SAVING HOMES FROM REPOSSESSION 56,000 homes were repossessed in Britain last year and 200,000 homes were at risk of repossession. 918,000 homes were repossessed in America last year and another 5.5 million were at risk of repossession. (CLICK) WALTER WRISTON died in He had been chairman of Citibank, the world’s biggest bank till it crashed in He used to say that banks need little capital if they are well managed. He was referring to a smoke-and-mirrors system that is dignified by the term ‘fractional reserve banking’. Simply stated, a loan of money by one bank becomes money deposited at another bank, and all but a tiny fraction of that deposit can be loaned again - to become another deposit of money into yet another bank, where all but a tiny fraction can be loaned again. It’s a merry-go-round amongst all the banks, enabling them to make loans ten times the amounts deposited by their customers. If the merry-go-round stops for any reason the fractional reserve system is found to be harbouring not good managers but crooks with no conscience. Worst of all, when they’re found out they’re not banged up, they’re bailed out. (CLICK) Not only do the crooked banks lend trillions that they’ve created in the merry-go-round amongst themselves, they borrow billions more from foreign money lenders to turn into still more trillions on the merry-go-round amongst themselves. Most of these trillions are then loaned to families and secured on their homes. Now here’s the rub: when the crooks have to repay the billions they borrowed from abroad (to turn into trillions) they finance the repayment by new loans from abroad. But if new loans aren’t available the merry-go-round of banks becomes insolvent. All then rush to restore their solvency by foreclosing on any homes where the repayments are even a little in arrears – to auction them and get their money back, no matter that in 2009 almost a million American families were destroyed by the experience along with 56,000 in Britain. And Citibank was only one amongst many banks on the merry-go-round: Lehman Brothers, Goldman Sachs, Royal Bank of Scotland, Bear Stearns, Northern Rock... were all at it, to name a few. (CLICK) FAPADACG % % % THE FIRST ENIGMA PRESENTATION describes the ‘architecture’ of our four-stream model, as above. Now it’s a simple matter for the people’s own bank – the central bank – to lend to the people direct, especially if they are at risk of losing their home. (CLICK) The Enigma instructs central banks to act as lenders of first and last resort in the domestic asset stream (DA) as above. The money (beautiful pieces of paper with ink on) costs almost nothing to create, is used to build new homes and pay for old homes, is fully secured on title deeds, requires neither interest nor repayment when times are hard, and requires no million pound bonuses to petty crooks. Then, with the people’s own bank at the helm, lending can fully reflect the people’s need for new homes to be built (with the building workers paying taxes) so that homes become affordable even for the lowest-paid. And the crooks who caused the last recession can never cause the next. (CLICK) (CLICK) AN ECONOMIC LESSON FOR FOUR ECONOMIC MORONS Imagine 50,000 homes being repossessed in the UK in the next 12 months. Imagine the average debt outstanding will be £150,000. Now imagine the Bank of England – which is owned by the public – is told to stop those homes being repossessed by taking over the outstanding debts and the title deeds that go with them. In simple language (for the benefit of economic morons at the helm) this would require the Bank of England to print bank notes to the value of 50,000 x £150,000 = £7.5 billion. So, the Bank of England would receive valuable title deeds in exchange for pieces of paper with ink on; the banks and building societies would get their money back and see their liquidity improve by £7.5 billion; the fractional reserve multiplier would turn this into a ‘lending pot’ ten times larger, £75 billion; the families whose homes were saved from repossession would either make low interest payments to the Bank of England in excess of £200 million per year (which the Treasury would receive) or would save the government more than this in Housing Benefit. And the best news of all: when the £7.5 billion paid to the banks and building societies enters the banking system and is turned into a lending pot of £75 billion (see THE GREAT BETRAYAL) it would generate a rise in the national payroll as businesses are able to borrow and expand and pay wages to workers to do things, which would increase tax revenues by at least £28 BILLION... but in fact it would be considerably more. BETTER STILL... if the Bank of England (the people’s bank) took over every home loan and all the title deeds it wouldn’t be £7.5 billion injected into the banking system but £1.3 trillion. This would earn an interest for the Bank of England, if only 3%, of almost £40 BILLION each year... towards reducing the budget deficit. As £1.3 trillion then enters the banking system the banks would either have to lend to businesses or pay down their own debts, or a combination of both. The governor of the Bank of England, Mervyn King, has predicted that the Conservative Party will be out of office for a generation after dealing with the financial crisis now besetting Britain. He’s right, of course. And the same applies to their Lib Dem coalition partners and the Labour Party. So a new political party is now organising to contest every seat at the next general election. Our social and economic policies, based on a profound understanding of the Enigma, will appear progressively at We will seek a mandate to hold four individuals – David Cameron, Nick Clegg, George Osborne and Mervyn King – personally liable in damages of £1 million to EVERY family whose home is repossessed after 15 September They can escape this retribution if they NOW instruct the Bank of England to keep all homebuyers safe from repossession, as here described. Bankrupting the above in pursuit of damages would leave a considerable financial shortfall, so we’ll then go after the directors of the banks and building societies for the balance. That too won’t produce enough, so we’ll then go after the lending banks and building societies. For every home that’s repossessed after 15 September 2010 damages WILL be paid of £1 million. (CLICK) PEOPLEPOWER Where the talking stops and action begins. To register a claim for damages To become a member (it’s free)