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.