Always read the Comments, is my advice. Reading the Comments to Ambrose Evans-Pritchard's latest column is an added education.
Since some of these are long, I'm not going to use blockquote. Instead, my own writing will be in italics, with the quotes in regular typeface.
Quotes begin now:
I live in a mid size city in the USA heartland, Fort Wayne, Indiana. About six years ago I ran for prosecutor. One of my concerns was the fraud against poor home buyers by real estate professionals. They were inflating the value of the homes, putting people into mortgages they could not afford, all under the guise of quasi-public organizations designed to help the home buyer. These mortgages are now bringing down the capital market.
Our democratic model requires a free and inquiring press. Think Muckraking. Today, the media’s profits aren’t subscription based, but advertising based. They will not go after businesses that provide them revenues.
Had I been elected these predatory scum would still be in jail. This problem needs criminal action not hand wringing.
Roger
Posted by Roger Miller on September 16, 2008 4:22 PM
A wonderful sentence from a longer Comment:
My grandnephews are not going to re-fight WW I and WW II for the sake of Paris Hilton being able to bathe in squeezed Amazonian hummingbird juice.
Posted by Walt OBrien on September 16, 2008 2:01 PM
This is a post in two parts that I've combined into one for clarity:
Lets put AEP's article and the subsequent repsonses into the clearest perspective I can muster.
We operate whats known as a Debt-based, Interest Bearing, Fiat, Fractional Reserve banking system. That means:
1. Money in circulation only exists because of the existence of debt. No debt - no money in circulation. When a debt is first initiated the new money is printed there and then at the signing of the mortgage contract. It is created out of thin air by the banking fraudsters. It did not exist before the loan agreement was signed. The recipient then spends the ‘loaned’ money into the general money circulatory supply. When the recipient finally pays off the loan the money disappears from the circulatory money supply back into the black hole from whence it came.
2. Fiat money is money without solid (eg Gold) backing relying on trust and confidence to permit it to be used in transactions. No trust - no value - no transactions (other than barter).
3. When a bank receives a deposit of say £1000 the 'rules' of the game then allow the bank to lend out 90% of that deposit (at a lending ration of 10:1) i.e £900. If that £900 is then deposited in another bank the other bank lends out 90% of £900 ie £810 and so on and so on. From an initial deposit of £1000 the banks cumulatively lend out nearly £10000. For the balance of £9000 they lent out something they never had to lend in the first place. To compound the fraud they charge you interest on something they never lent you. This is the banking systems greatest fraud. It is called Fractional Reserve Banking.
Now the story doesn’t end there. When the debtor repays his loan he repays both the initial capital and the interest (not to mention commissions, bonuses, profits etc etc). But when the debt was first issued only the capital was ever created. When it is paid back it is paid with interest. Where does the additional money come from to pay the interest? You can’t take out more than you put in. If you try the pot will dry up. The answer is…. You need another person to take out another loan spending his loaned money into the pot so you have something to take back out to pay your premiums. The volume of money (debt) being put into the opt has to at least equal the money being taken back out to service the debt. As you can see this is not a linear relationship. It is an exponential one. To pay back each loan you need two more people to take out new loans to provide the liquidity for you to remove your premiums. Its like a ball rolling down a hill you can never catch. The faster you run the faster the ball rolls away from you.
The fractional Reserve Banking system is not only fraudulent it is completely and systematically flawed. It cannot continue indefinitely (fact not opinion). There aren’t enough new people to take out new loans on an exponential basis to keep the system going. It is a pyramid selling scheme on a very large scale.
Lets make it even worse. I described above a situation based on a lending ratio of 10:1. In practice it is more common for it to be 30:1 and in the case of Northern Rock nearly 40:1. Now look back at my example above and work out just how big this scam is.
Although its human nature to look for a blamehound when things finally go wrong all of the perceived villans serve only as accelerators or decelerators but none can stop the collapse. The system is condemned to collapse the first day it starts operating. It is built in to the operating system. All the drivers can do is speed it up or slow it down but they cannot stop it. It is not possible.
We are witnessing the collapse of a Fiat monetary system just as all Fiat monetary systems in the history of mankind on this planet have always collapsed. Attempting to fight it only delays the ultimate day of reckoning. But it cannot be delayed indefinitely.
The answer is to have a currency based on something tangible and solid. This country survived for 760 years with a system called the Tally stick as a currency for example. It did not suffer from any of the above issues. It was deliberately killed by the banksters because they couldn’t make money out of it.
Google “money as debt” or “the money masters”.
Wake up to the real elephant in the room.
Posted by NorrieC on September 16, 2008 1:27 PM
Yes, so let me embed that video once again (my original post):
Money As Debt
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