Wednesday, 27 June 2012

The Banks have been cheating us all!

Anyone who has followed me for the past four years will by now realise that I do not trust the banking fraternity. One only has to read the history of banking and in particular the History of the Rothschilds to realise that the banking industry has overtaken the Mafia as the greatest enemy of the public.

Their bonuses are incredible. They have ripped off the public to an extent that it is hardly believable. They have collapsed the economies of so many civilised countries but can we find one politician who will tackle the problem?

Have they all been corrupted by the New World Order? Is every mainstream politician in the pay of  the corporations? When will these crooks arrive in the dock and what should be their sentence? The questions pile up but nobody has an answer.

I get the impression that almost every aspect of government has been corrupted. Just locally here in Leicestershire we have a County Council Chairman who has neglected to fulfil his responsibilities. He is only one of so many because too many of them the councillors and officials are being paid more than the Prime Minister. Our Chairman has apparently visited Brussels routinely but why? What is Brussels telling him to do with regard to Leicestershire? Why has he even got a link to Brussels? Clearly Brussels pays him well and then he 'forgets' to reimburse his sponsors!

It is blatant crime but then the EU has corrupted so many people because they pay well over the odds. The UK pays £48 million pounds a day to the EU. £48 MILLION a day buys a lot of loyalty!
Where does the money come from in an age when we locally cannot fund town toilets?

Do you seriously believe that George Osborne knows what he is doing? He has recruited Chloe Smith to his team. She is a young and apparently ambitious politician from Norwich but last night she got shot down in flames. Is she really a responsible and credible  politician or just someone who does as she is told and has been placed in an extraordinary position because she is female, young and pliable. Nadine Dorries tweeted that 'George Osborne is a coward'.  

Our economy is in bits. This Coalition is borrowing more than Gordon Brown did in his hey day. We are still subsidising the Indian Space programme. We are still subscribing to the EU and funding an International Aid programme which is a disgrace. Our international aid programme does not get to the people but it does fund African despots to buy up fashionable areas of Paris. Are you listening?

Now comes 'news' that we all knew that the bankers are actually crooks and have been ripping us off. Big deal! A final thought! You voted for all the politicians who backed the bankers and now they have rewarded you. Well done!


bewick said...

Thought you might like this related allegory
A Dummies’ Guide to What Went Wrong in Greece and Therefore, in Europe

Helga is the proprietor of a taverna in Greece. She realizes that virtually all of her customers are unemployed Greek alcoholics and as such, can no longer afford to patronize her bar. To solve this problem she comes up with a new marketing plan that allows her customers to drink now, but pay later.
Helga keeps track of the drinks consumed on a ledger (thereby granting the customers’ “loans”).

Word soon gets around about Helga’s “drink now, pay later” marketing strategy and as a result, increasing numbers of customers flood into Helga’s bar. Soon she has the largest sales volume (but no actual money) for any bar in town.

By providing her customers freedom from immediate payment demands Helga gets no resistance or complaint when, at regular intervals, she substantially increases her prices for wine and beer – the most commonly consumed beverages.

Consequently, Helga’s gross sales volumes and paper profits increase massively. A young and dynamic vice-president at the local bank recognises that these customer debts constitute valuable future assets and increases Helga’s borrowing limit. He sees no reason for any undue concern, since he has the debts of the unemployed alcoholics as collateral…

He is rewarded with a six figure bonus for being a clever little banker.
At the bank’s corporate headquarters in Athens, expert traders figure a way to make huge commissions, and transform these customer loans into DRINKBONDS. These “securities” are then bundled and traded on international securities markets in Madrid, Dublin, Rome and Berlin.

Naive investors who buy into these DRINKBONDS don’t really understand that the securities being sold to them as “AA Secured Bonds” are really debts of unemployed alcoholics. Nevertheless, the bond prices continuously climb and the securities soon become the hottest-selling items for some of the leading brokerage houses across Europe including London.

The traders all receive a six figure bonus.

One day, even though the bond prices are still climbing, a risk manager at the original local bank in Greece decides that the time has come to demand some kind of payment on the debts incurred by the drinkers at Helga’s bar. He therefore informs Helga. Helga is in turn then obliged to demand payment from her alcoholic patrons but, being unemployed alcoholics, they cannot pay back their drinking debts. Since Helga cannot fulfill her loan obligations to her local bank she is forced into bankruptcy. The bar closes and Helga’s 11 employees lose their jobs.

Overnight, DRINKBOND prices drop by 90%. The collapsed bond asset value destroys the bank’s liquidity and prevents it from issuing new loans, thus freezing credit and economic activity in the community. This contagion rapidly spreads upwards to the parent bank in Athens and the bank collapses.
These local and national financiers of Helga’s bar had granted her generous payment extensions and had invested their firms’ pension funds in the DRINKBOND securities. They find they are now faced with having to write off her bad debt a losing over 90% of the presumed value of the bonds. Her wine supplier also claims bankruptcy, closing the doors on a family business that had endured for three generations; her beer supplier is taken over by a competitor, who immediately closes the local brewery and lays off 150 workers.

Fortunately though, the bank, the brokerage houses and their respective executives are saved and bailed out by a multibillion Euro no-strings attached cash infusion from the government in Berlin.

All these bankers and brokers involved in the “Rescue Plan “receive a six figure bonus.

The funds required for this bailout are obtained by new taxes levied on employed, middle-class, non-drinkers who’ve never been in Helga’s bar. Most of them don’t even live in Greece.

Now do you understand?

bryboy said...

A brilliant allegory Bewick. It could almost be true! Ha! I sometimes wonder where it will all end up and unless be manage to curtail the greed of the Political and Banking classes we are all heading for disaster. I do wonder if Mr Diamond will become the first casualty...he probably deserves to be.

bewick said...

Actually Bryboy it DID happen but started slightly differently. The state supported US mortgage companies Fanny Mae and Freddy Mac indiscriminately lent to all comers with little regard for ability to pay. They even lent to prisoners with no income.
The debts were parcelled up and sold on as bonds which attained AA or AAA rating on risk factors. Why? God knows but they were snapped up.
This bubble spread to Europe and not just Greece but Spain, Italy, Portugal and even Britain. It eventually burst with the collapse of Lehman Bros but there have been many aftershocks. Greece? Well uncollected tax is £45b. Those in "hazardous occupations" are allowed to retire at 50 with an 80% pension of previous earnings. "hazardous occupations" include for example hairdressers and bakers and many government employees. Greece has recently halved the number of such occupations but there are still rather more than 100. And I'm expected to support these parasites along with our own many immigrant and indigenous parasites?
And there was me thinking that slavery had been abolished!
"Market Traders". Well a neighbour was such - the kind who set up stall in a windy town. He was, and is, up to every scam he can find.
I did some consultancy for a major stockbroker. Some of their "traders" were actually decent. The rest were poor replicas of east end barrow boys.

bryboy said...

Yes my friend I had already guessed that. Your allegory was too close to the truth. The next problem is what do we do with it all? The blog Anna Raccoon has summed so much up. Who can we now trust?

Bewick you should start up a blog! You have so much to say but please don't desert me...let me join you!

I feel that even the sleaze merchants are feeling the heat. The bankers have overdone their profligacy.

bewick said...

Start a blog - nah. Takes too much time reading other blogs and some of what I pass on to you comes from such. The Allegory was on GoV. Freddy Mac and co, and Greek "hazardous occupations" - well I was precis-ing what I'd learned by reading many news stories and educated op-eds.
Had forgotten Anna Raccoon. As I recall she opted out and someone else now fulfills her role. M<ust have another look.