If this video is on the money, then Australia is in deep poo.. Our currency has dropped 15% over the last year or less. Has Australian banks borrowed $US to feed the RE here in Australia? Now they will be paying 15% on their borrowings. Why has the government given $8billion to the Reserve Bank? Is it to prop up the AU$. Love to hear OC take on this issue. Also other SS members. Regards Errol 43
Not seen the clip above yet, too long. This 'not your money' thing has been discussed before, and it all came about maybe 200? years ago when a bunch within the House of Lords declared that a depositor GIVES his funds to the bank and the bank assumes a liability to repay at some time in the future, NOT necessarily 'at call'. The tricky bit comes when and if the bank goes into liquidation, the shareholders are the first to the chopping block, and the depositors follow soon after. Bond holders are at the top of the heap! Seems quite unfair to me, but that is the way it stands. Should be on the basis of lender and borrower with interest payable, even if it IS unsecured! I am sure that the government knows what is coming, and are trying to lay the groundwork for swift action. The $8 billion is just one aspect of that. A rapid drop in interest rates down to near zero is another, and of course to PRINT $100 billion is there too. A freeze on all Social Security is another. Devaluation of the Little Aussie Battler is another fact of life, we CANNOT stay at parity with the USD, our last remaining factories and the mines and farmers will be destroyed. We are all headed for the bottom of the currency pit., just like in the 1930s. If I was the Governor of the RBA, i would NOT be buying any more US Treasuries, they will end up being worthless! I would be buying gold, as much as i could get my hands on, even to teh extent of taking all or most of our domestic production at market rates. (Section 51 (xxxi). As for the OZ banks borrowing overseas, if they did not then credit here would dry up. The deposits available in OZ are simply not enough to meet demand. So they borrow a billion dollars at 4% on the NY and London Bond markets, and lend it out at 6%. No borrowing overseas means LESS money for houses AND factories and businesses and so on. IOW a "credit Squeeze", just like in 1960. ...and the REAL reason why a teller asks what you want the money for (at Government direction) is that the banking system is the main channel for cash funds to naughty people who want to fly planes into tall buildings and kill "innocent civilians", something they do well and have had a lot of practice. As always, JMO OC
