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City of London showed that Fraud is Good for Stimulus with Advise to Politicians...

(August 27, 2013) "It is best to keep on financing the banks only". The City of London discovered by an "accident" that money given to the people is actually more efficient stimulus than money given to the banks but it would prevent this banking cartel from reaching their current goal - capital destruction.

The current capital destruction in the western world is a direct consequence of deflating once again the fractional banking system. This time it was done to advance the global goal of the elites of the world - the one world government or NWO

Capital destruction - never heard of that? It is actually and simple term that contains the full meaning of the recession-recovery cycle. Remember also that banking is a simple business carrying the nick name "as the second oldest business" in the world.

Here is how capital can be destroyed an easy way - an example from the USA with tight collaboration in the Western financial World.

In the USA worthless mortgage securities were created by allowing banks to finance anything against their old or new houses - up to 125% of the actual value of the property. The banks knew perfectly well that most of the now eager borrowers would never be able to repay these loans on schedule after the teaser rate period ended, a short 2-5 years later.

To get this all moving FED allowed banks to write loans up to 90 times of their own capital under central their protection. When all most of the boom was financed the US FED owners changed the course 180 degrees.

From now on lending banks' own capital could not be less than 10% of their loan portfolio. That did it all. In this environment only banks with FED support ("unlimited" loans to the "friends" at 0%) could survive. The US Congress went with this as every news media in the USA spread the hysteria that the "Sky was falling" and if Congress would not help FED the Sky would really fall".

After 2 years had passed the first unworthy mortgage holders started failing and their properties were now sold for pennies to a dollar provided that the lender bank's last resort (FED) agreed that this bank would still remain solvent after accepting this mortgage loss.

The same story then spread to the industrial where all loans must be renewed every few years supported by bank's analysis of the borrowers ability to pay them back. With impossibly tight money more and more of the producers were not able to qualify for loan renewals and if the owners did not have money to chip in the businesses ended to bankruptcy. These businesses too were then sold for pennies to the dollar and the cycle unemployment cycle with forever lower wages and salaries accelerated.

After the housing bubble burst and increasing industrial bankruptcies we have a real capital destruction going on - all thanks to the well oiled cooperation of the global elite controlling the City of London, IMF, World Bank, ECB and FED!.

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