Crime Against Humanity: Pensée Unique in Economics, 61

So shrewd, deep and dogmatic is the cover−up of moneypulation that “they are based on the traditional quantity equation linking money to the economy” which as we have seen removes it from the scene from the outset. So cast−iron, systematic and complete is the cover−up of moneypulators’ quite unique “privilege” that it comes as no surprise that, “put simply, economists cannot explain why banks exist or why only they apparently possess some special quality that gives them monopoly power over certain markets.”

To put this cover−up in perspective, Werner again, “We conclude that the feature of banks as creators of credit (what could equally be called their ability to ‘create money’) is what renders them special. This feature also explains why bankers quickly became powerful and influential, and could easily expand into various industries, quickly becoming the core of a network of affiliated companies that they either founded or bought up (life is much easier when one has a licence to print money).”
And to put this cover−up in perspective deeper still… “Mainstream economics and finance books give the impression that historically, early societies moved from barter to commodity money, and then to precious metals and coins. Banking and other financial institutions and financial instruments are often treated as a recent phenomenon. … many modern theories emphasize ‘cash’ and ‘narrow money’ indicators, even though cash transactions account for a small percentage of all transactions (usually less than 5%). It is with such analysis in mind that the ‘quantity equation’ was developed, linking such cash money to economic activity. Banks were thus of secondary – or no – interest to economists. … Today historians have demonstrated – though little−known to most economists – that banking came about much earlier, and credit transactions most likely preceded the development of money … In almost all cases, these banking systems led to the development of economies dominated by non−cash and non−money transactions. … Banking, we thus find, has been at the heart of human economic activity for thousands of years. It has also been an important aspect of the political economy, and via its link to warfare contributed to reshape world history. Given these facts, we should expect banking to either constitute the crucial link between the monetary/financial side and the ‘real economy’ or at least provide a major illumination of it. So why have banking activities been neglected for so long by economists?”