The State Money System Makes It Possible to Hide the True Costs and Losses which the System Itself Creates

The cycles of artificial booms and recessions caused by the privileged banking system bring immense suffering to people. The financial crisis of 2008–2009 revealed the enormous amount of resources that disappeared into the chasm of the money system. Forever.

Was it really so bad, you think? Certainly you are overstating what happened!

The 2008 bailout orgy was without historical precedent. Banks, businesses, and even governments were rescued. Without pain, right? But have you noticed something strange? Did you lose your job or your savings? Were your taxes brutally increased in the past few years? Did your tax burden double? Probably not. How is the ongoing bailout financed? You already know: by new debt, by new money. This is what is so insidious about the state money system: it makes it possible to hide the true costs and losses which the system itself creates. It lulls people into a false sense of security. This false sense of security has been taken away from you. We warned you in the introduction to this book that unpleasant realities awaited you.

The big collapse did not happen in 2008. After the collapse of Lehman Brothers and the subsequent financial crisis, only part of the malinvestments were liquidated. Enterprises such as the troubled auto manufacturers and mortgage banks were rescued by the state; either by direct capital injections or indirectly through subsidies and state orders for goods and services. Bad private investments were turned into bad public debt — the process silent and lubricated with new money. This is because the state debt was financed indirectly with new money production. Central banks created new money with which the (commercial) banks and other economic “agents” then bought government bonds.

—Andreas Marquart and Philipp Bagus, Blind Robbery! How the Fed, Banks and Government Steal Our Money (Munich: FinanzBuch Verlag, 2016), e-book.