of finance is crucial yet broadly misunderstood or unknown to the public. Each time a loan is granted, new money is birthed into the economy, not from tangible reserves or governmental decree, but out of the thin air of banking ledgers.
The Chain Reaction of Debts
This system predicates the economic growth of a country on ceaseless borrowing. As loans multiply, so does the money supply, but as a corollary, so does debt. This debt-driven model seeds the eventualities of financial downturns and crises, weaving into the fabric of the system an inevitable boom-bust cycle.
The Economic Rollercoaster
Navigating Through Boom and Bust
The documentary delineates how this perpetual debt generation fuels the rollercoaster of economic highs and lows. These cycles manifest not as mere happenstance but as direct consequences of the debt-laden method of money creation.
The Heavy Price of Financial Instability
Financial crises ripple through societies, leaving trails of unemployment, lost homes, and dashed hopes. Yet, these downturns are not aberrations; they are the foreseeable outbreaks of a system built on precarious foundations.
The Imbalance of Wealth
A System Skewed Towards the Wealthy
One of the more insidious revelations of "97% Owned" is how this monetary system disproportionately fattens the wallets of the already wealthy. Banks, wielding the power to create money, often channel this newfound capital towards speculative, non-productive investments, like real estate, inflating prices and accessibility out of reach for the average citizen.
The Great Divide: Wealth Inequality
The disparity in economic power amplifies societal inequalities, creating a widening chasm between the financial elite and the common populace. This divide is not an unfortunate side effect but a structured outcome of a system that privileges wealth creation through debt.
Democratic Deficit in Money Creation
The Powers Behind the Curtains
A startling lack of democratic oversight shadows the process of money creation. Commercial banks, driven by profit motives, dictate the flow of new money, often aligning it with speculative ventures over investments in social goods or productive entrepreneurship.
The Case for Reform
The documentary doesn't just critique; it calls for urgent reforms to mitigate future crises and pave the way for a more equitable economic system. Reimagining the monetary system could democratize money creation, ensuring it serves the broader society, not just the financial gatekeepers.
FAQs
What Can Be Done to Change This System?
Q: How can the average person influence a shift away from debt-based money creation?
A: Engagement in political discourse, support for financial reformative policies, and spreading awareness about the realities of our monetary system are steps individuals can take toward fostering change.
Understanding the Basics
Q: Isn't all money created as debt?
A: Yes, in the current system, nearly all new money comes into existence as a debt that needs to be repaid with interest. This is foundational to the critique of our current financial model.
The Role of Government
Q: Can the government not print its own money?
A: While the government has the capacity to issue currency, the vast majority of money is digitally created by commercial banks when they issue loans. The role of central banks and governmental bodies in directly creating money is relatively minor under the current system.
Addressing Inequality
Q: How does this system exacerbate inequality?
A: It enables wealth to accumulate at the top by prioritizing credit creation for speculative investments, which inflate asset values and make entry more prohibitive for the average person, widening the wealth gap.
The Path to Reform
Q: What reforms are suggested to prevent future financial crises?
A: Proposals range from imposing stricter regulations on banks' ability to create money, introducing mechanisms for direct money creation by public institutions for public purposes, to more radical overhauls aiming at a more equitable distribution of financial resources.
In a nutshell, "97% Owned" casts a stark light on the deep-rooted issues within the UK's monetary system—a system where the creation of money, intertwined with debt, fuels an unsustainable financial merry-go-round that benefits a selective few at the expense of many. It's a clarion call for drastic reforms, urging us to envision a financial structure that ensures economic stability, fairness, and true democracy.
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