FINANCE TALK - Part 4.

Most banks operate a fractionated service.

This means they only have to keep 10% of your money in their vault. The rest they can invest or lend to other individuals or businesses.

Did you know the government already has a Negative Interest Rate Policy? It is operated by the central bank in times of crisis to boost the economy. It is then up to individual banks as to whether they pass the negative interest rate on or not. So far, the banks have not done this due to fear of instigating a bank rush. Remove cash and this will no longer be an issue. Q: Why is a financial collapse predicted and when will it happen? A: The government wants it to happen in order to bring in the new digital currency and take control of your money and your life – Oh no! I’m being a conspiracy theorist – it’s not true, it's not happening, it’s all a lie. Seriously, the government is manipulating and creating situations to bring down our current financial system.

Up to now we’ve had the following scandals:

Brexit scandal – used to raise prices, increase taxes and introduce shortages – food, drivers, workers....and increase the cost of exporting & importing. Some businesses were forced to close. Covid scandal – increasing our national debt, putting small businesses and individuals out of work forcing them onto universal credit, thereby increasing the financial load on the government, giving them the excuse for increasing taxes and bringing more hardships to those already suffering. Ukraine scandal – supply shortages, fuel and energy shortages - giving them the excuse to hike up prices and inflation, forcing more people into debt and onto universal credit and causing more businesses to close. Encouraging a debt mentality – making it easy to take out loans which many cannot pay back, thereby increasing the debt load on banks and other lenders.

High debts on credit cards that cannot be paid back.

Student loans that won’t be paid back.

Creating a world where it is easier to borrow money rather than to save up for something. Making it socially acceptable and normal to be in debt. Manipulating interest rates so that people pay less on their debts (encouraging more spending) and make less on their savings (discouraging saving and investing). It also encourages those who do invest to take greater risks with their money in order to get a good return, increasing the risk of losing thousands. Increasing taxes and bringing in new ones under the disguise of paying off the national debt, improving services and helping the environment.

The real intention is to put people further in debt and to cause more businesses to close......and provide the government’s controllers with further funds to invest in Moneyland and harmful projects.

Central banks have the facility to buy defaulted loans off banks at market price. This provides banks with a reserve to call on, thereby re-capitalising them. However, most central banks are controlled by their governments. The European Central bank has stated that it will not be buying defaulted loans, which means if the debt load on a bank becomes too great it will go bankrupt. If the European Central bank has stated this, then the chances are other central banks will follow suit. Anyone who has funds in a bankrupted bank would lose it all, unless it is £85,000 or under in which case it is, currently, covered by the Financial Services Compensation Scheme.

The current financial system is overloaded – high debt, high inflation, high prices, low interest rates and low return on investments. House prices, land prices and the cost of living are stupidly high. This cannot be maintained for long. Something has to give. In 2008 it was the property market that collapsed and caused that financial crisis. Some say it will happen again. Others say it will be the banks that collapse, leaving just one bank remaining, the Bank of England. The UK’s central bank.

There has been talk that when the financial collapse happens the country’s national debt will be cleared, and the debt clock reset to zero. This would make sense if there was one world bank and one world currency. I can’t see it happening otherwise as it hasn’t happened in the past when money denomination changes and financial crashes have occurred.

There have been so many predictions on when it will happen, but no-one really knows when, which makes it hard to plan for it....but not impossible. Some of the predicted dates have been and gone. Others are still to arrive. I cannot see how things can continue the way they are for another year. If the government keeps pushing the way it is then the crash is more likely to occur at some point during this year, possibly before this winter.

The best policy to have is prepare for the worst and expect the best. That way when the shit hits the fan you won’t be completely caught out.

Comments & Questions Welcome

to be continued ... "Now before I move onto my thoughts on preparing for the likely event of a financial collapse I would like to talk briefly about crypto and tax".

Alison Gale

POSTED ABOVE 22 JUNE 2023