Commercial Banks Central Banks

							                                                               Commercial Banks
                                                                 Central Banks
                                                                                    and
                                                                      Governments


                                                                                      by
                                                                     Thomas Robertson
                                                                              edited extracts from
                                                                            Human Ecology




                                                                               a cesc publication

Extracted from Chapter Four of Human Ecology by Thomas Robertson; copies of the 1996 Black Books edition are
available from Bloomfield Books, 26 Meadow Land, Sudbury, Suffolk, England CO10 2TD (Tel: 01787 376374).
                   Banks and their Unholy Trinity




                                   the banking system is tripartite
                            these three functions are closely interlocked
                           but an understanding of the three parts is vital

                                          the first part is that of
                 central banking through which money is created

                                        the second part is that of
           commercial banking through which money is distributed

                                         the third part is that of
             the consuming public through which money is utilised

                                                            Thomas Robertson, Human Ecology (1947)



Extracted from Chapter Four of Human Ecology by Thomas Robertson; copies of the 1996 Black Books edition are
available from Bloomfield Books, 26 Meadow Land, Sudbury, Suffolk, England CO10 2TD (Tel: 01787 376374).
                     Government’s Unholy Trinity




                             Governments obtain money in three ways

                                             by taxation

                              by borrowing genuine savings

    by the central bank inventing or creating the necessary amount

                     thereby increasing its obligations to the joint stock banks
                          which then create new deposits for the purpose


                                                            Thomas Robertson, Human Ecology (1947)




Extracted from Chapter Four of Human Ecology by Thomas Robertson; copies of the 1996 Black Books edition are
available from Bloomfield Books, 26 Meadow Land, Sudbury, Suffolk, England CO10 2TD (Tel: 01787 376374).
                       Ten More Financial Secrets




1. Money for most purposes means bank deposits which is a bank-created substitute for
metallic money
2. Bank deposit money chiefly comes into existence by the actions of the banks themselves,
which create it initially as a debt at interest, or by other processes which are the equivalent
3. The variation in the quantity of bank deposits (and of paper money generally) is controlled
by the actions of the central bank
4. In theory the basis of control is the gold reserve of the central bank
5. This gold is purchased costlessly by the central bank
6. The rough ratio of total national bank deposits to total currency is as 4 to 1 (1947 figure)
7. Bankers' profits are made out of whatever ‘money’ they can create and issue in excess of
their liquid reserve assets
8. Banks do not lend their customers' money, when making loans or granting overdrafts but
create or invent the money for the purpose
9. The repayment of ‘national debt’ is impossible because it would cancel out an equivalent
sum of money and thus leave the community without enough money to carry on with
10. The Bank of England is an organisation whose policy and shareholders are undisclosed
and which has the power to assess itself for income tax purposes

                                                          Thomas Robertson, Human Ecology (1947)


Extracted from Chapter Four of Human Ecology by Thomas Robertson; copies of the 1996 Black Books edition are
available from Bloomfield Books, 26 Meadow Land, Sudbury, Suffolk, England CO10 2TD (Tel: 01787 376374).