Category Archives: Credit Crisis

Banks stopping to lend money for fear of not getting it back.

UK Uncut: the cuts are necessary? The cuts are fair? We are all in this together???

The UK Uncut initiative is a wonderful expression of the Signs of Our Times:

  • it began with a Twitter hashtag #ukuncut
  • what manifested as a sit-in of 70 people in a Vodafone store in London
  • and spread across the country in no uncertain way.

Spread the word, join in actions, or at least smile!

One Good Cut instead!!!

With thanks to Inquiring Minds.

Why Spending Cuts are another variation of “institutionalised white collar crime”

Economist James K Galbraith gave a presentation to the Senate Judiciary Committee in which he speaks of “financial fraud” as the cause for the “crisis”.

But that’s not enough:

  • Central Bankers create “currency” as “public debt” from thin air, charge interest to the Government (in the UK as much as the military budget) and call it “quantitative easing
  • Bankers create “credit” from thin air, charge interest for their sort of “money” and get bailed out by Government
  • The Treasury prints notes and mints coin, as Cash, free of interest, but still believes it has to “borrow” money from the Bank of England

Enter we, the taxpayers:

  • we believe that the Government runs the economy, when, in fact, their budget represents maybe around 40% of the whole money supply
  • we believe that the Bank of England supervises banks and does it for the benefit of the country, when, in fact, it works for the benefits of its shareholders, like all other central banks

And what about taxes?

Before the creation of the Bank of England in 1694, monarchs created money and demanded taxes. However, the first “national debt” consisted of £1.2 million at 8% for the King to fight a war with France.

This pattern continued such that more and more Credit was issued as “money”, while the need for Cash was more and more reduced:

  • since WWII 47% Cash went down to 3% Cash

So the Government colludes in the central bankers’ game of ruling the world with currencies (and the loss of their value) and credit money (and the loss of its value), while the real economy, with its real values is exploited and oppressed.

In theory, neither taxes nor spending cuts are necessary.

In practice, it seems to depend on who influences whom with what kind of knowledge and understanding or beliefs and myths…

In our efforts to stage a Public Inquiry into White Collar Crime, we need to include the creation of “money” as the ultimate institutionalised white collar crime… But who cares???

Justice for All are campaigning against spending cuts regarding legal advice. Maybe they’ll realise where spending cuts fit into the larger picture of creating “credit” from thin air and calling it “money”…

The Chancellor’s speech at the Lord Mayor’s Dinner

This press release from HM Treasury gives you the whole speeach verbatim.

A speech that does mention what used to be unfamiliar:

  • the sovereign debt
  • its interest payment
  • the budget deficit.

But it glorifies the “independence” of the Office for Budget Responsibility whereas it means control of Downing Street by the City.

The tripartite system of Bank of England, Financial Services Authority and Treasury will be changed such that the Bank of England has yet more powers.

A new Financial Policy Committee will be created at the Bank.

A new Consumer Protection and Markets Authority is supposed to regulate financial firms.

A single agency is supposed to take on the work of tackling serious economic crime!

A bank levy will be introduced (the Robin Hood Tax???)…

An independent Commission on the banking industry will check the structure of banking under Sir John Vickers, former chief economist at the Bank of England.

Continue reading

Enforcement of Bank of England Act 1694

This Early Day Motion was tabled by our Chairman Austin Mitchell MP on April 20, 2009:

That this House, observing that the intention of the founding Act of the Bank of England in 1694 was `that their Majesties’ subjects may not be oppressed by the said corporation’, notes that those subjects have been seriously oppressed by the Bank’s failure to control the greed, risk-taking and speculation of the banking system over which it presides; and therefore suggests that this oppression should be dealt with as the Act provides by fines three times the value of the abusive trading.

Today the first three MPs have signed. Will you get your MP to sign via WriteToThem

In our observation, oppressions through banks are due to:

1. There is now only a limited number of qualified staff in every branch. In fact, what used to be professional training for a professional body, ACIB, has become a “School of Finance“.
2. The training in “banking” is limited. It consists only of “sales”.
3. There is now little responsibility in local branches.
4. Instead, all decision making has been centralised. This results in the decision makers having little personal knowledge of the client or a perspective about a business.
5. There is little comprehension of day-to-day business issues.
6. There is no realisation of the criticality of time or expediency.
7. There is limited knowledge of supposed Government support. As an example, the Small Firms Loan Guarantee Scheme (SFLGS) was reducing before the crisis.
8. Instead of joined-up thinking, staff are only box tickers and have no room for initiative.
9. MPs have very limited knowledge of the depth of the problems, even before the crisis.
10. Day-to-day business borrowing for “normal” clients has never been excessive. In fact, it was already very restrictive to Small and Medium Enterprises (SMEs) and often even obstructive.

Davos in 4 points

Arianna Huffington sums up the answers to the Davos questions “What went wrong?” and “how did we miss the signals?”  as follows:

1) Too much faith in the free market.

2) Too much faith in economic models.

3) Too little transparency.

4) No moral compass.

Our Response to the Inquiry into the Banking Crisis

The Treasury Select Committee has invited us the taxpayers to submit our views on the ‘banking crisis’. See its press notice.

The automated response to our submission said: “Once submitted and accepted as evidence, written evidence becomes the property of the Committee, and it is up to the Committee to decide the manner and timing of its publication or to authorise publication.”

Our cover letter says:
Please find enclosed written evidence to your inquiry into the banking crisis. It follows on from our submission to the Stern Report, two Open Letters to the Chairman asking for a meeting and Austin Mitchell MP handing over our online petition Stop the Cash Crumble to Equalize the Credit Crunch.

Given that our historic precedent is the 1964 motion to restore the power of the issue of money to the Crown, the Her Majesty the Queen received our documentation and passed it to the Prime Minister and, I am told that it has been passed to the Treasury.

This evidence is therefore also a request to be allowed to give oral evidence, especially since bailiffs now get power to use force on debtors.

With ‘globally warm’ regards,

Sabine K McNeill

21a Goldhurst Terrace
London NW6 3HB

3D Metrics, Director, website with > 47,850 hits

Forum for Stable Currencies, Organiser, website with > 1,810 hits

In the Spirit of the Forum for Stable Currencies, blog > 5,820 hits and archive with > 8,590 visits

Yunusphere, Expanding Dr. Yunus’ Sphere of Influence, > 12,210 hits

Stop the Cash Crumble to Equalize the Credit Crunch, petition targeted at the Treasury Select Committee,
with currently 156 signatures and > 4,010 page views

Money as Debt also known as Credit, our core issues with currently > 260 hits

Credit Crisis? Cash Crumble is the Reality!

Slideshare is the place for publishing your PowerPoint slides, if you feel like it. They staged a competition into explaining the credit crunch in 30 slides which I discovered only after the deadline.

However, I tried to say it in these twelve slides.