Social Control Hidden in Plain Sight

Far from being a simple medium of exchange money has evolved into a form of social control. Wherever people are unable to grow their own food, or barter something in order to get food, they are likely to use some form of money to buy what they need in order to survive. For many people in large cities there's a strong element of coercion behind the drive to get paid employment in order to survive, so in that situation money is a form of social control.

Bankers, Soldiers, Politicians, and Priests work together as a team

I don't suggest that the above comment from Lawrence R Spencer should be taken seriously, but it is a perceptive thought that directs our attention to the network of people working in white collar organisations that either exploit people or suck money from them. His observation may help us to consider whether a world without 'the team' might be a more pleasant place than the world we have created by allowing them to exert such a strong 'for profit' self-interest social control influence over the lives of many people.

Private Banks Money as Credit

Actually the money that we try to get and use to buy things doesn't really exist in terms of real wealth. It's largely a credit based system that depends on everyone turning up for work and using 'money' or credit in exchange for food and the other things that they need to survive.

The relatively fortunate few who are able to save some of their wealth in private banks may think that their money is always available to be withdrawn on demand but in reality much of the deposited money is invested in long-term commercial lending contracts, short-term 5-10 year bonds, and medium-term home loans to individuals. There's very little cash available for immediate withdrawal.

The reason that there's not much in the till for cash disbursments is mainly because cash 'dead money' in the sense that t creates no profit for the bank. That's the main reason why much of people's private banks savings money is invested in high paying 'for profit' projects. What happens is that private banks use our savings money to create profits for their executives and shareholders.

Bank Saving Safeguard

Ordinary people could lose their savings

There are restrictions on what private banks are allowed by law to do. For example, the amount of money that banks can lend to their customers varies from country to country but is decided by each country's central bank requirement for private banks to hold a certain percentage of wealth as a cash reserve. The main control is known as a fractional reserve.

Reserve Bank Influence

The actual amount to be held in reserve varies between countries, and even the method used varies. A high fractional reserve percentage, for example, would indicate a conservative lending policy and greater security for savers, but in New Zealand the reserve percentage is actually zero and the fractional reserve function is achieved by a daily buy-sell arrangement between the nation's private banks and the Central Reserve Bank.

Banks control money affecting social control

Are Private Banks Safe?

Generally people's savings in private banks are quite safe providing the banks avoid economic stress. If they become stressed however, as has happened at various times in the past, then people who try to withdraw their bank savings may find that the available cash is very restricted and they probably won't have immediate access to all of their saved money.

james9spot James