Commonwealth Bank fleeces the economy of $8.6b: any wonder we are broke
The Commonwealth Bank of Australia has announced the highest ever financial heist by any bank in the country of $8.6 billion, to the end of June 2014.
Today the ANZ Bank announced a nine month profit of $5 billion.
All of this without ever lending one cent in legal tender of their deposits.
While Queensland wallows in a sea of debt owed to foreign bankers thanks to the former Labor Government, the State Treasurer Tim Nicolls by his inaction, does not understand the basic tenets of the creation of money.
The Commonwealth Bank has in effect taken $8.6 billion out of the national economy, by creating a monetary deposit every time a loan is approved.
When struggling borrowers repay their loans with their wages or business income covering interest and redemption, the bank profits by the entire amount with money it did not originally possess.
The fractional reserve system enables banks to lend at least 18 times the value of their deposits without lending one cent in legal tender (notes and coins).
Has any bank customer ever been told by a teller, “ I am sorry I can’t cover your withdrawal because we lent your deposit to another customer.”
The CBA will pay a dividend of an average $3,500 to every shareholder.
Treasurer Tim Nichols legally can set up a State Bank lending to local authorities and for development projects without borrowing one cent from any bank.
State Banking once was National Party policy.
This bank can issue credit at low interest rates for projects against the collateral value of the mineral and agricultural resources of the State.
Infrastructure funding would be available for large projects such as new railways which are desperately needed to take the pressure off the State’s crumbling road network.
Treasurer Nicholls and his party could easily remain in power if he had the integrity and intestinal fortitude to buck the banks and help desperate farmers and businesses in the State to prosper.
Selling publicly owned assets is unlawful because the corporate ‘Queensland Government’ does not own them.