Monthly Archives: August 2015

Global Finance and Planet Zog

Space photo

As I left Planet Zog on my Virgin Galactic space shuttle, I realised it is a place where people of all races colours and creeds cohabit in happy union, with a deep love of their Planet and respect for each other and the art of living Life.

As a global Society they have high self-esteem that manifests in pristine healthcare services, education and Social infrastructures that look after the needy when the challenges in Life became overwhelming. Employment demand is high and much of it is directed to the many diverse ways of managing their Planet, which provides the resources for all their needs.

It has not always been this way and emerged from a long battle of change with previous traditions that had enslaved the people and were destroying the Planet. Global Society then had been ruled for eons by Lenders, a sector of Society who were clever in the management of money. They were not different to the rest but just adept at recognising the inherent power of money and skilfully utilising that power for their benefit.

In the beginning they had simply managed and protected the wealth of others by keeping it secure in ‘banks’. As not all the stored wealth was used by its owners the Lenders began lending the excess out for others to use and charging for this service. They then began assisting governments in printing their currencies, providing the means to ‘move’ this money around the country and then abroad.

Eventually they created a global system of ‘money movement’ which they charged all users for. They persuaded governments to let them supply their country’s money and ‘remove any danger of political interference’ in the economy.

In time the Lenders came to control nearly all the money in circulation across Planet Zog. Their real skill however, lay in remaining hidden from public gaze. Few people knew who they were or how money was produced and paid for. This secrecy meant the people were unaware it was not their money but only lent to them for a charge.

The Lenders power increased as they were able to simply agree or refuse to lend their money to governments when it was needed. Their vulnerability came from human frailty, as power driven greed drove them to seek greater control over countries, by cleverly taking their money out of circulation and replacing it with loans.

They did this by vastly increasing their ‘bad’ banking practices and demanding that the people’s good money (taxes) pay for the predicted failures of their irresponsible activity. Governments were helpless. They did not control the money and so became immersed in debt and had to sell off national assets to help pay for that debt.

Again the Lenders cleverly justified this to the people as ‘Austerity’ measures to meet the huge loan repayments. Because of peoples ignorance about how money worked they initially accepted the restrictions they were placed under. Despair set in and many committed suicide

At this time the technological inventors amongst them developed a global communications system that allowed people to talk to each other across the Planet for the first time in their history. The Lenders did not like this new source of people power and sought many ways to restrict its use, by increasing the surveillance of the people as well as reducing their freedoms to speak and demonstrate.

However, this new communications system began to lift the veil on the secrecy of the Lenders, who they were and how they manipulated money. For the first time people saw that it was not their governments who were to blame for their hard lives but the Lenders.

By the simple expediency of removing the secrecy that had kept the Lenders in power for so long people began to work towards a new way for Society to live on Planet Zog. By taking back the power to print and circulate their own money they could build this new Society.

Running their own banks meant the interest, which was previously taken by the Lenders, could now be circulated back into Society. The sums involved were so vast that they would fund undreamt of healthcare and education facilities, as well as excellent cheap public transport and other infrastructures. Their energy supplies became cheaper, as did the cost of money, all of which was possible through strong regulation by new democratically empowered governments.

It took time for change to happen, because the Lenders did not relinquish their power willingly. However, by lifting that veil of secrecy the people at last knew what they were fighting. They could see a future for themselves and their children, free of enslavement to debt. They could now live their lives on a Planet whose plentiful resources would be the reward for its careful management.

Virgin Galactic may not be operating yet but the internet is and we are increasingly lifting the veil. As our ignorance is dispelled the way ahead will, I am sure, open up to us as it did on Planet Zog.

 

Until the next time

 

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

RBS . . . Osborne’s Having a Laugh!

So, our illustrious chancellor has sold off the first tranche of our shares in Royal Bank of Scotland with a mere £1 billion in losses. (It could be £1.5bn when the actual share price is known on Tuesday). Bet the hedge funds who scooped them up won’t be making any losses. Then again they wouldn’t have been suckered into this odious deal in the first place!

But the real truth of this abusive scam is much worse. We paid £45bn for a bankrupt company that had achieved the largest annual loss in UK corporate history! It was bankrupt when we bought it and it is still bankrupt now, along with all the other private banks. At this week’s prices we will get roughly £30bn back for our outlay of £45 bn, making our losses not £1bn but £16bn . . . all on a company that is worthless!

In the chancellor’s annual Mansion House speech in June 2013 he stated about the sale that – “getting the best value for the taxpayer, maximising support for the economy and restoring them to private ownership” and “Now is the time for RBS to rebuild itself as a commercial bank, no longer reliant on the state, but serving the working people of Britain.”

Does he really believe we are a bunch of Muppets? “Serving the working people of Britain”. Banks have never served us but only screwed us with mountains of debt! How it “maximises support for the economy” when it is bankrupt and returning to the same pool as all the other equally bankrupt banksters is beyond me. Greece and a growing number of other countries will tell you none of the banks are doing their economy any favours!

Then there’s the governments media propaganda machine, who tell us Osborne took advice from James Leigh-Pemberton, head of UK Financial Investments, the body who look after taxpayer stakes. Formerly educated at Eton, he is the son of Robin Leigh-Pemberton who was Governor of the Bank of England from 1983 – 1993. All smells a bit incestuous to me . . . Just saying!

Only a few weeks ago we were told that this sale had the blessing of both the Bank of England (a private financial company) and independent adviser Rothschild. Does this revised information suggest the PR machinery had its knuckles rapped for putting a Rothschild and the Bank of England in the spotlight on such a dodgy deal?

I raise this because the Guardian have reported that the letter from the Treasury recommending the sale was signed by the ‘second’ permanent secretary in the absence of the most senior civil servant in the Treasury, Nick Macpherson. Has this canny mandarin decided to distance himself from such an abusive deal? . . . You decide.

But this, of course, is what ‘Austerity’ is all about. We are made to watch helplessly as our national assets are sold off at rock bottom prices, purportedly to pay the odious debt that all of these very people and institutions have saddled us with in the first place. What really rattles my cage is that RBS was bankrupt when we bought it and has flagrantly continued its dubious business practices, supported by our money.

Fred Goodwin, the man responsible for the collapse of the bank walked away with outrageous benefits that included an annual pension of £555,000 (subsequently reduced to £342,500) and an estimated tax free fund of £2.7 million. To this day he has shown no remorse whatsoever for his aggressive greed and incompetence.

His successor, Stephen Hester, was no better, overseeing senior executive’s demands for a £1.5bn bonus when the company had just made a £1.1 bn loss. Under his watch there was a loss of 34,000 jobs and a disastrous upgrade of the banks computer system which cost £125 million to cover customer compensation and a further £56 million in fines.

For this ‘expertise’ he received an annual salary of £1.1 million, taking home £1.5 million in bonus and pension payments in 2010. Leaving in 2013 he took with him in excess of £1.6 million as his ‘separation’ package.

The financial cost to the taxpayer for all of this incompetence is bad enough but our noses have been rubbed in it through a complete lack of any regulatory infrastructure or morality, by senior banking staff, regulators or government, in protecting our investment.

The 24% who voted the ‘Eton Mess’ into a majority government did so in support of ‘Austerity’ measures. RBS is a salutary lesson to them and the rest of us that we are now being treated as a joke. I don’t know about you but that leaves a very unpleasant taste in my mouth.

 

Until the next time

 

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