Thursday, April 17, 2008

UR a goddamn lie and U don't know whadaF$@% UR talking about

Reason : 2.5 My life is impossibly difficult because people want to believe what they believe instead of believing what they know.

My organization was called a scam or scheme by so many ignorant people (all of which have since disappeared) that I should be rich simply by suing for slander. Generally what kept people from voting with me wholeheartedly was ignorance and a good deal of cowardice. Ignorance because finance and banking is something most people don't have a clue about. This is odd because of course you will go to a bank more times than you go to court or see a doctor but there are no banking dramas on t.v. So people make up how the bank works at work and around the kitchen table. For example what's happening to the economy right now is a call to raise reserve requirements because of decreased confidence in global fiat currency, particularly the dollar hegemony, right?

Several times as people tried to explain to me how banks make money or what they do with money, it sounded like a broken record. The odd thing was when I tell them in places like here or on at people were skeptical, asking where I got MY information. That generally was the reason I covered the page in links to sources they trust. Never mind the fact that I have actually worked for banks and in brokerage firms or study these things for a living OR that I developed my own system. This means I not only KNEW so much about it but was able to go out DO so much about it. This is what I mean about people choosing to believe what they believe. Everyone knows that smoking is bad for you, including smokers but people smoke anyway because they want to BELIEVE that consequences of their habit may not come to pass. The issue is that ignoring problems or lashing out at people who remind you of the facts is no solution.

Here's the second grade explanation I get from everyone about how banks survive. Everyone in town A takes their money to the local bank and then the bank makes money charging interest when they loan it out. So if I have this straight, your bank takes your stank-butt $1000 from all the citizens in the town and then loans out tens of thousands to each person in credit cards, car loans and mortgages and still has money for you to take out of your checking account each week. There are 100 people in town A who leave $1000 with the bank for a total of $100,000, that can be loaned out to everyone for all their credit needs. The average cost of a house in town A is $10,000. How many houses can the bank finance? The bank must also make all of the loans now(i.e. go broke now) for the chance of making a profit on the loan in the next 20 - 30 years. This is the common perception (and I don't know what I'm talking about).

Well it didn't take bankers as long as it is taking the public to understand that if they do it like that it wouldn't work for more than hour. Now what if for every person that signed on to a $10,000 mortgage the bank would be allowed to loan out another $100,000? The government treats the mortgage like cash and allows it to act as the reserve requirement, that can be exchanged for cash, this way the more loans the bank writes the more money it can multiply and lend out. This means for your $100,000 mortgage the bank has been able to lend out another $1,000,000 in imaginary(fiat) dollars. This way banks are allowed to make money off of money that never existed and that they don't have. This works until people decide to check and all start to ask for their money at the same time and of course the bank doesn't have it and so it folds up. Right now it's coming apart and banks are taking huge losses and are trying not to close. What has kept most banks in canada and the u.s. from closing is huge infusions of cash that the government is allowing to be printed so the banks don't run out of money. The big problem that they are having now is that the government is bailing them out of this scheme with cash but the banks won't pass it on to consumers and business, also they are cutting interest rates to encourage borrowing but the banks won't pass on the rate cuts either. All the banks across the world are paranoid and won't loan to each other because they believe that the collateral (remember mortgages for cash) are worthless. So in the U.S. the fed said kcuF it, we'll take these worthless loans and give you cash anyway just so the entire world banking system doesn't collapse. Last weekend at the G-7 meeting the banks were told by the central banks that they can't keep cutting rates and giving cash for them to hoard and that they are going to have to keep more cash on hand in the future(raising reserve limits). The banking industry has been called a scam, ponzi scheme and worse from everyone from economist to world leaders. Bank fees, what the bank charges you for using your money, the forex what the banks charge business and people for converting their money, investments(why banks are taking losses on american securities), credit/debit transaction fees for merchants and customers, these streams along with profits from imaginary money is how banks actually work.

This is why I should have been amazed by anyone calling my wildly transparent organization a scheme. I've challenged everyone from online hacks to law enforcement to say that if any act I am performing is criminal are they willing to criminalize it if they find out it's being done by a company they trust. Everyone to a person looks at their feet out of cowardice. Of course, you're not going to stop banking with scotia or wachovia now that you know it's a scheme. Of course the crown or rcmp isn't going after BMO if they know it's a fragile ponzi scheme that's come home to roost. Of course DOJ or FBI won't be closing BOA or washington mutual. All of these organizations have plenty of customer complaints like paypal and wall st. but there is too much cowardice to be honest about stopping dishonesty. Since no one can be consistent about their outrage, since no one can offer a consistent measure of what constitutes a scam then I can't take anyone seriously. It just means no matter who you are, that ur a goddamn lie and U don't know whadaF$@% UR talking about!

Notice the currency at the top was backed by gold. They don't make 'em like that no more.

No comments:

Recent headlines from economic news