Have you seen the Bank of England's two new videos?

READER'S STORY: The other day I got dragged along to a coffee morning with Transition Town Hervey Bay (TTHB) despite my original reluctance to attend anything organised by a committee I went along anyway.

I thought; great a nice easy chat and a cup of coffee plus learn a bit about gardening, I can handle this.

Little did I realise I'd be having sleepless nights for a week!

Has anyone taken a look at the Bank of England's website lately (OMG)?

To be honest I'd never visited it either, but along with Transition Town Hervey Bay's Facebook page it's now on my favorites list.

Long story short, the Bank of England (BoE) has put up two new videos on You Tube explaining how debt is linked to the creation of money and it's causing a global stir because the Guardian Newspaper has picked up on the vulnerability it demonstrates in the banking system.

If you think things are tight now or you're concerned about public spending, your pensions or even national debt, take a look at the BoE's explanatory videos of what our world banking system really looks like (not the one taught in schools) and cross reference it with the Guardian's interpretation.

No wonder ABC's financial commentator Alan Kohler always looks like he's sharing a joke when he delivers his summary of the day's trading!

Most importantly it tries to make clear (as tactfully as possible) that money (in its simplest terms) now really just represents a thin promise to repay debt, it's not gold or the promise of gold; it's all based on the trust that everyone will continue to repay past debts and keep asking for credit.

So this is growth?

I get the impression that within banking circles it's all just numbers on a screen, barely linked to anything real in the world.

It's easy to see how the banks of the EU justified raiding the accounts of the people of Cypress the other year if this is the logic that prevails amongst our leaders.

Most of us do not realise that when you deposit money in a bank, that it becomes the property of the bank and we become unsecured creditors of the bank!

Although few depositors realise it, legally the bank owns the depositor's funds as soon as they are put in the bank.

This is true in most countries around the world.

Everyone should take a look at this site, including state and federal treasurers on both sides, before they consider selling off public assets.

By all accounts I got the impression that the whole banking system is in danger of becoming something very shady indeed if governments around the world keep thinking of their duties like balancing a household budget.

Hats off to the organisers at TTHB, I learned more in an hour than I believe I would have in a month of researching; but if I was truthful with myself I was happier when I was ignorant.

To anyone that's interested, I think the links to this site and a bunch of other threads are still up on Transition Town Hervey Bay's Facebook page.

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