Monday, 16 December 2013

Banks and brokers work against the country

This is actually less of a statement of blame, but a statement of structure. The way western countries are structured banks and brokers do best when the economy itself is at its very worst. Government policies however are able to adjust these balances but when they do they swing in favour of one but against the other due to the nature they have created behind its structure. So when I read yesterday in the Mail:

"City fears an early interest rate rise as jobless total expected to fall and edge closer to 7% figure"

Mail on Sunday

What it went on to explain was, while interest rates are at 0.5% (and as I've already explained, makes life worse for 65-75% of the population) and unemployment is high and the economy is down, The City of London (ie banks and brokers) do their best. This means we have two entirely independent economies, ours and theirs, and they are in polar opposition to each other. The risks involved investing with almost free money are at a minimum, their cash input is guaranteed and constant, and as a result can manipulate the markets by buying on a rising market at such levels as to raise the market directly by their actions. They are literally getting money for nothing and raising commodity prices of all items directly through doing so. The fact the Bank of England said it will end is almost a miracle in itself, as they don't ever have to. America may not as so far there has been a reversal of the Ben Bernanke plan to reduce QE since he left and the ultra-Keynesian Janet Yellen took his place in the Federal Reserve. She won't be stopping soon or probably ever as she believes in it explicitly.

But those are just local details. The bottom line is the current way Western economies are set up, with banks able to speculate with depositor's money and little or now leverage limits (the amount they can lend compared to their total assets) the worse the economy, like flies on a corpse, the better they do.

Unless something fundamental is changed, whenever the economy starts picking up and their easy pickings, like vultures, are under threat, all the banks need to do is to get together and do something to wreck the economy again, ad infinitum. And the new EU rules mean next time they get into trouble they won't get bailed out by the taxpayers who will lose indirectly but certainly, but the depositors themselves, after the successful trial in Cyprus where no blood was shed.

Only the Angel of Death can benefit from the weakness of his host.

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