Tag Archives: Debt

Our Toxic Financial System – Part 3 of 3

Nathan Rothschild

In Part 1 http://tinyurl.com/z3x2yzb I justified my use of the word ‘toxic’ in the title from the dictionary, which described it “Causing social harm or unpleasantness” – The Free Dictionary by Farlex. In this final part I would like to offer examples of how the biggest global monopoly in our history is now consolidating its vast powers and whether they are of benefit to Society or not.

In Part 2 http://tinyurl.com/j3xu9uq I alluded to how money comes into being. Monopoly allows them to simply create loans on a balance sheet and bring money into existence (out of thin air) for the duration of the loan and on which we pay interest.

This monopoly to supply our money no longer needs to hold reserves of tangible assets – like gold – to support the value of that money. Indeed, to protect this monopoly they actively work against any country looking to bring its own currency into existence. Recently (and quietly) disclosed in Hilary Clinton emails), it was confirmed that Gaddafi was looking to introduce a gold backed currency into Africa and never quite made it.

With no control over how much cash is circulated into Society, because it is no longer controlled by how much gold reserves the banks have to hold, we have seen a printing bonanza since 2008, as money is flooded into the economy to stave off what should have been an economic collapse and recession.

These vast amounts of money were supposed to be put out into Society to spend on goods and services, thereby stimulating the economy back into a healthy position. A monopoly however, allowed banks to hold on to the money to boost their own severely strained reserves (they were all technically bankrupt after 2008). They also gave cheap loans to the corporate world. These were used to buy out the competition and buy back their own shares, thereby artificially holding up their share prices, in an era of falling sales.

This stimulated the growing gap between rich and poor, as the banks directed their money in just one direction – the corporate world. Like a gardener directing his hosepipe to water just a part of the garden, those plants that received it flourished and the remainder withered.

In spite of all the reassurances from the experts, like the Federal Reserve, that ‘QE’ would sort the problem of growing unemployment and economic slowdown, it didn’t. In addition, these private banks have continued to merge risky investment banking with their consumer banking, the very problems that heralded the collapse of 2008.

Because of their monopolistic position the banks are again looking to the public to bail them out, by taking current account money and savings next time. (Don’t raise the fact that we have a government protection scheme to reimburse us in this event . . . that is our taxpayer money again that will support this second grand theft!!)

As we become aware of what is happening the astute will take their money out of the banks and hoard it under the bed, as we have done for eons when distrust of the banks sets in. This time, because they are so fragile, the banks want to pre-empt our astuteness by getting rid of cash, something already under way in – Canada, Denmark, France, India, Israel, Norway and Sweden, to name but a few.

If we are restricted to plastic, (which ordinarily need not present a problem, if properly overseen) our money is no longer in tangible form as notes and coins but simply numbers on a computer screen and their monopoly will allow them to deny us access at will. Their monopoly control then becomes absolute. Their reasoning is that it will enable them to crack down on money laundering and tax evasion.

Indeed, only in the last year or so Switzerland has been under attack from US agencies to make public the many corporations who deposit funds in secret bank accounts to avoid tax. Having done the gentlemanly thing and given in, Switzerland is now seeing this money transferred to Reno, Nevada in the US, where that same privileged tax status is available to those same corporations!

Debt obligation is underwriting the flourishing of this financial monopoly and as with all monopolies, Society is the poorer for it. We have absolutely no control over current financial abuse and our governments seem to be helpless because of their debt obligations to theses very banks.

Private banking has its place in Society, I believe, as a provider of services to the corporate world. What current banking practice has established is that we need a separate ‘public banking’ system, for the private individual and accountable to those very people, as both customers and taxpayers.

Here there is a ray of light in no less a place than Switzerland, the home of global banking. This country operates both public and private banking services, the former of which provides the citizens with one of the best health services in the world. Now there is a move to demand that government, not the private banks, has the exclusive power to create the country’s money.

The reasoning for this is summed up as follows:

  1. Currently money is created as debt, resulting in severe malfunctions.
  2. The country’s money supply is under private control and therefore a monopoly.
  3. Bank deposits are not secure.
  4. Money supply rises and falls in line with banking profitability, not social need.
  5. The money supply fosters inflation.
  6. Debt issued money is only a benefit to banks and not to Society.

Interestingly this has not been widely covered by global media and left to the specialist publications and social networking to be heard. (Another ray of light in our rapidly changing world!) It is early days but here, at its very centre, is evidence of awareness on the injustices of debt driven monopoly banking.

We have a new, plain speaking breed of political leader emerging and showing integrity and a desire to break from the current world order of unelected corporate rule . . . like Jeremy Corbyn in the UK and Bernie Saunders in the US.

They can’t do it on their own, as Gaddafi, Lincoln and JFK have previously demonstrated but in league with like-minded politicos we could see real progress to a less abusive monetary system . . . and so much more.

Awareness breeds understanding and understanding breeds change

 

Until the next time

 

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

Global Leadership . . . Hmmmm!

As I watched the gathering of global leaders in Malta, standing for the obligatory photo op, I thought for a second I saw strings hanging down to their arms and legs. I looked again and they were gone, or had they been ‘photo shopped’ out . . . You decide!

As the financialisation of our Planet continues these corporate puppets gather to try and resolve yet another massive problem they have been instrumental in making. How can Europe possibly offer meaningful support to all these desperate immigrants when we are engulfed in chronic debt, falling production and vast youth unemployment?

It was Albert Einstein who observed that “The thinking that created the problem is quite incapable of solving it”, and how prophetic these words have become. We have horrendously serious problems to confront and deal with as a species, if we are to continue to live on this beautiful Planet, all of which have been caused by the policies of our leaders corporate masters.

If we look at the employment problems our young have to face, they can only escalate as we move into the future, creating a breeding ground for rebellion and anarchy. The significance of this, to my mind, is that every single one of us has to feel some sense of purpose in living this Life and work often provides the solution to that dilemma.

Youngsters today do not have this benefit, because robots and employers are reducing traditional workforces dramatically. They are getting away with it through contrived ‘austerity’ programmes which now rapidly losing credibility.

How will Society shape itself if there is little employment for people and that which is available is meaningless and insecure? How will homes be provided and family’s reared and how will we feed ourselves? Governments can’t help because their tax income will also drastically reduce.

And then we come to the broader picture. Climate change and global warming are a reality, in spite of the billions spent by the corporate sector on propaganda that argues against our interests and for theirs. With the benefit of modern communications we can actually see the ice caps melting as we look at them!

On the food front we know that water shortages are now occurring and can only get worse. The corporate solution to this Life threatening scenario is, with the help of ‘austerity’, to buy up as many national utilities as they can. Not for our benefit but as a source of guaranteed future profits. The fact that they are not employing people whose wages could then pay for this precious commodity and inevitably will die of thirst, is not a subject on anyone’s agenda.

Again with our environment, we are the only species to poison its own food by constantly dumping toxic waste into the oceans. To my mind it is the most childlike act of mindlessness, of all the present atrocities, because there is a mind-set that reasons the oceans are so vast they will absorb whatever we dump in them.

Evidence is now coming thick and fast of the nuclear pollution in our seas. Once again there is a puerile attitude by the culprits that ignores the natural state of the oceans and the fact that it is our largest source of food. Oceans have currents and these currents take what is dumped in the East, South, North, and West and move it around the world like a giant blender. (And TPP will deregulate food hygiene standards . . . Dear God!)

The curse of Society is political and corporate short terminism. Strategies are put in place that will see out the current political term and share prices are manipulated for the current accounting period. It is everywhere, from our news headlines to the collapsing state of our debt riddled financial systems and the shortages of jobs and food. Stock Markets scream for higher profits and share prices, pushing companies into dubious short term practices to maintain both. The latest being the VW emissions scandal.

We now have a lunatic environment where cheap money, printed out of thin air, is being taken on as debt, by big corporations, to buy up competitors in an effort to convince shareholders that ‘big’ is valuable. The present reality is that corporate sales are in constant decline and so share prices are being inflated by stardust, reaping terrible repercussions when the debt mountain cannot be repaid, which won’t be too long now.

The global financial system is run by unelected officials who are not accountable to governments, only their own board, as to how our money is produced and controlled. Debt, negative interest rates and the gradual disappearance of cash are now firmly on the agenda as they take us into uncharted waters!

And the masters and puppets currently keep it all in place with this financial control and a global media, whose propaganda constantly diverts our thinking away from these real problems with the latest political/celebrity ‘sensation’. It is here that the real blame lies.

Our media is the very essence of how we all assess and manage political and corporate activity. It is the means by which we regulate the powerful. History has shown how the powerful are always blinded by their own power – hence Magna Carta all those centuries ago.

As the media continue to play down the threats to our very existence we look to whistle-blowers and other responsible people to inform us. Will it take this extreme behaviour to bring the media back on course again, because we need something?

I understand that Rupert Murdoch is now dating Jerry Hall, Mick Jagger’s ex. Maybe our salvation will be found in her knocking some sense into him but I’m not holding my breath!

Until the next time

 

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