(it’s not satire – it’s the surreal world of banking)
Very often some people on the Right who are less intelligent – or to be more charitable less well-informed – say the reason many on the Left are against the government’s austerity measures is because they believe money grows on ‘Magic Money Trees’.
This accusation stems from the completely mistaken belief that there is only so much real money in the system – in the form of real banknotes and coins – and only hard-headed right-wingers like George Osborne understand there are no Magic Money Trees ready to produce more money to pay off the country’s debts and reduce the deficit.
But actually, it’s the Right who believe in Magic Money Trees.
Government supporters believe our NHS and public services should be cut just so we can pay non-existent money back into a banking system which really does grow fictional money from its numerous branches. Just like Magic Money Trees in fact.
The particular Magic Money Trees we’re talking about here are the ones that make up the enchanted fairy tale forest known as Fractional Reserve Banking – a system in which banks can lend money they don’t possess by creating it out of thin air – and the whole of the World’s financial system relies on it.
The eyes of those “less well-informed” people on the Right are probably already glazing over. Reality is much too complicated for them to understand. They presumably believe that when you sign a mortgage agreement with a bank, the banker goes and opens a vault full of cash and puts real pounds and coins into your bank account.
What actually happens is that the banker clicks a button on a computer screen which activates a direct line to the Magic Money Tree whose roots pass under every single branch of every bank and financial institution in the country – and the Magic Money Tree dutifully produces non-existent money which goes into your bank account.
For a really entertaining and easy explanation of how banks create money from nothing – have a look at this animation:
The Goldsmiths Tale
Most intelligent people on the Left understand all this and the reason most of them are against government austerity is because they also understand that a lot of the government’s cuts are being made in order to pay non-existent money to Magic Money Trees worshipped by governments the world over – in other words financial institutions like banks.
You see, when Barclays or Goldman Sachs executives pay themselves billions in bonuses every year, they don’t carry wheelbarrows full of cash around to their own houses and dump it in their garages alongside the Porsche and the Lamborghini.
They press another little button on their computers with a direct line to the Magic Money Tree and more non-existent money appears in their bank accounts – fictional money which nevertheless they can still use to buy their real yachts and islands and bottles of Bollinger.
So why are so many governments cutting public services to pay money – which doesn’t even exist – to Magic Money Trees?
Because it fulfils a political agenda – not a financial one. The political agenda of austerity is to reduce the welfare state, not to reduce the deficit or pay off national debt.
The UK should do what Iceland did when told to introduce austerity to keep the Magic Money Trees happy.
They told them to f*** off:
Iceland president: Let banks go bankrupt
For more information about the Great Banking Con, see these links here:
The Goldsmith’s Tale – (full version)
Where does money comes from? … the Bears explain
The market has a name: It is Goldman Sachs