Tag Archives: Money

£1 Is Worth £1 . . . Says Who?!

As I survey the global financial scene I become more bemused by the sheer lunacy of it all. Barnham and Bailey would have been quite envious of the antics I am sure. But let me start with a question:

Q. What is the difference between Willie Sutton, an ‘illegal withdrawals specialist’ and global banks, also ‘illegal withdrawals specialists’?

A. One robs banks and the other robs people!

Willie robbed banks because they had something of value and presumably banks rob us because our money is of value. But what is that value I find myself asking?

If we go shopping to buy food we buy by weight and so we know what we are buying. Before pre-packaging, weights and scales were used to assure us that we were getting a correct amount of goods for our payment.

The weights were of predetermined amounts, pounds, ounces etc. and they were regularly checked by government officials to ensure they had not been corrupted. This gave us confidence that what we were buying was authentic and that we were not being ripped off.

If we apply these ground rules to money, it really becomes quite scary to my simple mind. Originally money was assessed in terms of how much was needed to buy a piece of gold. You knew where you stood because you could trade your paper or coins for gold and be sure of its value.

Then in 1972 President Nixon took the dollar off the gold standard and the true value of money suddenly became very vague. For my part, I then began to value my money in what I could buy with it. As an example, in that year I bought my first house for £5,000. Today it would take £500,000 to buy that same house!

In 1971 there were 240 pennies to one pound and they were worth something. In that same year our currency ‘went metric’ and that gave us just 100 (pence) pennies to the pound . . . each of which is now quite worthless!

I’m no economist but rather than leaping for joy at how much my wealth has grown I am concerned at how much the purchasing power of my money has fallen. After all, if the house is how I measured my money in 1972, £5,000 was a good deal. Today the value of my money has reduced a hundred fold, because I now need 100 times as many pounds to buy that same house, which has not changed one iota.

It is still bricks and mortar, with a slate roof but in 1972 I could afford to buy it, whereas today a person of similar age to then cannot. The value of our assets have not gone up but rather the value of our money has plummeted! With a 100 fold reduction in the value of my 1972 pound it is now worth one penny which, as we all know is worthless.

The simple reason for this catastrophe is that when money was tied to something stable and secure, like gold, its supply was limited and so it restricted ‘economic growth’, which was a bad thing for banks and economists. The answer to ‘freeing it up’ was to disconnect its value from gold and for the banks themselves to guarantee the value of money. All we had to do was simply put our trust in bankers, (as we did with those government officials who checked the weights and scales).

A 100 fold drop in the value of the pound in my pocket tells me they are not doing a good job. What is even more lunatic is that we all have to work a lot harder now than I remember in 1972. We are getting stressed out because the value of what we are working for is falling through the floor and we have to borrow to make up the difference.

Is it any wonder we have a global banking system that is bankrupt and about to prove again that it is totally unfit for purpose as we face another imminent collapse, just 7 years after the last one? This is the prognosis of a growing number of eminent economists and clever money people who are now predicting the crash will happen next month or in October. (History shows that the 1929, 1987 and 2008 crashes all happened around this time of year!)

We now know that when it happens the banks will rob us of our money to cover themselves. The legislation is already in force. So it makes sense to take our money away from them and hoard it. Apparently they are wising up to this and there is now talk of legislation to outlaw the holding of cash.

This level of connivance and control, over something that is becoming ever more worthless by the day, is what led to the French Revolution. A subject I shall be returning to soon.

 

Until the next time

 

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

The Murder of Cash

As I have mentioned in previous articles, 95% of the world’s money is created as debt by private banks and on which they earn interest on every financial transaction we make. To recap, when you use your credit card to buy something the amount that subsequently appears on your statement is how ‘money’ is created.

Your purchase creates money and when you pay of the statement the money disappears. During this process, as we all know, the banks are earning interest. It’s the same thing when you use your card to get cash out of the ‘hole in the wall’. You put your card in and cash comes out but only after the bank has made a thumping charge for the privilege.

However, once you have the cash you can use it to make many transactions and the banks can’t charge you for those. They have just had the one bite at the cherry on that original withdrawal.

Not content with this, they are now focussing their attention on ensuring they get to earn from EVERY interaction we have with money. They are doing it by slowly reducing the use of cash through reducing what they are prepared to allow us to use it for, until it is finally eradicated.

JP Morgan Chase are leading the field in testing and pioneering new policies of their own in cities across America. They will no longer accept cash for mortgage repayments, paying credit card bills or make repayments on car loans. Neither will they allow cash or bullion to be stored in Safety Deposit Boxes. Indeed customers have to sign a declaration that they will not store any cash or coins that are not to be found to have a ‘collectible value’!

It will not be long before other banks and companies follow suit. ‘Plastic’ will enable them to earn on ALL our financial transactions because they will then be able to identify when and where we are spending. (Buying a UK rail ticket is now cheaper if not using cash and many other services are being surcharged in a similar fashion!)

This has all come about through the phenomenon of negative interest rates, where investors pay the banks to look after their investments rather than them paying us! How this has got to the lunacy that is now being perpetrated upon Society is beyond me. Except that it is supported by the cloak of mystery that the banks have always exercised on how our money comes into being and how it is managed and manipulated.

There is also the inevitable propaganda promoted by the banks about how cash benefits crime and the ‘black economy’ because it is difficult to trace and it also encourages terrorism. The constant re-use of ‘paper’ money can promote ill-health and disease!

Isn’t it funny how these same problems (with the exception of the health issue) were headlined when cryptocurrencies, like Bitcoin, first reared their heads? The fact that banks are regularly found guilty of money laundering is allowed to disappear into the ether, along with other dubious practices such as the LIBOR rate fixing scandal but I digress.

What, for me, is of far more sinister concern is that if we lose our rightful ability to financially interact with each other in any way we choose and are restricted to ‘technological transfers’, be they plastic cards or smart phones, we hand over too much power to governments and banks, as another means of surveillance.

Precedents for abuse have already be created with WikiLeaks and Edward Snowden, where their bank accounts and any other means of financial transactions, including PayPal, were illegally shut done. Once the ability is there it only takes a point of view and a consensus, by those in control, to allow this abuse to spread like a cancer into the heart and soul of Society and no one person will be safe from its reach.

This elevates government control to a whole new level which, given current increasingly lax levels of accountability could result in us being denied access to our money for something as trivial as a traffic violation.

No, I don’t think I am being excessive here. The corporate world and governments have shown with both Fracking and TTIP that they have little concern for our status as voters or customers. They are increasingly acting with impunity and the crime that is now being perpetrated upon our finances comes from an arrogance that believes it cannot be touched.

SNP’s leader, Nicola Sturgeon, is a shining example of a new political strength that is speaking with the people, in demanding TTIP be vetoed on corrosive clauses that threaten our democracy. We need more leaders who are prepared to support, what the people can already see as threatening and act with and for the people, rather than the corporate world.

Until the next time.

 

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