UK newspapers are full of propaganda and misinformation about The City and banks and the damage they have caused to the country.
When Telegraph business head Damian Reece claims that banks bring in capital when they have a core capital ratio of just 3% at most, he is either disingenuous or ignorant. Neither is a recommendation for being a business editor.
Can I go to a market and sell a 100 apples if I only have three apples? No. Is it so hard to grasp the fraud underlying fractional reserve banking?
The banks can sell the equivalent of 100 apples and charge interest because they have been given a monopoly on the production of money in our system with the disastrous debt results now engulfing the UK economy,.
Not a single journalist on the Telegraph has ever written about the privatized money supply in the UK and impact of interest and compound interest. Perhaps because not a few of them hold Greek, Irish bonds etc. ? Why let the poor punters know where all the money for a tiny clique really comes from – namely, them – if it could lead to the easy revenues from dividends drying up due to vigorous regulation?
A glimpse of how shamelessly the UK taxpayers have been swindled by the banks with the help of the Bank of England and the media is contained in a new report on the Royal Bank of Scotland bailout scandal.
The way the so-called Telegraph investigation spins the story underlines the misinformation coming from so many of its journalists pens.
On the one hand, it is stated that there were no customers queuing up in a bank run i.e ., no major withdrawal of cash at the RBS banks. On the other we hear that Sir Tom McKillop, RBS chairman phoned the Treasury to say that he was about to run out of cash that same afternoon.
“We’ll run out of cash this afternoon,” Sir Tom said. “What are you going to do about it?” Darling was unequivocal. “You’ve got to keep going,” he said. “We can, but we need money,” Sir Tom replied. Darling knew there was only one place to turn – the Bank of England, the lender of last resort. Hopping on a private jet in his rush to get back to the UK, the Chancellor spoke to Mervyn King, the Bank’s Governor, who agreed that everything had to be done to keep RBS alive.
You couldn’t make this up.
In the next page of the comedy script, Bank of England head Mervyn King does not do what he should have done, that is, ask where all the cash went when there was no customers queuing round the block as in the case of Northern Rock and only virtual money had been drawn down from the bank’s balance sheets by a corporate customer. And he does not ask to see the accounts to see whether RBS really is insolvent either.
No, King instantly diagnosed the need for a massive infusion of money by the taxpayer to keep the bank solvent. The bankster s can party with their bonus pools filled to the brim with his assistance.
The last EU summit produced one sensible result: the rules on the interaction of central banks with solvent banks were loosened, easing the risk of a collapse of the eurozone bank system. Of course, the banksters will not be pleased that the fiction about solvency and liquidity has been exposed. But the tax payers will be.