Posts Tagged ‘Lloyds Bank’

LEGALISED THEFT ON EPIC SCALE BY BANKS

November 23, 2008

 

 

 

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 !

THE GREAT BANKING SCAM

November 20, 2008

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”.

 

 

 

 

(more…)

HIGH STREET THIEVES POSING AS BANKS

June 3, 2008

 

 

I really got my knickers in a twist recently because my bank, which was Lloyds Bank, sent me solicitors letters threatening court action for an overdraft of about £600.

They also closed my account and I was left with no means of using money other than cash. This made life impossible. I also could not open another bank account because of the blacklisting of me as having a bad credit record .

The situation seemed dire and really got to me.

The reason for the £600 overdraft ? Every penny of it consisted of Lloyds bank’s penalty fees for an unauthorised overdraft which was originally only £5. But even that £5 was part of a sum of about £160 which had been filched from my Lloyds bank account by an insurance company misusing my debit card details for a household insurance policy that was never authorised by me at all.

It was all the result of a completely dishonest mortgage broker trying to ram a dubious mortgage down my throat which I eventually declined to take up. The other part of the total sum filched from me was when I made a one off internet payment of £17 using my debit card and it continued to be debited dishonestly from my account every month for over a year. It was a deliberate theft, common on the internet.

My pleas to Lloyds bank in many letters, and personal visits to counter staff asking my bank to cease these unauthorised payments from my account fell on deaf ears. Lloyds bank told me they couldn’t stop the payments. They point blank refused to stop allowing fraudsters to take money from my bank account. How bizarre can you get?

Then I learnt about the bank charges scam and all the legal actions going on throughout the country. I discovered the banks have stolen tens of millions of pounds from thousands of people under the pretence of them being legitimate charges for unauthorised overdrafts. The whole country is up in arms about it.

Recently I learned all the banks have managed to stuff the entire World economy by virtue of extremely bad behaviour and sheer greed in manipulating money. Governments are even complaining about it. The whole World is wondering if the banks have led everyone into complete financial meltdown.

Then for three months recently I failed to pay any monthly payment to my Capital One credit card account due to an oversight on my part. I didn’t use the card and the only outstanding balance on the card was just £13. They charged me penalties amounting to £39. This works out at an interest rate of about an incredible 1200 per cent. That is pure theft.

With experiences like this and feedback from many other people suffering similar problems, I began to realise the entire financial industry had become utterly different from years ago when it had a reputation for honesty and straight dealing. Now it seemed to rely on deviousness, mis-representation and downright fraud to make money.

More and more people are openly complaining about an ever increasing tidal wave of greed as well as obvious deviousness and dishonesty coming from all sectors of the financial industry, and particularly from banks.

When I saw how many people were beginning to fight back I realised the banks had conned vast swathes of the population.

I think the banks are thoroughly dishonest, outrageously expensive to use for any purpose, and extremely damaging to the entire country. It is about time something was done about it.

Any constructive suggestions anyone ?