Tag Archives: banksters

A Sign The End Of Our Housing Bubble Is Nigh

15 Feb

First home buyers are waking up. No longer are falling usury rates seen as a sign to “Buy Now!”

Quite the contrary.

They are a sign that says “DON’T BUY NOW!!”

From the Courier-Mail:

LENDERS have started dropping their home loan interest rates without waiting for the Reserve Bank of Australia to move.

Although the RBA last week decided to keep interest rates on hold, a couple of lenders have dropped their variable rates and many more cut their fixed rates.

According to financial comparison website RateCity, BMC Mortgage cut some of its variable home loans this week by up to 10 basis points.

Yesterday Holiday Coast Credit Union cut its variable rate by 20 basis points.

Since Monday, many lenders have cut their fixed rates, with ANZ and Commonwealth banks dropping by up to 30 basis points, Suncorp 20 basis points and RAMS by 40 basis points. St George cut its fixed home loan rates for one, three, four and five-year terms.

The number of home loans approved by banks and other lenders has fallen, according to Australian Bureau of Statistics figures.

Demand for loans from first-home buyers has slumped to its lowest level in more than eight years.

The number of home loans approved in December was down 1.5 per cent on the previous month. This is despite four interest rate cuts by the RBA last year.

…

According to betting on futures markets, there is an even-money chance the RBA will cut the official cash rate next month to a record low of 2.75 per cent.

Unsurprising. Long expected, and forewarned of right here, and elsewhere.

The financial system – bankstering – is a Ponzi scheme.

It requires ever-expanding growth in “credit” issuance to sustain itself, and to continue generating vast profits for banksters.

As we saw in The Easy Way To Know Where House Prices Will Go, the annual growth rate in credit debt for housing has been in overall decline since Feb-Mar 2004. Housing debt is still growing. But at an ever slower annual rate:

9br-cgbys

Feb 2004 – Peak in annual growth rate for Housing Credit

We also saw something more important.

That Australia’s world-leading house price bubble is NOT, as many vested usurers would have you believe, due to “demand” for housing driven by population growth.  That is, by eager Owner-occupiers looking to “own their own home”.

In fact, RBA and ABS data clearly shows that for several decades, by far the greatest driver of Housing Credit growth in Australia – and thus, the greatest driver of house prices – has been so-called “Investors”. Known by the wise as “speculators” –

Click to enlarge

Click to enlarge

For a detailed, easy-to-understand explanation of the true drivers of Australia’s house price bubble, click here.

For those who can’t be bothered, simply take note of the obvious.

Everything in the economy starts with the banking system.

They are not just the pipes and taps for the flow of “money” throughout the economy.

Banks are the creators of “money”.

Don’t believe me? No less an authority than the biggest bankster of all, the Federal Reserve Bank, has said exactly that:

The actual process of money creation takes place primarily in banks. As noted earlier, checkable liabilities of banks are money. These liabilities are customers’ accounts. They increase when customers deposit currency and checks and when the proceeds of loans made by the banks are credited to borrowers’ accounts.

It is really quite simple.

Banksters grow richer by lending. At usury.

When you sign up for a loan, the bank creates new “money”. How? By typing a new, double-entry, digital book-keeping entry into their computer.

A new “deposit” for you. With which to buy “your” house.

A new “asset” for them. Your signature on a loan document, pledging to work as their debt-slave for the next 30 years to repay that loan … plus interest.

Your loan, is their asset. Your legally binding pledge to repay those electronic digits plus interest, is their asset.

Banksters are all about profit.

They will only cut interest rates on home loans – by far their #1 profit centre – out of sheer necessity.

To attract more willing debt slaves to sign up for a home loan.

To keep their Ponzi scheme going.

Now, it may take many months yet, or even years, for Australia’s house price bubble to burst.

Obviously, the banksters will do everything in their power to prevent it.

Their cutting home loan interest rates “out-of-cycle” is one clear sign of that.

Their inevitable calls for RBA and government “intervention” to support the housing market – that is, to help out with encouraging/bribing ever more folks into taking on ever more debt – is another.

But the writing is on the wall for the banksters. And our house price bubble.

And that writing on the wall is exactly in the shape of that Housing Credit annual growth chart you can see above.

To quote Prosper Australia’s David Collyer once again –

DON’T BUY NOW!!

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It’s Not Worth Anything

8 Feb

For more, see The World’s Most Immoral Institution Tells You How and
Think You’ve Got Cash In The Bank? Think Again

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Australia’s And Canada’s House Price Fate Entwined?

22 Jan

Ever since I first experienced the chilling majesty of the landscape and the warm conviviality of the people in that other former British colony, I have informed aspiring travellers that Canadians are just like us, but with an American accent.

Today, I offer you a little proof of the truth of my assertion.

Following my last post ( “The Easy Way To Know Where House Prices Will Go” ), a Canadian retweeted my article, along with the comment, “Coming to Canada”.

Perhaps understandably for a Northern Hemispherian, he got it downside up.

What’s happening with house prices now in Canada, is Coming to Australia.

Here’s why.

Like our RBA, the central Bank of Canada publishes a chart on its website that shows the all-important growth rate in residential mortgage “credit” (debt).  You can find the chart by visiting the Bank of Canada website, and clicking on “Credit Conditions” in the top menu –

BankofCanada

This opens a new window in your browser. Click on “Household Credit” –

HouseholdCredit_BoCanada

… where, if you scroll to the bottom, you will see this chart –

MortgageCredit_Canada

Well, well well.

Quelle surprise! (that’s for French Canadians)

As you can see, the growth rate in Residential Mortgage “Credit” (ie, debt) in Canada topped out at 13% per annum in May 2008.

Amateurs! 

We Aussies peaked out our pre-GFC housing debt annual growth rate at 22%, in March 2004. Here’s how we compare (click to enlarge) –

HousingCreditGrowth_AU_vs_CA

Click to enlarge

What caused that modest (compared to ours) slump in the growth rate of “Residential Mortgage Credit” (debt) in Canada?

That’s right … something called a “Global Financial Crisis”.

The critical growth rate in new “credit” lending did keep growing, mind you.  Just like in Australia, it never actually went negative.  But what is vital to understand is that, as in Australia, the rate of growth decelerated rapidly. 

Australian economist Steve Keen has empirically proven that the rate of change in the change in debt – meaning, the acceleration in growth of debt – is vital to keeping an “asset” price bubble inflated. It takes not just steadily growing debt – say, 5% per annum – but accelerating growth in debt, to keep enough new buyers armed with enough new debt to keep bidding prices ever upward.

The Bank of Canada, aided and abetted by the Canadian government, got the public’s foot rather gingerly back on the borrowing gas, by slashing interest rates to 0.25% (April 2009) .  You can see the result in the blue line of the chart above.  It’s the area of flat / barely accelerating “credit” growth through to 2012.  Since then though, the public’s foot has started to come back off the gas again.

Why?  Because the Bank of Canada started raising interest rates. From June 2010, Canada’s official interest rate has quadrupled to a whole 1% (wow!).

Following the GFC “peak panic” in late 2008 – early 2009, our Reserve Bank began raising interest rates again fully 8 months earlier than Canada. From October 2009 to November 2010, our central bank gradually increased interest rates from a GFC low of 3.25%, up to 4.75%. You can see the result of these interest rate movements as a small hump in the chart above (magenta line).

Thanks to record low interest rates – and unlike Canada, a massive injection of (borrowed) cash home loan deposits as a result of the Rudd Government’s doubling of the First Home Owners Grant – Australia’s long deceleration in housing “credit growth” from the stratospheric heights of 2004 paused, and briefly accelerated again. It reached a mini-peak of 8.3% per annum in May 2010 (when interest rates hit 4.5%), before those rising interest rates once again took the Aussie public’s foot off the housing-debt-growth accelerator. The RBA began cutting rates again in November 2011, hoping to get us back on the borrowing gas, but to no avail. We are now back to 3% interest rates … lower than the GFC low … yet the housing “credit” growth rate is still decelerating. Watch out below?

There are some other similarities between Australia and Canada.  They too, are considered to have a “commodity-based” economy. Just like our own, Canada’s economy relies heavily on exporting stuff they either dig up or grow.  Like Australia, this abundance of natural resources – and gargantuan Chinese “stimulus” spending to stave off the GFC – was a key factor in their economy (and house prices) not following the lead of the rest of the West.

But perhaps the most disturbing similarity between the economies of our two former colonies is this.

Euromoney magazine bestowed Canada’s Minister of Finance with their “World’s Greatest Finance Minister” award in 2009.

Why is this disturbing?

The award is judged by leading European banking and finance magazine Euromoney on advice from global bankers and investors.

Unsurprisingly, Euromoney magazine has a history of picking winners (lest we forget, “global banker” powerhouses like Goldman Sachs were actively betting on a collapse in their own mortgage-backed derivative products prior to the GFC) –

2006 to 2008 were indeed magic years for Euromoney’s awards selectors with “Best Investment Bank” 2006 going to Lehman Brothers who went broke in 2008. They’re blamed for much of the Global Financial Crisis. “Best at Risk Management” went to Bear Stearns who went bust in 2007. “Best Equity House” 2006 named Morgan Stanley and “Best Investor Services” favoured Citigroup. Both were bailed out in 2008.

Just like our own Treasurer Wayne Swan, who received the award in 2011, Canada’s Jim Flaherty supposedly “saved” their economy from recession too.

How?

Exactly the way the “global bankers” wanted, of course. By goosing the public back into supporting their (the bankers’) Great Western Debt-Driven housing bubble –

Interestingly, Canada’s “World’s Greatest Finance Minister” now says he is pleased that Canadian house prices have begun to nosedive –

“I don’t mind prices coming down a bit, too,” he said in an interview, after the latest data showed that home sales fell sharply in December compared with a year ago.

I wonder if The Goose (or the JHockey?) will respond the same way when Australia’s house prices respond similarly to our decelerating growth in housing “credit”.

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The Easy Way To Know Where House Prices Will Go

19 Jan

Want to know whether Australian house prices will rise or fall?

The RBA has the answer.

Just go to their website, and click on “Chart Pack” under “Key Information” –

RBA_chartpacklink

Then click on “5. Credit and Money” –

RBA_chartpacklink2

… where you will see this chart –

9tl-cmg

This chart tells us the growth rate in the amount of “credit” and “money” in the economy.

As you can see, the growth rate in “credit” has plummeted to less than 5% per annum.  In the period where Australian house prices rose the most in history, the annual growth rate in “credit” was three to four times higher than the present rate.  Without strong growth in new “credit” issued to borrowers, house prices can not rise much.  If at all.

Indeed, unless there are enough new buyers – armed with enough newly-issued “credit” – out and about and actively purchasing houses, then house prices must eventually fall.

For over twenty years, housing in Australia has been a banker-profit-driven “bubble mania” scheme, you see.  To drive up prices, the #1 and absolutely essential ingredient is more and ever more new “credit” – debt – with which bright-eyed and dull-brained buyers – debt slaves – can outbid each other to buy a house.

The RBA has another chart that shows this.  It will help you to see more clearly exactly why Australian house prices rose so much … until the GFC struck.

In the main menu of the Chart Pack, select “3. Household Sector” –

RBA_chartpacklink3

Then select “Household Finances” –

RBA_chartpacklink4

… where you will see this chart –

6tl-hhfin

As you can see, Household Debt (ie, “credit” offered by banks) as a percentage of disposable income rose dramatically for nearly twenty years.

Until the GFC.

It turned down sharply as Australians wisely responded by tightening their belts, and paying down their debts.  Then began to climb again – but only a little – thanks to the Rudd government offering “free money” in the form of a doubling of the First Home Owners Grant.  This handout of what amounted to a free home loan deposit kept the bubble from collapsing.  It encouraged thousands of new buyers – mostly young people with little or no savings – to go to their bank and borrow hundreds of thousands in “credit” to go and bid up the prices of houses again.

Unfortunately for them – and the bankers – this could only last for as long as the government was willing, and able, to find more “new home buyers” – new debt slaves – to dangle “free” money in front of.  As you can see from the chart, the level of Household Debt to disposable income has now bounced off the ceiling for a second time.

And so, as most Australians know, house prices in most areas of Australia have basically gone nowhere in the past year or two.  Some rises here.  Some falls there.  But overall, house prices have simply mirrored the Household Debt level … falling as debt levels fell, and rising (briefly) to bounce off the underside of that invisible private debt ceiling, thanks to that brief inflow of new “credit” that was borrowed by the government, and then handed out to First Home Buyers as deposits enabling them to apply for new mortgage “credit” from banks.  And yes, the RBA has another chart that confirms this –

6bl-dwelpri

Now, it might interest you to know exactly when Australia’s private debt-fuelled, bankster-enriching house price bubble scheme actually hit the ceiling.

No, it was not when the GFC struck; when many Australian households began to wake up, and realise that paying down their debts might just be a good idea.

Our housing bubble actually hit the ceiling first in early-to-mid 2004.  That is when the all-important rate of growth in housing “credit” topped out, and began to fall.

Unfortunately, the RBA does not make it easy for you to see this critical economic parameter.  The Chart Pack only gives you “Credit” growth in aggregate – that includes other forms of borrowing like business loans and credit card “credit”.  They even give you a chart for the number of “housing loan approvals”. But they do not give you a chart specifically for that all-important rate of growth in housing credit.  You have to dig into their statistics, and construct the chart yourself (click to enlarge) –

Click to enlarge

Click to enlarge

As you can see, the rate of growth in “credit” for both “Owner-occupier” and “Investor” housing peaked in Feb-Mar 2004, and has been falling ever since.

It is particularly interesting to consider the magenta line showing “Investor” housing “credit”. The rate of growth in “credit” for housing “Investors” was, until early 2004, far in excess of that for “Owner-occupiers”, with the notable exception of the early 2000’s global recession that only briefly affected Australia.  At that time, “credit” growth for “Investor” housing plummeted to the same level as the “Owner-occupier” rate, before recovering spectacularly to reach a whopping 30.7% annual growth in Feb 2004.

What prompted the recovery?  John Howard’s introduction of the First Home Owners Grant in 2000, and in particular, his doubling it in early 2001.  With a rush of newly-enslaved borrowers bidding up house prices, “investors” too rushed back into the welcoming arms of the bankers, as ever only too eager to lend “credit” at interest to willing borrowers against the “security” of “their” house.

Or houses.  How many people do you know who (used to) boast about their “investment property portfolio”?

From early 2004, the well began to run dry.  The rate of growth in “credit” for “Investor” housing began to fall steeply.  It fell well below the “Owner-occupier” rate, which was also declining.  This overall decline in the growth rate for housing credit has continued ever since.

However, thanks to the “stimulus” provided by Kevin Rudd’s further doubling of the First Home Owner’s Grant in 2009 – again, using borrowed money – aided and abetted by the RBA slashing interest rates in response to the GFC, both “Owner-occupier” and “Investor” credit growth bounced briefly.  Indeed, “Investor” credit actually overtook “Owner-occupier” credit again for a very short time in 2010, before both continued falling together.

Clearly then, house prices in Australia were not driven up over the past 15-20 years by “demand” from “population growth”, from people who needed somewhere to live (Owner-occupiers).  On the contrary, by far the strongest rates of growth have – during the bubble phase – been driven by so-called “investors”.

Speculators, in other words.  People who have come to believe that borrowing money to “invest” in property is a guaranteed path to riches, because house prices “always go up”.  Meaning, they believe that if they can only buy now, they can sell later for an easy profit.

Sadly, it is not just “investors” who have come to believe this.  Most Australian owner-occupiers have come to believe the same thing.  It is the very definition of a “bubble mania”, when most people have come to believe they can profit from buying and later selling an “asset”.

Who benefits most from a “bubble mania”?  Who has the most powerful vested interest in ensuring that the bubble does not burst … that is, not until they are positioned to profit from the “downside” as well?

The banks.  The same World’s Most Immoral Institution that has been given the power to create “money” – digital book-keeping entries – and lend it to others in the form of “credit”, at interest.

And so, dear reader, I suggest that you bookmark this post.  In the weeks and months ahead, the powerful banking and property (sales) industry will undoubtedly ramp up the propaganda – and the pressure on government and the RBA to “do more” to support “home buyers”.

Meaning, do more to prop up the Ponzi scheme that keeps them all in caviar, Bollinger, and the latest Aston Martin.

You will hear all kinds of oh so plausible-sounding reasons and statistics, presented by “experts”, encouraging you to believe that house prices will soon go up, and that now is a good time to buy (meaning, to “borrow”).

Whenever this coming bombardment of propaganda causes you to wonder if what they are all saying might just be true; when the charts and statistics and testimonials from credible-sounding people causes you to start feeling “con-fident” about Australian housing, come back and read this post again.  Or visit the RBA’s website, and click on the Chart Pack to see the Credit and Broad Money Growth chart.

Because the simple truth is this.

Unless the government can find a new source – a BIG source – of new people willing to borrow enough “credit” to keep bidding up house prices, there is only one way for them to go.

Unless the government can find a way to reverse the trend of that last Housing Credit chart, then in time, there is only one way that house prices can go.

And “up” it is not.

Finally, although I am loathe to ever suggest that anyone heed what the RBA Governor says, here is one exception.

In July last year, Glenn Stevens warned that –

“It is a very dangerous idea to think that dwelling prices cannot fall,” RBA governor Glenn Stevens said in a speech today. “They can, and they have.”

Indeed.

To quote Mr David Collyer of Prosper Australia …

Don’t Buy Now!

UPDATE:

Correction – how careless of me! The RBA does indeed provide a chart in their chart pack that shows the growth rate in “credit” for housing.  Simply select “5. Credit and Money“, then choose “Credit Growth by Sector” –

9br-cgbys

As you can see, the annual growth rate for Housing “credit” is in a long and steady decline.  It is presently less than a quarter of the rate of lending that the bankers achieved at the peak.

So, The Easy Way To Know Where House Prices Will Go, is to visit the RBA’s Chart Pack and look at that particular chart.  If it hasn’t started shooting back up again, to the kind of pre-2004 levels that financed the near twenty-year “boom” period, then you know where house prices will go.

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Come Out Of Her, My People

25 Apr

Just stop participating.

Walk away:

Dear Reader,

Thank you to all who have read, commented on, and in particular, shared content from this blog over the past 2-and-some years. I have decided to take an indefinite hiatus from the daily toil associated with identifying and writing content for this blog, to refocus my energies towards higher priorities. These include the pursuit of a long sidelined desire – to write a book.

I have paid for continued hosting of this site’s content for 12 months, so if any readers would be interested to be made aware of future writings or projects, please Follow this blog if you have a WordPress account, or, submit your email address in Comments to the About page (to avoid spam, use format “[name] AT [url] DOT [ ]”). Rest assured that your email address will never be shared, and would only be used to advise of future writing projects that may be of some interest to you.

Regular readers know that a consistent theme of this site has been debunking the government claims, and legislation – and exposing the motives and connections of the prime movers and key beneficiaries – pursuant to so-called “action on climate change” in Australia. And while a minor contributing factor in my decision to cease contributing to this blog is my view that most, if not all, of the content that I have presented in the past regarding debt, economic (mis)management, and government deceit regarding same, can easily be found by the diligent researcher elsewhere, to the best of my knowledge no other commentator or blogger has identified, much less focussed attention on, the Ticking Time Bomb Hidden In the Carbon Tax. For that reason, I see this article (along with the many closely-related articles, and in particular the epic research project The “500 Biggest Polluters” Exposed – Everything The Government Is Not Telling You) as being my only truly unique contribution to public awareness concerning government propaganda/policy, and its consequences.

Gratifyingly, Ticking Time Bomb Hidden In the Carbon Tax is the most shared blog that I have written. I see it as, arguably, the most significant blog I have written.

Regular readers will also be familiar with my personal view that the most important, and arguably the only way to truly transform human society for the better – from a material, rather than the infinitely more crucial spiritual and moral perspectives, I would hasten to add – is by transformation of the “currency” system. By making “money” a true servant of mankind, rather than our master. In that regard, I am perhaps most contented of all with my July 7, 2011 essay outlining how I believe that can (and why it must) be done –

The People’s NWO: Every Man His Own Central Banker

There are 814 posts here, and over 193,000 views of those posts to date (ANZAC Day April 25, 2012).

The most active day was February 25th 2012, with 5,677 views – 3,961 of which were of this post, which actually saddens me. Contemplative readers will understand why. Unsurprisingly therefore, the most active month was February 2012, with 24,599 views.

Once again, thank you most sincerely to all who have read, commented, and shared. Without your support, I doubt that I would have persisted for so long 😉

Vaya con Dios,

TBI

“Pride is the root of all evil.”
“Debt is not the new black. It is the old red.” 

UPDATE:

Australia’s most decorated active serviceman, Corporal Ben Roberts-Smith VC, on ABC Lateline last night (segment “Australia remembers fallen diggers”, from 3:30 sec):

“I don’t think we need to sacrifice any more human beings unnecessarily; so if there is another option, then that is obviously the way to go.”

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Hey Tony, If Lib State Premiers Won’t Rise Up … STFU

16 Apr

From AAP:

Abbott urges revolt against carbon tax

Opposition Leader Tony Abbott has urged workers to “rise up” against Labor in protest at the carbon tax, which will come into effect on July 1.

Visiting a Melbourne bed-making factory on Monday, Mr Abbott said the carbon tax would act like a “reverse tariff” affecting Australian manufacturing while benefiting overseas competitors.

He said Labor purported to represent workers but was attacking their jobs.

“The carbon tax will go like a wrecking ball through the Australian economy,” Mr Abbott told reporters in Deer Park.

“This is why even now I call on the workers of Australia to rise up and say ‘no carbon tax’ to a government that still claims to represent them.”

Right.

The workers of Australia have said “no carbon tax”, loudly and clearly.

Over 88% of votes at the last election, went to parties promising that there would not be one (Labor, and the LNP).

You want US to rise up?! What exactly do you mean by … “rise up”?

Here’s an idea Tony.

How about the NSW and QLD LNP State premiers make good on their loud, solemn pre-election promises?

What’s that?

Your banker mates – including Joe Hockey’s wife, and Malcolm’s Goldman Sachs buddies, et al – won’t let you?

Because they are now within mere weeks of being able to start up their long-awaited, 100% unregulated, unmonitored, CO2 derivatives Ponzi scheme disguised as a “market mechanism” for “emissions reduction”?

Quelle surprise!

Green-Labor.

Liberal-National.

All useless, spineless, self-serving, dishonest, unrepresentative swill (h/t PJ Keating)

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The Fix Is In – Premiers Bow To Bankers’ Carbon Derivatives Scam

16 Apr

You know those Liberal Party state opposition leaders, who promised to fight the carbon tax if only you would elect them premier?

As predicted here on this blog, they are all talk, no action, when it comes to actually fighting the bankers’ CO2 derivatives scam, despite plenty of expert legal advice that there are solid grounds to challenge the legislation in the High Court.

From the Age (emphasis added):

NSW drops carbon tax challenge

THE passage of the carbon tax has received a boost, with legal advice to NSW Premier Barry O’Farrell suggesting that a High Court challenge to block the tax would fail.

On Friday, Mr O’Farrell said NSW would consider joining a potential bid by Queensland to block the July 1 implementation of the carbon tax in the courts.

Note well: O’Farrell’s original, loud and oft-repeated pre-election promise was not conditional on having another State premier to hold his hand.

But The Sun-Herald understands Mr O’Farrell has already abandoned any thought of leading an assault on the Gillard government. Sources confirmed advice had come back that a legal challenge would be likely to fail in proving the carbon tax was unconstitutional.

So, advice that you are “likely” to fail is sufficient reason to not fulfill your pre-election promise, hey Bazza? Sounds like a convenient excuse from a twisting and turning liar to me.

Mr O’Farrell has made political mileage out of the carbon tax since it was announced. Last week, the NSW Energy Minister, Chris Hartcher, blamed the upcoming impost for the 16 per cent electricity price rises approved by the independent pricing regulator.

The reluctance of NSW to challenge the controversial tax is likely to slow momentum for a High Court bid. Victoria, like NSW, has said it would consider joining a Queensland bid.

The West Australian Premier, Colin Barnett, has stated publicly that his advice is that a bid would fail. The Queensland Premier, Campbell Newman, said he would not act without at least one other state with him in alliance.

The fix is in.

Unsurprising. And just what this blogger predicted.

Because when all the major political parties are beholden for the loans they need to run their election campaigns, to the banksters who are behind the global drive for a new, legal, yet wholly unregulated, unmonitored CO2 derivatives casino, you know in advance what the outcome will be.

Know thy real enemy.

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Here Is Expert Legal Advice On Why The Carbon Tax Is Unconstitutional

13 Apr

Courtesy of the IPA, here is the Short Form of barrister Bryan Pape’s commissioned legal advice on a constitutional challenge to the Bankster-Green-Labor CO2 derivatives scam:

Click to enlarge

Click to enlarge

Will a Liberal State government challenge the legislation in the High Court, thus making good on their pre-election promises?

Will National Living Treasure Clive Palmer make good on his threat to do so?

In the case of the former, there is no excuse for failing to challenge.

NONE.

So naturally, I suspect that they won’t.

Because as we have seen previously, Australia is a kleptocracy … ruled by banksters.

And it is banksters (and their economist cheerleaders) who want a new global casino in unlimited, unregulated, unmonitored, CO2 derivatives trading.

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How Powerful Is That Minority That Wants A Carbon Tax?

7 Apr

Barnaby Joyce has written an article for the Australian Conservative, posing a question that regular readers all know the answer to (my emphasis added):

David Murray, outgoing Chairman of the Future Fund has blasted the carbon tax as the worst piece of economic reform he has ever seen.

So if the unions don’t like it, big business doesn’t like it, manufacturing doesn’t like it, farmers don’t like it, the electorate pathologically hates it, well the question then is who actually wants it? And how powerful is that minority? Where is the constituency that wants this tax? In Warrego on the weekend, out of 20,000 votes, the Greens received only 325. Maybe this is an example of how toxic these types of green policies have become.

The Labor party have tried to change the name to make the tax more palatable. First it was a tax to deal with global warming, then it was a tax to deal with climate change and now it is a tax for clean energy. What’s next? The happy pet tax? The peace in our time tax? It’s all the same, it’s an insane and very economically dangerous bureaucratic rip off.

Read the whole article here.

And if you are a new reader who does not know the answer, try this – Ticking Time Bomb Hidden In The Carbon Tax.

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The World’s Most Immoral Institution Tells You How

1 Apr

To understand why The Banking System is The World’s Most Immoral Institution, you need only to understand how it actually works.

Not how it works in the lofty, rarefied atmosphere of incomprehensible acronyms like ARM and RMBS and CFD and CDO and QE and LTRO.

Just the basics of banking.

The works that you and I deal with every day, at our local bank.

Fortunately, The Banking System has grown so proud of its near God-like power, it is happy to tell us how the basics really work.

From Modern Money Mechanics – A Workbook on Bank Reserves and Deposit Expansion, a complete booklet originally produced and distributed free by the Public Information Center, Federal Reserve Bank of Chicago, now out-of-print (emphasis added):

Who Creates Money?

Changes in the quantity of money may originate with actions of the Federal Reserve System (the central bank), depository institutions (principally commercial banks), or the public. The major control, however, rests with the central bank.

The actual process of money creation takes place primarily in banks. As noted earlier, checkable liabilities of banks are money. These liabilities are customers’ accounts. They increase when customers deposit currency and checks and when the proceeds of loans made by the banks are credited to borrowers’ accounts.

In the absence of legal reserve requirements, banks can build up deposits by increasing loans and investments so long as they keep enough currency on hand to redeem whatever amounts the holders of deposits want to convert into currency. This unique attribute of the banking business was discovered many centuries ago.

NB: This is why governments the world over are so obsessed with maintaining public “con-fidence” in the banking system. It is why they so fear any hint of a “run on the banks”. As we have seen previously ( “Think You’ve Got Cash In The Bank? Think Again” ), the Australian banking system only has around $183.50 in stored ‘reserve’ cash for every employed person in the country.  According to Australia’s central bank, the RBA, there is only $53.2 billion in actual cash notes in existence (or $4,655 per employed person) … even though Australian households and non-financial businesses believe that they have a combined $986 billion in total Deposits. If 1 in every 19 Aussies insisted on withdrawing their bank “Deposits” at the same time … all the cash would be gone. To add injury to insult, The Banking System is “earning” (?!) interest (thus, profits) from a grand total $1.95 Trillion in “loans” created out of thin air, and “lent” to Australian households and businesses.  Interest on “money” that does not exist … except as a series of electronic digits that a banking clerk typed into a computer.

It started with goldsmiths. As early bankers, they initially provided safekeeping services, making a profit from vault storage fees for gold and coins deposited with them. People would redeem their “deposit receipts” whenever they needed gold or coins to purchase something, and physically take the gold or coins to the seller who, in turn, would deposit them for safekeeping, often with the same banker. Everyone soon found that it was a lot easier simply to use the deposit receipts directly as a means of payment. These receipts, which became known as notes, were acceptable as money since whoever held them could go to the banker and exchange them for metallic money.

Then, bankers discovered that they could make loans merely by giving their promises to pay, or bank notes, to borrowers. In this way, banks began to create money. More notes could be issued than the gold and coin on hand because only a portion of the notes outstanding would be presented for payment at any one time. Enough metallic money had to be kept on hand, of course, to redeem whatever volume of notes was presented for payment.

Transaction deposits are the modern counterpart of bank notes. It was a small step from printing notes to making book entries crediting deposits of borrowers, which the borrowers in turn could “spend” by writing checks, thereby “printing” their own money.

Consider what this really means.

A bank creates “money”, authorised by your signature on a loan document.

Your signature is your legally-binding agreement, to become the bank’s debt slave.

With a few taps on the keyboard and clicks of a mouse, the “loan” that you must pay back, with interest, is created right out of thin air.

An electronic book-keeping entry is made under your name, as a new bank “Deposit”.

And another electronic book-keeping entry is made under the bank’s name, as an “Asset”.

Your legally-binding agreement to pay back the “loan” … with interest … is the bank’s “Asset”.

Every person, every business, every nation with a debt to a banking institution, is in plain truth a slave to their own wilful ignorance.

Working and slaving away, day after day, to pay back with interest something that came from nothing.

While the “Big Club” of elite bankers stride the earth like princes, on the back of everyone else’s daily toil and trouble.

Producing no thing.

Gaining every thing.

The Banking System.

It is the World’s Most Immoral Institution.

It is also the World’s Most Unnecessary Institution.

Here is my solution, for how we should do it.

Some of you, we all know, are poor, find it hard to live, are sometimes, as it were, gasping for breath. I have no doubt that some of you who read this book are unable to pay for all the dinners which you have actually eaten, or for the coats and shoes which are fast wearing or are already worn out, and have come to this page to spend borrowed or stolen time, robbing your creditors of an hour. It is very evident what mean and sneaking lives many of you live, for my sight has been whetted by experience; always on the limits, trying to get into business and trying to get out of debt, a very ancient slough, called by the Latins aes alienum, another’s brass, for some of their coins were made of brass; still living, and dying, and buried by this other’s brass; always promising to pay, tomorrow, and dying today, insolvent; seeking to curry favor, to get custom, by how many modes, only not state-prison offences; lying, flattering, voting, contracting yourselves into a nutshell of civility or dilating into an atmosphere of thin and vaporous generosity, that you may persuade your neighbor to let you make his shoes, or his hat, or his coat, or his carriage, or import his groceries for him; making yourselves sick, that you may lay up something against a sick day, something to be tucked away in an old chest, or in a stocking behind the plastering, or, more safely, in the brick banks; no matter where, no matter how much or how little.

I sometimes wonder that we can be so frivolous, I may almost say, as to attend to the gross but somewhat foreign form of servitude called Negro Slavery, there are so many keen and subtle masters that enslave both North and South. It is hard to have a Southern overseer; it is worse to have a Northern one; but worst of all when you are the slave-driver of yourself.

– Henry David Thoreau, Walden; or, a Life in the Woods, 1854

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