Banking today: Part I

Fractional reserve banking, and why we & the world is in the crapper.

Understanding the root of the problems facing us, our money is a debt bearing form of money, from its day of conception to when it is destroyed. Why.

Do you believe the Bank of England, The Bank of Ireland and the Bank of America are government owed and run? Well you are wrong, they are private companies. How it works and why we are in the Crapper, when the government can’t raise enough money through taxes it will take a loan from these banks and pay interest on those loans.

Fractional Reserve Banking

Once a ‘Bond’ is issued that bank / Institution can then lend 9 time the amount of that Bond, gaining 9 times the interest!!!!

And creating money from thin air, the money does not exist. The only promise made is that if there is a ‘run’ on the bank and the people want their money in cash, the Central Bank will ‘rush’ the money to the Bank in question.

What fractional reserve lending is and how it works is summed up in Wikipedia as follows:

“Fractional-reserve banking is the banking practice in which banks keep only a fraction of their deposits in reserve (as cash and other liquid assets) with the choice of lending out the remainder, while maintaining the simultaneous obligation to redeem all deposits immediately upon demand. This practice is universal in modern banking . . . .The nature of fractional-reserve banking is that there is only a fraction of cash reserves available at the bank needed to repay all of the demand deposits and banknotes issued. . . . When Fractional-reserve banking works, it works because:

“1. Over any typical period of time, redemption demands are largely or wholly offset by new deposits or issues of notes. The bank thus needs only to satisfy the excess amount of redemption’s.

“2. Only a minority of people will actually choose to withdraw their demand deposits or present their notes for payment at any given time.

“3. People usually keep their funds in the bank for a prolonged period of time.

“4. There are usually enough cash reserves in the bank to handle net redemption’s.

“If the net redemption demands are unusually large, the bank will run low on reserves and will be forced to raise new funds from additional borrowings (e.g. by borrowing from the money market or using lines of credit held with other banks), and/or sell assets, to avoid running out of reserves and defaulting on its obligations. If creditors are afraid that the bank is running out of cash, they have an incentive to redeem their deposits as soon as possible, triggering a bank run.”

Ireland, England & America have very little precious Metal to stand over their Currency, it has all been sold off! Surprised? You shouldn’t be. 3 American presidents were assassinated, 1 attempted assassination, all because they were going against the world Banks, 1 Swedish Royal was assassinated; King Gustaf III murdered by a moneylender, a guy called Anchorstrum in 1792. He was murdered because he took the Country back to ‘Real’ Money. The system failed, three years later because too much money was put into circulation. Sweden returned to Debt Money and the Bankers were back in control.

JF Kennedy was going to remove the Bank Charter and take the Country back to Debt Free Money, it never happened, did it. JF Kennedy Jr was going to run for Presidency, top of his agenda:- a return to ‘real’ money and stop the bankers, he did not last long, did he?

President Lincoln issued the Green Back, debt free money, he used it to fund the War, why? Because he approached the Central Bank for a loan to fund the War. They saw him coming: in their view he would default the loan so they wanted to charge him 36%, he told them to go get #ucked and printed his own money, the Green Back.

The War was won and 5 days later Lincoln was dead, the Green Backs (note) were taken out of circulation and the Bankers were back in control.

Debt Free Money (Money printed and controlled by the Government) had existed in England for 7 centuries, right up to 1694, when The Bank of England was formed.

Ireland lost out in 1942 and changed over to Fractional Reserve Banking, Christmas Eve, at 2.30 I the morning, don’t suppose there would have been many politician’s around to stop that Bill going through!!!! What do you think? It’s Silver and Gold was then sold-off

Back to America;- Jefferson “Although we have so foolishly allowed the power of issuing our own Debt Free Money, to be filched from us by Private Individuals, I think we can recover it”. Shortly after there was then an attempt of Jefferson’s life, both guns failed to fire. He never did get ‘Real’ money into place, the Bankers won that day.

During the American Civil War the Bankers put Counterfeit Money into circulation, by the end of the war there was so much money out there, it was worthless and the Central Bank was about to come back into existence.

Garfield was the other President to introduce ‘Debt Free Money’, oppps, wasn’t he assassinated?

Lets take Jackson = “You are a den of Vipers, I intend to rout you out and by the eternal God I will rout you out”, Jackson is the only President to have paid off the National Debt, two weeks after his speech an attempted Assassination!!!!! What can I say, need more?

Milton Friedman “The Federal Reserve definitely caused the great depression by contracting the amount of currency in circulation, by one-third, from 1924-1933. Restrict the money and you control the people.

Back to Garfield, he also went against the Bankers and tried to return to dept free money, 5 days later he was dead! Need any more?

So a country has not got enough money, it takes a loan from the Central Bank and raises the interest by taxing the people, Oh look, that’s just what is happening in Ireland but the Debt is so great and who did we give a dig out to = THE BANKS!

Jesus only ever once lost his temper, it was over the money changer’s (lender). “He made a whip of cord and he scattered the coins of money and turned over their tables”.

Talking of those times, Rome, the most powerful Country on Earth, took on the Fiat currency (Debt Money, money not backed up by precious metal), Julia Caesar wanted to reverse this decision, oooops he was murdered.

The Bank of England is a private company (look it up) it was formed in 1694, so from then on the Government had to borrow money from them, why do you think Government make strange decision? ? ? They are controlled by the Banks. Why is the Irish Government hurting its own people, they are influenced by the Bankers. Why are Bankers still getting high wages, bonuses and retirement plans = they are doing their JOBS, look back and see the power of the banks and ask a simple question:- why is it happening, the contents of this letter must surely answer that, want more?

As for their strategy, they have not deviated. Again, from 1892 through to today:

“Let us make use of the courts… When, through the law’s intervention, the common people shall have lost their homes, they will be more easy to control and more easy to govern. and they shall not be able to resist the strong hand of the government acting in accordance with… the control of the leaders of finance.”

United States Bankers magazine, 1892.

Clearly, the banker elite have been intent on capturing America for some time and in fact, since the beginning of her sovereignty. Their weapon has been the ability to sell and extend credit in place of real money. The credit weapon is most efficient when detonated from a central location. The banker cartel cleverly waited until the European Central Bank (ECB) was established to rule the European Union members before making the final assault. Now the Fed controlled the US and the ECB controlled Europe. Both central banks could now work through the BIS to expand indebtedness with the use of derivatives and credit default swaps. The real estate bomb was activated. We, the people, took the bait of available credit from the bankers like Eve took the apple from the serpent. The participating banks incurred no risks in extending credit to customers as they were ‘guaranteed’ to survive by the central banks imposing their ‘too big to fail’ status. BY Barry Ferguson, Financial Sense.

Taken from the United States Bankers magazine

“Our top leaders are perfectly aware of the truth. They are presently working at establishing an imperialism of the capital to rule the world. But while they are implementing this plan, they must keep the people busy with political antagonisms.”

“We’ll therefore speed up the question of reform in the custom rates by the political organisation called the Democratic Party; and we’ll put the spotlight on the question of protection and of the reciprocity by the Republican Party.”

“By dividing the electorate this way, we’ll be able to have them spend their energies at struggling amongst themselves on questions that, for us, have no importance whatsoever, and on which we only touch upon as instructors of the common flock.”

Ain’t that just #uckin rich???? Now we the understand the conquered. The war, the attacks, and the surrender, they have all been carried out by well educated, well-spoken, well dressed gentlemen who all claim to be on our side, they are a Den of Vipers.

So lets return to ‘Real’ money, gold backed money and dept free money, well that will never happen, remember what I said earlier, ‘Ireland does not have any Gold or Silver, it was sold off’. England can’t, why?

Gordon Brown sold 11 billion (415 Tonnes) of England’s Gold Reserve in 1999. The decision to sell half of Britain’s reserves when the price of gold was at a 20-year low

Brown sold the gold for £2bn when gold was valued at just $300 an ounce. The sale came shortly before bullion started a blistering rally that took prices to a record high of $1,920.30 an ounce in September 2011. He sold the gold at $300, shortly after the gold price went up to $1,920. That’s a 9 billion loss, who bought the gold?

“In 1999, it was rumoured that investment bank Goldman Sachs had a 1,000 ton gold short position in the markets. Goldman Sachs was betting that the price of gold would continue to fall and they would be amply rewarded for their apparent “risk”.

Because of central bank manipulation, the price of gold had moved inversely to the rise of stocks for almost 20 years and bankers were making easy money on the bet gold would continue its downward spiral.

However, much to the shock of Goldman Sachs and the central bankers, in 1999 gold stopped falling; and, because Goldman Sachs’ short position was so large, Goldman possibly could suffer catastrophic losses.

This is when England’s then Chancellor of the Exchequer, Gordon Brown, on May 8, 1999 announced England would sell over 50% of its gold reserves, 415 tons of the most precious metal on earth at the very bottom of the market.

The decision to sell England’s gold thereby saved Goldman Sachs and insured the political future of Gordon Brown. Goldman Sachs’ is still in business and Gordon Brown is now [2009] the Prime Minister of England – proving that good things come to those who do the bidding of the powerful”. Darryl Robert Schoon.

Need any more evidence, Ireland now has the highest suicide rate in Europe, but the prostitutes in Suites don’t give a dam. Today, the bankers’ fiat currencies are in a death spiral. It’s only a matter of time until the US dollar, the Japanese yen, the British pound and all paper currencies – including the Chinese yuan – come under the same pressure that now plagues the faltering euro, but where is all the gold gone, we can’t return to dept free money because there is no gold, best get them diamonds out of the safe!

Look this up in company house:

The Bank of England and the Bank of Ireland are private companies, the police (An Garda Siochana) are private companies.

The Courts are private companies, councils are private companies, all registered on Company House, all have shareholders and are there to make a profit. Now this will make you think, The United Kingdom is a registered company!

So who is buy what? Farms, livestock, machinery and homes are being bought for cent’s in the €uro. So who is buying, the people buying at the auctions are all cash sales, I would say it is the prostitute’s in suits! The house next door was bought at the height of the Celtic for €490K, it is worth today €200K, if she could actually sell it! Auctions are selling houses worth ½ a million for €85K, that happened last week, a cash sale!

If you want to see how we can get out of the problem, look to Iceland, don’t see them in the mainstream news much. Why, they have told the IMF to go #uck themselves and they let the banks go under and locking up the bankers and politicians who got them in trouble, there are now warrants out for all those prostitute’s in suite ( I really should not call them Prostitute’s, it is an insult to Prostitute’s) who fled the country (FACT).

Allied Irish Bank chief David Duffy said, The bank would, however, not engage in “debt forgiveness” where borrowings “magically go away” and the issue of moral hazard becomes “a very dangerous territory”, he told the Oireachtas Committee on Finance, Public Expenditure and Reform.

Earlier, Alan Dukes, chairman of Irish Bank Resolution Corporation, told the committee “the bank is hopeful the final cost to the State of the Anglo wind-down will be “closer to €25 billion” rather than within a previous €29 billion to €34 billion estimate”. Well you got that wrong mate and the total bank debt €67.8 Billion, we gave them how much #uckin money, is that not Debt forgiveness?

He further commented: The interest paid on the promissory notes and money recovered from loans being repaid and assets being sold is used by the bank to repay emergency lending to the Central Bank and the European Central Bank, which stands at €42 billion, the bank told the committee.

So far Ireland has spent €67.8bn bailing out the banks, comprising €62.8bn in cash and promissory notes directly injected into the banks, and a further €5billion gifted to the banks by NAMA in state-aid and for which we are now on the hook if property prices don’t recover.

The 2011 annual reports for Bank of Ireland, AIB/EBS and Irish Life reveal the scale of losses that will be in store if our economy doesn’t turn around and grow. Each of these three financial institutions published two valuations for their loan-books – a “carrying value” which is what is reported in the accounts and represents the book value of the loans less a convoluted provision for impairments and a “fair value” which represents what the loans are worth today if they were called in and the underlying asset was used to pay off the loan.

Here is the summary of the loan books in 2011 which show that the overall difference between “carrying value” and “fair value” for these three institutions is an almighty €38bn which if it materialised would wipe out the entire capital base and need nearly €20bn in additional capital to boot, just to keep banks solvent. To give them adequate capital buffers might involve a further €20bn. So €40bn, all told on top of the €72bn current and projected cost.

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