The Biggest Secret About banking has Just hit Mainstream Media

debt burdenThe Debt burden – source financial helper

Mostly in my guise as Little Nicky Machiavelli, I’ve pointed out for years that banks create money out of thin air. With many economics pundits predicting another, bigger than 2008, financial crash as ustable currency floods the world it has now finally struck mainstream media that our money is worthless, the only thing underpinning it is debt, your debt, your neighbours debt, Old Uncle tom Cobbleigh’s debt, George Osborne’s debt my … oops; I have no debts, repugnantly sensible person that I am, I saw it coming. The outcome is inevitable when loans come first … and then deposits FOLLOW.

In fact the money you borrow is bundled with the debts of others and used as collateral by your bank to secure loans from investment banks which will be used to make further loans to punters like you. If you think this sonds a lot like creating money from air, it is exactly that. The global economy is a giant Ponzi scheme, thanks to ‘liberal’ and ‘socialist’ (for both read corporatist) politicians and fuckwit economists with the intelligence of turnips perverting Keynesian economics to justify the infinite public spending oligarchic collectivism requires.

This is the most important secret about modern banking because it demolishes one of the biggest myths preventing a true economic recovery, challenges one of the main pork barrel profit centers for big banks. If finance ministers heed to common sense brigade and ignore the siren song of academics, running a national economy is just like managing a household budget but with much bigger sums involved and thus much bigger economic catastrophes as the consequence of continually spending more that your income opens up incredible opportunities for a prosperous economy.

This undeniable truth which stands conventional wisdom on its head has now gone mainstream, with not just bloggers like myself, financial market pundits like Tyler Durden of Zero Hedge and the Financial Times’ Martin Wolf – one of the world’s most influential mainstream financial writers – says that, since banks create money out of thin air, they should be stripped of this power, and limited to normal depository functions.

In other words they should not be able to lend money that is not underwritten by deposits or substantial assets, a bundle of debts is not a substantial asset, it is an effing debt, money owed which carries a risk that it will not be repaid. For example, The Deutschebank’s $75 trillion holdings of debt derivatives is worth absolutely eff all until people repay their debts. Simples. Or maybe not if you consider it amounts to 20 times Germany’s GDP.

Wolf indicates the centrality and importance of the issue with his subtitle: The giant hole at the heart of our market economies needs to be plugged.

Read more at Washinton’s Blog

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So You Think Control Of Media Is A Conspiracy Theory

control of media
Picture Source: zengardner.com

Oh yeah, we hear it all, “Just a crazy conspiracy theory”, “There’s nothing going on that the government doesn’t tell the whole truth about”, “Only a paranoid nut job would doubt the information in government propaganda handouts.”

Well how about this story which I found on Zero hedge which is becoming one of my favourite websites for accurate, verifiable news on finance and business. It concerns a factual article posted on the Financial Times website which was quickly removed and never appeared in print. Zero Hedge reproduce the article in full so I was able to verify its content.

from Zero Hedge

Two days ago the FT released a clear, informative and fact-based article, titled simply enough “Gold price rigging fears put investors on alert” in which author Madison Marriage, citing a report by the Fideres consultancy, revealed that global gold prices may have been manipulated on 50 per cent of occasions between January 2010 and December 2013.

To those who have been following the price action of gold in the past four years, gold manipulation is not only not surprising, but accepted and widely appreciated (because like the Chinese those who buy gold would rather do so at artificially low rather than artificially high fiat prices) and at this point, after every other product has been exposed to be blatantly and maliciously manipulated by the banking estate, it is taken for granted that the central banks’ primary fiat alternative, and biggest threat to the monetary status quo, has not …

Read full article at Zero Hedge (scroll down past the screenshot of what is at that Financial Times url now

If you still think there is no powerful group or cartel manipulating the world economy and that the global, totalitarian government called for by Rothschild, Rockefeller, Soros, Bill Gates, Pappy Bush, Barack Obama and Tony Blair amongst other criminals and undesirables is a jolly good idea and in everyone’s best interests, leave a comment and we’ll put your name forward for enrolment in the “Useless Eaters” regiment under the new Nazi progressive regime.]

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A lawyer with his briefcase can steal more than a hundred men with guns.

The title is from the novel The Godfather but was not used in the film.

crooked lawyer
Crooked Lawyer – Source

While the propaganda (and it is propaganda) about the E U economic recovery is starting to sound like a spinal Tap gig where the amps are turned up to eleven, what is going on behind the scenes suggests what is really happening is the opposite of recovery. In fact the latest moves in finncial markets tell us Europe is introducing a regime of capital controls.

from Zero Hedge

“Today we learned that Italy has just ordered banks to withhold a 20% tax on all inbound wire transfers: a decree which on top of everything will apply retroactively to February 1. As Il Sole reports, “the deductions will be automatic (unless prior request for exclusion), and then it will be up to the taxpayer to prove that the money is not in the nature of compensation “income.” In other words, as of this moment, but really starting two weeks ago, all Italians are money launderers unless proven innocent.”

In effect Italy has enforce a stealth withholding tax on all inbound money Il Sole says:

“The mechanism that provides a primary role to the bank official that is to receive the declaration of the taxpayer and evaluate it. In any case, you make the deduction or not, the name of the recipient will be reported by the bank Revenue Agency. And the taxpayer has until February 28 of the year following the year of the deduction to attest to the improper application of withholding tax to the bank and ask for a refund.”

Naturally the result will be that more Italians – the seriously wealthy ones – will open bank accounts either in other Eurozone nations that have not enacted punitive measures against those who earn money abroad to the benefit of the economy, or in such tax havens as Singapore now that Switzerland’s main business model for centuries has been destroyed. The end result will be even less capital inflows into Italy – just the opposite of what the desperate Italian government is trying to achieve but don’t bureaucrats always achieve the opposite of what they are trying to do.

But that is a problem for the next Italian government (taking office this week) and the one promptly replacing it (by mid March). Meanwhile, in these meritocratic times, let’s all pretend Europe is fixed because the statistics published by Brussels say it is, even as the Euronazis prepares for the final solution to the Eurozone economic crisis; the confiscation of citizens savings.

Has China bought America Lock Stock And Barrel?

Has the China already purchased part or all of the United States with the agreement of the US government as theorized in the video below from Proactive Preppers? Between the government, banks and financial institutions, the Chinese hold so much UD debt run up by the Washington government, the fifty states (NB President Obama, fifty states), US Banks and businesses and private citizens that were it all to be called in, America would have no chance of repaying it’s loans.

With FEMA (US Government Federal Emergency Management Agency) plans already being put into place as if some kind of major catastropy is imminent according to some American commentators and the Obama Adsministration’s unsolvable debt crisis, this is certainly a possible scenario. Americans should remember that China owns most of America’s debt; is it time now for China to step in and ‘save’ us?

But why would China want America, the bankrupt cities, decaying suburbs, the dystopian industrial belt? Some comments on blogs discussing the idea had interesting things to say.

One theme that came up time and again was that when the Chinese walk in and take posession of their purchase it will not be the American people they want but the natural resources. They would be interested in the resource rich areas like those the administration has earmarked for the rollout of Agenda 21 and the areas now assigned by fracking licence to energy companies for natural gas extraction. This applies to the offshore oil and onshore oil and gas reserves, but coal, iron ore, and other resource lands around the country. China would take all those those things and leave the cities, crimes, and armies of welfare recipients to fend for themselves.

But could there be comething else America has that the Chinse would find useful? You bet there is. Women.

Think it through. After years of the one child policy and a social system that has no qualms about gender selection abortion, even if it is post-natal abortion China has far more horny young guys than available women. And American women, despite what you may have heard about purity rings (which most young men would see as a challenge rather than a deterrent) American women tend to me more available for a quick bunk up, no strings attached, than Chinese girls.

So as all Americans owe the Chinese shitloads of money what is going to happen when an American family can’t pay the mortgage or an installment on the car. In march the baliffs and say, stuff your antique furniture and your high tech gadgets, do how know how cheap those things can be bought back home in shanghai? We’ll take your daughters. Even if they don’t look like Cameron Diaz or Beyonce someone will be glad of them.

Barack Obama and his supporters will welcome this deal of course, not only will it get their incompetent administration off the debt hook, it will be one giant step towards creating the kind of multi – racial society American liberals have dreamed of since the 1960s.

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You’ve Got To Love The Craziness Of The Financial Crisis

So Spain was bankrupt. Between a loonytoons green energy policy that paid wind turbine owners for the electricity not generated while the wind was not blowing and solar panel owners foreectricity not generated while the sun was not shining (e.g. at night); a property bubble that saw banks lending money on properties built on toxic waste dumps, areas where motorways and shopping centres were planned within a few years or even on land that did not exist or was under the sea; the usual problems associated with outsourcing work to India and China and general incompetence they were up shit creek. What little money the Spanish government had, it had used to bail out the Spanish banks.

Spain was so up shit creek in fact that the traditional place for governments to raise money to fund their incompetence, the bond market, was closed to the Spanish. Nobody would take their IOUs.

The Spanish Banks were helpful however and bought up lots of government debt with the bailout money the government had loaned them. So helpful were they in fact that they ran out of bail out money. The Spanish bankers asked the EU Financial Stability Fund (the F-U) for a bail out. Instead of saying F U the E U was eager to help and offered a loan of 80 billion Euros.

Unfortunately the E U F U only had 400 billion Euros to work with and had already given 420 billion Euros of that to Greece, Portugal, Ireland, Italy, Malta and Cyprus they were up shit creek too.

“We will help out,” said the EUFU boys but we will have to borrow some money from the bond markets. When the bond traders heard who the E U F U boys wanted the money for they fell about laughing.

Undeterred the E U F U went to other European governments but they either fell about laughing or they had no money either.

There was only one remaining option. The E U F U would have to borrow money from the lender of last resort to save the Spanish banks.

And who is the lender of last resort?

The Spanish banks.

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You’ve Got To Love The Craziness Of The Financial Crisis

So Spain was bankrupt. Between a loonytoons green energy policy that paid wind turbine owners for the electricity not generated while the wind was not blowing and solar panel owners foreectricity not generated while the sun was not shining (e.g. at night); a property bubble that saw banks lending money on properties built on toxic waste dumps, areas where motorways and shopping centres were planned within a few years or even on land that did not exist or was under the sea; the usual problems associated with outsourcing work to India and China and general incompetence they were up shit creek. What little money the Spanish government had, it had used to bail out the Spanish banks.

Spain was so up shit creek in fact that the traditional place for governments to raise money to fund their incompetence, the bond market, was closed to the Spanish. Nobody would take their IOUs.

The Spanish Banks were helpful however and bought up lots of government debt with the bailout money the government had loaned them. So helpful were they in fact that they ran out of bail out money. The Spanish bankers asked the EU Financial Stability Fund (the F-U) for a bail out. Instead of saying F U the E U was eager to help and offered a loan of 80 billion Euros.

Unfortunately the E U F U only had 400 billion Euros to work with and had already given 420 billion Euros of that to Greece, Portugal, Ireland, Italy, Malta and Cyprus they were up shit creek too.

“We will help out,” said the EUFU boys but we will have to borrow some money from the bond markets. When the bond traders heard who the E U F U boys wanted the money for they fell about laughing.

Undeterred the E U F U went to other European governments but they either fell about laughing or they had no money either.

There was only one remaining option. The E U F U would have to borrow money from the lender of last resort to save the Spanish banks.

And who is the lender of last resort?

The Spanish banks.

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Where Did All The Money Go
The Black Swan and Economic Voodoo
The Debt Crisis
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That’ll Show Them.

Husband is getting a bit irate watching the rugger.

Most annoying is the fact that Scotland are sponsored by RBS, the british taxpayers bank.

“Never mind” I tell him, “maybe we can make it a condition that if the Scots vote to split from the union they’ll have to buy back RBS.”

Ooooh better late than never.

When I was a slip of a thing there appeared on the windows of a honeymooning couples house,

ONCE A NIGHT ALWAYS A NIGHT
TWICE A NIGHT’S ENOUGH!

In light of this weeks events and what we know of ex Sir Fred’s affairs wrong on both counts it appears.

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