Whole banking system is a scam and fractional lending is just part of the problem ?

Rare moment of truth as this politician stands up in front of the European Parliament and explains why he thinks the entire banking system is a scam.

Joint Debate: Banking union - single supervisory mechanism

1. Specific tasks for the European Central Bank concerning policies relating to the prudential supervision of credit institutions
Report: Marianne Thyssen (A7-0392/2012)
- Report on the proposal for a Council regulation conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions
[COM(2012)0511 - - 2012/0242(CNS)]
Committee on Economic and Monetary Affairs

2. European Banking Authority and prudential supervision of credit institutions
Report: Sven Giegold (A7-0393/2012)
- Report on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1093/2010 establishing a European Supervisory Authority (European Banking Authority) as regards its interaction with Council Regulation (EU) No.../... conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions
[COM(2012)0512 - C7-0289/2012 - 2012/0244(COD)]
Committee on Economic and Monetary Affairs

EU Member States:
Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Germany, Denmark, Estonia, Spain, Finland, France, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Sweden, United Kingdom

In a significant speech Godfrey Bloom has told the European Parliament the entire banking system is a scam and explained his rationale behind such a thought. He also pointed out the roles played by politicians and the central bank in the current atmosphere. He is known for expressing his views since quite some time.

Understand The Concept
He believes that if the concept of the banking is not understood, then the banks are broken. Godfrey named a Fractional Reserve Banking system as a legalized fraud, as banks are able to lend money they don’t actually have. Godfrey thinks that the bank doesn’t have money, and still, they earn and branded it as a criminal scandal, which has been going on for quite a long period. As if that is not enough, there is a political swear, and most of the problems start in politics and central bank, which are part of the same political system.

On artificial printing of money, which has been going since long. He stated that the central banks fix the rate of interest, but there is no cost of value for money. The retail banks are only manipulating and that the central banks are manipulating the interest rates. When banks broke out due to their own incompetence, taxpayers pick up the tab. In short, he branded the banks as fraudulent and a scam.

Crypto Gaining Traction
Reacting to Godfrey’s speech in the European Parliament, a Redditor said that it is for this reason that crypto could succeed and particularly the ones with a restricted supply of digital coins. Another Redditor said that several folks have fallen into a debt trap citing the fraudulent initial coin offerings (ICOs), as well as, crypto coins. At the same time, the post indicated that there is a long way to go before trusting the crypto.

Another Redditor said, “Two completely different situations though. The free market (and the law) will eventually sort out the winners from the losers and fraudsters in the cryptocurrency sphere. Sure, people will lose money, but you take that risk when you invest in anything, let alone crypto.”

On the other hand, banks are “not only not punished criminally or economically for their misdoings; they are actually supported and enabled by our governments.” On top of this, when banks go bust, they are enjoying the bailout package, which is not the case in cryptos.