Monday, April 14, 2008

My take on the Credit Crunch!

Whilst I know that fractional reserve banking means that money is created out of thin air (based on a 10-1 ratio of 1 pound deposited means 10 can be lent out) and interest charged upon it. And this allows a system in which the economy is dependent on the banks lending enough into circulation to repay outstanding loans plus interest. Once the banks decide to lend less. a recession is inevitable. And I know that occasionally the banks deliberately stop lending enough to cover the existing loans so that they can take back tangible assets at a fraction of their real worth and create a recession or depression for political purposes. I shall add a little more on this later

However the current credit squeeze is a little different as it seems to be the big banks that are getting hit first and hardest.

It could just be that the big banks have been "played" at their own game and some derivative managers have retired on a fortune at their expense?

Here is how the game has been played.

The smaller mortgage and realty based banks in the US had been lending sub-prime to self assessed debtors for a while, due to ridiculously low interest rates a few years ago.

These smaller banks realised that they could lend out lots of money to people who could not afford to repay and these banks didn't have to worry about re-payments as they immediately sold on the debt to other money market types who then sliced and diced these "worthless" loans and sold them onto the big banks as secure financial instruments with a high value rating.

These middlemen took their cut and retired very very rich too.

The big banks fractional reserve banking relies on the worthless "money" that they create out of thin air in the form of loans actually being re-paid for their scam to continue to work.

This credit squeeze might not be the standard market contraction that the banks deliberately create occasionally to repossess tangible assets at a fraction of their worth, and to put political pressure on world leaders to capitulate to the banker's demands. As in the 1920's crash that enabled the Federal Reserve Banks (Via the US Government) to steal all of the nation's private gold. Nobody knows what has happened to that gold since.

The reason? The big Federal Reserve banks could not have private gold in existence that could rival the worthless I.O.U's known as federal reserve notes as a means of measuring wealth for the masses.

But what could the big bankers want now? They already, literally, own everything. Their plans for utter and total global domination are well on track, and money, as in cash, folding notes and coins that can literally be in the possession of individuals, outside of the banks control, are soon to be eliminated. All money will be transacted electronically at the whim of the bankers before too long. And anyway, folding money is not effected by this credit squeeze.

So what is the purpose of the credit squeeze if it IS the big banks behind it?

After all, why would the banker's be demanding anything from the world leaders who currently pay fealty to them now?

I think that these banks have been played for billions maybe even a trillion or two and now the great scam, the greatest and largest financial fraud in the history of mankind which is the fractional reserve banking of a fiat currency, may be about to fall.

There is very real desperation in the world's banking fraternity at the moment and it is only going to get a lot worse.

But it could be the very thing that is needed to remove mankind from the banker's control web and allow us to truly evolve.

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