The Mudcat Café TM
Thread #125469   Message #2783864
Posted By: Little Hawk
08-Dec-09 - 12:58 PM
Thread Name: BS: Afghan War mistake or wise
Subject: RE: BS: Afghan War mistake or wise
Oil interests aren't the only wealthy interest that arranges wars, Sawzaw. In the complete absence of an oil industry the very same thing would be happening, and you know why? It is the international bankers, first and foremost, who profit from wars. They do it through lending money to governments to purchase arms and raise armies, and they are quite happy to lend to BOTH sides. They are also quite happy if the war lasts as long as it possibly can, and they do not suffer the consequences, because they can move their money to safe havens around the globe. The only kind of war that would really threaten them would be a nuclear war that devastated the entire planet.

This funding of wars by bankers (through lending to governments) has been going on for centuries. It was happening long before there was an oil industry. Governments have been in hock to banks for a long time. The oil industry itself is not the cause of the problem, it's a temporary symptom of the problem.

The cause of the problem is that fractional reserve lending allows banks to magically turn 1 dollar into 10 dollars when they make loans. The 10 dollars go back into the banking system, and are then turned into 100 dollars by more fractional reserve lending. The 100 dollars go back into the banking system, and are then turned into 1,000 dollars by fractional reserve lending. That process repeats itself, with a very slight reduction each time, until the money supply has been inflated about 280 times.

That's a money tree. And the banks have it. Who pays for it? Well, the governments go deeply into debt with debts they can never realistically pay off, and the public pays the interest on those debts through taxes and inflation.

And that brings you up to why we have these periodic financial crises...and the government has to bail out the banks...who were the people who created the bubble of phony money in the first place.