It’s the People . . . Always the People!

What a week last week was for the global financial system. In America we are told that large European banks, including Santander and Deutsche Bank are possibly going to fail Federal Reserve stress tests on their ability to survive another financial disaster.

They have had 7 years now to get their act together, with trillions of dollars printed and our tax money stolen to ‘save’ them. Is the global banking system so corrupted by bad debt that no amount of money printing will save it?

The cynic in me says they are deliberately keeping their reserves as low as possible because it’s their own money. When the system does another ‘2007’ and it will, then why waste their own money when they can use ours? This time however it won’t be our taxes but our cash, as the money we have in banks, be it in the current account, a deposit account or any account will be taken, screwing the people once again!

Now let’s look at Europe and the quandary Brussels is facing as the battle between Greece and the troika reaches new dimensions. This has nothing to do with money and all to do with power politics. In no way can the Greeks be allowed to reduce their debt to ‘manageable’ proportions as it will be an admission of irresponsible banking practice and create a dangerous precedent with Spain Italy Portugal and Ireland. The pound of flesh has become a reality!

Whilst ‘The Merchant of Venice’ is being played out on the world stage, ‘Shylock’ in the shape of the European Central Bank has now declared that its strategies for economic recovery are not working and its monetary policy options are exhausted. Financial stimulus must now come from governments spending more, or acting directly to make the private sector do so.

Isn’t this precisely what the new Greek government is trying to do and the ECB won’t allow, or am I missing something? Whilst this game playing continues there is little concern for the people falling below survival level in order that interest on debt is paid.

Our global financial system has now been bent so far out of shape as to make it unworkable. We are in uncharted waters where even the financiers don’t know the effects of what is currently going on, as money is endlessly printed out of thin air.

If we go back to basics, money was created to ease the means by which we traded our assets. In the beginning coins were made from gold as a means of guaranteeing the value of an exchange.

Then paper money came in and its value was guaranteed by a promise that it could be redeemed against gold. In the 1970’s the link with gold was broken when that ‘doyen of integrity’, Richard Nixon, took the dollar off the gold standard. Instead Governments made laws stating that currencies are legal tender and they will guarantee the value of each coin and note.

How will they do that . . . who knows? We can see and touch gold and it is reassuringly heavy, whereas a promise from government carries no weight or reassurance whatsoever. Now any amount of money can be brought into use and the figures are so vast they are meaningless.

Meaningless they may be but interest is charged on every coin, note and bond that sees the light of day. With current low or non-existent interest rates the problem is just about contained but the Federal Reserve tell us rates will have to go up. If we are choking now what happens then?

Money is no longer a means of trade but a tool by which global society is being returned to the feudal times of centuries ago and Greece is evidence of this. This mind-set is causing millions of men and women to be divested of the ability to bring up a family and keep a roof over their heads.

There is increasing talk of Agenda 21 and a UN led takeover of humanity by stealth. It has been dismissed as ‘conspiracy theory’, the classic manner by which the 1% destroy the credibility of criticism and useful debate. As our world becomes financialised it is made more malleable to abuse and control, making more sense of all that is happening.

In this 21st century people’s lives are systematically being made harder by debt, terrorism, surveillance and the destruction of democracy. The internet is bringing these seemingly disjointed actions out into the open and in so doing joining them up.

Our world is in need of radical change. This change can only come from a new breed of leaders who will meet the challenges we now face and re-inspire the people by working for their common good.

Until the next time

 

Thinking from his Book: Global Magna Carta. Returning Power to the 99% . . . If They Want It! By J T Coombes