Why the whole banking system is a scam

[Ron Mauer Sr]

Godfrey Bloom clearly explains why the banking system is a scam.


http://www.youtube.com/watch?v=hYzX3YZoMrs

[ghostrider]

banks lend money they don't have , then charge interest on money that never existed... fractional reserve lending, it should be a crime ... my spider sense is working good today, I posted my thoughts and then watched the vid and the first thing out of his mouth was fractional reserve lending... :wizard:

[Lifebringer]

Shortcut is, the bank is nothing but a WS name with people who have accounts money behind it. They make the loans or should I say "overloan" on each dollar in the accts, when they were only supposed to make loans on the projected annual interest rate of all accounts, and they had to be "good faith loans" or the whole game is over after ten years.
what those crazy lackey gov flunkies did was change the laws in the 80's based upon the accounts total and make loans on them 100 times on each dollar. Flatulent bubbles of bs/bankspeak. NO money down! and all that...In 2001, after spending the surplus Clinton built in the economy of 4.1 trillion, Bush and RepubliCONMEN, removed Glass Steigel to merge Commercial Corp Banking with Asset Accumulation Income Accounts/Regular pensions and retirement funds, and loaned out on it swapping good loans of 30 years with Fannie and Freddie(republican hate programs for middleclass) and gave the morgages to Wall ST. Mixing Main Street Mom and Pop shops and retirement, home equity, with Corp Greedy Wall Street. The guys name was, get this, Roger Mudd. A Bush WS tick placed in the position by Rove and Cheney to take the programs apart piece by piece through swapping. The President of Fannie May of 25 years was to retire with a 5 million retirement after 30 long years of keeping the books clean so rethugs couldn't find anything out of place in accountability. There's a video of "W" stating "IF THE PEOPLE CAN'T AFFORD THE DOWN PAYMENT FOR THE HOME, WE/TAX PAYERS WOULD PUT IT UP FOR THEM." He didn't tell em to stretch the amount of years on the loan to make the home affordable to the buyer, just keep raising the down, we'll get em' to cough it up, and in 3 years when the mortgage doubles or triples, we get the houses back, so bankers are really not losing anything, because they got the client to sign it, by telling them they could afford it. They just forgot to say, you can afford it for 3 years, after that?
You tube has the video, and they put Roger in at that time. Corporate tick insiders that get hired at a company, to suck the life out through changes in procedural contracting, so it all looks good on paper. All they have to do is say: "This company's balance sheets are a mess, some changes are gonna happen around here! They are paying the government/us back at too slow a rate. Then oh brother, look out. I've seen it in the health insurance, exclusionary tactics. Breaking up a procedure, to charge more for it.

Horrible corruption effecting every aspect of our lives from birth to death.

I've got to find a funeral home now that will accept payments for burial, for my mentally ill sister, who has never worked and smokes like a smoke stack.

She picked up chain smoking when she ran away from home at 14. Long story, for another time.
I have to find this because no credit was ever established or anything. I'm racing against time to beat a grim reaper, and hoping the over indulgence of drinking gallons of water a day will flush any tobacco toxins out. She's diabetic, and schizophrenic/brought on by PIMP/abuse and head trauma. Perhaps there are others out there that can feel me on this, and we can create funeral parlors for people who are constantly denied on death insurance because of preconditions.
A sorta pay as you go until your reach a certain amount for burial, orrrrrrrr..... just pay for it out of the SS fund. When people die in Jan, the rest of that year's income should have been able to cover the expenses, if they die later in the year, they still have a balance in their SS account to cover a decent burial. Why only 255, the amount when FDR got SS started? It's 2013 and these things hit people hard in recovery times.

Just saying the system of THE GAME OF LIFE is rigged in everything!

But Ooooooo....how I love this guys cajones!

[GlassSteagallfan]

More scam via the Dodd-Frank:

Kill Dodd-Frank Before It Literally Kills You!

May 26, 2013 • 7:31PM

Whether your Congressman and Senator know it or not, Wall Street and the City of London’s too-big-to-fail banks have been given the keys to your savings accounts and will steal every penny that you think you own the minute they get into trouble and need another bailout. This is not some wild futuristic nightmare. This has been the reality ever since Congress passed the Dodd-Frank Bill (“The Wall Street Reform and Consumer Protection Act of 2010”) and President Barack Obama signed it into law. This is outright treason!

Under Title II of the Dodd-Frank Bill, the leveraged gambling debts of the too-big-to-fail banks are put at the front of the bail-out line. Household and business depositors are defined as “unsecured creditors” and will lose all but the FDIC insured portion of their deposits. What this means is that the “bail-in” program that looted depositors funds in the two largest banks in Cyprus earlier this year has already been in place in the United States under Dodd-Frank.

After the 2008 Wall Street fiasco, in which the too-big-to-fail banks were given tens of trillions of dollars in taxpayers’ funds in the biggest bailout in history, it was obvious that no more taxpayer bailouts were possible. Instead, the bankers and their Congressional allies opted for “bail-in.” If a too-big-to-fail bank gets in trouble, the FDIC steps in, in the form of an Orderly Liquidation Authority to oversee the restructuring. In the process, the bank is saved—at the expense of the depositors who will lose all but the FDIC insured portion of their deposits.

This represents the biggest theft in history, and it is pure treason. Under the Preamble to the U.S. Constitution, the first responsibility of government is to protect the general welfare of the population, both current and future generations. Under Dodd-Frank, that core principle of the American Republic is thrown out the window, in favor of “saving the system,” a system that has been hopelessly bankrupt since long before the 2008 crisis.

The Dodd-Frank Bill is 848 pages. Already, regulators have drafted 8,843 pages of rules of implementation—and they are only a third of the way through the process. Earlier this month, Members of the House Financial Services Committee passed H.R. 992, the Swap Regulatory Improvement Act, with only six dissenting votes. The bill would further guarantee that derivative contracts—pure gambling bets—would be protected even when held by foreign banks operating in the U.S. The New York Times reported on May 23, 2013 that H.R. 992 was written by Citigroup and was introduced by Members of Congress on the receiving end of major Wall Street contributions. This, too, is a further betrayal of the rights of all Americans.

As Lyndon LaRouche has been correctly warning since the 1971 breakup of the Bretton Woods System and the 1999 repeal of President Franklin Roosevelt’s Glass-Steagall Act of 1933, the entire trans-Atlantic financial system is hopelessly bankrupt and must be put through orderly bankruptcy reorganization. The only way to achieve that is to fully reinstate the original Glass-Steagall Act, which separated commercial banking from all of the gambling activities of the brokerage houses, hedge funds and insurance companies. There are now bills before both Houses of Congress to reinstate Glass-Steagall. H.R. 129 and S. 985 offer the only hope of survival for a United States already on the very edge of economic disintegration.

Lyndon LaRouche declared, “The looting has gone far enough. The Dodd-Frank Bill is a piece of treachery that has already claimed the lives of too many of our citizens, through the destruction of our economy, the continuing collapse of real employment, the gutting of our health care system. Nothing short of the full reinstatement of Glass Steagall can save the United States at this point in time.”

LaRouche continued, “Glass-Steagall is the indispensable first step to reverse the London-Wall Street tyranny of Dodd-Frank. Once we have reinstated Glass-Steagall, we must immediately move to rebuild the collapsed U.S. economy. We need to return to the American System of Federal credit for urgently needed infrastructure projects, starting with the North American Water and Power Alliance (NAWAPA), a project that will create millions of productive jobs and revive our collapsed manufacturing base.

“My colleagues have prepared a detailed expose of the treason of the Dodd-Frank Bill (http://larouchepac.com/node/26726). It is available on the LaRouche PAC website. When you study that report, you will come to the obvious patriotic conclusion: Kill Dodd-Frank before it kills you.”

http://larouchepac.com/node/26728

[Ron Mauer Sr]

The USA just missed a bail-in for Tuesday after Memorial Day. (A bail-in is when depositor bank accounts are confiscated to pay bank debt.)

From Jim Sinclair's website today (link) (http://www.jsmineset.com/):

Jim Sinclair’s Commentary

The entire Western World banking system just missed the need for a bail-in by a hairs length.

The next crisis in finance in North America will be a product of the [Financial Accounting Standards Board] FASB, the Guardians of Auditing, allowing banks to value OTC derivative paper at whatever the bank wishes. This is a camouflaged black hole loss unstated that Western Banking system deposits could fall into to disappear partially or wholly, made up of your deposits. Washington made moves to override the [Commodities Futures Trading Commission] CFTC, mandating proper valuations which the FASB has run away from. Had the banks been required by the CFTC to value these derivatives at anything resembling a real market (there isn’t any markets for the legacy OTC derivatives of 1991 to 2008), we would have had another banking crisis in the USA on Tuesday after Memorial Day. The USA just missed another banking crisis by a hair’s length. Next time it will be closer.

If the banks had to realize the real loss in this paper, now valued way above real worth, facing that loss would vaporize the bank’s entire capital, impacting the next line of financial defense which is the funds of the depositors, seriously reducing to totally wiping out your deposits. This distance between the bail in of Cyprus and of the entire Western financial world stands on the question of honestly valuing OTC derivatives or not lying about the value of the legacy paper banks are carrying. This is the real PONZI of not just the century but all written history in finance. The real number of notional value of OTC derivatives outstanding is not $700 trillion but rather over a quadrillion as it stood and was reported by the BIS printed hear before the BIS reduced the number to $700 trillion by adopting a new computer program for valuation named "Value to Maturity," a total cartoon.

We, the entire Western Financial World, are a bankruptcy just waiting to happen.

Had the CFTC implemented this regulation before it’s alteration, which is in fact a cancellation, you would have been bailed-in. Without this cancellation of this standing regulation, the USA would have had to have Bail-In Tuesday.

[gripreaper]

Well, in the credit/debit Keynesian system, the first cause of credits entering commerce occurs at the Federal Reserve, with the subsequent debit being owed back to the Federal Reserve, based on the accrual period tracked by the original CUSIP file which is created at the time the original credit is issued. The only access to the Fed Wire Terminal, which is the Federal Reserve database, is by the top 147 tightly knit CFO’s who run the top corporations on this planet. No one else has access. So, this balance sheet is the “big” balance sheet which governs the velocity of the original credits as they move through commerce.

Now, those who are first in line obviously reap the most benefit from the velocity of these credits, and the idea is to siphon off part of their accrual quicker than they move, based on the interest these credits are required to carry during their journey. All credits are due back to the Federal Reserve and must be zeroed out at the end of their accrual period.

So, those who are last in line, such as the average person and their savings account, stand to lose the most, since the credits are “parked” and do not have any velocity to them. They are deteriorating because the accrual interest due back to the Federal Reserve, and the period of their return, is greater than the interest one receives from parking these credits, thus they lose value when sitting in a savings account.

The only other variable based on velocity, is the interest spread between the original CUSIP, and the interest charged to “borrow” these credits, to create value added in the economy, thus indexing these credits to a velocity which increases by virtue of the tangible created, and slows down their accrual period making it look like there is a profit. In reality, there is no profit unless the velocities of these credits move faster than the original CUSIP. Derivatives do not create any value added to the economy or any additional interest to support the accrual period.

The only main rule based of FASB, is that all credit/debit balance sheets balance at the end of the day, based on the dual entry system of debits and credits, sometimes referred to as "profit and loss", or "assets and liabilities". In reality, there is only the original CUSIP which is debt to the Federal Reserve.

So, when banks mess with velocity by using the accrual method of accounting, stating that the accrual period is extended or suspended due to ongoing derivatives bets which have not matured, and therefore are not due back to the Federal Reserve, it creates discrepancies between the original CUSIP track and the track of the derivatives. If the maturity of these derivatives occurs after the end date of the original CUSIP, the balance sheets do not balance at the end of the day.

Adding additional credits to these timelines only exacerbates the problem, and this is what the FASB board, our illustrious government, and the banks are trying to backstop and “unwind”. The banks full well knew that their ponzi scheme would eventually come home to roost, and I would surmise, was an intentional imbalance created for nefarious reasons, and would force the government to backstop these derivatives, and eventually collapse the system.

A derivatives bubble that is a quadrillion dollars worldwide is impossible to unwind, impossible to cover the velocity, and impossible to balance. The Federal Reserve will one day call in these credits and demand full collateralization, and the ponzi leverage scheme against the original velocity will come crashing down.

No one will escape the effects of this collapse, and anything registered on any balance sheet as capital will be wiped out. Is tomorrow "bail in" Tuesday aka: Cyprus? Don't think so. More debt needs to be created to fully have the two variables cross each other, the quadrillion derivatives and the daily credits being created to backstop them.

[edit of add] Some are speculating the ponzi is designed to collapse this fall, when the new 100 bill will be released. This is a pretty good article I linked on another thread.

http://beforeitsnews.com/economy/2013/05/impending-financial-collapse-the-grand-finale-here-is-what-is-about-to-happen-to-you-an-economic-love-story-or-fifty-shades-of-green-2523150.html

[Ron Mauer Sr]

I ask myself how can all this complex financial information be of value?

Perhaps the best I can do is reduce bank deposits to a minimum and keep available cash someplace nearby where I can touch it. Cash on hand may delay or soften the shock of a corrupt and failed financial system.

Those with large deposits at risk in banking institutions might be safer converting to precious metals. Whatever system replaces western world finance will probably be based, in part, upon precious metals which have a history of value longer than two thousand years.

But precious metals may not be useful during a time when food is scarce. Food seems like such a good investment and is much less expensive than gold and silver.

[ThePythonicCow]

In 2001, after spending the surplus Clinton built in the economy of 4.1 trillion, Bush and RepubliCONMEN, removed Glass Steigel ...
As I posted in an earlier response to you here (http://projectavalon.net/forum4/showthread.php?59254-Glass-Steagall-Introduced-in-the-Senate-&p=676038&viewfull=1#post676038), it was not Bush who repealed Glass–Steagall, but Clinton.

Bill Clinton was President in 1999 when the Gramm–Leach–Bliley Act of 1999 (http://en.wikipedia.org/wiki/Gramm%E2%80%93Leach%E2%80%93Bliley_Act) repealed the Glass–Steagall Act of 1933 (http://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Act).

Of course, as discussed in the thread Is it Comet Elenin? Is it Nibiru? Elenin Updates. (Post #1302) (http://projectavalon.net/forum4/showthread.php?16101-Is-it-Comet-Elenin-Is-it-Nibiru-Elenin-Updates.&p=310663&viewfull=1#post310663), it may well be that Bill Clinton is the biological son of Winthrop Rockefeller, and as discussed in the thread A summary of the Nazi take-over of the US over the last eighty years. (http://projectavalon.net/forum4/showthread.php?59373-A-summary-of-the-Nazi-take-over-of-the-US-over-the-last-eighty-years.), the Bush and Rockefeller families "go way back" as one might say, working hand in hand to control nations and extend their vast wealth and corruption for the last century.

So whether it was Bush or Clinton (or Reagan or Obama or ...), that doesn't really matter.

[gripreaper]

LOL. The market flash crashed at the end of the day. Speculation had to do with words from the Fed minutes which read:


"There is also concern about the possibility of a breakout of inflation, although current inflation risk is not considered unmanageable, and of an unsustainable bubble in equity and fixed-income markets given current prices."

"Unsustainable bubble"? And this not from some fringe blog but... bankers?

And some bonus words, which have to be read to be believed:


Uncertainty exists about how markets will reestablish normal valuations when the Fed withdraws from the market. It will likely be difficult to unwind policy accommodation, and the end of monetary easing may be painful for consumers and businesses. Given the Fed’s balance sheet increase of approximately $2.5 trillion since 2008, the Fed may now be perceived as integral to the housing finance system.

You can't make this stuff up folks! Uncertainty exists!

http://www.zerohedge.com/news/2013-05-31/34-words-may-have-caused-todays-crash-stocks