Forget entrepreneurs, only banks can create wealth

Forget entrepreneurs, only banks can create wealth

www.guardian.co.uk

Entrepreneurs, it has been said so many times over the past 30 years, create wealth. Right this minute, the foolish government is sitting around, waiting with bated breath, for glamorous entrepreneurs to get on with doing just that. But there are no signs that a great boom in business ingenuity is on its way.

So why are entrepreneurs being so shy? Don't they want to create wealth? They probably do. But the fact is this: the entire entrepreneurs-create-wealth thing is a fallacy, and continue

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the government is wrong to place its faith in it. Entrepreneurs don't create wealth. Banks create wealth, only banks. If you wonder why politicians seem so powerless to "rein them in", then wonder no more. It is for this simple reason: banks have a monopoly on wealth creation.

The reason why banks create wealth is explained by Ellen Brown in her articles Japan Shows How to Defuse Debt Time-Bomb (www.huffingtonpost.com...) and Japan Post's stalled sale a saving grace (atimes.com...).

Even though Japan's national debt is 226%, which is higher than Zimbabwe. Japan is still able to maintain its credit rating and status as third largest economy in the world. How? The answer is that the Japanese government has a captive funding source: it owns the world's largest depository bank. Since Japan own its own debt, it can lend itself money at zero interest rate. What you have to understand is that debt does not matter but interest rates do because interest rates accumulate debt. Unlike Greece and Iceland, Japan has not fallen into the trap of dependency lending by foreign financing.

That's why Ellen Brown advocates for Government public banking.

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Huh. So is this why our last two presidents have been bent on taking over the banking industry? If the government runs the bank the debt won't matter?

Sounds pretty bass-ackwards to me.

Originally posted by Schkeptick
Huh. So is this why our last two presidents have been bent on taking over the banking industry? If the government runs the bank the debt won't matter?

Sounds pretty bass-ackwards to me.

"Our presidents bent on taking over the banks". What are you talking about our country is owned by the banks, which owns our presidents too. Did you forget Goldman Sachs donation to Obama's campaign. Private banking does not have the people's interest at heart. Heck! This country doesn't even own its own central bank. And what about the stimulus the Fed said would create jobs, it has gone to bailing out the giant banking cartels.

So I work at the main Chamber of Commerce in Scotland as a high growth business adviser, over the last two years 95% of my companies have commercialised with turnovers ranging from £150k to £12.5 million a year. Worked with around 200+ high growth companies. Riddle me this how are these entrepreneurs not making money. I think your argument is flawed and before you argue that the banks have funded them, banks dont fund R&D so the majority are either self funded, use government grants and seed and co investment funding or private investors that are normally entrepreneurs that have made their own money and look to reinvest it into exciting businesses. Banks make money off of businesses, without the businesses the banks would be knackered.

It's the opposite.

Originally posted by MIDNIGHTSUN

Forget entrepreneurs, only banks can create wealth

besides, the business originator likely needs funding to start their enterprise ~ which the banks are not doing right now ~

the entrepeneur can only hope to attract customers or clients...
and the most likely way is to take market share away from the previous competetors -- that is not an act of wealth creation...that is the transfer of wealth through the flow of money

however the bank loan interest is the magical creation of wealth out of thin air, that is 'wealth creation'
leveraged loans from money that exists only on a ledger

Agreed. It is banks only that create wealth.....and debt.

If I walk into a bank and take a loan out. They dont print the money and give it to me there and then. They press a few buttons and all of a sudden, there are a few more digits in my bank account.

From that moment, I have not phsyically seen the money and yet, I owe more than the loan was for and that is literally seconds later.

Nobody can say that banks do not create wealth....but they also create debt. As they create debt, they also have the power to make debt dissapear of course they wont as they lose power then.

Originally posted by On the level
So I work at the main Chamber of Commerce in Scotland as a high growth business adviser, over the last two years 95% of my companies have commercialised with turnovers ranging from £150k to £12.5 million a year. Worked with around 200+ high growth companies. Riddle me this how are these entrepreneurs not making money. I think your argument is flawed and before you argue that the banks have funded them, banks dont fund R&D so the majority are either self funded, use government grants and seed and co investment funding or private investors that are normally entrepreneurs that have made their own money and look to reinvest it into exciting businesses. Banks make money off of businesses, without the businesses the banks would be knackered.

Well, banks do fund businesses and entrepreneur by loaning them money. Anyone who wants to start a business needs to get money from somewhere. That somewhere is only the banks. Banks make money off business by loaning to them. But banks also make money by loaning to people and governments. They also loan to each other. Just look at how they borrow money from the fed at low interest and charge high interest when they loan it. The banks control the money flow. Who ever controls the money flow controls the economy.

But if you read my point, all of the businesses I work with that are high growth and are driving our economies dont get funded from the banks. The banks are a shambles, I worked in business banking and have seen it from both sides. They have been allowed to get to this level by the governments however their power is waning, their model is broken and people dont trust them.

reply to post by On the level


Well personally I'd rather own the Federal reserve that print money (well actually they don't really do that but merely add a few zeros on a computer) and then loan it to the US tax payer with interest...

Sounds like a great scam to me..