The 5 toxic functions of the monetary and banking system are described below. They are not only of the commercial banks but of the central Bank as well. Either the central bank being private as in Italy and Greece or public as in England:
1) Macroeconomic enforcement of debt.
Because from the moment of new issuing of the base of the currency (sometimes denoted by M0 money) and banknotes of the central bank, the supply and circulation of it is exclusively through debt. Either as debt of the commercial banks, or as debt of the public sector when public bonds are bought with it by the central bank. The non-election-able bureaucrats of the central bank do not know better what is good even financially for the society compared to the total sequence ofthe governments, partliaments , Universities and the rest of the collective intelligence of the civilization. The central bank should not be a bank at all, but a non-profit public organization, othewise its function is unethical and toxic! The same tocic function have also the commercial banks, that also enforce in a macroeconomic the debt in the society, The circulation of money starting from the central bank to the commercial banks and from the commercial banks to the rest of the economy, is forced to be by debt. They do not allow other forms of supply of money from the moments the banknote (base of the currency) is issued. The central bank issues the base of the currency (M0 money) and the commercial banks the accounting money M1, M2, M3. All ofthe M0, M1, M2, M3 circulates exclusively by debt. This is not the case e.g. with other digital currences, the digital cryptocurrencies like the bitcoin etc
2) Empty-lending.
As the commercial banks are creating the M1, M2, M3 money, which are debt ,that they create in society , the do so with rules so that the total M1+M2+M3 it is by far larger than the existing money in circulation in bank notes (M0 money). Therefore, the moment the acrobatics of timing-balance of mutual payments collapses, like a castle of playing cards of a deck, a new debt crisis is created. This is unavoidable to happen every 70-100 years, on the occusio of a fast change in the economy.
3) Money-issuing mediating.
After analyzing the balance sheets of most banks and in the majority of the years, it becomes clear that the role of the commercial banks is to intermediate between the money M0 and bank notes that the central banks is issuing and the rest of the economy that wants to use. The obvious reason for this is that a commercial bank finds cheaper to borrow money from the central bank and then lend it in the economy, compared to attract deposits from the households and enterprises and then lend it. Thus the old fashioned “positive image" of the reason of existence of the banks so as to collect surplus money and supply it to the productive sector is naive and incorrect. As many intermediating agents and roles in the economy, it does not really act productively but in a parasitic way puts the breaks in the development of the really productive economy. Thus statistically in the average the debt-burden or debt-capital of every enterprise is about double the equities or owneres capital (debt capital equal to about 2/3 of the total assest). The parasitic role of the money-issuing mediating is so especially when it is a finacial human right of surviving for every person to have direct access, personally, to the issued base-currency , at least in the form of a basic income.
4) Abusive monopolistic ownership of money issuing.
This toxic functions is mainly for the central bank which issues the base of the currency (M0 money). The commercial banks create the accounting money M1, M2 , M3.
It is monopolistic because normally this jurisdiction and role of issuing the base of the currency M0 should belong to the public sector, the Ministry of Finance which can perform it without enforcing debt, and not to private investors (in the case of private central banks) , or even group of non-election-able independent bureaucrats (case of independent public central bank) . There is the article 123 of the agreement for the function of the European Union (Maastricht) , which states that the bureaucrats of the European Central Bank , they are not obliged to ask the opinion or take the permission of any government or parliament in the Eurozone in their decisions for issuing money, regulating interest rates and suppling it in the economies!
5) De-facto abusiveness of decision making in politics through monopolistic money decisions.
Exactly because of the above, article 123 of the agreement for the function of the European Union (Maastricht) , which states that the bureaucrats of the European Central Bank , they are not obliged to ask the opinion or take the permission of any government or parliament in the Eurozone in their decisions for issuing money, regulating interest rates and suppling it in the economies, the governments have lost their basic ability of running their politics, because obviously any kind of politics costs money and requires controlling the issuing and circulation of money. Especially when the currency is no longer a scarce resource (as the rule of the gold in issuing of money does not hold anymore) but an instrument to enforce power in the societies. The non-electionable and non-elected bureaucrats of the central bank do not know better what is good even financially for the society compared to the total sequence ofthe governments, partliaments , Universities andthe rest of the collective intelligence of the civilization. The central bank should not be a bank at all, but a non-profit public organization, othewise its function is unethical and toxic!
All the above create in a periodic way of 70-100 years great debt crises and economic destructions in the societies.
