Poisonous Banks Destroying World Economy

Banks immoral behaviour shrinks World supply of money and destroys economy

 

For our Global system of money to work we have depended entirely on all our banks to act responsibly, with honesty, morality and probity.Because the banking system realised it could get away with being increasingly dishonest, immoral, completely irresponsible and absolutely without the slightest hint of probity or decency, the currency system of the World has been destroyed by their fraud and breathtaking greed.   

We have a system whereby nearly all the money is manufactured by the banks issuing loans to their customers. These loans amount to about ninety five percent of all the money in circulation. Nearly all the money we therefore use is created by a bank making a loan to someone else.

A culture of rapacious, greedy dishonesty was created throughout every aspect of the banking system as the banks tried to lend ever increasing amounts of money with a complete disregard of their poisonous behaviour towards borrowers. They wanted to lend as much money as possible because the more they lent the richer the banks themselves could become at the expense of those borrowers.

So, all this had the effect of putting absolutely every business and individual person into more and more unsustainable debt. The currency system is actually called money as debt and a fractional reserve banking system whereby the banks can create unlimited amounts of money out of nothing. If there were no bank loans at all, there would less than ninety percent of money in circulation and no-one would be paying interest to the banks.

This system allows banks to exercise increasing amounts of control over every aspect of business and personal life. Everyone was at their mercy. All of us were really working for the banks – working hard at earning enough to pay the increasingly absurd levels of interest and penalties on all the banks loans.

Businesses were constantly persuaded to borrow more money to expand, individuals were persuaded to borrow impracticably large mortgages to buy homes and consumer goods they really didn’t need. We were all told how silly we were if we didn’t use credit cards to spend money we didn’t actually have.

The banks were in complete control of almost the entire supply of money everyone depended on to enable all trade and personal commerce to exist. All the money in use could be traced backed through debt after debt issued through the dishonest banking system.

The financial well being of every business and individual now depended completely on the banks and how they behaved, and how honest and moral they were.

When the levels of dishonesty exhibited by the banks became so blatant and unsustainable, it became so extreme it had the effect of making the banks themselves too frightened to lend to each other.

They knew better than anyone else how dishonest and fraudulent their system of loans and debt had become and how each bank would try and outsmart other banks by being even more devious with loans to each other.

So the banks stopped lending to each other because they knew they were ripping each other off with dodgy loans which were less and less likely to be paid back.

If the banks weren’t going to lend to each other it interrupted the circular movement of money from bank to borrower and from that borrower’s loan ending up in another bank which, in turn enabled the next bank to issue more loans of many, many times the amounts actually being deposited in the bank. And so on it went around in endless circles.

But once the banks interrupted the entire money supply by being too frightened to lend to each other, it also had the effect of rapidly shrinking the money supply. The behaviour of the banks is making money literally disappear from existence at exponential speed.

This is the reason people have less and less money to pay their debts or to actually buy anything they need. The World economy is being destroyed by all the banks because of their greed and fraud and their fear of lending to each other. They know how dishonest and unreliable other banks can be with lending money and fear their loans to each other may not be paid back because the system they created is so dishonestly fraudulent and unreliable.

Governments around the World thought by lending gigantic amounts of money to all the banks this problem of confidence in the money supply would go away. All the money Governments loaned to banks would enable them to commence lending to each other again and get the circulation of the whole supply of money moving again.

Government were wrong. They were wrong because lending to the banks didn’t make the banks any more honest or improve their morality or common sense in any way at all. So the banks just pocketed any money they could get hold of, held on to it like grim death, carried on paying themselves ridiculous ‘bonuses’ and still refused to lend to each other.

The fact this also meant they had less and less money to lend to anyone else too, didn’t seem to bother them. They didn’t seem to be able to work out their collective behaviour was rapidly destroying the whole World economy and even themselves as they started to go bust one by one.

If something doesn’t change pretty damn quick they will probably all go bust in the end. But they are too pathetic to see that, as they whimper on about how it isn’t their fault at all. It must be someone else’s fault, they say. Meanwhile things will continue to get much, much worse.

They are liars !

Every single single business, and individual wishes to continue to work hard to earn themselves money. Businesses do not wish to sack employees and cease to exist, employees don’t want to sit around jobless and having their lives being destroyed by unemployment. It is being forced upon them by the banks.

We all depend on being in possession of money to trade and prosper as a business, and in turn pay employees’ wages so they can buy things they need from the businesses that are prospering.

Money is simply a token of trust we can use to give to some one else in exchange for goods or services of actual real value we need from them. They can then use that token of money we give them to buy what they need from others.

The banks have manipulated the money system with sheer greed until it has been taken to the brink of complete destruction by their deviousness.

The banks are the only custodians of the money system. No one else at all has control of it. No Government, business or individual has control of the system of money. It is entirely in the hands of the banks. They have abused it, misused it for their own profit and have shown a callous disregard of the damage they do to everybody they deal with. Their behaviour has been, and still is quite simply disgusting.

The banks cannot be trusted. They created the Worldwide financial recession single handedly with no assistance from any one else. They are currently destroying the money supply everywhere with lightning speed. Their self seeking manipulation of the World’s money supply is destroying everyone’s ability to trade, or have a job, or pay back their debts. The entire money system is collapsing exclusively because of the irresponsible, fraudulent behaviour of the banks.

They are utterly callous in turning tens of thousands of people out of their homes, leaving houses empty, vandalised and pointless useless. They are equally callous as they take away the jobs of millions of people by destroying businesses with toxic loans and making it impossible for trade and commerce anywhere to function normally any more .

With this vicious control of money the banks have, allowing them to say who has a business and trades or who has a job and who doesn’t, who starves or who has a home or who is thrown out of their home onto the street by bank bailiffs, to have their entire lives destroyed by being made homeless, is a grotesque condemnation of modern times.

LEGALISED THEFT ON EPIC SCALE BY BANKS

 

 

 

Manufacturing money and forcing people to borrow

 

Just a little thought I have to get off my chest. It keeps nagging away at me.

 

You’ll be noticing how house prices have been sinking like a stone recently as the banks hold onto all the money and refuse to lend it out to anyone – particularly for mortgages as well as businesses and even each other ?

 

Well then, you might also remember how everyone used to complain how house prices were becoming ever more ridiculously expensive as they climbed up from two or three times an annual salary to many, many times an annual salary.

 

The ordinary little flat I bought in Bristol in 1971 for three times my annual salary as a junior newspaper reporter was selling for fifteen times the current annual salary of exactly the same kind of job just over a year ago. The same thing happened all over the property market.

 

Why do you suppose there was this vast change in value ? Think about it carefully for a moment. In 1971 I had to work for just three years for my entire annual earnings to buy a home. A year ago, doing the same job, I would have to work for fifteen years for my complete annual earnings to buy the same home. As we all know, this grotesque distortion in house values caused lots and lots of problems as it progressively destabilised the whole housing market for all of us.

 

Now, within just a few weeks of the banks creating this Worldwide financial crisis, property prices in the UK and other parts of the World are plummeting as the supply of money everywhere withers and shrinks to almost nothing as the banks simply stop lending to anyone.

 

This is an extreme state of affairs. It is caused only by banks very suddenly refusing to lend any money because they are fearful the unstable economic circumstances they actually created will mean they won’t get their loans paid back because all the borrowers are busy going bust as a recession roars in from just over the visible horizon. This is the opposite of the banks previously conjuring up too much new money into existence and ramming it down people’s unwilling throats.

 

Thank you very much all you ‘Masters of the Universe’. Obviously you lot weren’t really as clever as you liked everyone else to think. Perhaps after all, you were just really  greedy, rapacious conmen, disguising your dishonesty in a complete fiction of incomprehensible jargon and meaningless garbage which even  most of you lot couldn’t understand – never mind the ordinary members of the public.

 

Now we are paying the price as people lose their jobs and their homes as thousands and thousands of people are catapulted by the banks into extreme poverty.

 

So what then, was the reason for all this distortion as house prices rose remorselessly to unrealistic, dizzying heights ?

 

Everyone complained about it but no one seemed to know why it was happening. People tried to think of why it might be happening. They blamed it on a ‘housing shortage’, on ‘too many immigrants coming into the country’, on ‘families disintegrating and more people living on their own as society broke apart at the seams in an orgy of self destruction’, and so on.

 

But the real reason was quite simply that banks were creating too much money and they had to lend it somewhere. They discovered one of the best and most profitable  places to force loans down nearly everybody’s throat was by means of increasingly large mortgages as people were forced to compete with each to offer higher and higher prices for houses just because banks wanted to lend larger and larger sums of money – so they could make more money for themselves ! They quite simply ran out of places to lend money and dreamed up a whole new bottomless pit of possibility for more lending.

 

This meant that when anyone bought a house, they could only do it by making sure they offered more money than anyone else. The banks were always happy to keep on increasing the size of mortgages because they knew they had a complete stranglehold on each borrower.

 

It was one of the safest and most profitable ways of lending huge amounts of money over a long period of time. Much better, the banks thought, than all this tedious hard work of lending money to businesses over short periods of time. Businesses  were much more risky and often went bust; then there was no one to pay loans back to the bank. 

 

Individual householders were easier to pursue and were permanently chained to the banks until they either paid off their loans or died. A much better wheeze, thought the banks.

 

So, there we have it. Banks can create unlimited amounts of money if they can find somewhere to lend it. This is fine if the lending is sensibly organised and not rapacious and dishonest, or dangerously stupid because it wrecks economies and destroys people’s lives.

 

But the banks didn’t think of that. They were too immersed in their own greed to care less about what they were doing. As long as they could get away with it anything goes; that was fine by them.

 

Never mind the damage done to so many other people – or even whole nations. The whole country of Iceland has been made bankrupt and flung into instant poverty and even starvation by the nasty behaviour of the banks ! But the banks are OK, so that’s alright then ?

 

The ‘Masters of the Universe’ will just keep their heads down low for a bit until the recession blows over, then they will start again; effectively engaging once more in a form of legalised theft on an absolutely epic scale.

 

 

If bankers have the legal means of simply conjuring new money into existence, which they do, then there ought to be sensible law to control them and stop the gargantuan amounts of grasping dishonesty we have seen displayed by these dishonest little worms in Modern Times.

 

Now over to you Prime Minister !

BANKS BECOMING INCREASINGLY INSANE

I overheard this conversation in one of those ‘chatrooms’ on the internet today and I found it priceless. A little cameo of just how mad the banks are becoming now. It’s no wonder they are busy destroying the Worldwide economy – they have completely taken leave of their senses !

0845/0870 calls from banks

Has anyone else received any? I started getting calls from 0845 3312320 on Tuesday purporting to be from LloydsTSB – an automated message that asks you to ring the number and leave your personal details before you can speak to anyone, which of course I didn’t, thinking it was a scam.

After much hassle and about 20 more of these bloody calls I find out they are indeed from Lloyds and am pretty pissed off. In these days of mass fraud how irresponsible is it for banks to be cold calling and asking for your personal details? Am also doubly annoyed because I’ve had endless problems with fraud in the past five years or so, including my ID and cards being stolen, cloned etc, all of which the bank knows about.

Anyone seen any articles about this kind of thing as I’ll be pitching to the money pages if it’s not been done to death.

……..Yep I regularly get them from HSBC too, even though I switched banks a year ago
 

……..Natwest is doing something similar. My bank and other companies have rung me before now and been astonished when I insist on ringing them back before giving any personal info.

……..I did an article about this for the Telegraph – my husband received an automated call from Lloyds when they stopped his card when we were in Morocco. Actually the article was more about cards being stopped when you are on holiday, but that was in there.

……….Lloyds stopped my card after my tenants paid money INTO my account. Their excuse was that it was an unknown transaction – all £750 of it.

…………Lloyds are quite heavy handed about stopping cards. They stopped Alex’s because of “suspicious payments” – it was £30 for our regular Friday night take aways.

……………Whaat?!

…….I know, I thought I’d heard everything. It was a Saturday too, so I couldnt’ even go into a branch. Luckily I was with a friend and she lent me some money so I didn’t have to pay for my bus fare, bagel and coffee with my credit card. I then spent a frustrating hour trying to explain to Lloyds that freezing someone’s account because a couple of hundred quid had been paid into it was not in any way, shape or form helping to safeguard against fraud. And then they ring you up and ask you tell all to machine. Ha!

Aren’t the banks simply a delight to do business with these days !

Or perhaps they are just run by half wits who are so obsessed with their own culture of rapacious greed and vicious treatment of customers, they don’t understand how destructive and immoral they really are.

They seem to be so arrogant they actually think they can do absolutely anything they please with a total disregard of honesty and law.

THE GREAT BANKING SCAM

Makes us all impoverished and enslaved to the banks

 

How’s this for a little gem of information then ?

“I’m afraid the ordinary citizen will not like to be told that banks can and  do create money. And they who control the credit of a nation direct the policy of governments and hold in the hollow of their hands the destiny of the people.”

 

Reginald Mckenna, past chairman of the Board of the Midlands Bank of England came up with this nasty little truth some long time before today’s credit crunch; and boy oh boy.  Just how right he was.

 

Because the banks can destroy money even faster than they create it in the first place – and that is exactly what they have just done over the entire World economy in just a few weeks recently.

 

That is why people are being made homeless and losing their jobs all over the World; why the whole fabric of society in Iceland is disintegrating and it’s citizens queuing in doleful lines for food handouts to stop previously middle class professional  families starving; people everywhere losing their savings and why we’re all going to have a lousy Christmas this year even if we don’t lose our job; because the entire World economy is going bust. This is because the sheer incompetence and greed of banks has paralysed the supply of money and is rapidly shrinking the total amount available for all of us to spend. 

 

Without the ability of all us to spend, businesses  go bust on an epic scale, putting more and more people out of work. This further reduces the amount of money which people would normally be spending at an ever faster and faster rate. A spiral of wanton destruction destroying millions of lives just because the banks are both incompetent and breathtakingly greedy.

 

They are so dishonest they cannot even trust each other. That is why they don’t want to lend to each other and why they now cannot find enough money to lend to businesses or anyone else. 

 

The financial system relies entirely on banks lending to each other and if they don’t, there is no financial system and there is no money at all. With no money business and trade simply cannot function, so ultimately no one  will have a job if the process is taken to its logical conclusion.

 

So, at a stroke, they are completely destroying the World economy as they close down ever increasing numbers of businesses and turn out hundreds of thousands, possibly millions of people, out of their homes and onto the streets.

 

Quite simply, the banks have destroyed everyone’s trust in money  and set about the process of destroying money itself and the only means of World trade.

 

Decades of building up wealth have vanished in an instant because greasy, immoral, devious thugs have somehow wormed their way into the banking system to wreak havoc with it as they made continuous increments towards ever increasing risks and constantly pushing at the boundaries of honesty and probity. 

 

That famous phrase ‘The Big Bang’ seems to spring effortlessly to mind. This was the phrase  used to describe the ’deregulation’ of banks. For ‘deregulation’ read ‘ be as dishonest as you can get away with’. It certainly turned out to be quite a bang, didn’t it ? The whole World economy is now going up in smoke.

 

There is no honesty or probity in banking anymore; just raw, savage, heartless greed. Banks are liars and thieves. There is no honour amongst liars and thieves. That is why the banks know they cannot trust each other and so it is why they are now so reluctant to lend to each other.

 

As about 95% of all the money in circulation is apparently created by banks during their process of taking deposits and then making loans, this means they are just as capable of destroying 95% of all the money in circulation if they continue to be as greedy and stupid as they have been in the recent past.

 

This is how the great banking scam works.

 

There is something called a fractional reserve ratio. It is a neat little conjuring trick, conjured out of thin air by the bankers getting together in a huddle with the government in the past to persuade it to pass a law saying banks could lend many times the amount of money actually deposited as savings.

 

A fractional reserve ratio of 9:1 allows  banks to create and lend £100 000 from a deposit of only £1 111.12p – an actual multiple of nearly one hundred times the original sum as the money is lent and re-lent at a diminishing amount of nine times the deposit sum each time; gradually diminishing to ever smaller sums before aggregating at about one hundred times the original sum. At 6% interest this provides the bank with £6 000 annual interest income which is roughly six times the original deposit of £1 111.12.

 

At 18:1 it would be twice the amount or £12 000 income for the bank from just £1 111.12p deposited.

 

The need for deposits from savers is entirely dispensed with when the bank or mortgage company charges a loan ‘arrangement’ fee. This fee simply allows the bank to conjure up the complete amount of your loan or mortgage from thin air without the tedious business of the bank having to be in possession of a single penny in the form of a deposit in the  first place. Effectively, by paying your ‘arrangement fee’ up front, you are simply creating your own loan or mortgage out of absolutely nothing !

 

It seems rather a pity we have to bother with doing it via the bank instead of just creating how ever much money we want to spend ourselves. It really wouldn’t be any different – except there wouldn’t be a nasty, grasping bank to repossess your property if you failed to make the repayments on time !

 

How’s that for a financial conjuring trick then ?

 

Some banks and mortgage companies have recently been rumoured to use fractional reserve ratios of up to 40:1. This would mean that for every £1 111.12p in cash they get their hands on, they can lend £400  000 , earning £24 000  a year in interest at 6%. 

 

But of course the interest rate is often a great deal more. In the case of credit cards it might be 30%, for instance. Hmm. That would make an annual income of £120 000 for the bank from just one single deposit of £1111.12p then. Nice little earner, isn’t it ? 

 

You could say it is just a teeny, weeny bit excessive. 

 

Just for the avoidance of any doubt  whatsoever, that translates into immoral and dishonest, which in turn really translates into a form of theft. You might call it conversion really; whereby the bank dishonestly converts honest savings from customers into entirely dishonest and misrepresented and risky loans which have now put the entire World economy at risk and threaten all with imminent recession and poverty.

 

So, when you pay your mortgage company £1 111.12 as a mortgage ‘arrangement’ fee, they might lend you just £200 000 and then have another £200 000 left over to lend someone else – or possibly pay themselves a large bonus instead, what ho ! Good little wheeze, don’t you  think ?

 

How else do you think all those meaninglessly huge sums of money sprung into existence from nothing – along with all those gigantically huge banker’s bonuses running into billions of pounds ?. 

 

Why, the bankers simply  realised they could conjure up as much money as they liked and spend it how they liked because they had complete control over it and virtually no one else understood how the whole thing worked.

 

Now we are all paying for their dishonesty and misrepresentation as our lives disintegrate around us. It’s about time our Government rounded all the bankers up and shot the lot of them. They are worthless fraudsters.

 

I came across this interesting observation by the Credit Manager of the Federal Reserve Bank, Atlanta, Georgia, USA,  Robert H. Hemphill  in a film called ‘Money as debt’.  

 

“Individual debts paid off leave individuals with more money. All debts paid off leaves society with no money at all. So there it is, we’re totally dependent on continually renewed bank credit for there to be any money in existence. No loans, no money.

 

“This is what happened in the great depression as the money supply shrank drastically as the supply of loans  dried up.

 

“This is a staggering thought. We are completely dependent on the commercial banks. Someone has to borrow every pound we have in circulation, cash or credit.

 

“If the banks create ample synthetic money we are prosperous; if not we starve.

 

“We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible. But there it is”.

 

 

 

 

DISHONEST, IMMORAL MORTGAGE LENDERS

HOME OWNERS FLEECED BY DEVIOUS BANKS

 

“An important factor behind the increase in mortgage foreclosures is the rise of so-called subprime loans. Subprime loans are made to borrowers with credit deemed insufficient to qualify for a standard home mortgage. They sometimes entail predatory practices including exorbitant interest rates, additional fees and prepayment penalties that make it virtually impossible for the borrower to escape from debt. Subprime lending is targeted disproportionately at the poor, minorities and the elderly.

The increase in home foreclosures is linked to the rise in subprime lending. Studies in Boston and Atlanta conducted during the 1990s showed foreclosures by subprime lenders tripling, while foreclosures by other lenders remained steady or declined. A similar study in Chicago, which began at an earlier date, showed an even more dramatic increase. [ See Subprime Foreclosures: the Smoking Gun of Predatory Lending? Policy Development and Research Information Service http://www.huduser.org/index.html%5D

During the 1990s the practice of “risk based’ pricing increased. Banks began charging higher than normal interest rates to certain borrowers deemed to have lower than average credit worthiness. This practice was justified on the grounds that it opened home ownership to those who would not otherwise qualify for mortgages. However, by their nature, subprime loans carry a higher risk of default because they impose an additional financial burden on those who are in many cases least able to afford it. Further, subprime loans have become an arena for outright fraud and abuse. Cases of “redlining” have been documented where whole neighborhoods, usually poor or minority, are deemed to be substandard credit risks, forcing residents with otherwise excellent credit to pay subprime interest rates.

One of the most flagrant offenders is CitiGroup, headed by Bill Clinton’s former treasury secretary Robert Rubin. In March the Federal Trade Commission charged CitiGroup with deliberately “steering” and “misleading” borrowers into accepting predatory loans.

It is alleged that CitiGroup, its affiliate Associates First Capital and sister company CitiFinancial engaged in predatory lending practices such as inducing borrowers to take out high-interest loans even though they qualified for prime-rate loans. It is also charged that CitiGroup engaged in another predatory tactic known as “flipping,” where borrowers are pushed into progressively higher-interest loans by repeatedly refinancing their mortgages. The bank is also alleged to charge “excessive and unjustified” fees and impose impossible loan terms that lead to foreclosure.

Despite these serious allegations of a criminal character, CitiGroup and its executives were able to escape any major consequences by paying a mere $215 million in restitution to defrauded home buyers.

Such practices are by no means the exception. Subprime lenders often impose interest rates far higher than anything that could conceivably be justified by factoring in costs associated with added risk. Borrowers are often unaware of provisions hidden in fine print that require additional fees, balloon payments or the payment of compulsory life insurance premiums. In some cases lenders simply lie to borrowers, stating installment amounts that are far lower than what the mortgage holder is actually required to pay.

There are indications that the speed of home foreclosures is increasing. This is also tied to the rise of subprime lenders. For example, the above mentioned study in Washington state noted that of all foreclosures reported in 2000, subprime lenders were responsible for 58 percent of fast foreclosures, defined as foreclosures within the first two years.

Powerful financial interests have intervened to block even token reform. For example, the Ohio legislature enacted a bill in February 2002 prohibiting local communities from passing laws against predatory lending”.

MONSTROUS SOCIAL INEQUALITY

“Our site provides a source of political perspective to those troubled by the monstrous level of social inequality, which has produced an ever-widening chasm between the wealthy few and the mass of the world’s people.

As great events, from financial crises to eruptions of militarism and war, break up the present state of class relations, the site will provide a political orientation for the growing ranks of working people thrown into struggle.

We anticipate enormous battles in every country against unemployment, low wages, austerity policies and violations of democratic rights.

The financial crisis enveloping the entire world economy sharply poses the need for the international unification of working people. Transnational production and global financial markets have changed the face of capitalism forever.”

( This is from an interesting political website and I just couldn’t resist quoting the article as I couldn’t have put it better myself)