December 11, 2008
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The Creature From The Black Reserve

That’s it. I’m Spooked.

We’re All Sheep Trussed Up In A Financial Pen.

I’m reading Mr Edward Griffin’s chilling tale The Creature from Jekyll Island. If you think this recession is due to bloated capitalism (“were the commies right after all Dad?”) – then you’re Dead Wrong.

Arguably, capitalism is the only remaining saviour of Mankind – and Womankind too….

This recession has everything to do with greed, lies, deceipt, power and corruption. And the Evil Cartel?

The US Federal Reserve and Banks.

It all starts with the Government. They want to raise more money to pay for benefits and the voters — because it gets them more votes. But the Government would need to raise taxes to get this money – which would lose them votes. In fact ALL governments need more money than they can possibly raise by taxes.

So they go to the open market and borrow money. Mission accomplished. But the Government now has to pay the loan back plus interest on this loan, so they go and loan some more to buy time and to pay off the interest. This cycle is unending – and is referred to as The National Debt.

Back in 1910 a secret meeting was held to discuss this and the Federal Reserve was created. Now Governments can borrow from the Federal Reserve. Good ‘Ole Federal Reserve then? Nope.

The problem is, the Federal Reserve just “prints more money” – it is called a loan and is redeemable in all the Banks – but the money never existed.

Now let’s talk about the Banks. They exist only to make money out of lending money. Fact.

So imagine a government worker has just been paid for the month and deposits that money into the Bank.

Remember,  the worker was paid with the Federal reserve money which never really existed. But the Bank can now use that workers money as a source for making loans to others. But for every dollar that is paid in, the Bank can loan many times more than that to borrowers…

….But that “extra” money is “virtual”

The banking system does not actually have that extra money in the bank – but can write you, as the borrower, a cheque for your loan. You pay the bank interest on the loan – based on money that never really existed.

So the Federal Reserve prints imaginary money, and the banks charge you interest of money that doesn’t exist.

And That’s The Scam.

So your mortgage, life savings, pension, social services, hospitals, investements, the very fabric of society, etc, etc, are all sloshing around in a secretive financial soup – that sits on top of a financial Black Hole. 

Frightened Shitless Yet?

Both In the UK and the USA — and elswhere, that’s the reason why the Government fixed the Banks liquidity by loaning all that taxpayer money. If the banking system collapsed the whole world-wide money system would also tumble like a pack of cards. And all the governments would be found out and be powerless…

We’d have to go back to simple bartering “I’ll trade you a goat for your sister”. If only we had kept the Gold Standard – none of this would have happened. For every dollar printed, the Bank had a dollar of gold to back it up. Sigh!

The so-called “sub-prime lending” wasn’t the reason we are now all in a recession – it was just the hinge that opened the door…..

This particular blog stands on the shoulders of giants – I’m just the messenger…