How it all works part 1

Watch this video folks it's the start of how it all works. Did you know only around 5% of the the money floating around in the UK and just about everywhere else is actually money, i.e paper or coin? the rest is debt, conjured up by Banks and never ever existed. This is a big one, I hope others have something to say on this subject.

I'll have a watch of that later but I certainly remember reading a few years back that whilst currency transactions used to be exactly that with real money, it's now about 99% speculation (with our money usually) on minute short-term fluctuations in exchange rates.  And the trouble is politicians on both sides have mainly swallowed the line from the banks that this is all good - Thatcher on her belief that seriously this country could run on a purely service economy basis, and Brown letting the City grow further into the self-serving monster it is.

Rod watch the video mate, I intend to prove to the members what a monumental con we have all been living under, and why the great diabetes scam is nowt compared to the great ponzi scheme we all have fell for.

OK my friends, when you accept private Banks issue almost all credit, which is interest baring, you should ask yourselves, why the Banks, why not the state. When the Banks almost collapsed the state bailed them out, I.E you, remember the state has no money of its own. Also, the Banks balance sheets were reinforced by quantitative easing, I.E. your future earnings and money.  

So, what's the answer? As we know the Government can print money, create money out of thin air, the Government can and should provide all the credit, we as individuals and businesses require. Let's face it, the Government provides a  guarantees that up to the thick end of a £100,000 will be repaid to you, if a Bank goes down with your money, how many have you got over a hundred thousand pounds in any one Bank account? Get my drift, when the Banks make money, it gets trousered, if they go down the tubes, you pay. How cool is that.

What a fantastic idea, but it can't be true can it, yes it is.

Anyway, off to the pub.

No mates in the pub so back here.

I know what you are thinking, this Eddie is batshit, his ideas could never work, well they used to work very well.

I remember having a Post Office savings account, my money was rock solid safe and a reasonable return. I remember having a Government Bank account called Giro. My salary was paid in and I could write cheques for what I needed. Any profits went into the state funds, for the benefit of the country, no one was getting million pound bonuses. Simple always works, trust me.

How easy the people are bamboozled.

Yes fine. I agree. Simple works. It always did. But you can't go back to simple easily once you have moved away from it.

zand wrote:Yes fine.  I agree.  Simple works.  It always did.  But you can't go back to simple easily once you have moved away from it.  

We can, but the will has to be there, most people are sheep, waiting for the slaughter, they just don't know it.

How? Individually yes, but collectively?

zand wrote:How?  Individually yes, but collectively?

Most people are manipulated from the cradle to the grave. When you tell them, they don't want to know. Makes it so easy for the manipulators.

eddie1 wrote:

zand wrote:How?  Individually yes, but collectively?

Most people are manipulated from the cradle to the grave. When you tell them, they don't want to know. Makes it so easy for the manipulators.

Yes that's true enough. That was me once upon a time, and probably still is me in some respects, although I have seen the light in some areas.

Yep, watched it, with you so far. I've never studied nor been specially interested in economics and monetary theory, but it seems to me there's certainly been a sea change since we've had the Internet and global 24 hour trading. And money, like power, tends to corrupt (well money is a form of power).

Rod thanks for coming back to me. As you can see it's a complex subject and worth watching parts 2 3 4 and five. The video below is a good and quick way to understand the situation, a situation that seems so incredible it could not possibly be true, but it is. Think about this, why does the Government borrow money from banks and pay interest (our money) when it could issue it's own money interest free.

Gov't maintains power by control and flow of money. I think Rod is correct, things have certainly changed since the birth of the internet. There are no such things as UK financial institutions now, everything is global. Any Joe Public can start trading currencies or stock from their bedrooms. I agree Eddie, we're being taken for a ride but I honestly can't see a return to the good old days. You can't "un invent" the web unfortunately.

mo1905 wrote:Gov't maintains power by control and flow of money. I think Rod is correct, things have certainly changed since the birth of the internet. There are no such things as UK financial institutions now, everything is global. Any Joe Public can start trading currencies or stock from their bedrooms. I agree Eddie, we're being taken for a ride but I honestly can't see a return to the good old days. You can't "un invent" the web unfortunately.

With respect Mo it is the opposite of what you said "Gov't maintains power by control and flow of money" The Banks control the flow of money and they own and control the Government. Also the last thing we want is to "un invent" the web. Where would we all be as diabetics without the Internet? Until a Government takes back the power to control money things will only get worse. I bet 99% of any population are clueless as to how money is created from thin air, backed by nothing and just numbers on computer screen. If all people wanted to clear their bank accounts tomorrow, or any other day the banks could not come up with the money, only around 3 to 5% of all money in existence is in cash (paper or coin) the rest is in debt i.e not what we know as money.

The debt thing always confused me. The USA is $trillions in debt but who do they borrow it from ? Africa is in such a bad state because of all the interest it pays for on foreign loans and debt. What would happen if all the Countries got together and just agreed to wipe clean all old debts. Would this work ?

mo1905 wrote:The debt thing always confused me. The USA is $trillions in debt but who do they borrow it from ? Africa is in such a bad state because of all the interest it pays for on foreign loans and debt. What would happen if all the Countries got together and just agreed to wipe clean all old debts. Would this work ?

Well would you be happy if I owed you £100,000 and we wiped the slate clean?

mo1905 wrote:The debt thing always confused me. The USA is $trillions in debt but who do they borrow it from ? Africa is in such a bad state because of all the interest it pays for on foreign loans and debt. What would happen if all the Countries got together and just agreed to wipe clean all old debts. Would this work ?

Well a lot of foreign loans to developing countries have been wiped clean to enable those countries to develop without the crippling repayments. I wonder how many Americans understand just how much of their country is 'owned' by China, Saudi Arabia etc and what would happen if they called in their investments? Same in the UK probably.

zand wrote:

mo1905 wrote:The debt thing always confused me. The USA is $trillions in debt but who do they borrow it from ? Africa is in such a bad state because of all the interest it pays for on foreign loans and debt. What would happen if all the Countries got together and just agreed to wipe clean all old debts. Would this work ?

Well would you be happy if I owed you £100,000 and we wiped the slate clean?  

But is it actually cash ? How is it paid ? Also, chances are I owed you £100K as well so we're both probably just paying interest ? i genuinely don't know how this works so these are just opinions based on nothing lol !

These two people know what they are talking about.

Margaret, The National Debt is NOT owed to us, it is owed to private banks who control our central bank the Bank of England. This is due to the fractional reserve monetary system which perpetuates by creating a society of debt out of nothing. Money is created on a computer, this is a crime if you are a private citizen but not a banker, and when it is in the system it can be re-lent up to 9 times its original value. This de-values the money and leads to inflation. Crucially interest is charged to the government on this created money (the original loan if you like). This interest goes to private banks. One wonders how much of the tax we pay is going straight into these banks pockets? The big question is, why are we in this type of system when there are alternatives that are far better for UK citizens and the world populace? When you look at the complete lack of meaningful action against banks over the last 200 years the answer becomes apparent. A very small few stay powerful and wealthy. We are the ones that keep them in that position through our ignorance and subservience.

Eric Stone, Saffron Walden England

As Eric Stone says, the National Debt is owed to the financial markets who lend credit, which they create themselves. In addition, they use the "gilt-edged" status of the Government bonds as security to create up to 9 times more credit which they lend to others such as the public and businesses. The UK pays in excess of £40 billion (in 2013) of interest which comes out of our taxes. When you think that the Chancellor has today said that he wants to cut £25 billion more in spending, he could think about saving the interest that we should not have to pay. There are countries such as Jersey and Guernsey which have no national debt, so the pay no interest. All this started with the Napoleonic wars when the government borrowed money to fund the war. Income tax was created to pay the interest ans the capital has just gone on growing and growing. Incidentally, trading in those bonds at the time of the Battle of Waterloo made the Rothschild family a fortune and became the major creditor of the UK Govenrment. Since then, the family of Lord Rothschild has continued to call the shots in Government and at the Treasury and the Bank of England¨. Debt-based money is the biggest single issue and the reason for the mess in which we find ourselves, really.

Paul, Junglinster Luxembourg

Info from here http://www.theguardian.com/notesandqueries/query/0,5753,-6754,00.html

eddie1 wrote:

With respect Mo it is the opposite of what you said "Gov't maintains power by control and flow of money" The Banks control the flow of money and they own and control the Government. Also the last thing we want is to "un invent" the web. Where would we all be as diabetics without the Internet? Until a Government takes back the power to control money things will only get worse. I bet 99% of any population are clueless as to how money is created from thin air, backed by nothing and just numbers on computer screen. If all people wanted to clear their bank accounts tomorrow, or any other day the banks could not come up with the money, only around 3 to 5% of all money in existence is in cash (paper or coin) the rest is in debt i.e not what we know as money.

The banks control the government? Is that why they keep having to pay back mis-sold PPI and 'unfair' bank charges etc lol?
Cash itself isn't worth anything, it has no intrinsic value does it? It's just a token, a promise to pay. It used to be backed by gold and now it's just backed by reputation. Why would everyone want to withdraw their cash together? Unless the media decides to scaremonger and prints that it's a good idea to do so of course!

Read my post above your post on the last page Zand.

yep Eddie - read it. I kind of know how it works. I still don't know what you're saying though. What should be done about it? What's the way forward in your view? A sharing of wealth, a cancelling of debt? What would you do?

zand wrote:yep Eddie - read it. I kind of know how it works.  I still don't know what you're saying though.  What should be done about it?  What's the way forward in your view?  A sharing of wealth, a cancelling of debt?  What would you do?

The way forward is the Government stops borrowing from private banks, it prints it's own money interest free. Every week the Government pays many millions in interest to private banks. Why?

lol to keep the economy going. (that's my flippant answer btw)

And the Treasury sets base rate and interest rates again?

A 12 year old kid understands exactly what is going on.