What precipitated the financial crisis that still grips the world was a severe shortage of cash by the major banks. This article will try to shed some light on what really happened, as opposed to what the media tells us.

The lending frenzy of recent years has culminated in banks and mortgage lenders lending vast sums of money to the poor and hopeless with no chance of repayment. Part of the reason they did this can be attributed to political pressure from politicians who saw this as an opportunity to increase their own popularity with disadvantaged voters.

Another reason may be that the original lenders made some initial profit from each deal and then sold the toxic debts as part of a “package” of debts that included some that were not so toxic. They sold them to all kinds of financial institutions, including foreign banks, hedge funds, and pension funds. Therefore, the racket could continue for much longer than if the original lenders had to deal with the toxic nature of the loans and face the consequences.

Due to this shuffling around of thousands upon thousands of mortgage accounts, the fact that the vast majority of them were falling further and further behind with monthly payments was lost, as the focus remained on the perceived value of each bespoke package. that was negotiated from one financial institution to another.

By the time the magnitude and severity of the problem became apparent, it was already too late. The finance houses and the banks had continued to lend their fictitious money, based on the supposed value of these supposed assets, and thus had made the problem ten or twenty times worse. Don’t forget that Merrill Lynch had lent more than 30 times its total capital base in toxic loans. That doesn’t count loans that weren’t toxic. That was undoubtedly because the more of these loan packages they bought, the larger their capital base somehow became, and the more they could continue to lend. “Every loan creates a deposit”, right?

Therefore, it was only a matter of time before the inverted pyramid collapsed. When he did it, the problem was worldwide. But it wasn’t just the US that had slow or bad debtors. The same thing had been happening in the UK and many other Western countries (although it’s nice to be able to blame the “US subprime market” for the crisis). As we all now know, the entire international banking system has had to be bailed out with loans and buyouts totaling at least $1 trillion ($750 billion in the US and $250 billion in the UK alone). United).

Has this bailout helped people get their foreclosed homes back? Has it helped eliminate the threat of recovery for millions of families? Obviously not. In the UK, half a million families face the threat of being evicted from their homes, at the rate of 120 a day. With house prices forecast to fall 20 percent from their peak in December 2009, this means that most foreclosed homes will be sold by the mortgage bank at a loss. The rescue package is to guarantee that these banks can claim the deficit from the government, that is, from the taxpayer.

So ordinary people have to pay for the greed and stupidity of the banks by having their jobs and businesses on the line, their home in danger of being taken away, and having to pay higher taxes to protect the banks’ profits.

That has to do with the destination of all this extra money. But there is another question that needs to be answered: where did all this extra money come from?

The controlled media will simply tell us that it comes from taxpayers, or even future generations of taxpayers. In a way, they are here, as present and future taxpayers will no doubt pay for all this madness, but that answer doesn’t address the actual mechanics of how money is created in the first place.

To say that it is created by government loans is only half the story. Who does the government borrow this money from? From your central bank, the Federal Reserve or the Bank of England, or whichever is the central bank of the country in question, or in the international money market. So who ends up with this money? Did it exist before this crisis? Where was it stored? How long has it been around?

That’s where all the fuss falls. Money is created out of thin air by the international banking system and is slow for governments to lend to banks. It is certainly a new twist on the old system. And it gives even more power to the shadowy figures, the “Superclass”, who pull the levers of world politics and decide the fate of millions.