Economy Rigging 1

Banking Ponzi May 28, 2012

Filed under: Uncategorized — bashstreetkidjailbreak @ 10:25 pm

Anon:

t’s interesting to note that at all times economists and most citizens assume that the current system of governments borrowing money at interest from private banks and other financial institutions on the so-called ‘free-market’ is the natural way to finance the state.

Remember, the banks are bankrupt…so where does that leave us?

Consider Draghi’s munificence to the sum of 1 trillion Euros of cheap (1%) credit to the European zombie banks; and ask how is this supposed to help the European national economies.

This is how it works:
1. the banks are bankrupt
2. the central bank loans them money at minimal interest
(1% in Europe; 0% in the USA)
3. the banks then loan the money to governments (by buying bonds).

Where does the money in the central bank come from?
It is invented….created out of thin air as credit/debt.
What is the basis of its value…or what is the basis of the power of the ECB to create the credit/debt?

Answer: the future wealth and taxability of European citizens…us in other words.

So money is created by the central bank on the basis of our future work and productivity and given at minimal interest to banks who then loan it back to us at higher rates of interest.

If that is not crazy, I dont know what is.



  • It is true that the ECB can create money through making accounting entries in bank accounts.

    The fact that the ECB creating a trillion euro was such an extraordinary event probably made you wonder who creates euros in the normal run of things, if not the ECB.

    It is the commercial banks which create euros by crediting the borrower’s account when they process loans. This is the source of the debt crisis and indeed many of our social problems.

    I’m not sure if you’re aware but banks also delete money as a loan repayment is processed and so reducing our debts reduces the money supply by the same amount. This is why there is less money during a recession. It is pretty crazy alright.

    One solution to the crisis would be to declare all bank-account money as legal tender and this would allow the Central Banks to create debt-free digital money as well as cash for their Governments.

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Banking Collusion May 20, 2012

Filed under: Uncategorized — bashstreetkidjailbreak @ 4:24 pm

ANON :

Empire Banks Demand “The Biggest Flood of Liquidity the World Has Ever Seen” to Save Them

May 19 (LPAC)–With the specter of imminent meltdown of the eurozone hanging over their heads, the leaders of the G-8 (minus Vladimir Putin, of course) met in Camp David and managed to find enough common ground to be able to issue a Statement on the Global Economy, which pronounced that they were in favor of both growth and austerity, white and black, hot and cold, and reason and insanity.

More to the point, in the run-up to the meeting, a variety of British Empire spokesmen issued a repetitive stream of demands that hyperinflationary bailouts were required immediately, and that they would brook no opposition to this policy–not from nations, not from opposing political groups, and certainly not from reality.

“There is a growing sense of urgency that action needs to be taken,” British P.M. David Cameron told reporters at Camp David. “Contingency plans need to be put in place and the strengthening of banks, governments, firewalls and all of those things need to take place very fast.”

Similarly, the {Financial Times} editorially warned today that, should “the specter of a deposit run materialize” across Europe, the ECB and unnamed “eurozone funds” would have to step in to “recapitalize banks.” And on May 17, {Daily Telegraph} writer Ambrose Evans-Pritchard published a compendium of such demands from hysterical bankers:

{HSBC} currency chief David Bloom: “The central banks will have to step in massively and that will be a soothing balm for the markets. The Fed is already leaving the door open for more QE.”

{Bank of America}: “Assumes that the ECB steps in with massive support, backed by the U.S. Federal Reserve, the Bank of Japan, and key central banks along the lines of concerted action in 2008-2009, including a pan-European system of deposit guarantees.”

{Nomura}’s Bob Janjuah: “The Europeans will blink and renegotiate the bailout terms [with Greece]. Whatever happens, we think the Fed and the ECB will respond over the next week or two.”

{Gary Jenkins} of Swordfish Research of London, previously head of European credit research at Deutsche Bank and global head of credit research at Barclays, was the most blunt: “The global central banks are going to respond with the biggest flood of liquidity the world has ever seen. It will make the LTRO look like small change.”

These guys make Dr. Strangelove and Col. Bat Guano sound rational !

 

Algorithms Replaced Confidence Driving Economy May 7, 2012

Filed under: Uncategorized — bashstreetkidjailbreak @ 6:26 pm