Wednesday, September 2, 2009

The Madmen - your enemies!

Sweden’s central bank (Riksbanken) has proudly announce they will continue ruin the country’s economy for a long time yet. Not only do they intend to keep the repo rent (the lending rate to financial institutes) at the level of zero, they have also decided to lend an additional SEK 100 billion to the banks at a fixed interest rate and with a maturity of approximately 12 months. This in a completely crazy move in order to; “contribute to continued lower interest rates on loans to companies and households.”

They are hardly even trying to hide their malevolent scheme anymore – they are playing with our lives, our futures and the very foundation of the country like its tinker-toys in the sandbox.

If you go and read the report (find that here –English) they admit its a “Considerable uncertainty” about financial markets and they also clearly state that the important goal is to keep GDP up and growing hence more credits and more loans at fictively low rates are necessary to cheat us further.

It is really necessary for you to know what all this means, because in the future when you have that rope in your hands and good hardy lamp-post to string things up in, you also need to know that the punishment is equivalent to the crime. Otherwise you’ll just be a mob. I have written about this before, and so have a lot of other people, but the short version can be divided into two facts:

1) Low (zero) interest rates means that you reward spending, salute that people are taking loans they actually shouldn’t have, and it means that debt accumulation, both personal and government, increases.
2) High/er (real) interest rates rewards saving, prudent behavior and less debt accumulation.

In addition you need to know:
Lending more money to the banks at these rates benefits those banks in several ways.
1) The lending institutes get very cheap credit (in reality Riksbanken is actually paying the banks to take the money)
2) Banks can use this money to increase their lending ratio. Banks do NOT lend that amount they have - please understand this fact! - they actually lend much more to the public, often to a ratio around 20:1 or even higher. In other words SEK 100 billion becomes SEK +2 trillion
3) Banks can also use this money in several ways, among them is to invest in stock markets - and in which direction is stock markets going thanks to this scam?


Finally I want you to pay attention to what they are saying in this statement from the Central bank about Consumer price index (CPI):
“Changes in the repo rate affect mortgage rates, which are included in the consumer price index (CPI). There will thus be large fluctuations in the CPI in the future. The CPIF underlying inflation rate (the CPI with a fixed mortgage rate) will on the other hand remain stable close to 2 per cent during the forecast period.”

If you don’t understand this part, it’s basically saying that inflation numbers are lying and that more foreclosures and defaulting on loans will increase in the future. How about that?

Not only would I call this a scam, it’s a criminal act. The central bank mafia is practically throwing profits at financial institutes to cover up our banking systems fraudulent behavior. The banks in turn is supposed to give away loans to people that actually shouldn’t have loans so those people can go out and buy more stuff they actually don’t need. All in all accumulating more debt and, at least temporarily, increase the banking sectors profits even further. It’s a Ponzi scheme, a trick, an illusion and it’s all in an attempt to increase GDP numbers. Remember, GDP increases when we spend money, we do not need to produce anything or increase productivity, spending is the way to go according to the central bank bandits.

WHAT WE NEED TO DO IS THE COMPLETE OPPOSITE!!

We need people to be rewarded for handling their income and wealth in a thoughtful manner, we need people to save more and put their savings into investments. We need less cheap credits and less illusional GDP numbers. What the banksters and their deception are doing is sweeping things under the rug, pretending everything is alright and as long as people (and the government) keep indebting themselves, the scam can keep going. No matter if it “works” this time and they can fool us again that GDP is going up, it cannot last, it’s impossible. The math and the reality don’t spread lies. There will be another crash, hopefully and very possible very soon, but whenever it comes it will be even worse than this has been. We cannot spend phantom money we actually don’t have on things we actually cannot afford while we produce less and less. It’s impossible. 1+1=2 and 2-1=1, always. THE MATH AND REALITY DO NOT CHANGE!

Remember what I have said before:
If you happen to bump into any of these mainstream economic as-holes(or anyone else from our enemies) during your long walks to find food in the future, please let a sign clearly point out for the rest of us where we can stop to piss and dance above their bones.

3 comments:

  1. I just searched and found this blog. So far I really like what I see. And I promise I will, mark the spot(s) that is.

    ReplyDelete
  2. This is excellent. Very well formulated points. One of your best blog postings. Thanks.

    ReplyDelete