Architectura Socio-Ecologika: Evidence Base

ECONOMICS, 6 Jan 2025

Koenraad Priels – TRANSCEND Media Service

24 Dec 2024

1. Empirical evidence of systemic fraud and deception

 Professor Richard Werner’s 2014 paper “Can banks individually create money out of nothing?” serves as crucial evidence of systemic fraud in banking:

Can banks individually create money out of nothing? — The theories and the empirical evidence – ScienceDirect

Historic Breakthrough

This research provides, for the first time in history, empirical evidence that individual banks can create money out of nothing. It refutes two dominant banking theories:

• The financial intermediation theory (banks are merely intermediaries)
• The fractional reserve theory (banks can only create money collectively)

Empirical Evidence

 Methodology

• An empirical test involving borrowing money from a cooperating bank
• Internal bank data monitored during the credit process
• Specific observation of whether money was transferred from existing accounts or newly created

Conclusions

• Individual banks create money “like fairy dust” out of nothing
• This happens at the moment they extend credit
• No transfer of existing deposits is required

Implications

This evidence has far-reaching consequences:

• It demonstrates how banks mislead society about their true function
• It undermines the legitimacy of interest payments on credit
• It proves the current system is based on systematic misrepresentation

• This paper thus forms crucial legal evidence for the systemic fraud inherent in the current banking system, and could be used in court to demonstrate the fraudulent nature of the current financial system.

2. Evidence of science fraud with control systems engineering

 The systemic fraud in the monetary system is proven by Gauvin and Dominguez’s formal stability analysis:

Gauvin, M., & Dominguez, S. (2020). A Systems Engineering Approach to Formal Monetary and Financial Stability Without the Vagaries of “Austerity.” MRC. MRC 2020 A systems approach to money_4122020 rev2_17.01.2021.pdf

Systemic Instability

 Mathematical Proof

• Control systems engineering demonstrates that the current monetary system is inherently unstable
• The analysis proves that debts inevitably grow to infinity when principal or interest cannot be repaid
• The system is designed for extortion, political control and mathematical failure

Metrological Fraud

 Fundamental Contradiction

• Money is simultaneously defined as a unit of measurement AND as a scarce commodity with variable value
• This is logically incoherent and constitutes a false money paradigm
• This misrepresentation violates fundamental scientific principles for metrology

Systematic Deception

 Institutional Impact

• The system forces infinite growth within finite planetary boundaries
• ca. €15 trillion in unnecessary interest payments are legitimized
• 3.3 billion people live in countries spending more on interest than on education

• This scientific analysis proves that the current monetary system is based on systematic fraud and misrepresentation, with catastrophic consequences for humanity and the planet.

3. Consequences of systemic criminality and liability

 The systemic criminality in our current financial and economic systems leads to severe human rights violations:

Direct Human Impact

 Loss of Life and Wellbeing

• 3.3 billion people live in countries spending more on interest payments than on education
• 10,000 people (including 5,000 children) die daily from effects of dirty water
• Farmers commit suicide due to unpayable compound interest debts

Systematic Exploitation

• Women and girls perform 12.5 billion hours of unpaid care work daily without which humanity cannot survive
• Half the world’s population exists on less than $5.50 per day
• 860 million people try to survive on $1.80 per day

Systemic Violence

 Economic Warfare

• Systematic value-extraction through interest-bearing debt systems
• Quadrillion dollar casino of derivatives threatening global stability
• Expropriation of local resources in poor countries

Institutional Complicity

• Banks create money “like fairy dust” while charging interest on it
• Regulators actively facilitate ecocidal and genocidal systems
• Bureaucratic structures function at kindergarten level during escalating polycrisis

Criminal Liability

 Corporate Responsibility

• Corporations are programmed for systematic value extraction
• They force infinite growth within finite planetary boundaries
• Active participation in maintaining destructive economic structures

 Individual Liability

• Decision makers in financial institutions enabling systemic fraud
• Regulators failing their mandated responsibility for system transformation
• Politicians legitimizing demonstrably harmful economic structures

• The combination of psychopathic corporate structures and infantile government oversight creates a perfect storm of human rights violations with catastrophic consequences for humanity and the planet.

4. Raising awareness and presenting a way forward to escape from an escalating polycrisis

 Priels, K. (2023). Ending the Global Kleptocracy: Financial Innovation for the 21st Century. Journal of Critical Realism in Socio-Economics (JOCRISE), 2(1), 47–63. https://doi.org/10.21111/jocrise.v2i1.49

Systemic Financial Fraud

 Core Mechanisms

• Banks create money “like fairy dust” out of nothing while charging compound interest
• The monetary system is based on a fundamental misrepresentation of money as both measure and commodity
• This creates a global Ponzi scheme requiring perpetual growth within finite planetary boundaries

Escalating Polycrisis

 Socio-Ecological Impact

• The system forces exponential growth while already exceeding Earth’s regenerative capacity by 70%
• 3.3 billion people live in countries spending more on interest than education
• Women and girls perform 12.5 billion hours of unpaid care work daily

 Systemic Violence

• The financial architecture systematically concentrates wealth with the top 10%
• Creates a two-class society with an exploitative monetized minority
• Forces infinite growth on a finite planet, making collapse inevitable

Institutional Complicity

 Regulatory Failure

• Government agencies and regulators actively facilitate ecocidal systems
• Bureaucratic structures function at kindergarten level during escalating crises
• Politicians legitimize demonstrably harmful economic structures

Path Forward

 Systemic Transformation

• Replace the current banking system with passive, interest-free mutual credit
• Abolish wealth extraction through financialization
• Limit property rights to what is reasonable and equitable
• Develop socio-ecological intelligence as a species

• The current financial architecture constitutes the fundamental driver of an escalating polycrisis that threatens human survival. Without radical transformation of these fraudulent structures, sustainable development and global wellbeing remain impossible

5. Conclusion: we can build a strong legal case against the global banking system through multiple lines of evidence

 Based on the available evidence, we can build a strong legal case against the global banking system through multiple lines of evidence:

Scientific Evidence

 Control Systems Analysis
The mathematical proof using control systems engineering demonstrates that the current monetary system is inherently unstable and designed to fail, showing that:

• Debts inevitably grow to infinity when principal or interest cannot be repaid
• The system forces infinite growth within finite planetary boundaries
• There is a fundamental logical contradiction in defining money simultaneously as a measure and commodity

Banking Evidence

 Werner’s Empirical Research
Professor Richard Werner’s groundbreaking research provides concrete evidence that:

• Individual banks create money “out of nothing”
• This happens at the moment they extend credit
• No transfer of existing deposits is required

Documented Regulatory Failures
Recent cases demonstrate systematic failures in banking oversight:

• Banks have been sued for weak safeguards and inaction on fraudulent incidents resulting in millions in consumer losses
• Financial institutions have failed to adequately investigate fraud complaints or comply with legal reimbursement mandates
• Banks have demonstrated “wilful blind-eye knowledge of the obvious” in facilitating fraudulent transactions

Legal Framework

 Accountability Standards
The legal framework for holding banks accountable includes:

• Banks have both ethical and legal responsibilities to prevent fraudulent behavior
• Victims must have the right to sue banks to recover losses as both restitution and deterrence
• Financial institutions can be held liable for failing to question suspicious payments that a “reasonably skilful and careful banker” would have probed

Building the Case

 Strategic Approach
To strengthen the legal position:

• Document systematic patterns of regulatory violations
• Gather evidence of banks’ failure to implement adequate consumer safeguards
• Demonstrate the mathematical impossibility of the current system’s sustainability
• Show direct links between banking practices and human rights violations

• The combination of scientific proof of systemic instability, empirical evidence of fraudulent money creation practices, documented regulatory violations, and measurable human rights impacts creates a compelling legal case that should stand up to scrutiny in court.

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Koenraad Priels is an independent researcher from Belgium.

This article originally appeared on Transcend Media Service (TMS) on 6 Jan 2025.

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