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Showing posts from July, 2015

The Myth Of Fractional Reserve Banking

Thanks to STEVE KEENFINANCIAL MARKETSECONOMYMARKETSAUSTRALIAN NEWSGLOBAL FINANCIAL CRISISINTEREST RATESCOMMODITIESGLOBAL NEWS The standard story about how banks create money, and how reserves work, is the "Money Multiplier Model”. Money creation starts with the government injecting "fiat money” into the economy – say by giving a welfare recipient $100 in cash. That recipient then deposits the cash in a bank, which hangs on to a government-mandated fraction of it (the "Reserve Requirement”) – say 10 per cent or $10 – and lends out the rest to a borrower. The borrower then deposits that $90 in another bank, which does the same thing – hangs onto 10 per cent of the $90 or $9, and lends out another $81 to another borrower. The process repeats ad infinitum, and in the end a total of $1,000 is brought into existence: the original $100 in cash, plus $900 in credit money created by the private banking sector (matched, of course, by $900 in debt). This alleged system, known as F…

Greece For Dummies

Don't get drawn into the fictitious oversimplified scenarios that those good dogs barking for their biscuits will have you buy into.

Think, use your brain, the whole "investors just drifted into lending naughty Greece money because of mommy EUs credit card" and "Greeks are Lazy" rubbish. Also, as media forgets, the Greek people have little to do with it, being asked to pay the debt with tax and pension, and pass it onto their grandchildren is criminal.

The ECB pays its failure and debt by printing €60 Billion per month in Fed style QE, bond buying which is free money when translated from beaurocrat, more than the Greek debt:
http://www.bloombergview.com/quicktake/europes-qe-quandary

and the IMF head calling for tax austerity PAYS NO TAX. http://www.telegraph.co.uk/finance/economics/9298501/Christine-Lagarde-attack-on-Greece-backfires-as-she-pays-no-tax.html

The IMF incidentally has made more profit from Greece just since 2010 that the Greek default instalments h…

Bend Over So That We Can Stick Another 4th Of July Firecracker Up Your Arse, America. Kind Regards, The Elite.

Happy 4th of July US people, hope you get your country back soon, but don't panic just yet, Rumour has it that Nestle will sell your water back to you at reasonable ransom. I mean rates. Monsanto's sorry about the whole bee fiasco but will make it up to farmers by getting good rates on their repossessed farms from the banks to rent back to them and might even pay them a small salary as gene patented crops will be made available for all your benefit.
Thats right, you and I get to eat their property if we are lucky, they own the food even after we pay for it in a manner of speaking, ain't they swell?

To the unions and middle class, um, never mind...

To Detroit and the motor industry, we may witness a raise in McDonald's & Walmart min wages to provide you with new careers and keep boosting those jobs figures! Yay. Go team! Of course we'll be docking multinationals taxes and upping yours so we can enrich our kind folk at the Military Industrial complex. Er, I mean…

Gradual Consolidation & Eventual Takeover Of Banking. How 37 Banks Became 4 In Just 2 Decades.

Chart courtesy of Realities Watch. If you were wondering how banks got “too big to fail,” here’s a good place to start. This chart shows us how, over the last couple of decades, 37 banks have became just 4 mega-banks. These same 4 mega-banks have, thus far, been immune to the consequences of any and all of their terrible decisions that places the entire world economy in jeopardy. Why? Because we, the taxpayer provide government with the welfare they allocate to banks in the form of bailouts. Our reward? Welfare cuts to the poor and tax breaks to big biz. Secret Deals like the TPP that kill entrepreneurs and ensure big corporations like Monsanto and Nestle will control food , land and water as farmers and real politicians that can't be bought become extinct. Hardly seems fair does it? The four remaining banks are but an illusion, one ideologically aligned entity benifiting from the same circumstantial interests (therefore having almost identical agendas) working to create politica…