Banksters dirty tricks:

The need to devaluing currencies:

Quantitative easing is the only tool left available, with fiscal policies seriously constrained as result of the zero interest rates policy, and only applied because of the need to devaluing their currencies to repay their debts cheaply by reducing the ‘original value’ of the debt.

The logic behind zero and negative interest rates is foolish. The ECB’s thinking is – rather than lose money by placing it on deposit with them, they believe banks will lend it out for even just a marginal return, but there are obvious flaws in this strategy. The biggest is that the central bank is essentially forcing banks to lend out money they never would have lent in the first place. The easiest way to comprehend present-day monetary policy is to see it as a coordinated centrally planned effort to suspend the consequences of the inevitable, resulting from the created economic folly.

Another unintended consequence is the impact on savers. The Zero-interest-rate policy caused € 400 billion per year wealth transfer from savers to large banks. As a normalised interest-rate environment of at least 2% would pay € 400 billion to savers who leave money in the bank. Instead those savers get nothing, as the benefit goes to the banks that can relend the free money on a leveraged basis – through fractional reserve – and make big profits. Part of the Central Bankers design is to penalise savers and discourage them to leaving money in the bank, and encourage them to invest in risky assets, such as stocks and real estate, to prop up collateral values in those markets.

However, many savers are inherently conservative and for good reason. Elderly, and retirees do not want to invest in stocks because they could lose easily a 30% of their retirement savings when the next bubble bursts. And younger people saving for a house down payment may avoid stocks for the same reason. Both type of savers hopes to get a reasonable return on their bank accounts, but the Central Banks rate policy is that they receive nothing. As a result, many citizens are saving even more from retirement and pay checks to make up for the lack of a market interest rate. So the Central Bankers manipulations designed to discourage savings actually increase savings, on a precautionary basis, to make up for lost interest. This is a behavioural response apparently not taught in textbook economics or included in models used by Central Bankers.

Central Bankers destroying job creation:

Now, this is happening, depositors are pulling their money out of the banking system altogether — the exact opposite of the intended effect. The banking system would freeze up and deflation would spiral out of control as people are shoving their money under their mattresses. Causing a destructive counter productive effect.

Lending to small and medium size businesses (SME) is also damaged by this policy. But Central Banks don’t care as it favours the interest of big business and banks.

Generally, SME lending’s are funded through interbank lending, but such lending is unattractive today because of the zero rate interest, in other words banks cannot earn any money on those loans, as result of Central Bank intervention in this market. So, liquidity in interbank lending is low, as banks can no longer be confident that they can obtain funds when needed, why they don’t participate.

This credit crunch for SMEs is one reason unemployment stays persistently high. Big businesses don’t need banks to fund growth; they have sufficient internal cash resources for the funding of new activities, and otherwise go to the bond market. However, big businesses don’t create new jobs; job creation comes largely from small businesses. So when central banks distort the interbank lending market by keeping rates too low, it deprives small businesses of working capital loans and hurts their ability to fund for job creation.

Governments keep thinking the answer to economic growth and ultimately job creation is more innovation, so billions are invested in it. But an innovation is worthless unless an entrepreneur creates a business model for it, and turns that innovative idea in something customers will buy. As, ‘cause and effect’ of economic growth is misdiagnosed, so is the job creation misidentified.

Businesses are dying faster than they’re being born:

For the first time in 35 years, business deaths outnumber business births. Let’s get one thing clear: This economy is never truly coming back unless the birth and death trends are reversed for SME businesses. It is catastrophic to be dead wrong on the biggest issue of the last 50 years – the issue is where jobs come from – when ‘Small and Medium-Sized’ businesses are dying faster than they’re being born, so is free enterprise. And when free enterprise dies, the economy dies with it.

Other unintended consequences of the Central Banks’ ZIRP policy are more opaque and sinister. One such consequence is the dangerous behaviour of banks in search of yield. With interest rates near zero, financial institutions have a difficult time making sufficient returns on equity, so they resort to leverage – the use of debt or derivatives, to increase their returns. Leverage from debt multiplies a bank’s balance sheet and simultaneously increases its capital requirements. Consequently, since derivatives are recorded off-balance-sheet and do not require as much capital as borrowing does, financial institutions prefer derivative strategies using swaps and options to achieve the targeted returns.

Asset Swaps:

Counter-parties to derivative trades require high-quality collateral such as Treasures Notes to guarantee contractual performance. Often the quality of assets available for these banks’ collateral pledges is poor. In these circumstances, the bank that wants to do off -balance-sheet business will engage in ‘assets swaps’ with an institutional investor, whereby the bank gives the investor low-rated securities, generating higher interest income, in exchange for higher rated securities such as Treasury notes. The bank promises to reverse the transaction at a later date so the institutional investor can get its Treasury notes back. Once the bank has the Treasury notes, it can pledge these to the derivatives counterpart as ‘good collateral’ and enter into the trade, thus earning high returns off-balance-sheet with scant capital required. As a result of the asset swap, a two party trade is turned into a three party trade, with more promises involved, and more complex web of reciprocal obligations involving banks and non-bank investors.

These manoeuvres work as long as markets stay calm and there is no panic to repossess collateral. But in a liquidity crisis as experienced in 2008, these densely constructed webs of interlocking obligations quickly freeze up as the demand for ‘good’ collateral instantaneously exceeds the supply, and parties scramble to dump all the collateral at fire-sale prices to raise cash. As a result of the scramble to seize ‘good’ collateral, another liquidity-driven panic soon begins, producing heavy tremors in the market.

Systematic Risk:

Asset swaps are just one of many ways financial institutions increase risk in the search for higher yields in low-interest-rate environments. A study by the IMF showed that the longer rates are held low, the greater the amount of risk taking by banks. The study concludes that extended periods of exceptionally low interest rates of the kind central banks have engineered since 2008, are a recipe for increased systematic risk. By manipulating interest rates to zero the Central Banks have encouraged the search for yields, and all the off-balance-sheet tricks and asset swaps that go with it. In the course of putting out the fire from the last panic, the Fed has put supplied firewood for an even greater fire!

Banksters dirty tricks:

To hide the true financial condition banks, use other off-balance-sheet accounting tricks too. Bloomberg reported last year a hardly known technique applied by many banks in rebooking their assets from “available for sale (AFS)” to “held-to-maturity (HTM)”. – Banks ordinarily buy bonds and other securities with the purpose to generating a return on that money, the sound ones are called, “Available for Sale,” because the bank can sell these assets to pay their depositors back. But here’s the problem – many of these investments have either lost money, or they soon will do so, and cannot be sold, and should be booked as a loss. However, banks don’t want to disclose those losses. Instead, they simply re-label those assets as HTM. But banks cannot hold for ever bonds with a maturity up to 30-years. It could be money they might need to repay their customers tomorrow, which makes the entire charade a fraud. Similarly, the same trick is applied with the bank’s real estate portfolios in which the entrees are made at acquiring values, and not booked at market value that today generally is about 50% lower.

As a horrible example:

“JP Morgan alone boosted its HTM mortgage bonds from less than $10 million to nearly $17 billion (1700x higher) in just one year.”

This is a huge accounting mutation. Nearly every big bank is doing this too, and doing it deliberately. This is no accident. And there’s only one reason to do it – to hide their losses. In other words, it’s becoming extremely difficult to have confidence in western banks’ financial health. They employ in their books every dirty trick they can come up with to overstate their capital ratios and understate their risk levels and losses. And… marginal insolvent central banks and broke governments back all this.

Question yourself, is it really worth keeping your savings in this corrupted system?

Remember, all paper currencies are actually not money but commercial debt instruments, as debt cannot be money – it’s the opposite of money, and consequently a total deceit!

The Fed will do everything to prop up the dollar. Gold and Silver are the antithesis of every paper currency. Destroy these currencies, and the US; UK, EU, and Japan’s economies will collapse. Expect the cabal to fight to death, and probably may come out ahead? Since the banker criminals are the owners of the game, they don’t bother which side wins, – West or East – they win anyhow.

The sanctions on Russia wreck the EU and have little, effect on Russia. Russia is already moving, with China and the BRICS, outside the dollar payments mechanism. As the demand for dollars drops, eventually the dollar’s exchange value will drop too. Initially, Washington will be able to force its vassals to support the dollar, but sooner or later this will become impossible.

The stupidity of negative interest rates:

A negative nominal interest rate is impossible, meaning a negative rate before accounting for inflation, implies a weird world, a world that cannot really exist.

To lend at less than zero suggests they believe the present value of money is less than its future value, in other words, deflation, under the assumption that the risk of default or inflation is near zero.

This allows governments to build roads or pay pensions with money that cost them less than nothing. How long will this last? – Yet as long rates remain below zero, money is not just free, actually it’s a cost not to borrow!

To demonstrate the mischief: Imagine you are buying a house. If lenders are willing to grant a loan at a negative nominal interest rate that’s secured by nothing more than the full faith and credit of the government, then lenders should surely be willing to extend credit to you against the value of your house. That would leave you with a curious mortgage – one that pays you interest. At the rate of MINUS 0.023%, a €1-million house mortgage would come with an extra income of about €19 a month.

This raises profound metaphysical issues. If a mortgage carries negative interest, it implies that the house, or an equal capital value, has a negative value. After all, the lender has to pay someone to live in the house. And if houses are worth less than nothing, wonder what a car is worth, or a diamond ring, or a luxury cruise?

Does it mean that money has no value? Or even negative value? So it can no longer be given to someone in exchange for a positive interest payment. He then must be paid to storing it for you!

And if money has no value, what happens when you hire, a gardener to pull out weeds? Should you pay him? Or should he pay you? How many hours should he have to work for you before you consent to take his money?

The whole thing is so contrary to nature so bizarre when you think of it.

Conclusion: This is the craziest world ever we live in today!

The Biggest Scam in The History of Mankind – Hidden Secrets of Money:

Who owns the Federal reserve? You are about to learn one of the biggest secrets in the history of the world, it’s a secret that has huge effects for everyone who lives on this planet. Most people can feel deep down that something isn’t quite right with the world economy, but few know what it is.

Gone are the days where a family can survive on just one paycheck, every day it seems that things are more and more out of control, yet only one in a million understand why. You are about to discover the system that is ultimately responsible for most of the inequality in our world today.

The Deep State doesn’t want you to know about this, as this system is what has kept them at the top of the financial food-chain for the last 100 years. Learning this will change your life because it will change the choices that you make. If enough people learn it, it will change the world, because it will change the system. For this is the biggest Hidden Secret of Money. Never in human history have so many been plundered by so few, and it’s all accomplished through this; The Biggest Scam In The History Of Mankind.