Since the global economic collapse of 2008, it could reasonably be expected that monstrously gorged bank ers might embark on a diet, but, like most addicts, they continues to relentlessly feed, as fatalists who believes that death is inevitable, for their customers, that is, not themselves, who are omnipotent and immortal overlords.
The feast on which fat bankers dine is debt. They are the masters of credit, thus masters of mass illusion. All the ‘physical’ money in circulation accounts for only 10% of the zeros and ones in electronic bank accounts, and these zeros and ones are mostly notional values of debt, such as customer mortgages or inter-bank loans, which are used by banks to gamble on interest rate movements, or the future value of mortgage debt ‘packages’.
It’s monopoly money, that is agreed to have a value by those controlling ‘the game’, and those who wish to be a part of ‘the game’ – in which most people are pawns.
Super rich City of London and New York bankers essentially receive their fat bonuses by gambling with other peoples’ debt. Like all their parasitic kind, inclding their political twins, they have never done a manual days’ work, but feel they have the divine right to control the lives of those that have.
Since the global economic collapse of 2008, rather than limit the amount of unpayable debt, which caused the collapse, cental banks (in reality, private companies owned by a ruling elite), have reduced interest rates to close to zero in America and the UK – less than zero in Switzerland, Denmark and Sweden, where depositors are effectively paying banks to hold their deposits – in order to increase debt levels, i.e bank profits.
Global debt is now $57 trillion more than it was in 2008 (Mckinsey). All talk of debt reduction is political claptrap. Consumer debt still runs at historically high levels, and this does not include debt from unregistered sources, such as loan sharks.
In the UK, people have been enticed to take on 5% deposit mortgages, a further proportion of this debt being guaranteed by the government. One such mortgagee told me that he had borrowed his deposit, and had entered into an interest only repayment scheme – i.e. he will never own his house; it is a glorified form of renting. When asked what would happen if interest rates rose to 2%, which will inevitably happen, the Bank of England having already done a risk assessment of this scenario, he answered: “I’ll be floating down shit creek”.
Yet, those masters of fiscal probity, the Con-Lib government, proclaims such schemes assist young people to ‘get a foot on the property ladder’, which, in many cases, one estimate is 300,000, will be a ladder to foreclosure.
Never mind. The figures look good, especially before an election, and fat commissions have already been paid.
Yet, just as in 2008, a debt correction is inevitable. The value of debt will fall. Credit will stop. House prices will crash. People will hoard cash, and empty cash machines. Cash withdrawals will first be limited, then stopped. Cash only signs will be everywhere. Sellers will not trust that they will be paid.
As Jim Morrison wrote:
This is the end
This is the end
My only friend, the end
Of our elaborate plans, the end
lenin nightingale 2015