1%. The book that the financial establishment doesn't want you to read. Quotes

“63 The inter-bank lending market also is impacted by the price of money decisions taken by a central bank, but the effect here is even weaker. The inter-bank market is where banks make loans to each other. The central bank rate is taken into (minor) consideration here but the main determinant is the riskiness of the bank to whom you are lending. So, the inter-bank market prices mainly on credit risk, not what the central bank funds rate is set at. For example, as the 2008 financial crisis unfolded, most central banks lowered their funding rates. Yet, as banks were (rightly)”
― Robert Sharratt, 1%. The book that the financial establishment doesn't want you to read.: The first ever behind-the-curtain look at how banks really function, and their impact on society.

“When bank credit money is used to finance assets that subsequently decline in value, banks have effectively created purchasing power for which there are no future cashflows.”
― Robert Sharratt, 1%. The book that the financial establishment doesn't want you to read.: The first ever behind-the-curtain look at how banks really function, and their impact on society.

“In the future, banks will have to pay for deposit insurance. Loans to finance asset purchases or for proprietary activities will be required to be capitalised separately; banks will no longer be able to use customer deposits + free government insurance to finance these activities.”
― Robert Sharratt, 1%. The book that the financial establishment doesn't want you to read.: The first ever behind-the-curtain look at how banks really function, and their impact on society.

“The only remnants of communist ideology, where the state sets prices, that persist today are to be found in North Korea and at the Federal Reserve (and other central banks around the world that set the price of money in an economy). Happily, it looks like North Korea might be changing for the better.”
― Robert Sharratt, 1%. The book that the financial establishment doesn't want you to read.: The first ever behind-the-curtain look at how banks really function, and their impact on society.

“Of course, even if it doesn’t change the end result or the fact that it contributes to enabling the traditional financial system to decide morality for you (I know, what a joke), at least Stripe should get some credit for being open and honest about the decision process. You won’t find many articles like this on bank websites that say: well, we would have liked to have provided services to this customer, but, you know, the traditional financial system finds education about women’s sexual pleasure repugnant. Meanwhile, check out our financial services to strip mining companies in Africa, here …. Karl Marx and the 1% Karl Marx knew more about the 1% and banking than the vast majority of people.”
― Robert Sharratt, 1%. The book that the financial establishment doesn't want you to read.: The first ever behind-the-curtain look at how banks really function, and their impact on society.

“Neither is the cost of government deposit insurance deducted from the “value-add” by the banks. (Actually, technically, that is perhaps right, as banks don’t pay this cost and such insurance doesn’t really exist, but it depends how you want to look at the illusion).”
― Robert Sharratt, 1%. The book that the financial establishment doesn't want you to read.: The first ever behind-the-curtain look at how banks really function, and their impact on society.

“Here is what the 1% fears the most: that the 99% become educated. If you have read this far, you know about what enables them: money and fractional reserve banking. I think that there are two options for reducing the malignant effect of the 1% and their banks and making the world a better place: reform or adopt the crypto system. I set them out, in summary, below.”
― Robert Sharratt, 1%. The book that the financial establishment doesn't want you to read.: The first ever behind-the-curtain look at how banks really function, and their impact on society.

“dependency. Or that the 1% capture the vast majority of bank profits, while using depositors’ money to help generate a lot of those profits. Or that thousands lose their jobs, savings, houses, etc. every decade or so because of bank-caused excess variance in the economic cycle.”
― Robert Sharratt, 1%. The book that the financial establishment doesn't want you to read.: The first ever behind-the-curtain look at how banks really function, and their impact on society.

“Credit Suisse and Barclays came up with a better plan: they created their own money and “loaned” it to “investors” from the Gulf. As with normal credit money creation, on the banks’ books there was an asset (a loan) and a deposit (of the loan amount, for the use of the investors; this is FV money). The investors then used this newly created FV money to purchase newly issued preference shares in the banks. So, on the liabilities side of the balance sheet, the banks no longer had a deposit obligation; instead, they had brand new capital in the bank! What collateral did the Gulf investors put up as security for the “loan”? Well, they put up their newly received preference shares. Can you see the illusion?”
― Robert Sharratt, 1%. The book that the financial establishment doesn't want you to read.: The first ever behind-the-curtain look at how banks really function, and their impact on society.

“The accounting for this newly created credit money is based on double-entry (matched) bookkeeping, like all accounting, and is as set out below. The loan of $10,625 is an asset to the bank, since the company will pay them $10,625 in future cashflows (hopefully). This is entered on their ledger, their balance sheet, in the assets column. The bank now has to give the loan money to the company; this is a liability to them. They do this by creating a deposit account in the amount of $10,625.26 This is FV money; its value is matched to the loan, which is (hopefully) going to come in via future cashflows. There is no real-world value created today, as our ancestors in the Liberty Tribe in the cartoon knew. There is an asset (the loan), which is based on an obligation for future payments by the company, but this asset isn’t “real” yet; its value hasn’t materialised at the time that the asset is created.”
― Robert Sharratt, 1%. The book that the financial establishment doesn't want you to read.: The first ever behind-the-curtain look at how banks really function, and their impact on society.

“For asset lending, you may be thinking to yourself, “wow, some banks use poor suckers’ money in the hope that asset prices will go up. Glad that isn’t what my money is being used for.”23 If this is what you are thinking, now would be a good point for you to stop reading.24 Where”
― Robert Sharratt, 1%. The book that the financial establishment doesn't want you to read.: The first ever behind-the-curtain look at how banks really function, and their impact on society.

“Look at the CFADS number. That stands for Cash Flow Available for Debt Service and it is a standard acronym used by bank insiders. The calculation is set out below.”
― Robert Sharratt, 1%. The book that the financial establishment doesn't want you to read.: The first ever behind-the-curtain look at how banks really function, and their impact on society.

“Thus, our national circulating medium is now at the mercy of loan transactions of banks, which lend, not money, but promises to supply money they do not possess.”43”
― Robert Sharratt, 1%. The book that the financial establishment doesn't want you to read.: The first ever behind-the-curtain look at how banks really function, and their impact on society.

“I know of only three people who really understand money.” 1 J.M. Keynes”
― Robert Sharratt, 1%. The book that the financial establishment doesn't want you to read.: The first ever behind-the-curtain look at how banks really function, and their impact on society.