The Money Scam

Created 22-07-2015, Changed; 05-04-2020, 03-03-2020

Old this webpage; http://ww1.andrew-lohmann.me.uk/perspective/the-money-scam/

Updated

A lot of people are noticing that in Greece people can do all the things that they were doing prior the Greek financial disaster, grow food and do at least all the basics, medicine, build homes etc. I can see nothing that looks like the world is particularly in famine or in plenty. But I do know that London has been been creating and lending money to the world but at higher interest rates to some countries than other countries as those countries rating have slid down so it must inevitably the country is less able to pay the increasing interest rates making the country spiral down further. Quantitative Easing, which is permission government gives banks create money and lend it out is the Sin of Usury made legal as bites more viciously and more widely.

The cartoon could be of USA and observing military spending but it is the USSR.

Britain's relationship with USA has become more obligations imposed on us since World War 2. Many of our laws and legal precedents are side tracked or skewed in deference to the special relationship. But the debt that World War 2 was not paid off until 2008. This is good perhaps the relationship can become equal consequently. I am not seeing that happen though? 

A Facebook friend said of Gordon Brown - he made one very bad mistake at the very 

beginning of his time as Chancellor (the pensions levy) but after that I think he was a very good finance minister. 

He was entitled to think that annual growth at about 2% was a reasonable assumption and he based his spending 

plans on that. It's not his fault that the American property and banking market collapsed; and as Prime Minister he 

did absolutely the right thing by underwriting and re-capitalising Lloyds, RBS and Northern Rock. In America, it's 

possible for banks to fail - in England, a failing bank would be a catastrophe. America is a much bigger country, and

 economy. Brown not only saved the British economy, he led the way to saving other economies too. He gets a bad 

press, undeservedly. Sure, he's a difficult man, but history will judge him more generously than the contemptible 

Nigel Lawson or the useless Norman Lamont - mortgage interest rates at 17%, remember those? And he didn't plan

 to have to spend billions on useless and pointless wars. He spoke out in the cabinet against them. Brown was nowhere 

near as bad as people paint - and his heart has always been in the right place...

--- I could not say it better so I quote that Facebook friend ---

I add that the switch from accolading UK for its action to the bad press that Gordon Brown's 

actions got only came about during the subsequent General Election campaign.

One example of many jokes circulating;

Greek Bailout Explained

It is a slow day in a little Greek Village. The rain is beating down and the streets are deserted. Times are tough, everybody is in debt, and everybody lives on credit.

On this particular day a rich German tourist is driving through the village, stops at the local hotel and lays a €100 note on the desk, telling the hotel owner he wants to inspect the rooms upstairs in order to pick one to spend the night. The owner gives him all the room keys and, as soon as the visitor has walked upstairs, the hotelier grabs the €100 note and runs next door to pay his debt to the butcher.

The butcher takes the €100 note and runs down the street to repay his debt to the pig farmer. The pig farmer takes the €100 note and heads off to pay his bill at the supplier of feed and fuel. The guy at the Farmers' Co-op takes the €100 note and runs to pay his drinks bill at the taverna. The publican slips the money along to the local prostitute drinking at the bar, who has also been facing hard times and has had to offer him "services" on credit. The hooker then rushes to the hotel and pays off her room bill to the hotel owner with the €100 note. 

The hotel proprietor then places the €100 note back on the counter so the rich traveller will not suspect anything. At that moment the traveller comes down the stairs, picks up the €100 note, states that the rooms are not satisfactory, pockets the money, and leaves town. 

No one produced anything. No one earned anything. However, the whole village is now out of debt and looking to the future with a lot more optimism. And that is how the bailout package works!

• In this Joke there is a sort of truth about how nature works except that modern law and financial services have displaced Karma (a bee pays back the flower for the honey by spreading the plants pollen) But a small number of parasites kill beehives and never pay back - there is of cause a limit to how much parasitism can be sustained. All of it balances ultimately in nature and species become extinct from time to time consequently in keeping the balance but not necessarily in a fair way in the short term..

• The truth is though that a bank can create 900% (say) more money each time the people do trade and money pass through any banking system. The amount of extra created money is virtually unlimited, since Big Bang in 1986 in the UK, and is part of what is called "Casino Banking" (900% has not been true since Big Bang in 1986). Real money and casino money are mix together so you can not tell the fake from the real money. In any case the fake money puts up prices so that people who only have real money can not buy things. It is very simple deceit that has scaled into a monster by its growth. It is due to the transition of regulated cash based money to unregulated bank created credit (money). 

• Further to that point; Credit is now created by banks writing down a number and that is now new credit then when the money is paid back the number is crossing out. But the drawback is that interest is owed is money that has never existed. London got away with it at first because it was just London doing it but under Bill Clinton in the 1990's who repealed the Glass -Segal Act which had been put in place in the 1920's in USA to prevent another wall street crash happening.

Banks have to keep a reserve called the reserve ratio which was 10% until the 1980s Thatcher government, against sound historical caution. That government removed the 10% reserve ratio requirement. Some banks were operating on about 2% reserve at the start of 'the banking crisis' of 2008. This is my understanding but for a better understanding see; http://moneymyths.org.uk/ (there are two more chapters to be added) Thank you to them for some of the explanation. Big Bang in 1986

The other complementing part of the story;

The Graphic of the Military Industrial Complex sums up well what everyone understands about it. The model is simple and does not include the banks and certain places like London only being able to create money. People know that is how the former imperial powers have maintained our advantage and comparative wealth. The military industrial complex is out of control taking vast amounts of money particularly in the UK and but much more so in USA so is dreadfully inefficient at doing its villainous business. So it is not only doing as designed stirring up trouble and profiting both sides but taking very excessively from its hosts. The culture of business taking without providing the goods is spreading like a poison into all things. The Graphic came from;

Click the link to see the graphic on the right run; http://giphy.com