Following explains why low interest rates would cause a crash in our economy:
Alas, in the long run, all that will be achieved from the introduction of macroprudential is that the authorities will be given the powers to more easily engineer an epic economic crash … for the benefit of their banker mates.
The reason this is so, is because the most fundamental dynamic of the economy — the interest-based “money” creation machine — has not been altered.
Fact 1: Usury-based “money” demands ever-rising ‘growth’ in the quantum of loans, in order to sustain the payment of (uncreated) interest from the rest of the economy to the banks. Repayment of loan principle destroys “money”; therefore, ever-more new loans must continue to be created, in order for the rest of the economy to obtain the extra “money” needed to pay their “interest” obligations.
Fact 2: As household debt levels inevitably rise in concert with the “money” (principle, + interest obligation) supply, a point must inevitably be reached where the desire / ability to take on more debt begins to lag behind the rate of growth that is actually “needed” in order to sustain the usurer’s business model.
Fact 3: As seen in this post, the inevitable consequences of Fact 2 are that (1) central usurers will lower the OCR to make borrowing appear more attractive / “affordable” (“stimulate”) to an already over-indebted household sector, and (2) commercial usurers will weaken their lending “standards” to achieve the same end — make borrowing appear more attractive / “affordable”.
Fact 4: The implementation of Fact 3 can only sustain the “necessary” (for the usurers) continued rate of growth in “money” supply by drawing more people into debt, and/or more people into increasing their existing debt, thus, merely worsening the basic problem — too much debt + interest obligations, versus the economy’s total capacity to generate real production/value via external sales.
Fact 5: Introduction of macroprudential rules directly impacts on Fact 3 (2) — the commercial usurers’ ability to “extend and pretend” via weaker lending standards — and thus, directly impacts on Fact 2, the problem of rate of growth in borrowing / new “money” creation lagging that which is “needed” to sustain the usurers’ business model.
Fact 6: Armed with macroprudential, the authorities are empowered with the ability only to trigger an economic collapse when it suits them.
Fact 7: Given the FSB / Vampire Squidian drive to implement its “bail-in” regime to “resolve” insolvent banks G20-wide by the end of 2015, I can only view Goldman alumnus BoE Governor & FSB chairman Carney’s move on macroprudential in the UK as a deliberate preparatory step towards triggering the global economic apocalypse, once the “review” of G20 nations’ “legislative” changes to accommodate the FSB / Vampire Squid directives that is scheduled to begin from the Brisbane 2014 G20 meeting has been finalised.
It is most unwise to consider the introduction of macroprudential rules as any sort of panacea for what ails us. Since it does not assist the most fundamental driver of the economy — usury-based “money” demanding ever-increasing growth in “money” supply — then all it can do is act as a trigger for greater problems.
In my opinion, Carney’s move is most interesting for its timing. Just a further example of the internationalist usurer class — evil people, having no loyalty to any nation’s well-being — getting their ducks lined up.
http://www.macrobusiness.com.au/2014/06/bank-of-england-throws-egg-all-over-rba/#comment-380023
and Edit:
Per my recent post, the timing of all these central bankster announcements viz. introduction of MP is, in and of itself, worthy of consideration.
That is, in context of the fact that the Vampire Squidian / Financial Stability Board review of the G20 nations’ implementation of their bank “bail-in” regime is set to begin from the Brisbane 2014 G20 Summit, with full implementation demanded by end 2015.
Since MP acts counter to what the usury-based money system needs to maintain stability — constant growth — I maintain the view [edit: indeed, that so many are doing the same near-simultaneously strengthens my view] that what is really happening here, is the central banksters getting their ducks lined up all in a row.
MP is the gentle, oh so plausibly defensible monetary “squeeze” that begins the global economic apocalypse.
http://www.macrobusiness.com.au/2014/07/stevens-gives-apra-the-nod-on-macroprudential/#comment-38699... (in comments)
Do Australian banks and the RBA practice fractional reserve banking?
No, there are no reserves
So… they borrow from overseas at 2% and lend out to us at 5%?
making a 1% clip after costs?........Plus fees
