The article in the Crossroads Blog “Bank operations and exposure needs addressing NOW!” from cairnsnews, Monday, 15 May 2017 featured a photo of a stack of hundred dollar notes .
Accounting methods --- www.sciencedirect.com/science/article/pii/S1057521914001434
The fact is the article was about banks having the power to create credit which, in my understanding, does not originate from the same source as does the hundred dollar notes.
But how would credit/debt blips on a computer be pictured in a text book on banking or in a newspaper on bank credit? If the picture accurately reflected the origin of credit it would have to simply show just how the fraud originates in bank’s ledgers as this site has done previously.
In the 1990s Mr. Ray King of Booragoon, West Australia was asked to explain the ‘creation of credit’ for those who found the concept difficult to envisage.
Photo of Mr. Ray King along with Frank Bawden and Roy Gustard
CREATION OF ‘CREDIT’
Ray, a Social Crediter of many years standing kindly obliged and wrote the following explanation:
As you know there are many very ‘big wheels’ in the banking industry, who, over the years have made it clear that banks create credit. However, it is very hard for most people to grasp this fact and see how our financial system works.
As I said, particularly in the ‘olden days’ when I was a relative junior in the banking system, I could clearly see how the ‘money trick’ works.
We had what was called the Cash Credit ledger. All handwritten of course, where, when an advance was made (loan) we debited that account in the name of the borrower with say $10,000 — this was a debit balance, i.e., the loan.
An entry was then made in the ‘Credit Ledger’ of $10,000 and the borrower then could go on a spending spree. In other words, we created the money for he or she to spend and in doing so ‘boost the economy’.
In the bank’s books our advances or loans, increased by $10,000 and our deposits increased by $10,000 (or gradually decreased as money was spent, or if that money was deposited either at that bank or others, or increased if credited to other accounts).
Of course, these days it is done with electronic ‘blips’ — but still recorded.
There are many books written about this process, but as you say, unless you see the process operating first hand, it is hard to grasp.
l would say that most people who are doing very well by the present system, would not be too interested in the present system being changed, unless they start to feel the pinch during hard times.
It has been my experience that not many of the bank staff up to middle management can see this, and believe banks lend their deposits. No doubt the top executive would know this, but genuinely think this is the only way to run a money system.
Keep up the good work,
With very best wishes,
Ray King. 30th October, 1993.