Banksters Can Be Defeated!

A trade-union with some brains!

Did you know that banks can make bets on companies failing? When they fail the banksters stand to make a fortune. They do this through what's called 'Credit Default Swaps' (CDS) or 'derivatives'. Theft packaged up in a bamboozling name.

Theft? Well, during the bubble years (caused by fraudulant derivatives trading and money printing) the company grew thanks to buying other companies at high distorted prices. So, with the economic correction taking place these companies are now loaded with debts they owe investors.

So, what happens is the banksters have clients who invest in a company and which have voting rights on the board. To fix the financial problem the company asks shareholders and bondholders to take a greater share of the ownership of the company in return for cancelling the debt the company owes them. At that point said investors refuse. The result? Banksters and said clients rake it in through collecting on the bet and a perfectly good company is destroyed, laying off thousands of workers in the process.

This is one of the reasons there is a 'recession'. You see Brown and Darling would have you believe that it just happens. The economy is a thing that works on its own and you can try this or that to fix it but there's no guarantees. TOTAL BULL. They've caused it - they allowed these City casino bets on company collapses to fly. They encouraged it. They're giving your money to the banks to continue the practice.

Yes, free taxpayers money to destroy the economy - that's what happened and that's what's still happening.

One success in the US has emerged for trade unions. The union realised what was going on and that "all of Wall St" was trying to destroy its trucking company with the consequent laying off of 30, 000 workers just so they could turn a quick buck! Killing people's jobs using those peoples' money..

The success of this trade-union against the Wall St. thieves is written about by Andrew Cockburn in counterpunch:

How the Teamsters Beat Goldman Sachs

Allowing exemptions from regulation of Credit Default Swaps had the banksters licking their lips because:

This allowed Wall Street to conclude that any risk could be hedged with a bet.

The consequence?

The result, of course, was disaster, with economic consequences that we will be feeling for a very long time.

And you thought it was just the way the economy works.. No, Britain sold these things all over the world. That's why companies where exploding in countries on other continents - not because of a global recession but because of a system of globalised theft orchestrated in The City and Wall St.

Goldman Sachs was the biggest contributor to the Obama campaign. The political influence of these people is strong in Britain and Brown has been in thrall to them too. It goes back to the Blair administration and remember that Blair got a consultancy with JP Morgan just 3 days after leaving office getting paid GBP 2, 000, 000 a year. And that's the Labour Party!

People, this scourge of robbery hasn't stopped. It's going on and on. It's your jobs their destroying and it's your money they're using to do it.

Please see my previous entry about boycotting the banks. They take your deposits, multiply those deposits by as much as 100 times and they use that money to make bets on companies collapsing.

Then they mulitply your deposits, that means that if you take out GBP 1, 000 from your account that deprives the banksters of between GBP 10, 000 and GBP 100, 000 that they then use to attack you and your friends jobs..

You simply have to defend yourselves by taking out your money and putting it into community banks instead of these corporate giants who are hell-bent on stealing your wealth and futures!

Scotland Must Boycott the Big Banks, Now!

Move Your Money!

It seems that politicians and the press are going to conceal the massive levels of fraud that is now collapsing Britain's economy. Helped by Brown and Darling the big banks have robbed the citizens blind.

You're already hearing from Darling about how after the election there will have to be cuts in public services. See here. He told The Times:

Once recovery is established, we have to act

This clown caused the 'recession'. The problem is that the banks gambled fraudulant money on derivatives and lost it. Now they want YOU the taxpayer to take the hit. Brown and Darling made it possible for them to gamble away all your money and are now forcing YOU and your children and their children to cover those losses.

This week the people of Iceland are telling the big banks to take a hike. The banks knew they were loaning money that would never be paid back. This is a system which spans the globe but eminates essentially from London and Wall St.

So, Britain now needs its own revolution. You take it in the neck? They'll tell you that we need to stick together during the bad times. No, don't take it in the neck, tell the government to take a hike. Your taxes will soon rise hugely, services will be cut and your assets will lose most of their value because Brown and Darling transferred money to the bankers by printing pounds and giving it to them.

The banks use your deposits to invest in fraudulant derivatives and when the system explodes the taxpayer bails them out.

STOP the madness. You must take your money out of the big banks so that they stop doing it and put it into small community banks. Starve the beast!

In the US, boycotts of the offending banks are starting to take off. Citizens are voting with their feet. Here's a video that is going viral to start the campaign.

I urge everyone in Scotland and in Britain to do the same:

Is the British Consumer Dead? Doh!

Brown and Obama leading the world out of recovery with 'stimulus' and 'quantative easing' huh? Well, how much of an increase has there been in consumer credit in the US?















Oh, none at all.

Ok, if you borrow some money you need some security. You get a loan on the basis of a piece of land you have, or some gold you keep or your car or your second home or whatever. The problem is that when all that 'collateral' has ALREADY been used to get a loan you can't use it any more. Everything is loaned against. And so, no-one is lending and no-one can borrow any more even if they wanted.














Exactly where does anyone see a 'consumer recovery'? It doesn't exist no matter how much Brown, his press chums and everyone else want it to.

As Karl Denninger of Market Ticker says:

We cannot recover until we purge the excess debt from the system, and the longer we take to do that, the longer the pain will last and the worse it will be.

What we are getting from everyone from banks to corporate economists and from government to the press is 'pretend and extend' tactics. They think that by throwing taxpayers' money at the problem everything will be ok. So, they print and print because otherwise we'll have to accept that the banks are all insolvent. Why do you think the government can't get the banks to lend money? Cause the banks need money to shore up their losses. Credit is not coming back. As we see above, the consumer is dead.

DEAD

Smell the Coffee Scotland, Please!

News from ZeroHedge doesn't correlate to the 'green-shoots' vegetative economics commentariat.

Oh no:

Today PIMCO's Scott Mather told Dow Jones his expectation for a rating downgrade of the island nation: "It's just a question of when on the current trajectory, not if. Based on what we know today about the debt trajectory and about the inability to adjust that, I think it's greater than a 50% likelihood for sure. Call it more like 80%.

Who? PIMCO is an investment management fund and runs the world's biggest bond fund. Are we about to see the bond market explode? When the Bank of England and commercial banks stop actually buying government bonds using printed money what's going to happen to the price? Yes indeedy, everyone is going to want out.

What does it mean to Britain loses its AAA investment rating? Ah, it means foreign debt will become more expensive as the risk of Britain not paying back loans is seen as much higher. Mmm, and Gordon Brown says he has a plan to reduce government spending? How? Using dodgy accounting methods as I wrote about regarding the 'December 2009 Treasury UK Government Spending Outturn Reports'.

So, the UK is on the verge of a seismic shift in terms of its international image and we get so-called businessmen like like Scottish CBI honcho Iain McMillan demanding more government spending. Absolute madness and the media perpetuates it.

I mean even those late converts who are starting to understand what's really going on like Iain Macwhirter can't help himself:

there is no more pressing issue facing our legislators as the British economy hauls itself wheezing out of recession in 2010.

Recovery Iain? How is it possible? The banks can't be fixed with public money and credit is not coming back to business generally so the private sector will continue to plummet. When interest rates go up the economy is going to contract further whilst we also face a massive spike in inflation. So, Iain - apart from just jawing a mantra, just how do you think Britain is coming out of a recession? How Iain? How? How? Even when we understand why the problem happened we imagine a miracle is going to come along and fix it. It has to because the behaviour that got us here has worsened. Brown is trying to cure Tiger Woods by putting him in a brothel. You get it yet? The problem was debt and that has increased since the problem caused the bubble to burst. All they've done is try to reinflate it and that IS NOT GOING TO WORK!

One dispairs. It truly is Alice in Wonderland stuff. As underlined in The Tap in his entry:

The Infliction Of Unreality Is Taking Us To Breaking Point

What is going on? Normally the world has the occasional thing that goes wrong but most of the time people are able to grasp the reality of the situation they are in. But right now, starting right from the top in Britain in the Downing Street bunker, and extending outwards from there into the media and to other countries, there seems a disconnect between what is possible to be achieved and peoples' aspirations and beliefs.

And, not only is the UK going down the toilet in terms of standards of living but also is now considered 25th in the world, in terms of quality of life, behind such paradises as Lithuania.

When the bubble burst in 1998, the taxpayers bailed-out the banksters. Who's going to bail-out the taxpayers when the bubble bursts again? No-one! The bankster executives will have stuffed their Swiss bank accounts full to the brim and will be swanning around some exotic island while your grandchildren will be borne with a massive debt around their necks like an albatross and Brown will be in his sinility and pondering why no-one really understood how much of a historical figure he really was.

People, you simply have to switch on and ask your government for answers. A democracy is not about believing in whatever the government tells you. Mind you, the government goes to war when the people don't want it to so I suppose they'll do anything for the big money men and you'll just capitulate.

Do you want to live in an 'economy' where people think that stuffing their faces with big macs and watching Big Brother is good for them? Or do you want to live in a country where the happiness of citizens is more important than the self-interest of greedy swines? If the latter, then you better start smelling the coffee!

Scottish Bloggery and Money Printers

Iain Macwhirter always had a good writing style but nowadays he's adding substance to it. Well, to the subject of economics anyway:

But we surely learned from the Soviet experience just how dangerous it is to allow a small clique to seize control of the economy, whether bankers or communist party bureaucrats.

Indeed Iain. And a very apt conlusion:

We have created a bastard synthesis of finance capitalism and communism – a system of socialism for the banks. Time for a little bit of Thatcherite medicine to be applied to people who were so keen to apply it to the rest of society. Let's have some capitalism for capitalists.

Iain's blog is getting better and better. There really isn't much in the way of useful comment on the subject of what's just happened in the economy i.e. widespread financial fraud by all the top bankers. So, it's nice to see some astute observation sneaking in.

The problem with Iain's excellent piece is that it doesn't really get to the heart of the problem. He praises Mervin King in his entry but Mervin and Gordon Brown are the true authors of the banking malaise. Brown changed the regulations in line with what was going on in the US to allow main street banks to speculate on fraudulant derivatives. Low interest rates fueled these speculations to the point were British banks now owe perhaps 100 times Britain's GDP. All of them are insolvent as the 'profits' that are posted are simply printed money and nothing to do with production. The same with the stock market..

When the bubble burst Brown and Mervin went about giving the banks lots more of taxpayers money so they could leverage it up and get back to where we were which is a position where the bubble burst - insane but that's economic theologies for you.

So, why can't Iain Macwhirter point the finger at Mervin and Brown?

The brings me to the subject of Das Herald Sturmer. Proclamations of green-shoots abound with headlines like:

Service sector figures boost hopes of end to recession
and
Good Christmas for Marks and Spencer - but challenging year ahead

Unfortunately for Das Herald Sturmer it can't avoid publishing real stories like:

Scottish property sector hit by second big failure

There's no commentary in the article on this. This is just business and nothing to do with Britain's economy so doesn't need a comment right? Not this side of an election anyway..

Now, everyone and their granny knows that Brown and Mervin have been pumping new money into the economy so why does anyone believe that these stories represent economic recovery as opposed to money printing? When the printing stops won't consumption stop with it? How long can Brown and King create new money before inflation hits?

How near is said inflation? Close. How do we know. Well, it's there we just haven't seen it yet. Why? Cause the banks have been using public money to trade with each other and pay themselves commission on each trade and then call that profit. None of the money was getting out to the real economy and so in the real economy we've seen a reduction in the money supply. When money is in the hands of poorer people it passes through lots of hands very quickly - this is called money velocity. When the rich get it they hang on to it so the money velocity is low. As the money that was given to the banks hits main street the velocity picks up.

We know its coming because the way to deal with inflation is through increasing interest rates. Bloomberg yesterday:

U.S. regulators including the FederalReserve warned banks to guard against possible losses from an end to low interest rates and reduce exposure or raise capital if needed.

When the interest rates come you'll then find out just how much you've been tapped to bail-out Brown's pals in The City. The real economy has been sacrificed, people have lost jobs etc. Mortgage payments went down a bit recently - I hope you save up.

What they did was print money and give it to banks. Now there's too much money and they'll have to suck money out but guess whose money they're going to suck out? YOURS. Yes, when those interest rates go up that means mortgage payments will sky-rocket. That means small-business getting slaughtered again. That means raising taxes and cutting services to pay government debt interest payments.

Yes, when the interest rates go up that's when you start to see the real damage done by Brown, King and their Bankster paymasters. When the interest rates kick in (ahem, after the election you understand) Britain is going to nose-dive. Mortgage payment massive, defaults on mortgages and credit cards will go exponential and prices will be going through the roof. The standard of living is going to be nothing like what you recognise today. Get ready cause it ain't gonnie be nice.

Gordon Brown is actually Santa

Amazing christmas sales, no?



Well, word is out that that in December the US Treasury dished out almost 70% more on social security and unemployment insurance just in time for christmas shopping. Here's the US month on month chart for combined social security and unemployment insurance:












Some people might think that mighty generous and well-intended. Others who know about markets will know that if christmas sales went down there'd be panic in the retail sector. Retail christmas sales are considered a key economic indicator in our 'consumer economy'. If sales went down the idea of a recovery would be laughed out of the public court.

Given that Gordon Brown gets up to all the same nonsense as our cousins over the pond, do you think he may have pumped more printed money into the system just in time for christmas? And months before the coming election?

He really is Santa!

Massive Treasury Lying Exposed?

Now you see it now you don't.

In the December Treasury UK Government Spending Outturn Reports a new element suddenly appeared in the tables called 'Accounting Adjustments'. Sterling detective work at The Tap Blog reveals that this new element has appeared after it was pointed out that the grand total and the combining of the sub-totals didn't match.

If you added up the sub-totals then government spending would have been 58% of the UK's GDP. This does't match up to Gordon Brown's forecasts so they had to go.

Apparently the largest accounting adjustment in previous years amounted to GBP 10 billion but now we're looking at minimum GBP 180 billion. I'll bet the SNP could reach their teacher targets with that loot and still have enough left over for umpteen GARLs!

None of this money is itemised.

Miraculously, government spending forecasts are reduced from GBP 800 billion to around GBP 615 billion (or 30% of total spending - more than health) and very close to government forecasts which going into a general election period is, nice.

There's nothing in these accounts which reflect the losses the taxpayer has been hit for as owners of Royal Bank of Scotland according to Tap Blog. Shares were bought by the government at 65p and are now 29.5p meaning a loss of around GBP 10 billion. On top of that the debts owned by the bank which are toxic is likely to explode and yours 'taxpayer' truly is left carrying the can. And that's only 1 bank..

There's a lot of lying, spinning and robbing going on. Seems that Gordy new year's resolution was to get elected - at all costs to the taxpayer!

Is anyone going to wake up to this story? Nope, still smoking them green-shoots.

Happy New Year!