SCREWED

What’s it like to be screwed from behind without knowing it? We should all know that now.

The current financial crisis is a result of the traitors to the human race in Wall Street and City of London screwing us all and without us knowing it.

In the first half of this decade we had cheap credit available and saw many home improvement programmes on TV. This encouraged a property boom resulting in a rapid rise in house prices, and thus ever increasing mortgages. People felt the good times were here to stay and remortgaged to release some equity in their house for nice holidays, nice cars and anything else nice.

It all resulted in massive borrowing by us from the banks in the form of large mortgages.

Now, the beauty of our financial system is that debt, be it a loan or mortgage, is counted as an asset.

Even though the money for that debt doesn’t exist and is simply numbers on a computer, that debt counts as something physical to be traded or sold or used as collateral for some other financial transaction.

Another beautiful aspect of our financial system is that it is run by crooks who can steer the economy this way and that way to their benefit, i.e. they know the future. They generally know which sectors of the economy will rise or fall, and when, as on 9/11 when certain stocks in airlines were expected to fall and certain stocks in banks were expected to rise, and someone knew, bet on it through the dreaded derivatives and made a small fortune.

So how do you use this foreknowledge for maximum benefit to yourself?

You gamble.

If you know the future outcome of an event or series of events, if you place a bet that a stock will rise or fall due to that event then you can win...big time!

And the more you gamble the more you can win.

But how do you raise such massive quantities of finance for this gambling in order to win big time? As a bank, even though you have the power to do so, you cannot simply create money out of nothing. A demand has to be made for the credit to be created. So as a bank you encourage people to borrow, particularly mortgages because they involve several hundreds of thousands, possibly millions, of pounds each. The cheap credit and TV programmes encouraged this. The debts created by this borrowing count as assets which can be used as mortgage backed securities for gambling on the stock markets in the form of derivatives.

This explains the rise in self-certification mortgages, NINJA mortgages, sub-prime mortgages etc. They are very good ways to quickly raise large quantities of finance in the form of mortgage debt, which is accepted as collateral, which can then be gambled as derivatives. The hope is that the gambling in derivatives will cover any loss from lending money as mortgages to people who had zero possibility of repaying. Why else would you lend hundreds of thousands to a jobless no-hoper?

But the law states that only a certain amount of debt can be generated in this way.

So the credit that could and should have been used for investment in long term and economically sound companies, economies and industries for the general benefit of society has instead been used for large short term gain by gambling with derivatives.

Hence the lack of credit. They’ve gambled it all away.

Now some banks have been found out. Some banks were not on the inside and did not know the outcomes, or the desired outcome could not be engineered, and they lost...big time!

And now they want bailing out with taxpayers money, to "grease the wheels of industry and commerce", something they should have been doing in the first place instead of gambling on making a quick massive profit.

So where has all the money gone?

It has gone somewhere, but those who know aren’t saying where it’s gone.

But they are screaming, "the sky is falling down, the sky is falling down".

Yeah, the sky is falling down, because they made it fall down, and knew that we, not they, would have to stop it.

We don’t need this.

We don’t need them.

There are alternatives.