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.