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) 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

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 find more details here.

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.

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!

======================

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.