The individual is handicapped by coming face to face with a conspiracy so monstrous he cannot believe it exists. - J. Edgar Hoover, former head of the FBI
Readers familiar with the motion picture ‘The Sting’ may recall that the cornerstone of the successful ‘Sting’ (fraud) was that the victim had to be unaware at the end of it all that they had been defrauded. Even if told, they would refuse to believe they had been dudded.
In the case of the movie, the philosophy of the leading characters was that a fool and his money are easily parted. The people they were defrauding had money to lose in the first place. Such is not the case of the greatest fraud of all time presently taking place in the global economy, and the ‘fools’ being parted from their money are the simple, basically decent, trusting, ordinary people of the world, who are obliged to work for a living.
The Sting goes something like this. Over a trillion dollars zooms around the world each day in the global markets, buying and selling currencies, corporate shares and government bonds, ‘futures’ (options to buy things which might come into being in the future), and ‘derivatives’, instruments based on some underlying financial asset, however remotely. Some of the money (not much) actually gets to be invested in productive enterprise, but most of it is used by speculators playing a huge global gambling game. The media, now staffed by capitalist groupies paid to glorify these people, fawn over the speculators and call them ‘players’. Life is but a game, tra-la. Greed is good.
The sting is made possible because most of the ‘money’ the ‘players’ gamble with doesn’t actually exist. It’s pretend money, credit money extended to them by various banks, and ultimately the international bankers. The banks are able to do this....invent imaginary money out of thin air and charge interest on it....because of the ‘fractional reserve banking system’ whereby if a bank has around $6 of depositors funds in its vault it is allowed by law to create $100 of imaginary money and lend it out at interest. Banks do not, as Prime Minister Howard apparently thinks (or says he does), lend depositors funds. They don’t lend money at all. They extend credit, which is new ‘money’ created as interest bearing debt, a practice called ‘usury’ and banned by the Church during the Middle Ages, but allowed back in by Henry VIII.
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