Credit crunch : a panic-driven massive withdrawal of credit from all sections of society despairingly short of it by banks that have previously been engaged in an orgy of unsustainable, irresponsible lending of fictitious cash in enormous amounts mostly to people who any fool could see had no way of repaying it.
That's quite an indictment of banks and the bank system, so let's take a better look at what triggered the credit crunch, now grown into a significant recession around the globe and spoiling countless peoples' lives.
Money is formed by the bank system out of nothing. This is incorrect, but it's's the way it is, sadly. It is then lent at interest to all sections of the community - big businesses, small and medium sized businesses, governments, international establishments, nationalised industries, banks themselves ( big and tiny ) and, of course, personal voters.
This makes it unrepayable
debt. Anyone or any institution of whatever nature that manages to reimburse its loans and interest does so at the price of other borrowers not having the ability to do so. Historically presidencies, even with their power of taxation, haven't been able to repay the money they have borrowed. The core lending is shoved into a pile and called the'national debt' or'treasury bonds', or something like that.
Because this debt is unrepayable the entire system is infeasible in the future. Sure, it can seem to be working for long periods, while lending is accelerating and the quantity of money in circulation is thus keeping reasonably constant in spite of big quantities being withdrawn through
no credit check payday loans repayments.
But after a few years the system always threatens to collapse, because there is a limit to the quantity of phoney money the banks can lend before their stockpile of real money - gold in previous times, now more likely treasury bills and other securities - threatens to dry up and destroy the solvency of the banks themselves.
Indeed, a huge number of banks have collapsed despite calling a halt to further lending and despite billions having been pumped into the bank system by leading governments like the U. S. and Great Britain. As this is being written ( late July 2009 ) there are still banks in the United States folding, and this is despite the recent stock market rally.
The sole folk benefiting from all of this are the truly large banking homes such as the Rothschilds and J.P.Morgan. Even Goldman Sachs, now back in profit and paying its fund chiefs obscene bonuses with taxpayers' cash, is in very deadly waters.
It's plain from even a short survey of the situation that the system of having private financiers control the currency, a positively vital control lever of any economy, is sheer lunacy. Private bankers use the superb power vested in them for their own enrichment and power, and the malevolent'hidden agenda' they pursue in their quest for global domination.
In Great Britain they have had this power unopposed since 1694, when the UK central bank, the UK Central Bank, was set up. It kept its name even after the united kingdom was formed from the union with Scotland and Eire some years on.
In the U. S. there were several criminal attempts to foist a central bank on the new republic early in the nineteenth century but everytime those attempts were at last defied. But in 1913, on Xmas Eve, while most people were going home to their families for the Xmas holiday, a small group of criminal plotters let by Nelson Aldrich, a corrupt senator whose girl married a Rothschild, managed to get the Fed Bill passed before only a few senators, and economically enslave the U. S. .
Since that point, of course, the States has suffered the Great Depression of the 1930s, many financial panics ( which the Fed Reserve Act of 1913 was meant to put an end point to ), and a rising level of public and private debt. The powerful business engine of the U. S. has continuously been withered away and is now in serious danger of complete collapse.
therefore is the tale, or a little part of it, so far. The worst of the current recession is immediately to come.
