Imagine this situation: you borrow ten cigarettes from your friend and promise to give back the ten cigarattes and one extra.
Then you go and lend the ten cigarettes to someone else – and they commit to giving you back three extra cigarettes.
Hey presto! You end up with two cigarettes.
Though you had no cigarettes to begin with, the deal has resulted in you getting two cigaretes out of thin air.
This is a trick canny investors can play with the fractional reserve banking system as described by Vienna Economics Professor Franz Hörman.
And it is this trick that was used in the Hyp Alpe Adria fraud and is also being used in the EU/IMF loan fraud to Ireland.
It emerged that a canny group of investors borrowed money from Hypo Leasing at a rate of 4% and lent it to Hypo Alpe Adria with specal agreements that resulted in a repayment at 6.25%.
http://www.profil.at/articles/1108/560/290028/dann-verlustgeschaeft
In an extra layer of fraud, the lent money was booked as capital to give the impression that Hypo Alp Adria was highly leveraged and not weighed down by illiquid assets worth far less than inflated market values to ensure a sale to Bayernlb.
Barely sold to Bayernlb, Hypo Alpe Adria declared itself bankrupt and the investors were able to milk 3 billion of bailout money from Bavarian tax payers, making investors a pure profit.
In the next step of the scam, Bayernlb sold Hypo Alpe Adria to the Asutrian government only to cut of liquidity.
In December 2008, Hypo cheerfully declared itself bankrupt and got another 900 million, this time from Austran tax payers – just in time for the canny investors to loot the bank in January 2010 by using their secret repurchase agreement with Hypo.
This is basically how the EU/IMF loan to Ireland is working – and it is the same group profitting.
The money is being borrowed cheap and lent to Ireland at a mch higher, indeed an exorbitant rate – and the difference is being pocketed by canny investors.
Quite simply put, it is double or even triple usury and should be entirely outlawed. If we don’t get rid of money as a commodity and adhere strictly to its use as exchange, we are well and truely stuffed and made destitute4 by the criminal Zionist Banksters who plan not only to bankrupt us all, but have their sites well and truely focussed on culling the useless masses to the max for their own autocratic greed and gratification.
One company in USA defaulted and sued that there was no real loan to begin with, as it was only paper. They won. Why doesn’t Ireland simply default and tell the banks to stuff it where the sun doesn’t shine?
Because EVERY government in the EU is obviously corrupt and playing in the hands of the banksters. They seem to be all paid traitors and dont listen to common sense as they themselves have not been affected. On the contrary their salaries increase as the people in EU increasingly suffer under those criminals. Its a shame.