UNDERSTANDING THE REASON FOR OUR ECONOMIC MELTDOWN – AND IT WILL GET WORSE !

THE SIMPLE EXPLANATION OF HOW THE WORLD WIDE CREDIT CRISIS EXISTS AND WHAT CAUSED IT

Understanding the reasons for the Worldwide economic meltdown are not easy. This is only because the banking world wrap even the simplest of ideas in gobbledegook language no one else outside the financial industry usually understands.

That is because they don’t want anyone else to understand it, otherwise finance would lose it’s mystique and bankers would lose their sinister hold over everyone else. So, all we have to do is unwrap all this gobbledegook and use plain language instead.

let’s get straight to the point. Amongst all that pompous financial verbiage wittered by all those self important bankers is this simple truth.

If nobody had ever borrowed a penny from anyone else, and everyone had always paid for everything they had purchased only with money already in their possession, nobody anywhere would owe any money to anyone else at all.

If that was the case, and it is only an imaginary idea just to illustrate exactly where this awful financial armageddon came from which is destroying the World economy right now, then there would be absolutely no credit crisis and no financial meltdown. It would simply be impossible ! Everybody would be in complete control of their finances !

There would be no loss of jobs and no increase in poverty and no meaningful inflation either. No governments would be going bust or falling apart at the seams in their desperate attempts to be able to pay all their debts.

Everyone – governments, businesses and individuals would be in complete control of their financial lives because they would have no debts to pay. Therefore no one else would have any control over anyone else and be able to interfere in their lives and even destroy them because they owed money to the interferer.

Debt makes the person borrowing the money beholden to the lender. The borrower immediately loses control of their own lives when they borrow money.

A government, individual, business or bank which depends for survival by always being able to borrow money from someone else is not only permanently in the control of whoever lends them money, but is always a hairsbreadth away from complete annihilation if nobody is willing to lend them money anymore.

And that is exactly what has happened. The banks have gradually engineered a vice like grip over every financial transaction. They have also successfully brainwashed most of humanity into believing that borrowing nearly all the money needed for trading with each other is the proper way to conduct financial affairs whether you are a business, government or individual.

Of course it is the banks that lend the money, which is why they want everyone to believe that borrowing money for everything is the right way to do things. It is also a curious fact that people lending others money think they have a right to tell the borrower what to do and what not to do, generally boss them about and tell them how to conduct their lives – particularly when it comes to how to organise the money borrowed.

The present financial crisis arose quite simply because with everyone borrowing more and more money as the banks wished and duly persuaded them, more and more control of everyday life went from businesses, individuals and governments into the hands of the banks. And the only thing the banks knew or cared about was making more and more money for themselves.

Then the same problem of loss of control hit the banks too. This first of all happened to Lehmann’s bank in 2008 when it suddenly discovered that it could no longer borrow money from other banks to pay for what Lehmanns owed to others.

Other banks didn’t want to lend to Lehmanns because they had observed Lehmanns becoming more and more greedy, dishonest and devious with increasing suspicions of fraud as well. Lehmanns were at the forefront of driving the concept of borrowing into an arcane stratosphere of unreality where they contrived to lend the same bit of money again, and again and again – all at the same time; Lehmanns conjured up an idea where the same money could be lent almost an unlimited amount of times all at once.

When Lehmanns discovered no one else wanted to lend them any more money, that in turn meant Lehmanns couldn’t pay money it owed to other banks. Those other banks then found they, in turn, hadn’t got enough money to pay their creditors either. And so the whole sorry merry-go-round of financial industry fictional fantasy money created out of thin air collapsed. All because everyone owed everyone else ever increasing amounts of money and no longer had any control over their own financial lives.

This whole rotten edifice has been crumbling ever since Lehmanns went bust and everyone found out mendacity, fraud and corruption were rampant in the financial industry, nowhere more so than in the banks.

Banks have effectively destroyed money by completely debasing it; turning it on it’s head and making it into debt instead of money. This has resulted in the banks controlling every aspect of all of our financial lives, taking away our own ability to manage our affairs efficiently.

This is why there is a Wordwide economic meltdown of nightmarish proportions.

Quite simply, banks have succeeded in destroying the money we all need to conduct any form of trading because they turned it all into debt instead of real money. and now everyone is finding it increasingly impossible to pay it all back as the debt just gets uncontrolably bigger and bigger.

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