Money - Main Scamming Techniques
From the start fraud was a tempting way to increase ones profits. Early - but partially still popular - methods were
- Debasement of coins by cutting them with cheap metals
- Rigging of coin Exchange Rates (eg the temple money changers triggering Jesus' meltdown)
- Excessive Interest Rates - frequently 20% and higher
- Excessive Service Fees - eg for the transfer and handling of money (still universally used today)
Later the development of banking techniques opened up a great variety of new ways to scam the customers.
Paper Money Scam - like described in 'Money - How Is It Created?Money - How Is It Created?' - the use of IOUs instead of specie enabled issuers to create more notes than they actually had metal in possession. It empowered them to actually create money 'out of thin air' - illegally first until they had the fraud legaliized by creating the concept of 'Fractional Reserve Banking'.
Interest Laden Money - As they charged interest on these IOUs, it created a rich source of income for the issuers, while increasingly burdening the economy with this continual extraction of wealth in favor of the bankers.
Boom and Bust Cycles - Never content with current profits, bankers realized they could - with the power of money creation - amplify the process of wealth extraction by alternating phases of free money generation with phases of restricted supply. When they charged low interest rates, people took many loans from the bank, money supply was abundant, economy florished and prices rose.
Once it was in full swing, they increased interest rates, money supply became scarce, economy declined, prices crashed and many people could not pay the higher interest rates on their loans leading to defaults. The banks could now acquire real world assets by either confiscating the collateral or buying them for cents on the dollar at depreciated prices. This rackett known as 'shearing of the flock' has been used extensively until today, the most infamous being the 'Great Depression' of 1929 and recently the 2008 Real Estate Bubble, the latter transferring huge amounts of real estate from the people to the banking cartel.
How Central Banks Crash Economies to Serve a
Political Agenda-Prof. Richard Werner w Tucker
His Discovery of Bank Money Creation, How It Works +
Empirical Proof - Prof. Richard Werner w Tucker