Pyramid Comment: Banking Panic

Growth of the Affordable Debt Continues

A BBC article provides a glimpse of the current issue: Northern Rock. With the Olympic Games, and British taxpayers funding it all, almost £67bn is now underwritten and payable and increasing by 100s of £millions every week. These two examples alone demonstrate how the British public is paying a staggeringly enormous overhead to simply help ensure the banking system remains viable. The system is only in existence to make itself money. We borrow money from this globalised cartel so it can charge interest and the system is in the greater part directly responsible for the debt in the first place. The mechanism provides the opportunity to exploit money making schemes like the Olympic Games. Justified as essential, clearly it is not. But the taxpayer finances it anyway. Selling an unjustifiable scheme as essential. It is a type of black magic and a classic case of firstly creating the problem and then providing a solution. If a buyer does not come forward and pay off at least £10bn up front, the government will not entertain a private sale. And if private business sees no profit in the idea and withdraws, then the government has threatened to nationalise the bank. The taxpayer will be forced to 'buy' the dead duck to simply prop up the system. For a while. And will never be asked. It's an absolute obscenity, yet passes effectively unnoticed. The Olivant group is one contender to 'rescue' Northern Rock and the extent of British government involvement is clarified by: the government's aid package for the bank now amounts to about £57bn. Made to appear not a lot different to £57m. But that's 57,000 £millions. And adding all the zeros:

£57,000,000,000

The concept of the illusion of money 'creation' is exemplified here: the original 'loan' of £26bn has only been a box-ticking exercise. No money has actually been transferred, only the theoretical (authorised) loan. The virtual loan has now increased to an underwritten £57bn without any actual money being involved.

The transfer of £bns (worth) gold bullion or just an electronic 'tick' in a box?

The Bradford and Bingley Group seems to have an approach that sounds very much like asset stripping. It fails to describe itself as a building society. Perhaps it isn't one and is simply involved in the loans business. For house purchase. Houses are the currency of today and tomorrow. The day after tomorrow:

Of course, by government this means underwritten by the TAXPAYER. It's as though government just provides the money. It does technically, but is simply disbursing funds entrusted to it. The taxpayer is effectively an uninvited guarantor, but nevertheless a very welcome gate crasher. The global financial structure has been in hidden meltdown for years, but has only recently been identified for what it always has been. A system that takes from the one (already taxed money) and 'lends' to another: itself. But there's a price to pay. And the recipients? The private banks. And there's more money to be made on the way. Much more and provides a convenient method for the continued cover to mask events.

Pyramid Comment

Thursday, December 20, 2007

Banking Panic - The Plan (8)

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