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venerdì 24 dicembre 2010

OTHER PEOPLE'S MONEY

Banking is wrong, at least the way they do it.

Governments are wrong, the way they do it.

Extemely simplified explanantions: (the reality is more complex and far beyond your immagination)

Banking provokes "trade to sell" by crediting the buyers, trade provokes production to cover the request, and the return of credit creates gain for the banks (besides the profits down the line of production/trade).

Untill here all clear!

All those money movements create TAX ( on profit, on movement, on the intention to make a profit, on salaries, on pensions, on your breath!).

Thus the governments want this to happen to can get taxes into their bottomless pockets.

But banks are phisically limited to their capital, so to give more they need to borrow, from insurances companies that have big cash income and need to make it more profitable.

And from the state.

And from their own clients that deposit their salaries, capitals, buy obligations and other financial instruments.

And at a certain point banks are no more working on capital, but on OTHER PEOPLE'S MONEY

So Banks are NO LONGER BANKS, but mere intermediaries of credit.

They live on TRUST that people gives them.

Now we have a problem, banks lend "money they don't have" on long and middle term from private deposits on not specifyed terms, trusting folks not to withdraw for some reason.

In fact if you want to withdraw they propose you not to do it, but to take a credit from them....weird!

Another problem, greed:

Governments and banks are people. Behind all the "bla bla bla" about institutions, safety, contracts, securityes and the rest, there are but mere individuals, and very individualists.

They have friends that bribe them to get a good deal, they have relatives that need a bread, thus they get the bribes when placing the good jobs, and hire their parents, nephews, inlaws, and even neighbours and friends.

Those hired after a few years gain seniority and have a word to say, and they have relatives, neighbours, friends to secure them in a safe job. And so on, and so forth.

Where is this leading?

Those that eat upon the banks and taxes multiply sooooo much that the system is no more stable, thus they need to create (desperately) more profit, how?

By lending to who is not a safe returner.

SUBPRIME, and not only house buyers, also industries, businesses, car buyers, appliances buyers, and worse of all, to the local and central governments.

And one day all this artificial sand castle, with no foundations, built on peoples trust on banks, is coming down for something, and the "somethings" can be of sooooo many types nobody can predict them all and take timely appropriate measures.

And this happened repeatedly over modern history, here and there.

NOW it happens EVERYWHERE!

WHY?

Because the politics and banking got so mingled one cannot tell anymore "who lends who" and who'se the money lended, the bank to the government, the government to the bank, or the government to the government through the bank, or the bank to the bank thorugh the government?

Headache!

Try to save the system and you will only sink with the system, it's like trying to keep afloat the Titanic while sinking by holding it with your arms.

The way I see it, my money are not in a bank or in something that can be easily stolen like gold, cars, or other crap. My money is in things that have better and more lasting value, some fast convertible in curencyes, some more difficult to convert in cash, but however both impossible to steal.

I keep in cash the minimum I need to pay my bils each month, and my bank ballance is close to zero constantly.

Find your way to stay out of the banks and you will survive the Titanic banks crush, or you could simply try to save the Titanik by holding it fast.... LOL

Stay away from banks, give them nothing, take nothing from them, don't trust them, they have no fundations, and when they go down, you go with them!

1 commento:

  1. Oh boy - when were banks founded? A few centuries ago? I wonder why it took so long, up to 2011, that a man came up in the person of "THE AUTHOR", to tell the truth. It's a shame for humans, but a big victory now the truth is out! :) My sincere compliment Mr. Pop ! Happy days ahead ! Marius Wlassak/ MWGBC

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