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חולטה-השולל בהישולל בהישורים, the true reason for ליירירי הדיור ושיטה הגאוניט ההופקת את מעציעה השולל לעבדים מודריםים

Chapter nine from the book:the free man - Evolutionary psychology, the study of the brain and the understanding of the mind"

This chapter deals with the economic system in Israel and Western society. What does that mean and to say that his preoccupation with the soul, consciousness, free will?

beginning, the matter that will be described here seems so delusional and fictional (even though it is based on publications of senior economists, see links and sources), until most people react to it with disbelief and disregard. The reasons for this reaction are the well-known psychological phenomena calledcognitive dissonance" and "Cultivated ignorance", which were described earlier in the book.

Second, this is a wonderful example of information and subject that are not taught in the education system, even though their influence on our lives is enormous.

Third, this is a wonderful example of how the competition and the drive to rise in social status lead to the cynical exploitation and enslavement, under the protection of the law, of one large group by another small group, in a supposedly enlightened, progressive, and free society.

quarter, the desire for freedom, as presented in this book, is suppressed by mechanisms to create modern slavery, as you will see below.

And to the point, Do you know the answers to the following questions?:

1. Where does the bank get the million shekels it gives you as a mortgage loan?

2. Who produces most of the new money in the country?

3. What does the bank do with the loan fund money that you pay back every month after you worked hard to earn it?

4. What is the real reason for inflating apartment prices, car prices, and the price of life in general? (In contrast to the nonsense heard from politicians and other commentators of Nablus and the Arabs).

Here are the answers:

First, remember that most of the money in the financial system is virtual, that is, it exists as numbers in the banks' computers and is not backed by bills or coins.

1. The bank invents these million shekels from somewhere, out of thin air, as new money, and puts them into your account with the click of a button. The bank of course charges you interest on the loan of this money.

2. The commercial banks produce most of the new money in the Western world and in Israel. Why do you need new money? Because the population is growing and the economy is growing and the tangible assets are multiplying and the amount of money available is not enough to sustain the process.

3. We will find out the answers to 3 and 4 later.

Is this all legal? Yes, absolutely. The method is called fractional reserve banking and is based on the reserve ratio, capital adequacy and liquidity obligation. All these are concepts that no one has ever taught you, apparently on purpose, and they are taken from the Bank of Israel law and the instructions of the supervisor of banks (see links to sources).

How does the method of creating the new money by the banks work??

The focus of the matter is that the bank is obliged to keep in practice at any time only 10% of the funds it gave as loans. See a simple explanation in the figure attached below: "Partial reserve banking". In fact, the truth is even more amazing, the bank invents almost all the loan amounts it gives, as new money at the click of a button. Read extensions in the quoted article: "The study that will make you forget everything you know about money". What does the bank earn? Interest you pay him on the money you borrowed - tens of billions of shekels a year, for the benefit of the shareholders. But more importantly, the large amount of money they borrowed inflates the prices of apartments, cars, and more, and leads the general public to take more and more loans to finance the purchase of the apartments that have become more expensive, the cars that have become more expensive, and more and more, and eventually rolls over to a small group in the population.

The banks also lend huge sums to their associates, thus strengthening the economic power of a small group in the population.

Fractional reserve banking. In the illustration, the commercial bank represents the group of commercial banks operating in this process as one entity, when it occurs on a large scale.

Now please do yourself a favor and say: "Okay, let's assume for the sake of discussion that what has been said so far is true and not a conspiracy theory, how does that affect me?" Let's see:

So why does an apartment that cost a million NIS a few years ago cost two million today??

The price of apartments is determined like the price of tomatoes, like the price of cars, like the price of televisions and like the price of everything else, According to demand and supply. Why does an apartment cost two million NIS? Because there are enough people who can and are willing to buy it at that price. Who are these people? you. Where did you get the money to buy at this price? From the loan you took from the bank (it's called a mortgage). How much effort did the bank put in to earn the money it gave you as a loan? The effort required to press a few keys on a computer and invent two million shekels out of thin air, from fairy dust, as new money, legally.

You got the point?

And now for the most amazing thing: when you return a loan to the bank, there is a separate entry for the principal and the interest. The interest is recorded as the bank's profit. What happens to the funds of the fund? They are deleted from circulation, destroyed, evaporated into the air (see source: "The amazing answer to what the bank does with the loans that are returned to it"). That is, you borrowed a million shekels and returned a million shekels of the fund money (without the interest), the registration in the bank's computer was reset and this money was deleted from circulation.

And why do such a thing to the money you worked hard to earn?

The first reason is that the principal funds of a loan given by the bank cannot be considered profit of the bank after you pay them back (the interest funds are the profit). The second reason is this: if you sell cucumbers, do you want the market to have a lot of cucumbers or a few cucumbers? Obviously, a little, the higher their price.

The bank sells you money, and its interest in the market will be relatively little money. And so what will the good people be forced to do? Very true, to take loans, through which almost all the new money in the country is produced.

How long has this method been working successfully??

many many years. You are most likely second or third generation modern slaves.

And for those who had trouble being convinced, it is recommended to watch the movie: "Saving Capitalism" whose main character is Robert Reich, the former Secretary of Labor in the US government.

The conclusions according to Reich are clear:

• The majority of the population is in economic distress and actually serves an upper millenium that is getting richer.

• This situation is made possible over time through the activity of the government and the legislative bodies: laws are passed that protect and encourage the activity of the capitalists at the expense of the ordinary citizens. Legislation that goes against the interests of the capitalists is not allowed.

• Capitalists control a significant part of the politicians through the funding that is transferred to them.

Does this situation sound familiar to you??

More clear conclusions according to Reich:

• The politicians who maintain the system for years are either ignorant or corrupt or a combination of the two.

• Like the electorate that chose these politicians.

• There is probably no difference in this matter between conservative and Republican politicians, left and right, religious and secular. (Although in the third chapter of "The Silver Tray" it is explained how the great deterioration in Israel began with the rise of the right-wing to power).

And what can be done?

• First, without understanding the causes of the problems there is no chance of changing anything, as we saw from the poor results of the housing and cottage protests.

• Second, you can vote in elections for politicians who have an opinion on this matter (you probably won't find any, they lack understanding in this matter as in many other matters, and also rely on the ignorance of the public and its tendency to focus on vanity).

• Thirdly, there are other possibilities to correct the distortion, if the electorate bothers itself and learns the reality.

Sources for this chapter:

Werner, Richard A. Can banks individually create money out of nothing? The theories and the empirical evidence. International Review of Financial Analysis, 36 (2014), 1-19

https://www.sciencedirect.com/science/article/pii/S1057521914001070

The study that will make you forget everything you know about money, Beaz Hirsch 31/07/2015

/http://www.amitit.co.il the research that will make-you-forget-all-what-you-iod/

This is how the method of the banking system works - the complete guide, Uri Yaron 09/06/2015

/http://www.amitit.co.il know-this-how-the-system-of-the-banking-system-works/

Everything you wanted to know about how money was created in the world, Eliezer-Ben-Yonathan

http://www.tzibur.org/money/cms.htm

Imaginary money: the banks are simply thieves 02.12.11 Dr. Kraus who are Oshi

https://www.ynet.co.il/articles/0,7340,L-4155835,00.html

"Strip Private Banks Of Their Power To Create Money": Financial Times' Martin Wolf Endorses Positive Money's Proposals For Reform. April 24, 2014

https://positivemoney.org/2014/04/strip-private-banks-power-create-money-financial-times-martin-wolf-endorses-positive-moneys-proposals-reform/

The amazing answer to what the bank does with the loans that are returned to it, Uri Yaron 30/06/2016

/http://www.amitit.co.ilma-kore-for-loans-that-return-from-the-bank/

Fractional Reserve Banking, Eco-Wiki

/https://ecowiki.org.il partial_reserve_banking

Bank of Israel - Liquidity Obligation, 2012

https://www.boi.org.il/roles/markets/monetarytools/הוראות-נזילות/

The reserve ratio, Wikipedia

/https://he.wikipedia.org/wikihihs_harzaraba

Capital adequacy, Wikipedia

/https://he.wikipedia.org/wikiHalimot_Hahon

More of the topic in Hayadan:

18 תגובות

  1. The author is right in principle. The method transfers the capital from the general public to a small group whose share of the general capital is increasing. The economy is called a debt economy and it is a debt for everything. Judaism already knew this in the Torah, therefore it was forbidden to take interest and the shemita system was built every 7 years in which the debts are omitted. In the year of the jubilee, the capital is returned to the original owner so that the process of the strengthening of the minority over the majority is slowed down. 40 years ago the share of the upper elite in the general capital was about 60% and today about 90%. The solution is the enactment of a constitution in which the state must ensure that every citizen has a good standard of living, including housing and a minimum income. The problem is that the general public is ignorant (to put it mildly) and subject to control and manipulation in a way that manages to convince them that socialism in which the state takes care of everyone is despicable and undesirable.

  2. The article is interesting but the most interesting part, what can be done, is simply disappointing. I see no point in writing such an article without offering a better alternative. If not, then this is what there is...

  3. You contradicted yourself
    The bank generates money at the push of a button and the bank deletes money so that there is not much.
    This is nonsense. As much as they want at the push of a button you said, so what does it matter if they delete or not delete the fund?
    The bank is thieves and so is the state, but you are also a fool! And the contractors, the flooring stores and anyone who has an interest are raising prices. The state also has an interest in raising prices.

  4. The bank does not invent anything
    It is simply a form of risk management and therefore the bank is obliged to hold only part of the money
    And it's easiest to understand it that way
    The bank lent Moshe NIS 100 and left NIS 10 with him.
    In the event that Moshe will not be able to return the money
    The bank will not record a loss of NIS 10 but a loss of NIS 100 which is the full amount of the loan.

  5. The top thousand is because of the strongest monopolies in the country. A method that was imported from Germany and indeed those who own the monopolies are mainly families that originally immigrated from Germany. Of course they didn't start it out of malice. But today they certainly don't act fairly. And they actually belong to the left and control the justice system through Barak and more, as well as other government systems. And that's it. good luck to us.

  6. It is clear that all economists of one kind or another find it very painful to see an article that goes against everything they were educated on.

    They do not have the mental flexibility to free themselves from the shackles of "scientific" education (although economics was never an exact science and did not pretend to be one)

    True, fractional reserve banking has been working successfully for years, but the question is why do private entities (tycoons) make so much money on loans when they mainly risk other people's money?

    In fact, I have been asking myself for years:

    1. Why doesn't the state itself set up a clearing house?

    After all, the state builds and maintains roads, so how is the economic road different from the physical roads? Especially in light of the draconian restrictions on cash.

    Is there any justification for a broker to collect money based on a percentage of each transaction and make me as a business owner think twice about transferring/returning money?

    Note: Apparently in the Bitcoin era the problem has been solved, but in fact as long as the state collects taxes in its own currency, it practically forces the use of its own currency.

    2. Why does the Bank of Israel grant monetary deposits only to banks and not offer the general public to participate in the tender for the interest rate with the banks and deposit money online with it instead of receiving funds from the bank?

    https://www.boi.org.il/roles/markets/monetarytools/%D7%A4%D7%A7%D7%93%D7%95%D7%A0%D7%95%D7%AA-%D7%9E%D7%95%D7%A0%D7%99%D7%98%D7%A8%D7%99%D7%99%D7%9D/

    True, until recently this was not possible, but following the invention of "the network" it is possible and possible, and in any case the banks retain their "right" to receive deposits and loans under conditions preferred by the "ordinary citizen"

    why?

  7. It is amazing that the science website publishes an article that mostly mixes economic concepts with a basic lack of understanding of the banking system.
    If the writer was an amateur, he's just a charlatan with a strange agenda.
    It is appropriate to delete this nonsense from your respected website.

  8. The point is, no matter the method. Capital, rule+religion+corruption, have always been there Responded:

    And they will be as in Israel since the captivity.
    At Mapai it was the smallest

  9. First, the funds of the fund are not deleted, this is not just an error, it is critical to understanding the scale of the embezzlement:
    1. The bank earns interest at a crazy rate:
    The written interest rate (which is much above the market) let's say 9% times the matching percentage, about seven times!!
    Because the real money held for the benefit of the loan is about 17%.

    2. The real profit is the interest + principal returned by the customer, which is money for everything and is not deleted * (100% minus 17%) and is used for subsequent investments.

  10. I haven't read everything yet, but I'm trying to understand how a situation is possible where the bank lends NIS 270 when it only has NIS 110.
    Assuming there was only one bank in the world, let's say.
    The money rolls into the bank.
    But there are lots of different banks.
    Where do the banks cover money that does not enter them?
    In other words, let's assume that Hana, Yaffe and Silvia live abroad at all.
    So the bank took out 270-111=159 shekels that it doesn't have, and gave that cash to Moshe David and Yaakov, who bought things abroad.
    It turns out that the bank brought them real money.
    And if the money is real, then it exists at the bank, and if it does not exist, then it is not real.
    If I don't have bread, I can't bring Isaac bread.
    Assuming the wheel always returns to the same bank, everything works out, but when it doesn't?

  11. The writer is not an economist, he is a social worker
    The book and the style are not suitable for a scientific website, and certainly not for a scientist.
    I don't want to address inaccuracies regarding the economic description and the author's many logical leaps.
    In the end, let's say the Minister of Finance reads the book, stops being "stupid" and decides to cancel the reserve ratio (he has no authority, which is good, but let's say he convinces the Knesset to change the law) Will the situation be better now?
    No,
    Because today's economic structure, built on years of experience, research, economic models built by first-class mathematicians. They were not created to enslave anyone, they were created to bring an economy with maximum stability and maximum growth.
    I don't understand why a scientific website promotes such an anti-scientific and conspiracy book. To say that all economic scientific research is a conspiracy to produce slavery, what is the next step? Books about creationism?
    Economics is a science, why do you take seriously a book written by a doctor of social work on economics? Would you take seriously a book written by an economist about astrophysics?

  12. I am happy to see that many of the commenters found and refuted some of the nonsense in the chapter from the above book. Fortunately, banks do not yet know how to create money out of thin air (but they can lend money they have and remain with low reserves. If they knew how to create money in this way, the bankruptcies of Berings Bank, the Bank of Commerce, Bear Stearns, Silicon Valley Bank and many others would not were happening.

  13. Everything written in the article is very true, the reason people here do not believe it is because very few people in the country know how the banking system works,
    Regarding modern slavery: he is right, but what is the reason that the governments do it, it is so that the people go out to work, and that there is a product for the country, and that the country does not fall behind, first of all from a security point of view,

    And so the state causes everyone to go out to work by raising housing prices, because every citizen wants to live in an apartment, and when he is full he goes out to work,

    And another way called inflation,
    Everyone talks about inflation, and that everything goes up, but they don't know that it is directed from the bank by the Bank of Israel with the first intention, if you think I am imagined, or a conspirator, please go to the Bank of Israel website, on the top left, the bank writes that the target for inflation is between 1 % to 3%,
    And why does the bank do this?
    So that people don't save the money and sleep for the future, but invest it,
    How is it done?
    If you have a million NIS, and there is inflation every year we will take an average 2% percentage, in 50 years a million NIS will not be worth much at all,

    Note that apartments 50 years ago were bought in pounds, or tens of thousands of shekels, then tens of thousands of shekels was like millions today,
    Ask your parents.
    I was glad to help ..

  14. Printing money is the main cause of inflation, that's why the peg to gold was removed so that the elite could rob us through inflation.
    In the past, the father of the family supported a large family with dignity and now we are running after our own tails

  15. The name of the site should be changed from "Hidan" to "Idiot" lol.

    At the very least, the bank does not invent money for a mortgage, it accepts lien on the property, this is one of the safest loans that banks give since there is a physical asset that backs them up, so the interest is relatively low compared to, for example, the overdraft interest that has no asset backing it.

  16. Although I do not have a broad financial education and I am not familiar with the intricacies of economic laws, but from what I know the banking system is more complex than what is stated in this article.
    The matter of the "partial reserve" is true to a certain extent, but certainly not as claimed in the article, especially here in Israel when the central bank does not allow banks to conduct themselves with such great risk. In contrast, the banking crisis of 2008 demonstrated how bank supervision in the US is almost non-existent or effective, and therefore banks collapsed there (similar to what happened to them during the Great Depression in the 20s).
    And most importantly, the fund we return is not "deleted". This is real and actual money that the bank transferred to the party from whom we purchased the apartment. This party has already received the money (real money) and made use of it as he sees fit, this is not "made up" or "imaginary" money as the article pretends to claim. And the one who actually controls the amount of money available in the country, including for the purpose of granting loans, is the Bank of Israel. Not the commercial banks.

    It is surprising to me that such an article was published here on the site. I'm in favor of giving a platform to different opinions, but it gives off a sense of self-interest and charlatanism at worst, or simply ignorance and lack of advertising responsibility at best.

  17. An interesting article, it seems to me that the business works, in the past there were those who had Akala who had nothing, today they usually have something, and few have a lot
    It is necessary to put heavy taxes on the upper elevation and maybe even decide that above a certain amount the money goes back to the people (it is mandatory to donate it)
    But the bottom line is that the method made Anshtat progress impressively, it's not perfect, but it works

  18. holes. Although the display does not need a computer. The money is not average. It is indeed true that the bank lends money that it does not *currently* have. But the point is that although anyone can do it, for the majority it is illegal. Only those who are under supervision and licensing are allowed. Indeed, the condition to enter the club is to be rich. But anyone can open a bank. And of course, as soon as the public demands its money back, the bank goes bankrupt. And this is the proof that it is not about making money of any kind.

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