I recommend this video from Max Keiser of the Max Keiser Report, presented by him and his co-host, Stacy Herbert, where he discusses dead whistle-blowers and Hank Paulson, Goldman Sucks, etc. and calls the banksters of the self-proclaimed financial elite “fraudulent, nightmarish psychopaths”. In the second part he interviews Jon Thorisson of Iceland about the new Eva Joly Institute and Iceland’s ongoing fight for justice (it was made the scapegoat for some of the bankster’ crimes in 2008).
For a year of more we’ve had our newspapers and TV screens full of the Greek economic crisis. Now it’s Italy, with it’s £1.6 trillion national debt that it can’t afford to pay the interest on (never mind the principal debt itself).
My point here, and I want to make it quickly as I don’t have much time, is that the Global Elite, that is the Banking families who own and control the banking system in all major countries, are conditioning us to accept a major power-grab on their part.
We all know that the media has been in their hands for decades, if not a century or more, so we can be sure that all the newspapers, publishing houses, economists, radio and TV stations and most other commentators are simply mouthpieces for the Elite, who want to bring their aims of a dictatorial World Government a huge step closer.
Since the start of the credit crunch in 2007 we have all been subjected to relentless propaganda to make us think that the economic crisis is so bad, so huge, with big banks like Lehman Bros going bust and even whole countries like Greece, Italy and Portugal facing Armageddon, that nothing short of international action can resolve it.
The huge debt mountain is the issue. I’ve raised the question elsewhere in this blog of exactly to whom all this money is owed (and it’s not all owed to China). What the Elite are trying to do is to raise the spectre in the minds of the overwhelming majority of people in the West of complete and utter economic disaster, with all its appalling consequences.
And the consequences are likely to be in the form of riots, civil disorder, a possible complete breakdown of each country’s infrastructure and, most menacingly of all, food shortages.
Most people would “pay any price” (now, where have we heard that before?) to avoid all this. That is what the Elite are relying on. Because at the appropriate time they will step forward with their “solution” to this nightmare situation.
And what will that solution be? Why, it will be to hand them absolute power, absolute control, over all matters that up to now have been considered matters to be decided at a national, or even local, level. Part of that absolute power will be to abolish our present form of money, including cash.
Cash has always been the bane of the Elite. Cash, after all, enables the little folk, the ordinary people who form the backbone of any country, to settle their little debts and other affairs between themselves without anyone else (even the taxman, heaven forbid!) knowing. Cash enables us to go about our own business without having to let the parasitic banks and ultimately the parasitic Elite in on the act. No wonder the Elite wants to abolish cash.
So it will be with great relish that they solemnly inform us that, in the interests of economic survival, cash has to be a casualty. A new form of money, in the form of international credit of some kind, the ownership of which they will have assumed for themselves, of course, will be produced for us to use as our means of exchange.
Will this involve the enforced micro chipping of the entire world’s population, as has been suggested by some anti-Elite commentators? I don’t know. That plan may be too much even for the all-powerful Elite at the present time, but with the popularity of “smart phones” sweeping the entire planet I would say that it is quite possible we may all have to have a smart phone if we are to be allowed to survive, and use it as a personal credit card, with all control of how much credit each one of us is allowed resting with the Elite or their power structure.
If anyone upsets the Elite, they simply find their credit, via their smart phone, cut off. Without cash, they won’t be able to buy anything, not even a box of matches. They will be faced with a choice of either starvation or surrendering to the Elite. People like us will be banned from exposing their plotting and manoeuvrings.
What about individual, historic nations like Greece, Italy and Portugal? And what about all nations, come to that? We have long known that the Elite works continually to destroy nationhood, the last bastion of protection for ordinary people from these international power-crazed parasites. Now the Elite sees it as in their power to completely destroy and discredit individual nations and replace them with two or three power-blocs straddling the world, all controlled by themselves. That is why the so-called “European Union” still exists, universally unpopular and rampantly corrupt as it is.
All the former European and North American countries, for long the most viable potential source of opposition to these diabolical plans, will be destroyed, not least by the replacement of their ancestral people with a hotchpotch of African, Asian, Middle Eastern and, most insidious of all, mulatto peoples, all distrusting each other and too engrossed with the innate problems of “multi-culti” to notice that they’re all global slaves, completely dependent on the Elite for their miserable existence.
Anyone with reasonable intelligence, looking at the situation, can see the evil behind it all. Let’s not only spread the word, let’s DO something to stop this nightmare.
Philip Gegan
I don’t endorse all the views of David Icke, but I must say that this video is first class.
The Occupy Wall Street Movement is in grave danger of being hijacked by the very forces that they profess to be fighting. If you sympathise with them, or even if you don’t, then this video is one you just have to see.
This was originally published here in June 2009:
This video I have just been referred to is, I feel, so important, that I have embedded it here and I urge all visitors to this blog to view it.
It lasts just over 10 minutes, and in places you have to read the text quite quickly before it disappears, and you may find the background makes it difficult sometimes, in which case just pause and rewind.
This should be viewed by all intelligent, right minded people of all countries. If the argument presented here is true, and I believe it is, then urgent action is needed on the part of all of us. If enough people like us unite and act in unison quickly then the wretched Rothschilds will be history.
So spread the word, more urgently than ever before . . .
This article was first published in June 2009:
Things have been strangely quiet on the economic and financial front over the last month or more. I believe this is the calm before the next storm, yet it is obvious that many people, including fund managers and other financial professional think this rally will last and last. Let’s see who is more likely to be right.
After the market collapse of late 2008 and early 2009 there was a reversal, and the stock markets of Britain and the US have made substantial gains. In the US the S&P rose 8.54 per cent in March, and has made further gains of 9.39 per cent in April, 5.31 per cent in May and, so far in June, 0.23 per cent. In Britain the figures for these months have been plus 2.51 per cent, plus 8.09 per cent. plus 4.11 per cent and then minus 2.89 per cent so far in June.
Just looking at these figures gives cause for concern for anybody having invested on the basis that the recovery is underway. The highest figure for both indices was for April, with June nearly over and showing stagnant or negative figures. But lets take a brief look at what has been happening behind the scenes at the banks, where all the trouble stems from.
These huge banks, remember, had to be bailed out with billions and billions of taxpayers’ money just a few months ago. This was because they had been on a reckless orgy of lending massive amounts of money to people who had little or no chance of ever repaying it. What have these banks been doing over the last few months? Have they been prudently lending to credit-worthy companies and individuals in order to get their business back on a firm footing so they can start repaying the taxpayer? Have they been exercising extreme caution so as not to make the same mistakes again?
No. What they have been busy doing over the last few months is lending massive amounts of money to people who have little or no chance of ever repaying it.
This sounds incredible, but it’s true. Added to this is, as I wrote last month, the fact that another, bigger barrel load of the brown stuff is set to hit the fan over the next few months and into 2010, and that is the commercial mortgage situation, where borrowers, through no fault of their own in general, are in the process of defaulting in massive numbers, having been hit by the recession and subsequent fall in sales and profits.
Meanwhile in Britain the latest ruse of domestic mortgage lenders is to sell the mortgage to another lender, who then offers to write off a percentage of the loan,typically around 25 per cent, if the borrower will then agree to seek out a new lender to transfer his mortgage to. At least this helps many house owners, who can reduce their monthly payments and overall liability to the money-lenders.
But it shows what a farcical merry-go-round the whole financial system is. The sooner we all wake up to the whole racket and take matters into our own hands, the better. There’s nothing to stop us all issuing our own money, free from debt, and regaining our ancient freedoms.
Just download and read “Promise To Pay” from our home page to get started.
Spread the word . . .
This article was first posted on 27th May 2009:
There’s much talk of the recession ending in another year or so, and things starting to get back to “normal”. This, I’m afraid, isn’t going to happen.
It’s always been said that when America sneezes the rest of the world catches a cold. So when the credit crunch started in the United States with the sub-prime fiasco, it wasn’t long before most other countries started suffering in the same way.
Let’s have a close look at the present situation in the US, so as to gauge whether there is any evidence that the recession may be flattening out or even, somehow, coming to an end.
The US housing market is where it all started, so what’s the situation there? Well, in April 2009 new constructions fell to the lowest level on record, down 12.8 per cent. One of the main symptoms of the recession is that banks, in spite of the billions pumped into them through “bail outs” are refusing, or unable, to lend money to people so they can buy those houses.
They’re unable to lend sufficient money because their assets, in the form of houses, are still shrinking in value. And nobody knows for sure how much longer they’ll continue to fall in value or to what level. Every bank now is in a battle for survival. They have to avoid further losses, even if that means a stagnant business.
Refusing further loans is the easy way out of the mess. So even credit-worthy individuals and businesses can’t get credit. Up to now, a huge part of the banking business was dedicated to lending money to house builders for constructing new homes. US banks have around $700 billion of exposure here. That’s about 70 per cent of their entire capital.
As we know, banks have historically lent up to and beyond ten times the amount of money that they actually have. We needn’t bang on about that again here, but what we’re concerned with is simply that the assets on which most banks have based their ability to create and lend money have shrunk in value and are continuing to do so. This has affected the “liquidity” of the banking system and is the reason why so many banks have failed.
There have been rises and falls in the value of the assets held by banks as security in the past. But nothing like this. This is scary stuff, and is the reason why the economies of many western countries are balanced on a knife edge. No wonder all that matters to banks is their balance sheets. But it gets worse.
The US sub-prime mortgage market, where all the trouble started in the first place, is valued at about $1.2 trillion. That’s the money that, for the most part, is lost. The banks won’t get it back. Most people think that the trouble is confined to that sub-prime mortgage sector – but it’s not!
There’s an even bigger mortgage bubble, and it’s set to burst in the summer of 2009 and on into 2010 in markets known as the option ARMs and Alt-A markets. These are conventional mortgages and commercial real estate loans. And they are two and a half times the size of the sub-prime sector.
All the leading indicators of foreclosure are rising. Probably commercial real estate will go first. The recession has decimated small to medium sized businesses, who are therefore unable to maintain the payments on their commercial loans.
Unemployment in the US has risen to over six and a half million (10 per cent), and in the UK to nearly 3 million, making it difficult if not impossible for vast numbers of people to continue paying their mortgages. And, as we’ve said, the properties they have been occupying, taken as security for the loans, have fallen significantly in value. It’s a vicious circle.
The US commercial real estate market is $3.5 trillion. Sub-prime was about $1.2 trillion, remember? So the coming catastrophe has the scope to be about three times as bad.
On top of all this we have the mountains of debt that have supported our economies in the west for so long. The US and the UK governments are bankrupt.
Take the US. The government has a tax revenue income of around $2 trillion a year. Added to that is around another $2 trillion that it is somehow able to borrow. It has a Treasury Bond Debt (or national debt, if you like) of $12 trillion. Some people maintain the true figure is much higher, but nobody really knows for sure. $12 trillion seems a conservative estimate, but lets stick to that for now.
Added to that is $65 trillion of unfunded social security and Medicare debt and the 2009 budget deficit of $2 trillion. That’s a total of $79 trillion total debt owed by the United States government.
If you, as a private citizen, earned $20,000 a year but had debts of $790,000 (the figures are proportionately the same as above) you’d be not only bankrupt but probably in prison for having obtained money by deception. Even if you could borrow another $20,000 each year it wouldn’t make much difference (though nobody in their right mind would lend it to you).
In the UK it’s not quite as bad, but still pretty awful all the same. Its growing debt burden is expected by S&P to balloon to 100 per cent of its GDP by mid-2010.
It’s a Ponzi scheme, a fraud, a racket. No wonder there’s such a mess. The only question is, how long can total collapse be staved off? That’s the question to ask any ignorant politician or economist who starts seeing “green shoots of recovery”.
Until then, remember – spread the word . . .
Philip Gegan
This posting was first made in May 2009:
Other commitments prevent me from posting to this Blog as often as I would like. Until my next commentary, take a quick read of this item that was sent to me recently – there’s more truth in it than you think.
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GLOBAL FINANCIAL CRISIS
It is August. In a small town on the South Coast of France, holiday season is in full swing, but it is raining so there is not too much business happening. Everyone is heavily in debt. Luckily, a rich Russian tourist arrives in the foyer of the small local hotel. He asks for a room and puts a Euro100 note on the reception counter, takes a key and goes to inspect the room located up the stairs on the third floor.
The hotel owner takes the banknote in a hurry and rushes to his meat supplier to whom he owes E100.
The butcher takes the money and races to his supplier to pay his debt.
The wholesaler rushes to the farmer to pay E100 for pigs he purchased some time ago.
The farmer triumphantly gives the E100 note to a local prostitute who gave him her services on credit.
The prostitute goes quickly to the hotel, as she was owing the hotel for her hourly room use to entertain clients.
At that moment, the rich Russian is coming down to reception and informs the hotel owner that the proposed room is unsatisfactory and takes his E100 back and departs. There was no profit or income.
But everyone no longer has any debt and the small townspeople look optimistically towards their future.
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That’s it until next time. Don’t forget . . .
Spread the word.
Philip Gegan
This article was first posted in May, 2009.
The legendary giant American car-maker Chrysler has filed for bankruptcy. It may be saved by being bought by Fiat of Italy. With General Motors and Ford both still heavily dependent on the US Government for bail-out cash, the US auto industry is now in danger of complete collapse. It will probably join Britain’s car industry in being restricted to the minority top end of the market.
Meanwhile in the UK, where at least £35 billion of taxpayers’ cash has been pumped into bailing out the banks, the chief bankers have awarded themselves around £7 billion in bonuses for having done such a good job over the last 12 months. These people obviously live on another planet where bankers have a right to pay themselves millions of pounds or dollars, drive around in new, expensive luxury cars (imported from abroad), live in spectacular, sumptuous mansions or penthouses, and take frequent, expensive holidays in various idyllic, exotic locations, in return for having nearly bankrupted the whole country through reckless trading and disastrous decision-making in their blind pursuit of profits.
This even puts in the shade (and that’s saying something) the antics of our Members of Parliament, who are busy feathering their own nests with unlawful claims upon the public purse such as allowances for second homes that don’t actually exist, and so on. The list goes on.
Then in another room of the asylum there are politicians claiming to see the “green shoots of recovery”, and saying that before long we’ll be back on track again (i.e. living on credit, on the surface of a fragile credit bubble, ostensibly well-off in spite of not producing anything much and importing most of what we consume).
Back in the real world, what we have is a calamity almost beyond belief. Whole wealth-producing swathes of the economies of the western world – particularly the USA and the UK – have been wiped out. Comparing this recession to the 1930s is a false comparison, because back then both countries had fundamentally strong economies and only limited foreign competition.
Now, taking the UK (where I live) as the main example, we have had most of our coal mines shut down, our oil and gas reserves are dwindling, our manufacturing base has been all but completely destroyed by cheap foreign imports, and our farmers, of course, have always been treated absolutely disgracefully. Agriculture could have flourished here over the last 50 or 60 years, instead of which many farmers have struggled to survive and have been made dependent on cash handouts from the so-called “European Union” for producing crops such as oil seed rape that nobody really wants.
I’m afraid the truth is that there is no real “recovery” round the corner. This recession is a watershed in the history of civilisation. It was inevitable from the moment the easy credit and free trade policies were ushered in some thirty or forty years ago. Nearly all politicians of all major political parties, in Britain, Europe and the US, supported these ludicrous policies and now everyone can see where they’ve brought us.
But it has benefited some people. The “global elite” of David Rothkopf’s “Superclass”, who control western politicians like puppets on a string, must be very pleased with themselves. They love weak, bankrupt governments and industries. It makes themselves more powerful and hastens the implementation of their hidden agenda.
And just what is their hidden agenda? This video clip of an interview of the late Aaron Russo exposing Nick Rockefeller’s admission to him of the aims of the global elite gives us a big clue.
So you know what you have to do now . . .
Spread the word
Philip Gegan
This article was first posted on 21st April 2009:
I haven’t been able to make this post as soon after the G20 Summit as I would have liked, but it’s not too late to have a look at what happened there and the communiques issued after it finished.
What has this Summit achieved? The media here in the UK dwell on the demonstrations that took place in London near the conference, and the alleged police brutality in their handling of protestors. That is about as far into the effects of the Summit on ordinary people as the mainstream media is likely to go. Hence this blog entry.
Probably none of those participating in the demonstrations had any idea of the real reasons for the financial crisis or of the existence of the Money Power or the “Superclass” of David Rothkopf’s book of the same name. This ignorance is a great pity as the Money Power is undoubtedly behind the current economic crisis and pulls the strings of the politicians attending summits such as this.
Those of us who have come to be aware of the Money Power and their “Superclass” colleagues, and their plans for total world control, have a duty to inform as many people as possible of what is really going on.
So let’s start by taking a look at one of the communiques issued at the end of the G20 Summit. The main document is around 3,000 words, is proudly entitled “The Global Plan for Recovery and Reform”, and has an explanatory guide and two declarations accompanying it.
Anyone looking for real-world solutions to the crisis, or even just something that addresses the real problems caused to real people by the financial train wreck of the last 18 months, is going to be disappointed. Asserting that this is the “greatest challenge to the world economy in modern times”, it opines that “a global crisis requires a global solution”.
This might sound grand, but it simply isn’t true. Since when has there ever been a “global solution” to anything? What we have is a situation beyond the comprehension of the so-called “world leaders” who attended the conference. These puppets think they can each hide their own ignorance of what has caused the crisis and what must be done to resolve it by going through the motions and attending all the meetings that every other “leader” is doing, so that when it all unravels in an even greater crisis they are all lost in the crowd when it comes to culpability.
There then comes the incredible statement that “prosperity is indivisible; that growth, to be sustained, has to be shared”. Well, I have news for whoever drafted that piece of nonsense. Prosperity is not indivisible. It comes to those that work for it. And growth does not have to be shared in order to be sustained. Of course, those that work for, and obtain, prosperity, regularly have it taken from them by interfering and corrupt socialistic governments so they can give some of it to non-productive freeloaders in order to bribe them and obtain their votes at the next election. This they call “sharing”. It’s called robbery and corruption where I come from.
The next gem comes in the same paragraph, stating that “We believe that the only sure foundation for sustainable globalisation and rising prosperity for all is an open world economy based on market principles, effective regulation, and strong global institutions.”
There are a number of howlers here. The first point is that “globalisation” is neither desirable nor sustainable. It simply means that manufacturing takes place in those countries with the cheapest pool of labour, and the working men of every country have to compete with each other for work by being prepared to accept the lowest possible wages. Taken to its logical conclusion, every time the workers of a particular country or region gain supremacy in any particular market (as with China and the electronics industry today) then before long there will be competition from some other country or region where the workers are prepared to accept even lower wages until everyone ends up working for virtually nothing. Wonderful, eh?
An “open world economy based on market principles” is not only the economics of the jungle, where any labour force in the world can be made to undercut the local labour force and cause massive social disruption through unemployment and factory closures and bankruptcies, it’s also the very thing that caused the economic crisis to spread across the world in the first place.
“Effective regulation and strong global institutions” means more of what we’ve had for the last sixty years, and smacks of Orwellian dictatorship spread over the whole world, from which there can be no escape. What about strong nations? What about independent nations? They’ve been the guarantors of individual freedoms in the past, but now they’re all debt-ridden and weak, and only global institutions under the control of the Money Power are strong. Globalisation
ultimately means global totalitarianism.
I’ve covered less than half a page of the eight page report, so I don’t propose to go on much further. You can see that it is just what can be expected from ignorant politicians pretending to know what they are dealing with. Platitudes such as “restoring confidence”, “restoring lending” and “reforming our international financial institutions” abound, but strangely the word “debt” only occurs twice in the document. Don’t get excited, though. The first mention only
relates to debt relief, not for the likes of us, but for sub-Saharan Africa, and the second mention is in the context of the “Debt Sustainability Framework” (i.e. making sure everyone can be made to continue paying homage to the Money Power by paying their debts and the interest on them).
Plainly the authors of this shoddy report are only concerned to get world conditions back to where they were before the credit crunch struck. Except with even stronger powers for international financial institutions. And they propose to do this by making “additional resources” of $1.1 trillion available through “fiscal expansion”. Since they’re incapable of producing this amount in real wealth, they propose to produce it by borrowing yet more fiat money. Rather like
the “quantitative easing” that the Bank of England is treating us to here in the UK. Yes, that means creating more debt-money out of nothing as well.
Finally, as if that weren’t enough, the politicians comprising the G20 group of finance ministers and central bankers propose to actually increase the debt burden on “developed” countries (i.e. Western Europe and North America – until recently the most productive countries ever) even more by forcing them to fund “Multilateral Development Banks” to funnel money to “low income countries”.
What this means in plain English is that we in the west act as guarantors while the international financial institutions, owned by the Money Power, make large loans to third world countries, so they can pay this money to Money-Power owned multi-national corporations for setting up factories in their countries to export cheap manufactured goods to us in the west. We in turn will pay for them
twice over, once by buying them in the first place, and again by repaying the loan to the financial institution when the third world country defaults.
If the politicians who attended this conference didn’t have the protection and patronage of the Money Power and the so-called “global elite”, the Superclass of David Rothkopf’s book, they would, in any sane society, be rounded up as dangerous lunatics and criminals.
Until the debt based system of finance is overthrown and sound money introduced throughout the world, we are going to be faced with soaring levels of debt and taxation, social strife, non-accountable financial and governmental institutions with draconian powers, and grinding poverty for the vast majority of our people.
Better read Promise To Pay and start spreading the word now.
Philip Gegan
This article was first posted on 27th March 2009.
Since the start of the economic crisis in 2007 it has sometimes been puzzling to commentators such as myself as to why some huge banking corporations have allowed themselves to get into a situation that has led to them becoming insolvent.
Huge, international banks like Goldman Sachs, Deutsche Bank, Merrill Lynch, RBS, Morgan Stanley, Bank of America, Barclays, Lloyds and Lehman Bros, to name just a few, have either gone completely or are now dependent for their continued existence on injections of bail-out cash from the already bankrupt US and UK governments. That’s an anomaly if ever there was one, but let’s continue on this track for the moment.
These rotten, corrupt institutions that have traded in debt and human misery for so long are the vital money-power arm of the “global elite”, the existence of which is always denied by politicians and journalists but has been frankly admitted by David Rothkopf in his book, “Superclass” (available from Amazon). I cannot recommend strongly enough that you buy and read this book. It will forever lift you away from the make-believe world that the media would have you believe in and let you in on the real world of power politics.
Even though it is written from the smug, self-satisfied viewpoint of an “insider” who thinks the “global elite” have a right to enrich themselves and amass absolute political power over the whole world, nevertheless this is a book that reveals some of the shady, evil characters and organisations that are working tirelessly to enslave the rest of us into a worldwide gulag from which there can be no escape other than death. Unless, of course, you happen to be very rich, and even then you’ll have to obey the rules or face the consequences. It should be compulsory reading for anyone intending to go on to further or higher education.
But back to the main point. The puzzling thing about the credit crunch has always been this – why would the super-rich global elite put their financial institutions on the line and let some of them go broke? They must have been aware of the “sub-prime mortgage” scam early on. In fact they probably started the whole process in the first place. So why did they let themselves lose some of their financial vehicles altogether, and put many of the remaining ones at the mercy of various cobbled together “bail out” plans?
The truth about this aspect is now beginning to surface. But before I come to it, let me explain what I believe has been happening behind the scenes. The global elite decided to take a major step towards consolidating their hold on the economies of all countries. They also at the same time wanted to rid themselves of what they deemed was too much competition in the financial markets, especially in the US, where there have historically been hundreds of small, independently owned banks.
Now it’s true that all these small, independent banks in the US are controlled by the Federal Reserve System and regulated as to how much of their capital they can loan out to customers and at what rates, and so on. But nevertheless the elite decided that they didn’t want them around any more.
The majority of these independently owned banks have, amazingly, been run prudently, even over the last few years when huge Wall Street banks have been falling over themselves to lend fictitious money to people and institutions that had no chance of ever repaying it, and buying expensive packages of toxic loans. These small banks, for the most part, carried on “business as usual”, and refrained from copying their irresponsible larger counterparts.
You would think that these small banks would now be in a very strong position. They have proved their worth and their business acumen in managing to keep out of the train wreck that the large, international banks have caused. And indeed they should be in a strong position. But in this insane world in which the global elite have very nearly total power, these prudent banks are about to be obliterated. This is exactly what the global elite want, so let’s see how they’ve managed to engineer it.
All the politicians and media people tell us that we just have to save the big banks and the financial system at all costs. No bail-out package is too expensive because the alternative to saving these financial institutions is unthinkable. That’s what we’re supposed to believe. So we’ve had one bail-out package after another (none of which will do the slighted good to the ordinary citizen or to productive industry) and the amounts involved have been just enough to keep most of the big banks in existence. Those that have gone, such as Lehman Bros, I believe were expendable to the money power. Besides, one or two banks had to be sacrificed just to show the public and governments that the situation was serious enough to justify all those billions being pumped into the system.
But there was not quite enough bail-out money to save some of the banks, and this was quite deliberate. The American insurance giant, AIG, was among the institutions that received billions of tax dollars, and much of this money went straight to the big banks that were in trouble and who had insured various deposits and financial deals that went bad. Now AIG isn’t the only institution that insures deposits at banks. The other such body is the FDIC, the Federal Deposit Insurance Corporation.
The FDIC insures the deposits of millions of ordinary Americans at their banks. If a bank were to become insolvent the FDIC would pay out any losses to depositors. But many of the customers of the FDIC are Wall Street banks that have become insolvent through their own recklessness. The claims that the FDIC is now facing are so huge that it would itself have to close its doors, and if that happened, and millions of Americans lost all their savings, there would be a danger of widespread public outrage, hunger, famine and even blood on the
streets.
But the FDIC is not favoured when it comes to bail-out help from the taxpayer. What it has to do, therefore, in order to cover its liabilities, is to massively increase the premiums that all banks pay each year to be covered against the risk of failure. The big Wall Street banks will be able to cover this, thanks to their trillion-dollar hand-out from the US government’s printing presses (via the Federal Reserve loan system, of course), but what about the smaller, well-run banks in middle America?
They simply won’t be able to pay the surcharge demanded of them. Most, perhaps all, will have to close their doors and face being taken over by – guess who? Yes, the big Wall Street banks that behaved so recklessly over the several years leading up to the credit crunch.
This, when it happens, will be just another example of logic being turned on its head to suit the money power, the financial arm of the so-called “global elite”. They will then have tighter control over the finances of millions more ordinary Americans. And we should all know by now what that will mean . . .
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Have you downloaded and read “Promise To Pay” yet? Written by Dr R. McNair Wilson in the early 1930s, at the time of the Great Depression of the twentieth century, it will show you in straightforward language how the banking systems of the western world are a racket, used by the money power / global elite to amass wealth and power for themselves at the expense of everyone else. Go to our home page now to download.
And then . . .
Spread the word.
Philip Gegan
The following article was first posted on 16th March 2009.
“Globalisation” has been the in thing for establishment economists and dumb politicians for years. According to them it is largely responsible for our so-called prosperity over the last 50 years. They are in a state of shock that the recession has hit in spite of the massive globalisation that has taken place. But let’s cut away the rubbish and have a look at how things really are.
Economic globalisation and the economy downturn are almost like two sides of the same coin. So how is it most people are unable to see it that way? How many people can actually say they know anything at all about “globalisation”? It exists in the public mind as only a hazy idea, even a good one, for, so it is thought, it is the reason why we can buy all those mouth-watering, must-have gadgets in their colourful packaging for such low prices.
Here in the UK, and I know in most other western counties as well, we have in our shops and showrooms cars, TVs, electronic gadgets and household goods that have been manufactured for the most part in the far east. Certainly nearly all the manufactured goods you can buy are made somewhere overseas. Why should this be?
Because these manufactured goods are cheap. They have undercut our own manufactured goods for so long that all the factories that used to make these goods have had to close down. The men and women formerly employed in these factories have either become part of the long-term unemployed, funded by the tax payer, or have had to become shelf stackers at a supermarket, or take up other, non-wealth-producing roles in order to survive.
And all because of “globalisation”, which has made it possible for multi-national corporations to switch production from western countries, with their higher labour costs, to places like the far east, where the labour force works long hours and is prepared to accept wages that we in the west could never live on. Take China, for example. Their workers are happy to be paid the equivalent of $50 or so a week, often less, and the Chinese government is happy to have a healthy trade surplus and comparatively full employment.
But with these cheap consumer goods comes a fatal side-effect. Anyone with a couple of brain cells to rub together knows that we really should be making these products ourselves. After all, we in the west for the most part produced the technology and the genius that led to the invention and development of these electronic marvels in the first place. So it’s only right that our own country and our own people should benefit from the profits they earn. But under “globalisation” this doesn’t happen.
Instead, the manufacturing rights of every invention, every new development, either belong to a multinational corporation, through its research and development programme, or are purchased from the original inventor. The goods are then produced in a far eastern country while we in the west are saddled with high unemployment and all the social problems that go with it.
Meanwhile, we carry on purchasing most of the goods we need from overseas. How long can we go on indulging in this lunacy before we as a nation run out of foreign exchange to pay for them?
This has actually already happened. Both Great Britain and the United States are effectively bankrupt, unable to repay their foreign loans if repayment were demanded. This is probably the main reason why China, for example, as the leading creditor country of both countries, will never demand repayment. If it did, both the UK and the USA would be forced to default.
This would lead to a massive devaluation of the pound and the dollar to render them worth only a fraction of their previous value. And this would be disastrous to China, whose foreign reserves consist mostly of these two currencies and whose economy therefore depends on the present charade continuing ad infinitum.
Already the recession has impacted this arrangement. Spiraling unemployment in the west has led to a collapse in demand for consumer goods, and this in turn has led to a sharp rise in unemployment in the far east including China.
Economic globalisation, long held dear by establishment economists and ignorant politicians, is proving to be a disaster for every country. It’s the modern-day equivalent of “free trade”, which caused so much suffering to the working classes of western countries throughout the nineteenth and twentieth centuries. It embraces the “free movement of labour” and the “free movement of capital” that are policies enshrined in the treaties of international bodies such as the corrupt, so-called “European Union”.
What these fine-sounding slogans really mean is that huge, international manufacturing corporations responsible for producing everything from cars and computers to essential medical and technical equipment, and everything in between, are free to slash their labour costs by moving production to the far east (“free movement of capital”) and if the poor, wretched working people of the west find they are subsequently out of work, why, they can move around the globe until they find a job (“free movement of labour”), provided they will accept the lowest wages being paid anywhere.
The collapse in manufacturing capacity that this process has brought about in western countries may have benefited the “Superclass” of David Rothkopf’s book, who undoubtedly own and control most of the world’s wealth, including its productive capacity. But it has been disastrous for individual nations, including the ordinary working folk. The cost is not just financial, but social as well, as unemployed youngsters with no future turn to drugs and crime,
encouraged to do this as they are by insanely liberal criminal laws.
Next time you hear some university professor or politician praising globalisation / free trade or warning us against “protectionism” you may want to challenge them along the lines set out in this blog post. Before you do, make sure you have downloaded “Promise To Pay”, available free of charge from our home page at Ancient Banking Secret.
And then . . .
Spread the word.
Philip Gegan
This post was first published in February 2009.
Here in the UK our kept politicians have well and truly lost control. The latest lunacy in trying to cope with the economic crisis is to pump yet more money into the rotten banking system, whilst what is left of our productive industry suffers from cash starvation.
£250 billion is to be handed over to each of Royal Bank of Scotland and Lloyds Banking Group. The latter, having survived comparatively unscathed from the crisis until as late as September 2008, were then daft enough to buy some of the more toxic “assets” of another banking casualty, HBOS.
The funny thing is that they did that after coming under pressure from our (then) Prime Minister, Gordon Brown, to do it, and it’s he who now puts himself forward as being just the man to sort out the mess. Trouble is, he himself had a large part to play over the last 8 or 9 years in creating the credit bubble, the bursting of which has precipitated the present crisis.
The handover is expected today or tomorrow, ahead of the announcement of catastrophic losses by both banks, so as to cushion the effects on the foreign exchange markets.
Debt Slavery
This half a trillion pounds of additional government debt makes the total amount poured by the UK government into the banking system around £1.3 trillion – about the same in value as the UK’s total annual output. So we in the UK would have to work for a full year and sell all our produce overseas in order to pay off all the money borrowed just to salvage the financial system.
Back in the real world, the retail sector is fighting to survive by offering deals of half-price or less on nearly all their stock. That effort has nearly run its course and the massive redundancies that are inevitable have now started in earnest. Local authorities, many of which have lost massive amounts in Icelandic banks, are grimly holding on until April and the start of the next financial year, when revenues traditionally start coming in again.
Where will it all end? Some group of people know, and it’s a group of people who aren’t concerned about your future or mine. In fact they are only concerned about themselves and their own hold on world power. A clue was given us in a news report this morning in which the Australian media magnate Rupert Murdoch, undoubtedly one of the 6,000 or so people who really run the world, was quoted as saying, “We are in the midst of a phase of history in which nations will be redefined and their futures fundamentally altered.”
That sounds ominous indeed. It gives proof, if it were still needed, of the existence of the “Superclass” of David Rothkopf’s book of the same name, and the truth of the conspiracy attested by Aaron Russo in a posting on YouTube.
What can we do to expose this evil? Read that book, watch the video, download “Promise To Pay” from this blog’s Home Page, and . . .
Spread the word.
Philip Gegan
This post was originally published on 20 February 2009.
The notion of having our economies based on debt has been around for hundreds of years, perhaps longer. Here in the UK we had it foisted on us in 1694, when the Bank of England was established to lend the government of the day £1.2 million to help finance the perennial wars against France.
The chief architect of this system at that time was someone called William Patterson, whose motto was “Thus you labour, but not for yourselves”. In other words, “You do all the labour, and I’ll receive the rewards”. Such arrogance is breathtaking.
Soon the government found that it actually owed not £1.2 million, but £20 million, and then £30 million, and a few years further on it topped £100 million. This became known as the National Debt which, like the poor, is always with us. Because successive politicians who aspired to government learned that this was the way to raise money needed by the government.
“Every Loan Creates A Deposit”
Sure, they sold government bonds to the public as well. But the vast bulk of government debt, or “gilt-edged securities”, were bought up by private bankers and the Bank of England. And how did they get the money to lend to the government? Well, since “every loan creates a deposit” under the topsy-turvy laws of banking, the very fact that the government owed them more money provided the “capital” for the money lenders to be able to lend out even more (and collect the interest and stipulate terms).
So the power and influence of finance, and, later, international finance, over the affairs of nations grew like a cancer. And now, in the UK, it has just been announced by our Office of National Statistics that the National Debt, having been just over half a trillion pounds only a few months ago, has now topped £2 trillion.
That’s two thousand billion pounds, or £2,000,000,000,000. It’s a figure that few of us can even imagine. And to pay it back we would have to hand over all our Gross Domestic Product for several years. Even if that were possible in terms of all of us foregoing all food, clothing, shelter, and other essentials, not to mention luxuries, we would run out of money long before the debt was repaid.
Even Worse In The US
In the United States the situation is if anything even worse. The National Debt of the United States is now around $65.5 trillion. That’s about the value of its Gross Domestic Product for four years, or more than the whole of the wealth produced by the whole world in a year.
We all know instinctively that this just isn’t right. Why should national governments, rightly answerable to the people every few years when elections come round, have to borrow the money they need (over and above what they raise by taxation)? Most people think that governments either issue their own money or control and own the Central Bank that merely does this as a task on behalf of the government.
But that’s not the case at all. Although much has been made in the controlled media of the Federal Reserve, in the US, and the Bank of England, in the UK, “printing” money, that is really not the point. Of course some institution has to “print” money – it’s a man-made invention. Tokens for the exchange of wealth, articles of value, and so on, to facilitate trade, are an essential commodity in any modern civilization.
All New Money Is Debt
Where the divergence takes place, between what most people think happens and what really happens, is how the newly created money is treated. And how it is treated is as a debt, owed to the shadowy figures who control the money system. They are the people to whom, under this racket, all this money is owed.
Of course only a tiny fraction of all this debt will ever be repaid (which makes the whole system all the more ridiculous). But, again, that is not really the point. The shadowy figures, the money power, or whatever you want to call them, are more concerned with power than with getting this “money” back. They only created the money out of thin air anyway (it’s laughable to think they pretended to have a few hundred billion at a time lying about to lend out to governments in a financial crisis).
But it’s the interest payments, running at an astronomical figure each year, and the power over governments, that international finance, and their lackeys among the global elite, thrive on.
This unelected, unaccountable elite create the credit by which we all are their debtors. If not on a personal level then as taxpayers, where our tax money is largely used simply to service these fictitious loans. Let’s do all we can to expose this evil system and the shadowy figures who exercise such terrifying power for their own sinister ends, such as shown in this video of the famous film maker, Aaron Russo.
So . . . Spread the word!
Philip Gegan
This post was originally posted in February 2009.
It’s unfortunate that it’s taken the current recession, with all its bankruptcies, bailouts, tax increases, lay-offs and other tragedies, to more easily explain to people what a racket the economy really is.
People like me have been telling anyone who’ll listen for the last 40 years or so that the economy (in my case of the UK, as that’s my country) is fatally flawed, and that there’s going to be an almighty crash eventually.
The response is usually quite sceptical. After all, when times are good and the economy is booming, everyone seems to have a job and all the shops are open, it’s difficult to believe that it’s all based on a bubble that will soon burst.
The Demise Of Manufacturing
But that’s what has happened. I discussed in my last post how we in the west don’t manufacture much ourselves any more – it’s all imported, mostly from China and other Asian countries. The economy shifted over the years from being a manufacturing based one to, well, it’s difficult to say what it has been based on for the last 40 years or so.
With the demise of manufacturing, the economies of most Western countries have come to be based around big, lucrative, projects, usually involving defence contracts or building contracts, and similar devices. With such a lot of money being shovelled around in these projects, it’s not surprising you soon had the usual band of freeloaders and parasites creaming off the profits.
It became a paradise for the accountants, tax advisers, lawyers, brokers and all the other in-betweens that are attracted to easy money. This itself helped create a boom in the City and all the financial institutions. Money flowed around, in and out of the country, and while our factories and mines shut down the suits in civvy street prospered and paid themselves million pound bonuses.
Corruption blossomed. And as often as not it involved the very people who are supposed to be looking after our national interests – our ministers, MPs and Councillors. Examples of all this have been in the national newspapers nearly every other day for many years now. While the wheels came off the wagon the party inside carried on as if there were no tomorrow.
Reality Pops Up
Now the wagon has crashed with little hope of repair, many of the party goers have suddenly come face to face with reality – you can’t carry on for ever pretending to be wealthy when you no longer produce any wealth to speak of. The bubble has burst. The only surprise is that it took so long.
And the real tragedy is that, until enough of us can organise resistance, the global elite / money power will continue to pursue their aims of global domination while ordinary folk suffer the consequences.
So for that reason, make sure you’ve downloaded “Promise To Pay” and are distributing it far and wide, and that you’re doing all you can to . . .
Spread the word!
Philip Gegan
Note: This blog post was originally posted in February 2009.
The credit crunch might be the immediate cause of the economic crisis engulfing western countries, but most of the damage from which we are all suffering can be laid at the door of the doctrine of “free trade”.
All western countries, and many other industrialised countries as well, are well and truly into a full blown recession, and this is blamed on the credit crunch, which in turn is blamed on the activities of leading western banks in recklessly extending credit to uncreditworthy borrowers who then defaulted.
The value of the houses and other assets taken as security for these loans plummeted as the crisis took hold and money dried up, thereby leaving the holders of those securities effectively with nothing.
The holders of the securities had by then come to include investment and pension funds, hedge funds, and many other kinds of investment vehicle, all of which had purchased these “assets” from the wily bankers, and as a result the whole mess has affected nearly everyone throughout most of the industrialised world.
All this would have been bad enough, but the crisis has been made much worse by the policy of free trade that has been pursued by most western countries over the last 60 years or so.
Free Trade The Modern Holy Cow
Free trade is one of the sacred pillars of economic liberalism that has held sway in all western countries in that time. All the universities, all the media, all the policy making institutions believe unquestioningly in free trade. Anyone raising concerns about it is universally attacked and condemned as a parochial country bumpkin who wants to raise trade barriers, impose unnecessary tariffs that will raise prices and penalise the less well off, and pull up the drawbridge to cut ourselves off from the rest of the world.
Thoughtless politicians and newspaper editors on the make quickly grasp which way the wind is blowing on this, and trumpet the usual claims of free trade advocates. Free trade, they say, will bring disparate peoples closer together and make for international understanding and co-operation, and thereby international peace.
In fact the opposite is true. Free trade benefits nobody except the global elite who control the international banks and the money power. Unless it is challenged quickly it will lead to worldwide wage slavery, whereby all workers have to compete with each other to work for the lowest wages. So workers in advanced industrial countries will have to work for the same wages as sweated labour in south east Asian sweat shops, if they are to survive.
What “Free Trade” Really Means For Us
Just think what free trade has brought us here in the UK over the last 60 years (and this has been largely mirrored, even if not to such a large extent, in most other western countries).
Back in the 1950s and 1960s, we were still benefiting from the large scale destruction of much of our international competition in the wake of the Second World War. We might not still have been the “Workshop of the World”, as we had been throughout the nineteenth century, but we made most of the manufactured goods we needed, and exported plenty more. Foreign cars were seldom seen on our roads. Televisions, radios, all electronic and consumer goods, white goods (washing machines, etc) and almost every other kind of manufactured consumer goods were made here in our own factories.
Unemployment was low and the economy boomed. We were still saddled with the parasitic debt based economic system we have had since 1694, but nevertheless we could support that and still have a generally high standard of living with comparatively little poverty. Our balance of trade was favourable as we exported in value more than we imported, and the pound (our currency) was strong and commanded a high level of purchasing power overseas. The country was generally regarded as still being a rich country.
It was easy for anyone to say that we were thriving in a free trade environment. But that would not have been completely honest, because the environment was still distorted from the effects of the Second World War. Over the years the economies of other countries grew stronger as they recovered from wartime damage and invested heavily in modern factories and production methods.
In particular Germany and Japan recovered as they finished rebuilding their infrastructure that had been ruined in 1939-45. Gradually, through free trade, more and more UK industries came under pressure from imports that were priced below their own products. The downward pressure on wages caused industrial strife as unions fought to keep wages high for their members.
Industrial Decay
Capital for investment in new technology dried up as sales fell. More and more we saw foreign made cars and motorbikes on our roads. Foreign made goods came to dominate in our shops and showrooms. Our factories became outmoded and struggled to survive before eventually closing down, with all the redundancies and human tragedies which that always brings.
Now we produce hardly anything. Our industrial production is confined largely to specialised, capital intensive manufacturing, such as aero engines and specialist heavy weaponry, that the rest of the world has neglected in its pursuit of markets that return quick profits. Virtually all the consumer goods in our shops are imported from abroad. And the few car factories we still have are almost completely owned by foreigners, such as Toyota, Honda and Nissan.
So what has all this to do with the credit crunch? Simply that the economic tsunami hitting us right now is much worse than, for example, in the 1930s, when at least we had an industrial base from which we could eventually launch a recovery to bring prosperity back to most of our people. Free trade has destroyed our capacity to produce industrial goods. It means there is nothing to help us find a way out of the mess.
A Revolution In Thought
The solution is simple in theory, though in reality it won’t be accepted without a revolution in thought. That is unlikely while the present political system favours establishment politicians who aren’t particularly bright and who are easily corrupted into compliance.
But nevertheless what we have to do, all of us in our respective countries, is to work for protection for our own industries, so they can survive and help us towards prosperity. This means imposing tariffs on imported goods that we could and should be making for ourselves. The money raised should then be invested in building our own industries once more so they can provide for the needs of our own people, including jobs and security.
There is not the time or space to go into all the details here. The subject is covered very well in Promise To Pay, by Dr R. McNair Wilson, available without charge from our home page. I urge you to download and read it. And to do all you can to fight this evil system and the monstrosity of “free trade”. So . . .
Spread the word . . .
Philip Gegan
This blog post was first published here on 22 January 2009.
As in most countries, here in Britain the credit crunch is continuing to cause havoc, and it’s now got to the point where the bigwigs are starting to blame each other for the debacle.
In the UK repossessions of domestic homes has risen by 92 per cent on a year ago, and on average one family is evicted every 10 minutes. Two and a half thousand jobs are lost every day. Those figures reveal a national disaster as well as a human tragedy every time a repossession or lay-off happens.
Financial Services Authority chairman Lord Turner announced that finance ministers around the world had failed to heed all the warning signals. We’ll gloss over the fact that Lord Turner himself also failed to issue any warnings, in spite of all the signals he claims to have seen, until it was too late.
Even the Queen is reported to have asked one of her ministers, “Why did nobody see it coming?”
Well, ma’am, with respect, some of us DID see it coming and did what we could to warn everyone. But nobody was interested.
How far will the downturn go? Everyone’s trying to estimate when the “recovery” will start and we can all get back to work and normal life. But if one thing is certain at the present time it is this – if a recovery does come it will be weighed down with even larger debts than we have already. It is the level of debt, more than anything, that prevents trade and industry – all the activities on which we all depend for prosperity – from providing the wealth that needs to filter down so all levels of society benefit.
How can anyone talk of a recovery without also mentioning the debt system that caused the crisis? The national debt of all leading countries, the debt level of all municipal authorities, the borrowing of companies and corporations, big and small, and individual levels of debt, even allowing for bankruptcies and debt write-offs, will all be at record levels. This will require payment of a larger and larger proportion of earnings as interest and repayment instalments to the banks. How can real wealth be created and shared equitably in this kind of economic environment?
This is a burden that will drag down and destroy our whole civilization. So the question is, will this happen now, or after the next cycle of boom and bust? And can we who know what is going on organise a sufficient level of opposition to this gigantic racket to bring it down before it destroys us all?
Start the opposition to this whole evil system by reading “Promise To Pay”, the classic work from Dr R. McNair Wilson, available without charge from our home page.
Spread the word.
Philip Gegan
This blog post was first published here on 7 January 2009.
It appears now that the bailouts of late 2008 may not have been enough to save the banking systems of the US and the UK, not to mention major corporations like Ford and General Motors.
Major manufacturers in the West have been crippled by the free trade policies of the last sixty years whereby cheaper foreign imports have been allowed to flood the home markets, driving down prices and destroying profits, leading to factory closures and job losses.
The banking system has simply shown itself to be unworkable. Governments can pump all the money in the world into this corrupt setup, but it will never work. Although it is euphemistically called “taxpayers’ money” it is in fact merely fictitious money created by the central banks and lent to governments at interest so it can be “invested” in the banking system again.
It is a ludicrous merry-go-round and the only winners are the private banking families and their agents. Read what they think of the rest of us and what they plan to do next in David Rothkopf’s book, Superclass. And it you haven’t already, download and read this free Guide to this most pernicious economic system we’re all currently trapped in – Promise To Pay, by Dr R. McNair Wilson. And . . .
Spread the word.
Philip Gegan
This article was first posted here on 18 December 2008.
Many aspects of the so-called “bailout” of the corrupt banking system of the US and the UK, and probably most other countries as well, have never been properly explained or subjected to close scrutiny.
For example, Goldman Sachs, the US investment bank, went cap in hand to the US government for a life-support share of the bailout fund and received the equivalent of £6.5 billion. Now we hear that this bank is paying bonuses to its London staff totaling some £4.3 billion, almost two thirds of what it has taken from the US taxpayer, supposedly to enable it to simply survive.
What does this tell us? Well, it tells me, for one, that the people who run this bank live on another planet. How can any institution receive a huge amount of public money from the taxpayer on the grounds that otherwise it will fold and carry thousands of other organisations down with it, and then just a few weeks later pay out two thirds of that huge amount to its key employees as a bonus for doing so well?
Apart from being morally repugnant, it just doesn’t add up, does it? Especially when you consider that the US government itself is bankrupt, in debt to the tune of so many trillions of dollars that it is virtually impossible to calculate or comprehend the true amount.
So why does a bankrupt organisation (the US government) give billions of dollars that it doesn’t have to another organisation that then fritters most of the money away on bonuses? And in a time when the rest of us are having to tighten our belts and cut costs wherever possible.
The truth is that the international money power that owns and controls the world’s central banks (Federal Reserve, Bank of England, etc) love weak and bankrupt governments. In the credit boom of the last ten or fifteen years it was becoming a little bit too easy for western governments. Perhaps they weren’t doing everything the way the private banking families wanted them to. They were beginning to get just a little bit out of control.
So what does the money power do? Naturally it pulls the rug from under the credit boom by cutting off further credit to its agents and apparatchiks (the big banks like Goldman Sachs, Lehman Bros, etc) and precipitates the credit crunch. Before long these big banks and major corporations like Ford, Chrysler and General Motors are begging the government for bailout money to survive.
The social and economic cost of allowing these institutions to go under is too high, so the government has to mortgage its future even more by lending or granting billions of dollars to them. This means borrowing even more from the central bank (Federal Reserve). The government is now tied even more securely to international finance.
It has to either restrict public spending, thereby worsening the crisis immediately and risking social and racial unrest. Or it must increase public spending to try and spend its way out of recession, thereby plunging itself into even more unprecedented levels of debt that will take forever to repay and making the situation much worse in the long term. This applies, of course, not just to the US government, but to all western governments.
So the credit crunch means hard times for everyone except the very people who caused it in the first place. The private families, the close-knit group of around 6,000 people who really rule the world (see “Superclass” by David Rothkopf, available from Amazon) have never had it so good.
Read the truth about international finance and the money power by downloading our free guide, the classic “Promise To Pay” by Dr R. McNair Wilson, from our home page.
Spread the word.
Philip Gegan
This article was first published here on 15 December 2008.
When the US unveiled its “Bailout” plans in October and it emerged that at least $700 billion was to be created, borrowed by the US Government from its creators, the Federal Reserve, and pumped into the US economy, many commentators forecast that because of this the US dollar would plummet on the foreign exchanges.
But they failed to take into account the fact that nearly every other country would follow the Americans in inflating their own currency as well, to try and spend their way out of the financial crisis. The result has been that many currencies have been devalued even more than the US dollar, which as a result has come out of the mess so far quite well.
The full effects of the madness of the October “bailout” will take another few months to filter through into the economy at large, both in the US and in other western countries. When it does, inflation, which has been artificially kept in check on account of endless “sales” and “special offers” from the retail sector, itself desperate to stimulate sales and fend off financial disaster, will take off with a vengeance.
This will make worse an already dire situation for millions of people struggling to survive in the face of rising business failures, redundancies and house repossessions.
How can we protect ourselves from the disaster now unfolding?
We’re all in different situations so only general comments are possible. Stay away from debt as far as possible. That applies to any time, not just this traumatic period. Assess your financial situation realistically and if necessary cut your expenditure on luxuries in order to balance your budget.
If you have medium to long term savings then consider putting them into gold. Real gold, and not just gold certificates (which can be manipulated in the same way as currencies). Currencies can be printed and thereby expanded at will. This decreases the value of savings. Gold cannot be printed. As weak governments borrow and borrow to try to fend off the financial collapse, gold is bound to increase in value.
It’s now very easy to buy gold. You can easily find out how by searching on the internet.
And don’t forget to download the classic guide to High Finance, “Promise To Pay”, by Dr R. McNair Wilson, free of charge from our Home Page. For an excellent article revealing the background of the Credit Crunch, take a look at this while it’s still archived by the Times’ web site -
http://www.timesonline.co.uk/tol/news/uk/article4795063.ece
Spread the word.
Philip Gegan
This article was first posted here on 5 December 2008.
My apologies for the length of time since my last post, this having been due largely to transferring all my data and programs to a new PC.
I said last time I would talk about a real alternative to the “bailouts” of the US and UK governments. Let’s first, though, have a cold, hard look at what our governments have done to try and deal with the financial crisis.
Broadly speaking, the National Debts of the US and the UK have in just the last four months doubled in size. Here in Britain, after years of priding himself on his financial prudence in keeping public borrowing under constraints, Gordon Brown has embarked on a reckless borrowing spree. He has used most of the borrowed money to buy stakes in Britain’s major banks – Halifax Bank of Scotland, Royal Bank of Scotland and Bradford and Bingley being the largest and most well known.
Now he is set to spend another £1 billion on providing a “safety net” for home owners who lose their jobs or businesses and as a result cannot pay their mortgages. As many as 175,000 families are forecast to have their homes repossessed in 2009. This massive £1 billion is said by some commentators to be enough to save just 9,000 of them.
In another sign of desperation, the Bank of England’s base rate has been reduced by one per cent to just 2 per cent, the lowest rate in its miserable 314 year history. The result will be another run on the pound in the foreign exchange markets, and possibly a foreign exchange crisis to add to all the other crises.
This is just some of the lunacy. Public works are being brought forward or increased so as to create work and jobs, the cost of which must be borne by future generations of taxpayers. It’s like the alcoholic having a few more slugs of meths to try and clear his head and solve his drink problem.
What’s the alternative? Well, they say that half the battle of dealing with a problem is accepting that you have the problem in the first place. The mainstream political parties in all western countries are mired in the corruption emanating from the usurious debt system. Neither they nor the politicians inhabiting them will do anything to upset this rotten system, no matter how bad things get.
The alternative, then, is a new economic and political system operated by new people not tainted through contact with the present system. It must reject the banking families who control the world economy and defy what will undoubtedly be a vicious and desperate reaction from the global elite, through their ownership and control of the world’s media, and legal and banking systems.
Each nation, while it still has time, must issue its own, new, money, based on the value of goods and services produced by it. Once the amount required has been determined, it should not substantially alter, except in response to fluctuations in the amount of goods and services in the economy.
This money must be debt-free. No-one must have the power to create money except the government or a government department, answerable to the people. This body will be responsible for the smooth running of the economy, and will only increase or decrease (through taxation) the amount of money in circulation in accordance with the value of the economy from time to time.
It will mean a complete revolution and upheaval in national economic life, but it only has to be done once and the benefits will remain for ever. For more detail of how this should be done, please see a more detailed article here.
My next posting early next week will be on the subject of what you can do to best protect yourself from the financial disaster still unfolding. And if you haven’t yet downloaded the classic “Promise To Pay” by Dr R. McNair Wilson, then do so by visiting our home page.
Spread the word!
Philip Gegan
This blog post was first made here on 19 November 2008.
Over 2,000 jobs a day are being lost in the UK. No doubt the figure is higher for the US and just as serious for most other Western countries.
One in ten small firms are at risk in the UK. Again, the situation is similar in other countries. The larger companies, of course, are responsible for most redundancies, and these include BT, Virgin Media, Yell, JCB, Vodafone, GlaxoSmithKline and Leyland. Three of these seven giants are actually productive companies producing real products, rather than just services.
Even the usual economic spokesmen quoted in the media agree that worse is to come. The unions are making angry noises, but they are powerless to stop the juggernaut of the recession as it wipes out profits, destroys traditional markets and unleashes a spiral of business failures, unemployment, home repossessions, bankruptcies and, tragically, suicides as well.
There is a huge human cost of this madness. No-one really believes that all the money being thrown at the credit crunch via “bailouts” will do anything other than cause a prolonged depression with huge tax and debt burdens.
Brown and Bush and the other leaders who have decided to “spend” (for which read “borrow”) their way out of recession have saddled their countries with generations of debt, just to try and borrow time and evade the terrifying consequences of the economic madness of recent years.
In the UK that debt now amounts to around £150,000 for every family. And that includes the vast number of single parent families. The UK and the United States and most of their corporations are effectively bankrupt, and no amount of further maxing out the national credit card will help bring about a “recovery”.
It’s a terminal condition. If stern measures aren’t taken now then the eventual crash will be so devastating as to destroy all Western countries and claim the lives of millions of decent, productive people without whom the world will be a far, far poorer place.
This is exactly what the self-appointed global elite want. If you dare check out this breath-taking video admission by Hollywood director and documentary film maker Aaron Russo (not himself associated with the plan, but to be commended on blowing the whistle on them) then you’ll see the sheer scale of the criminality we’re looking at here. They want a 50 per cent reduction in the world’s population and an excuse to electronically tag the survivors so as to keep them well under control and unable to offer any resistance to their enslavement.
Next time I want to talk briefly about the real alternative to what our cowardly and supine governments have done. And it doesn’t involve maxing out the national credit card.
Spread the word!
Philip Gegan
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For a simple explanation of how high finance is robbing you daily, visit our home page and download “Promise To Pay”, by Dr R McNair Wilson.
This blog entry was first published here on 14 November 2008.
Hardly a month after the bailout we’ve all but forgotten about it. We’ve had the distraction of the US Presidential election in the meantime and now the media is concentrating our attention on how Obama is going to get his country out of the quagmire.
But don’t let us forget that the US government pumped over $700 billion into the banking system to save it from destruction. Actually the real figure, as far as we can establish, is around $810 billion, the extra $110 billion being for “sweeteners”, i.e. bribes and other underhand payments to ensure the whole package is glossed over and not subjected to unwanted scrutiny.
That’s a lot of money, and all the media can say about it is how it’s going to have to be repaid by our children and grandchildren, and will cause taxes to rise. That’s true enough, but the interesting point is about where this money came from in the first place.
It wasn’t the US government. The government is just the intermediary, acting as a guarantor that the money will be repaid to the ultimate lenders. It’s the same with all other countries that have adopted the same “solution” to the credit crunch.
Banks are over-stretched and losing money. Eventually they can’t afford to honour their obligations to either their own creditors or each other. They have to go cap-in-hand to the government for a “bailout”. The government gives them their bailout to the tune of hundreds of billions of dollars, which it borrows from the central bank, which in turn is owned by . . . private banks!
What a conundrum! Or is it? It only makes any sense when you realise that the banks that own all the stock in the Federal Reserve are not the same banks that have been forced to plead for government cash and accept partial nationalisation, as here in the UK. Although, of course, Lehman Bros is listed as a major shareholder in the Federal Reserve. So something’s going on that the media certainly isn’t going to inform us about.
We must keep digging until we get to the bottom of it all. In the meantime, download and read the classic “Promise To Pay” by Dr R. McNair Wilson, free of charge from our home page, and . . .
Spread the word!
Philip Gegan
This blog entry was originally made on 6 November 2008.
With the preparation of a new US administration has come the in-word of the moment, “change”.
Such talk is meaningless if no-one is going to tackle head-on the root cause of the recent economic crisis.
If you really want to tackle the fundamental malaise afflicting Western countries, then you have to confront the private banking families that own and control the international banking racket.
None of the cosmetic changes likely to be introduced by a new US president will cut it. Having been financed to the tune of over half a billion dollars by the global elite and their banker friends, he is unlikely to upset them by making them relinquish the power and privilege they enjoy through their ownership of the financial system.
How much longer will the people of the Western world have to suffer through this insanely monstrous and unjust debt system?
Until enough people discover the truth and are prepared to take whatever action is necessary to put an end to this evil.
Spread the word!
======================
For a simple explanation of how high finance is robbing you daily, visit our home page and download “Promise To Pay”, by Dr R McNair Wilson.
Philip Gegan
This article was first published on this blog on 28 October 2008.
Here in the UK we’ve all been treated to a little entertainment to distract us from the meltdown on the financial markets and the fear of maybe losing our homes and jobs or businesses.
Our shadow Chancellor of the Exchequer, George Osborne, is one of those people born with a silver spoon in his mouth. Educated at Eton and Oxford, he’s never had a proper job. Before he became a Conservative Member of Parliament he was a “political adviser”. He found himself way out of his depth when he tried to dump on the Prince of Darkness, aka “Lord” Peter Mandelson, by divulging disparaging remarks made by the latter about his old-enemy-turned-friend Gordon Brown, the UK Prime Minister.
Mandelson, you may recall, is the Rothschild go-between invited back into the UK government by his arch-enemy Brown from his well-paid watering hole as the Eurocrat Trade Commissioner. This recall was made shortly after Brown called in bankers from UBS (shortly itself to succumb to the financial meltdown) and NM Rothschild, to “advise” him on how to handle the crisis.
The spat between Mandelson and Osborne arises from an incident that took place, as most people now know, on board the Queen K, a luxury yacht owned by the Russian aluminium oligarch, Oleg Deripaska, moored off the coast of Corfu, last August. Osborne and Mandelson had been invited on board for some wheeler-dealing and stirring that, it was anticipated would be to the mutual advantage of all present.
Among the other guests were Matthew Freud, Rupert Murdoch’s son in law. Yes, that’s the Rupert Murdoch who owns News International and through it The Times and the News of the World, as well as MySpace, and a host of other media outlets throughout the world.
Also present, as we now know, was Nathaniel (”Nat”) Rothschild, of the banking family and who is, at present at least, a business associate of Deripaska. “Nat” took offence at the way Osborne, an old university chum of his, dropped Mandelson in it, and wrote a letter to the London Times revealing how Osborne, at the same bash, tried to solicit from Deripaska a £50,000 donation to the Conservative Party. Osborne could hardly deny the allegation, having taken with him on board the Tory Party Treasurer, conveniently on holiday nearby at the time.
The story becomes murkier when we learn that Deripaska, although having no criminal record himself, has made his millions by dubious means and has often been associated with criminals.
Now no Rothschild would do anything that wasn’t strictly in his own interests, apart from anything else. I’m not going into the full story about the floating gin palaces of the super rich anchored off Corfu, and how they attract corrupt politicians on the make like flies to rotting flesh. It’s in Rothschild’s interests to keep himself and his parasitic family out of the limelight as far as possible. They prefer operating in the shadows. And Osborne’s revelations, made purely for party political purposes, threatened to expose the extent of Rothschild’s wheelings and dealings with Deripaska and other insalubrious characters.
Osborne had to be taught a lesson and put in his place. But by writing to The Times, Rothschild might have done just the opposite of what he intended. Osborne has been taken down a few pegs and made to look a fool, and a corrupt one at that, but only at the expense of even more media attention being drawn to “Nat”.
We’re all a little more knowledgeable now about how this particular Rothschild makes his money (apart from being a member of this strange family that has assumed for itself a leading role in the international financial racket). We know a little about how Mandelson is under the thumb of the Rothschild clan and prepared for that reason to champion the cause of the tiny, insignificant state of Montenegro, in its quest to join the World Trade Organisation, and from there the European Union.
We know this is in the interests, not of the ordinary folk of Montenegro, but of the likes of Rothschild and his business partners, such as Deripaska, who are financing the building of a massive marina development for the super-rich and their super-yachts at Porto Montenegro, near Tivat, on the Montenegran Adriatic coast. A company controlled by Rothschild bought the site from the Montenegran government in 2006 at a knock-down price.
Various other dubious characters are involved as well, including “Nat”’s father, Lord Rothschild, presumably keeping an eye on his wayward son’s handling of the whole project. This may explain the tacky artifacts imported at fantastic expense to adorn the fledgling hot-spot – giant palm trees from Spain, African teak to line the pier fenders, along with Venezuelan stone to build the fountains.
No doubt there’ll be more to come on this story, but for now it provides us with a glimpse behind the curtain of secrecy that usually surrounds the global elite while they plot the destruction of us who pose the only remaining threat to them and their plans.
For an excellent article revealing the background of the Credit Crunch, take a look at this while it’s still archived by the Times’ web site -
http://www.timesonline.co.uk/tol/news/uk/article4795063.ece
Philip Gegan
This article was first posted on this blog on 17th October 2008.
One of the things I find most amazing about the Credit Crunch is how surprised most commentators, who ought to know better, are at how things are turning out.
Did they really think that the credit bubble of the last sixteen years was going to carry on and on for ever? Here in the UK, for example, we have had a situation for many years where much of the national wealth has consisted of the inflated value of houses and other buildings.
We’ve lost so much of our manufacturing industry, owing to multi-national companies transferring their factories to the far east and other places where wages are at rock bottom, that the so-called “service” industries now account for over 80 per cent of employment.
In a country where most of us are in effect taking in each other’s washing for a living, is it any wonder that most of our wealth is simply what’s left of our country after the banking system has finished with it? In other words, things that just can’t be shipped out of the country, such as buildings?
That explains why, over the last 40 or 50 years, mortgage lending has assumed such a large part of our economy. It’s simply the banking system going for what is left – bricks and mortar. It doesn’t matter to them that bricks and mortar are people’s homes, their businesses, their farms and factories. To the banking system it’s just security for their fictitious loans, to ensure they make their multi-billion pound profits for not actually contributing anything to the national wealth.
Now in the UK, as in the USA and other countries, many of the banks who have been gorging themselves off the backs of the working population have come unstuck. They have sucked so much life-blood out of the economy that there’s hardly any left. This is just the latest in a long line of financial crises, going back centuries. It’s part of the system. As soon as enough people just cannot continue paying tribute to the money lenders, the money lenders themselves (or SOME of them – see below) suddenly find themselves in trouble and start howling for help.
It’s always the case that when they are making large, unwarranted profits, well, that’s nobody’s business but their own. But when they’re suddenly caught out and have to chalk up losses, well, somebody, please help! Namely the Government, courtesy of the tax payers, the very people these banks have been taking a free ride from for years.
The whole system is a racket of the worst possible kind, where the victims are just ordinary folk, struggling to make a living and bring up a family.
It is the mission of this blog and the web site that hosts it to reveal this fraud to as many people as possible. The home page of ancientbankingsecret.com covers the subject very briefly, but I recommend our first publication, Promise To Pay, written as far back as 1934 by Dr R. McNair Wilson, which explains the whole system lucidly, and at the same time very entertainingly. This, too, is available from the main page of our web site.
The only other thing I want to mention today is that there are SOME banks and finance houses that are immune from the financial crisis. I haven’t seen anywhere that the House of Rothschild is in trouble. If this banking crisis is anything like those of earlier times then the big players in this unsavoury business will take the opportunity of getting rid of as many of the smaller players as they can to pave the way for even larger profits and greater power for themselves in the future.
That’s why we really need to root out the cancer that is the debt-based syphilitic system we’ve had to endure for too long now. And replace it with sound money issued solely by each national government accountable to the people.
Spread the word!
This article was first published in this blog on 16th October 2008.
It’s often been said that politicians can only solve a problem by throwing money at it. The same also applies to bankers and economists. The Credit Crunch is proving that.
What is happening is this. Leading banks in nearly all Western countries have lost billions on loans that have not been repaid and should not have been made in the first place. Now they demand a bailout from the government to prevent them from going under and taking everyone else with them. If only small businesses could do the same when they lose money on a deal.
The government agrees to bail them out by borrowing the necessary money from the Central Bank (e.g. Federal Reserve, Bank of England). But where does the Central Bank get the money from?
Simple. The money is created out of nothing. Let me explain. In September 2008 the Federal Reserve increased its balance sheet by almost as much as it had in the first 86 years of its existence (Agora Financial 3 Oct 2008). In around 2000 its “assets” amounted to around $700 billion. That figure increased by about $50 billion a year up until September 2008.
In September alone, the “Fed” increased its assets by a mind-boggling $600 billion. What that means is that it created $600 billion out of nothing and lent the “money” mostly to the US Government for it to be pumped into the economy via the banks that have just lent out too much promise-to-pay money already. And that was before the much-vaunted $700 billion bailout.
Now what is all this really going to do for the US economy? And the economies of other countries, come to that. Well, let’s take gold, for example. In July 2008, before the financial crisis became a disaster, the total value of all the gold in the world (above ground) was estimated at $4.2 trillion. With over a trillion dollars added to all the other trillions the price of gold, currently hovering under $1,000 an ounce, is set to take off dramatically.
And the same, of course, applies to just about anything else you can think of. It’s obvious, really. The more money you pump into the economy without an accompanying increase in the amount of goods and services circulating in that economy, the less it is worth in comparison, and therefore the higher the inflation.
Hence, hyper inflation is the price of the bailout of the toxic banking system.
Philip Gegan
Get YOUR free Guide to the financial madness, Promise To Pay, the classic written by Dr R. McNair Wilson, by visiting our main site at www.ancientbankingsecret.com.
This article was first posted here on 24th September 2008.
It might be the end of round 1 in the current Credit Crunch, but it’s by no means the end of the crash itself. This week there’s been a pause (so far) from last week’s tumultuous events, but I feel there’s more to come soon.
The question I’m asking relates to all the billions of pounds and dollars, borrowed by the British and US Governments to shore up the crumbling edifice of the banking system. When this money has been taken up in rescuing the current lot of collapsing banks and financial institutions, what’s going to happen when the next row of dominoes starts to go the same way?
The US rescue plan involves pumping an estimated one trillion dollars – that’s one thousand billion dollars, a figure beyond most people’s comprehension – into the economy. The British government is spending at least £200 billion (about $360 billion – over a third of the American sum) in the same way. But where is this money really coming from? We know the taxpayer will ultimately have to pay it, but where is it actually coming from now?
None of the establishment media asks this question. That’s because they don’t want people to know the true nature of the sick financial system – that the whole process is a racket, with money being created out of nothing all the time by banks under a kind of licence from the central bank (Bank of England, Federal Reserve Board, etc).
We’ve just seen a classic example of how banks lend many times the actual amount of money on their books – Merrill Lynch was “exposed” to risk that was more than thirty times its capital. That means it was lending around thirty times the actual money in its possession – the money it could lawfully lend. And that only related to the so-called “toxic debt” of dodgy home loans. It didn’t count the less risky loans on its books. So the actual ratio was probably about forty or fifty times its actual money. Where I come from this is called deception and
fraud.
When this devastating fact became known it was almost inevitable that the FBI would investigate fraudulent dealings that helped lead to the current crisis. That is one good thing that has resulted from all this. But remember that the FBI is answerable to the Secretary of the Treasury, Hank Paulson, who has played an instrumental part in the crisis, in effect deciding which financial institutions are to be saved and which are to be allowed to perish. And, of course, he is a former CEO of Goldman Sachs, themselves tottering on the brink.
But for now, the billions of dollars come flooding into the markets, literally from nowhere, to save the day. Or at least to save the present day or two for the bankers and politicians embroiled in the mess. The price is to saddle this and future generations with a further mountain of debt.
What is happening is that the British and US Governments are borrowing the money from the money masters – their respective central banks, which are themselves simply creating the money out of nothing. Why don’t these respective governments themselves create the money? After all, then they wouldn’t have to pay it back, thereby relieving future generations of a colossal tax burden, if not of the burden of inflation.
Because that would mean defying the most powerful, organised and ruthless group of people in the entire history of the world. And when you’re a shifty politician with no ideology or principles and a skeleton or two in the cupboard, there’s no way you’re going to do that.
That’s all for now.
Spread the word!
Philip Gegan
This article was first posted on this blog on 19th September 2008.
The Stock Markets are rallying today (Friday, September 19th), having sunk to three-year lows. Up and down the markets go, as news of government bail-outs follows news of bank failures. Only one thing’s for sure, and that is that anything can happen.
All the leading players are happy now because a little bird has told them the US Government is set to rescue AIG Insurance and has established a new fund to cover most of the mess left by the sub-prime mortgage affair. Worldwide, central banks have pumped around £100 billion, or roughly $170 billion, into their various economies. And here in the UK the government has supposedly banned city traders from “shorting” stocks (selling them in order to buy them back later at a lower price, pocketing the difference).
Yes, those shirtsleeves on the Stock Market floor might be allowed to move billions of stock around and afford to drive around in Porches and Ferraris, but when it comes to determining the value of stock belonging to the big boys, well, a line has to be drawn.
That’s actually a minor issue. The real news is that the American and British governments are prepared to mortgage our future recklessly by borrowing billions upon billions of dollars or pounds from the “Fed” or the Bank of England to prop up the unworkable debt based financial system. And they are borrowing all this fictitious money, that will have to be repaid by future generations of tax payers, from the very people and institutions who have caused the problem in the first place.
For a simple and entertaining explanation of how the financial system works, download the brilliant book Promise To Pay, by Dr R. McNair Wilson, from our home page at www.ancientbankingsecret.com.
Philip Gegan
This article was first posted on 17th September 2008.
The last couple of days have seen not only two of the largest US
financial giants go under (Lehman Brothers – now said to have a chance of a cheap buy-out from Barclays after all, and Merrill Lynch – bought for a song by Bank of America), but also signs of real panic in the financial establishment as billions are wiped off the value of leading companies, including banks.
The chickens really are coming home to roost, with a vengeance. After years of lending fictitious money fast and furiously, mostly to fuel an insane property inflation (itself used by so-called economists and politicians as evidence of a “healthy” economy), the whole sick system seems to be on the brink of collapse.
That is good news in itself, but the trouble is that it threatens to take everything else with it. Of course, if that did happen there would be a real chance of an independent inquiry into the rotten banking system and the truth about it would possibly get out somehow.
There would be a high price in the meantime in terms of the social and economic misery that would have to be endured, but surely a small price to pay to rid the world of international debt-slavery.
For that reason alone it’s almost certain the power brokers at the top of the international financial system will take any steps to produce a kind of “soft landing”, which will preserve their status and at the same time eliminate a great deal of the competition in the banking system, leaving more riches and power for themselves in the future.
Hence, most failing banks are being bought up on the cheap by other banks, who have managed to avoid the worst of the losses. Take note of who those banks are, for they are the banks most likely to be directly controlled by the financial elite, who encouraged the lunatic lending spree in the first place and then pulled the rug and started what has become known as the Credit Crunch.
So in the United States Merrill Lynch is being snapped up by Barclays from the UK. And here in the UK Halifax Bank of Scotland, whose shares fell by another 40 per cent this morning alone, looks like being gobbled up by the awful Lloyds TSB, also in the UK. But Lloyds TSB is the UK’s third biggest house mortgage lender, so how do we know it will still be around in six months?
Some casualties are too big to be rescued by other big players, so governments have to step in, as in the case of American insurance giant AIG, “saved ” by a loan of a mere $85 billion that the Federal Reserve just happened to have lying around awaiting a rainy day. We’re told that the US Government stepped in to the rescue, but of course the government only borrows the money from the illegal Federal Reserve System, which creates it out of nothing and then claims the money itself and interest as a debt owed to itself. What a racket!
And here in the UK, the Bank of England, having weighed in yesterday with £5 billion to pump into the money markets, came back with another £30 billion this morning. At the same time the Bank’s Chairman is claiming that inflation will be coming down next year! Another day, another lie. Just how inflation can come down when billions of pounds are being pumped into the economy without any corresponding increase in value of the goods and services being produced, isn’t explained.
Things are getting pretty exciting. Watch this space, and don’t forget to download your free copy of Dr R. McNair Wilson’s Promise To Pay, which explains in simple and entertaining terms how the financial racket works (or doesn’t work) – available from the home page of Ancient Banking Secret.
Philip Gegan
Note: This article was first published on this blog on 19th March 2008.
It’s frightening, especially when your savings or pension is at stake.
A number of big name banks and financial institutions, pillars of
fortitude and strength, are suddenly being shaken to their
foundations. Already here in the UK we’ve had Northern Rock go under
and now in the U.S. Bear Stearns has gone the same way. What’s
happening, and how can we protect ourselves and our savings?
This article will attempt to answer that question and cover the
underlying and immediate causes of the crisis.
The Underlying Cause
The Federal Reserve Act of 1913 set up the Federal Reserve System as
the financial institution that controls US financial policy. It’s
privately owned by foreign banking interests and lends the people and
government of the United States their own money, repayable at interest
on demand. That’s why we have a debt-based economy.
The money we use as our means of exchange isn’t real money and never
has been. It’s only “promise to pay” money. That means it’s only as
good as the private banking consortium that owns the Federal Reserve.
And they are bankers engaged in enriching themselves. They do this in
many ways.
One of those ways is by lending many times the amount of real money
(gold and silver deposits) that they actually have, and collecting
interest on all of it. Sometimes they lend just a little too much of
what they don’t really own, and a panic ensues. This has happened
regularly throughout US history – 1884, 1890, 1893, 1907, 1929-33,
1987, and now, to name just a few.
Another way they make their money is by trading in options and
derivatives. This is separated from gambling by only a fine line, and
when things go wrong, as they invariably do sooner or later for a
gambler, they will seek to deflect the losses away from themselves on
to everyone else. This brings us to the immediate cause of the present
crisis.
The Immediate Cause
This time the trouble started in the “sub prime” market. Many of the
smaller banks lent money as home loans to people who couldn’t raise a
loan in the regular financial markets owing to adverse credit history
or simply not having a sufficient income to cover the amount they
needed to borrow. In a large percentage of such cases it wasn’t a
question of “if” they defaulted, it was “when”.
With the rapid inflation of house prices that took place in recent
years, this problem became extremely widespread. Many loans were
placed by corrupt brokers who simply lied on the application forms
that their clients were earning more than they actually were. At the
same time, many loans were fixed at an artificially low rate for a
limited time, creating a financial time bomb due to detonate when the
fixed rate period expired and the borrower suddenly had to pay a
larger repayment each month, which in many cases was just not
possible.
Meanwhile many of the smaller lenders were becoming aware of the
dangers just around the corner, and bundled up many of these “sub-
prime” mortgages, the good with the bad, and offered them as packages
to larger banks anxious to get in on the act of profiting from the
house price boom.
The more risky loans were supposed to be counter balanced by the fact
that the safer loans carried a by now higher rate of interest,
ensuring a profit for the purchasers of these packages. This practice
was only made possible by the fact that banks can lend far more money
than they actually have deposited with them – up to ten times the
amount is the rule of thumb. It’s called “fractional reserve”. Or
“fraud” where I come from. It’s perfectly legal, though. You see, the
bankers and their lawyers wrote the laws.
You may ask why there’s a problem, bearing in mind that these loans
are secured on the borrower’s house in each case. Therefore, surely,
if the borrower defaults the bank, or whoever now owns the equity,
simply repossesses, sells the house and recovers the money owed,
right?
Well, no. Many of the loans were made on the basis of highly inflated
property valuations in the first place. And in the second place, as we
all know, house prices have tanked in recent months. It’s a vicious
circle, with house prices falling and making matters worse, and the
worsening credit crisis in turn causing yet further falls in property
values as buyers dry up and banks become reluctant to lend for fear of
over extending themselves.
As cash flow worsens, more and more financial institutions are finding
themselves in trouble. As of mid March 2008 it’s only Bear Stearns
that has gone under. Soon there will be a whole lot more, I’m afraid.
What we are witnessing may well be the unraveling of the whole
financial system of the west. The only beneficiaries will be those
huge institutions that own the Federal Reserve. They will be able to
consolidate their power over the world economy.
But what of us? The ordinary folk of the United States, Canada and
most European countries, and the other industrialised countries of the
world. How can we protect ourselves from what is happening?
Well, it’s not the objective of this article to give financial advice,
but it would seem prudent at the present time to divest our money, as
far as possible, from anything to do with mainstream financial
institutions, and to place it into the only assets which seem likely
to come through unscathed. And in this writer’s humble opinion they
are gold, silver, oil and water – real, tangible assets that can’t be
created out of nothing, manipulated and then withdrawn from
circulation.
Philip Gegan