Saturday, 22 March 2014

How the British Economy Makes Lots of Money

The following is a brief guide on how money is made:

You need a central bank, plenty of paper and some ink. A silver lining through each note and a watermark will distinguish it from monopoly money.

An even quicker way is to type in some figures on a keyboard that will transmit to a computer’s hard disk, and the central bank has just created digital money. Since January 2009, the Bank of England created £375 billion in digital money using precisely this method.

Sadly, the British economy is calculated in terms of how to make money, lots of it, and very quickly. It is one reason why City bankers can give themselves big salaries and top them up once a year with even bigger bonuses. They may cause the banks to crash, as happened in 2007 and 2008, and so-by risk causing the whole economy to crash too. 
But when this happens, the Bank of England, which is our central bank, will use some paper and ink, or a keyboard, to replenish the banks and the economy, and everything will return to normal: top salaries, bonuses and the high life of Riley. These salaries in fact will be increased with a vengeance, so the City bankers will always come out of it on top.
So now we know how to make plenty of money. It’s so easy, it’s a joke.

What Is this Money Worth?
The money circulated by the Bank of England is not really worth anything, because it has nothing to back it, meaning it is not even worth the paper it is printed on. Then there is the fact that hundreds of billions of pounds of it is digital, whereby it exists only on computer screens animated by a hard disk.     

If you had gone to an English market stall one hundred years ago and tried purchasing some items with a piece of paper worth nothing, they would have positively believed you were cracking a joke. You’d have been expected to pay with silver coins, copper coins, or a banknote to which corresponded a set amount of gold stored away in a vault in the Bank of England.

As it stands today, our money does not correspond to any assets which can guarantee its value, meaning the British State is printing money that is worth nothing. Although the Bank of England does hold around $15 billion US worth of our national gold reserves (around £10 billion), this amount would only suffice to cover a fraction of the currency in circulation in Britain. By contrast, the British Treasury does hold £1.3 trillion in public debt!

France and Italy each hold gold reserves about eight times higher than Britain does, even though the population of each of these countries is about the same as Britain’s. Germany’s gold reserves are even greater, and all Eurozone countries together could probably prop up their common currency, the euro, with enough gold to prevent it from crashing in time of a financial crisis, which could happen if confidence in paper currencies suddenly collapsed.

Britain’s pound, though, would be in a woeful position. It would literally fall to shreds on the currency exchange, imports would become extremely expensive including oil and gas, and even a Chinese T shirt would become unaffordable.

Confidence in the Present Monetary System
We need to understand that most of the money in circulation in Britain has not been printed – either in paper form or in a digital version – by the Bank of England, but has been “created” and lent out in the form of loans by commercial banks, meaning that commercial banks electronically create money that does not, at least in theory, really exist.

This particular detail is important, especially if we consider that the pound’s value in relation to other currencies is calculated in accordance with the amount of pounds issued by the central bank, which is the Bank of England, and not in relation to the amount of pounds “created” by the commercial banks.

So we know the secret to creating lots of money, it’s quite simple: the Bank of England and the commercial banks do it all the time. We should also have understood that this money is guaranteed by the sole paper it is printed on, or by a computer’s hard disk, plus a gigantic public debt of £1.3 trillion, and an official private debt also of £1.3 trillion. Actually the private debt in Britain is believed to be a lot higher.

All this does not inspire confidence, so we may legitimately accept that our present monetary system could simply fall down overnight like a pack of cards once the door opens and a slight breeze enters the room. That is, once confidence in monopoly-style money is no longer forthcoming.

Written by D. Alexander

Britain's Economic Recovery Prediction:

Thursday, 6 March 2014

Crimea Is Now Part of Russia

On Thursday 6th March 2014, the Crimean Parliament voted in favour of Crimea becoming a part of Russia. The decree is with immediate effect, meaning that Ukraine has no jurisdiction within Crimean territory.

The Crimean Parliament also decreed that on 16th March 2014 a referendum shall be held in Crimea on the issue, and that this will serve to ratify the decision already taken by the Crimean Parliament.

Thursday, the Day Crimea Returned to Russia
Thursday 6th March 2014 is the day Crimea’s Parliament democratically voted to end Ukrainian rule over Crimean territory, so on 16th March the People of Crimea will be voting on Russian soil to ratify their Parliament’s decree. They will be asked whether they want their land to remain Russian soil, or to become Ukrainian.

Written by D. Alexander

On 16th March 2014, well over 80% of the population of Crimea turned out to vote in the referendum, and 96% of the voters chose Russia as their Motherland, voting for the reunification of Crimea with Russia.
Within days the Russian Parliament welcomed back Crimea to Russia.

Britain and Russia are Allied Nations. Our Christian Faith is essential in the Alliance between our British Motherland and the Russian Motherland.
No-one can break these ties!