Tuesday, March 30, 2010
A PERFECT STORM OF CORRUPTION
A Perfect Storm of Corruption
Well, corruption has been with us all along, right? Government, corporations, organized crime; we eat their life systems every morning for breakfast, so what? The “what” is that these systems are now converging to the point where nothing much can function except the corruption. And all these different branches of corruption sit atop the rotten carcass of our banking system.
Okay, talk of banking systems make people’s heads ache. It makes mine ache, too. Who the hell can understand the banking system? It’s like lawyer’s talk, or mathematicians talk, or physicist talk…it’s a whole different language. And that’s why we have to labour so hard to understand it. But understand it we must or we will shrivel and die as a people. Literally. Exaggeration? I stand accused. But I tell what I see and write what I think. And I, as well as others, can see the perfect storm gathering on the horizon.
The private banking system, domestically and globally, is the eye of the storm. Yes, we all know this at some level, and many are getting a real hate on for the banks because of the huge bonuses paid to the executives. But those bonuses are small winds compared to threatening tsunamis roaring over our oceans and lands because of The Royal Bank, Scotiabank, CIBC, Toronto Dominion and others. What’s so bad about these banks? The way they lend money. Money they don’t actually have. If they don’t actually have the money, you may ask, how do they give loans?
When any of us go in into a private bank ( 95 per cent of loans in Canada are given by private banks) to apply for a house loan (mortgage, or whatever) we are under the impression the bank has the money to lend to us. But they don’t. The tiny fraction of reserve they hold compared to what they have loaned out (four billion held in reserves nationally compared to the one point five trillion they have loaned out) they can’t possibly have the actual money to loan. So what do the banks do? They counterfeit some new money. Their own printing presses? Sort of. They write up official pieces of paper that says in the future you will pay real money back to them along with compound interest on your loan of their private bank bogus money.
Can we as a people comprehend that our banks are private Ponzi-like schemes that are threatening to implode and that we, as innocents, are collateral damage? And that it doesn’t have to be? The federal government is allowed by law to borrow from the Bank of Canada, the people’s bank. Without interest. Certainly not compound interest. Then why aren’t we doing business with our own bank instead of private banks that charge compound interest? Because our heads of governments and heads of private banks do business together, profit together, and are, with few exceptions, crooks together. If we can recognize this, as a people, then we can do something about it.