Wednesday, 3 August 2011


The recent American and European financial crises have not reached their final conclusion and the signs are that they are going to get much worse.

"Trillions" borrowed. It is impossible to get your mind round these vast sums, suffice it to say that the amount owed over the world is several times greater than the combined global assets such as property, infrastructure and savings etc.

So who is all this money owed to? Yes I know countries such as China, Japan and Germany have surpluses but these no where equate to the sum of this so called debt.

No the debt is owed to the banks which have created it out of thin air with the connivance of national governments, and the interest payments are a drain on the standard of living of millions of people.
They are also a drain on our productive industries.

How did this come about? In many ways.

Below are just a few methods which at first sight seem innocuous.


At first glance it seemed a good idea. People could have pride in home ownership and would take care of the properties they owned.

HOWEVER They would have to take out a mortgage to purchase and thus become in hock to the building societies or banks, i e in debt. They would be obliged to pay interest.
They would then try to improve their houses by taking out loans, again from the banks.

In the end they would have a weight of debt around their necks and possibly pay at least double for their assets.
This indebitedness was encouraged and provided more profits for the banks.

FREEING OF CREDIT was encouraged. Anybody, however poor their credit rating could obtain credit at often extortionate interest rates.
Who benefitted? Again the banks.People could never get out of the banks clutches.

PENSION SCHEMES. Even before Gordon Brown robbed them they were not as good as portrayed. Yes Civil Service pensions were good as they were index linked and the employer paid a large proportion of the cost.

BUT The cost of administering these schemes, even the best is astronomical, sometimes coming as high as 1.5% of the asset. Therefore even though some have done well for the pension holder the majority of the benefit has gone to the banks and financial "industry". That's where they get their bonuses from, our pockets.

Those with private schemes are worst off. Yes contributions are tax free and the employer pays a contribution but the return is paltry in comparison to the amount the advisors make.

In spite of this these schemes are pushed by the government and institutions.
My 20 year old grandson was advised to top up his pension.I had to tell him that in 45 years there would not be a pile of money waiting for him. It would have all been swallowed up in administrative costs (the banks), and payouts now.

The pension I now receive is not paid out of what I paid in. That has long since been paid out. My pension is being paid out of the contributions of those now working.

In effect it is a gigantic "Ponzi scheme"

STUDENT FEES. The people who decided that university students should pay fees had their own fees paid for them and were not then thrust into the world of work saddled with debt.

Admittedly at leas 50% of so called university students should not be there in the first place as their courses are worthless and looked on with contempt by prospective employers.

BUT having "graduated" with a degree in "film studies" or "dance" they leave university in debt.
They don't have to pay until they are on £21,000 per year but then they will be expected to repay the debt and interest even if in another job. Inflation will make sure they are soon paying for their worthless qualifications.

At the same time they will be encouraged to take out a pension and pay as much as possible. More money for the bankers but poorer prospect for the young people.

Buying a house is impossible because of the high prices caused by faulty building society lending practices and immigration.

These are just a FEW of the ways the lower income families suffer from the present iniquitous financial regime. I am talking here about the ambitious people, the tryers who are the backbone of our country and these people are being disadvantaged.

No wonder they are not starting families, they can't afford to, and these are our best young people.
The only people who can are the "underclass" who have multiple children out of wedlock with multiple partners and get housing and benefits. This group is augmented by those who have no right to be here at all, the uninvited dross of the world.

There are many other undercover ways in which the financial leeches are undermining our society but the above are illustrations.

HOW TO GET OUT OF IT? Very hard as the financial institutions hold the levers of power through their association with the major political parties.

I have been lucky, having a good job, but all can do it in their own way.

1 SAVE as much as possible. If you cant afford it, do without. If you borrow for things you pay twice as much in the end.

2 DO NOT GET INTO DEBT, apart from mortgage. Pay this off as soon as possible. Do without holidays for a few years to do it quicker and get them off your back.

3 DO NOT ENHANCE YOUR PENSION SCHEME. Put your money in a good interest bearing account.It may not pay as much but you will not be paying administration costs.
Keep control of your own money.

4 IF YOU HAVE ENOUGH Invest in THINGS WHICH HOLD THEIR VALUE, but do not borrow to do so.


An old saying is "The money I have is the money I have not spent".
NOT QUITE TRUE. The money I have is more than twice I would have had if I had not waited until I could afford it.


Our forebears knew the value of this even though not well off.

The bankers tell us we must keep spending(and borrowing)




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