The invisible cage – A fraud so audacious you won’t believe it exists.

By the Truth Reporter

Part One

My pledge to demystify the ‘system’ which surrounds us cannot be kept without first explaining the most incredible and sometimes unbelievable caper ever pulled. People reading this account and instantly responding ‘tinfoil hat’ can safely go back to their hamster wheel and scurry for the rest of their lives, safe in the knowledge that the elites that built their gilded cage are happy with their efforts.

From early on in life, we take our monetary system as a fundamental building block of our everyday existence, in the same way as we know the sun will rise in the east, we also rely on the system of money, prices and banking to allow us to go about our daily business. These two things, however, could not be more dissimilar. Money is not physical, it is a concept. Those notes in your wallet are pieces of paper, nothing more, the fact that people are prepared to exchange useful items for these notes is based not on a fundamental law of physics or biology but instead a common understanding that this piece of paper has value. 

What is value? – this is one of those questions that inevitably spirals off into long-winded semantics but we all know what value is when we see it. To a man lost in the desert, £5 would be a good value for a pint of ice-cold water but to me here in my sitting room it sounds ludicrous. This is the central issue when we speak of value – it is subjective and situational. One thing, however, remains constant, the glass of water remains a glass of water whether it is in the desert or here with me now, the only thing that changes is the value we attribute to it. 

When Karl Marx wrote his seminal work ‘Das Kapital’ he dedicated a great deal of effort to understand exactly what capitalism was and whatever your thoughts on his ideology, this critique was probably the most precise ever written. Marx identified a triad of factors, the first was productive labour, the second, tangible assets and these focus through the lens of value as we discussed above to solidify into the concept of money.

You can test this conceptual model for yourself, consider another situation, it is a lovely Sunday afternoon, the lawn needs mowing but you don’t feel like doing it. A man arrives and offers to do the job for £5, to you this sounds like a great value, the man values his time to complete the job at £5, you value your time more than you value £5 so the deal is done and the lawn is cut.

So here we have the two bases of economics, labour and goods and we have explored how they can be traded via an intermediary commodity called money.  Problem is, money is not a cut lawn and money is not a glass of water, it is an abstract and we in society have mistakenly turned money into a thing when it is, in fact, a concept and crucially that concept can be changed, re-interpreted or just plain made up to suit – if you’re a powerful person that is. 

Many people would be surprised to know that if you were to add up the balances of all the bank accounts denominated in sterling and then compared that to the total value of every bank note and coin in circulation, the physical currency accounts for only 3% of that total. This underlines my assertion that people need to abandon the concept of money as a physical entity, it is mostly (i.e 97% of it) simply an entry in a computer.

Of course, most of the time this works perfectly well, you get £10 out of the ATM, you spend it on a kebab, it goes back into the kebab shop owners bank, everyone is happy. But because we have become so utterly used to this process we allow ourselves to be manipulated by the people who have control of the banking system.

The first illusion the system creates is scarcity – that money is sacred and generated by a higher power. You’ll be well aware that each banknote has a unique serial number, you can try putting one in a colour copier if you like but don’t blame me when the police ruin your afternoon. The problem is, the banks don’t even need the copier, they have a ledger. The Bank of England published a paper in 2014 to which I include the link in the bibliography which confirms the long-held opinion that when loans are made, there is no ‘money’ – you simply create an entry in the ledger as a debt. 

Let me expand, you are a first-time homebuyer, you go and sign the mortgage agreement, at that instant the ledger entry is created, the bank writes a loan and that ‘money’ is paid to the vendor of the house. Where did the money come from? The answer is that the ‘money’ doesn’t exist, as we have already said, it’s a concept – just a few bits on a hard drive somewhere.  The bank didn’t mow any lawns to earn it, they didn’t sell any water to thirsty people in the desert – they made it up. 

What is real however is that mortgage now means that you, the debtor will now spend the next 25 years working, making sacrifices, penny-pinching and worrying to make that mortgage payment each month to make sure your roof stays above your head. You’ll endure abuse from your boss, you’ll work late and drag your carcass into work when you’re half dead with flu – that payment has to be made. 

Now picture the scene in ‘The Matrix’ where Morpheus holds up a battery and says that the Matrix is a system for turning a human into this. Is it making sense now? – you are the battery – you are trading your time, your blood sweat and tears for something that someone made up. 

If this angers you then you are right to be angry, if you’re angry then you’ll find part two of this discussion essential reading.

Bibliography: https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy