#UK:` Financial Crisis for the Poor’ Meanwhile the `Wealthy Gain Rich Pickings’ from this Government’s Strategy’

#AceGuestNews says Financial crisis for many, bonanza for the few.  

Beginning his working life in the aviation industry and trained by the BBC, Tony Gosling is a British land rights activist, historian & investigative radio journalist.
Published time: February 03, 2014 13:42
Reuters/Kacper PempelReuters/Kacper Pempel
Despite what the UK’s ruling politicians or statisticians from palm-greased think tanks may say, the UK’s economic “recovery” is visible nowhere on the country’s streets.

The opiate of Quantitative Easing (QE) or Printing Money, the £375 billion fraudulently spirited up so far, is making some of the figures look good, but it is killing the patient.

The effect of QE is to propel the nest eggs of the rich from prudent “savings accounts,” where interest rates are at an all-time low, into capricious stock and bond markets to be managed by hedge funds and other pushy players. Meanwhile, everything with half a brain that moves, including the Parliamentary Commission on Banking, chaired by Conservative MP Andrew Tyrie, is demanding to see clear blue water between public-facing banks and the casino economy. However, precisely the opposite is happening, as billions of savings leaves the safe ground in search of higher returns.

The London media have no excuse to talk of a “recovery.” They don’t have to look very far to see the tell-tale signs of a nation falling apart: Try looking down next time you’re in the street. None of the infrastructure of the nation is being maintained. From jutting-out high street paving slabs to potholed roads and even silted up rivers in the Somerset Levels that have been flooded since Christmas, the vital systems of the nation are clogged and breaking.

For a country with one of the highest living standards in the world to have 20 percent of its population, ticking up every month, existing below the poverty line, something must be very wrong. And the “democratic” strings that are supposed to tie Britain’s 65 million people to the cosseted elite that spend the nation’s taxes are also horribly frayed. The period before a general election is when a government courts its voters.

And what is the role of Britain’s third-party in all this? The Liberal Democrats (with 56 MPs) hold the balance of power between Labour (256) and the Conservatives (303). Any party in such a position should call the shots, as Irish MPs did with the 1885 Ashbourne Act which forced absentee English landowners to hand over land to Irish farmers who had been impoverished by the famine: A dramatic change in ownership that was one of the main catalysts for Irish Home Rule.

A broken labour market

Like the “Balance of Payments,” which compares British exports to imports, taking stock of the “Cost of Living” has fallen out of fashion in the London media. Maybe it’s the lack of the feel-good factor in both sets of statistics – but that doesn’t make either of them any less crucial to understanding whether or not the economy is working. Cost of living is rarely mentioned because an enormous, economically driven, social engineering by the power elite has been played out in our lives in a generation. Britain has fallen from a high-wage, unionized, high-job security economy, from a developed world to a third-world economy in those 30 years.

Spencer Platt/Getty Images/AFPSpencer Platt/Getty Images/AFP

A broken housing market

Former Conservative Party leader Iain Duncan Smith (IDS) has a “great plan” to exterminate Britain’s welfare benefits. So as Work and Pensions Secretary he has put the onus on the claimant, however disabled, mentally ill or otherwise infirm, to prove they are in need, and many are struggling to do so. Scores have already taken their own lives because the vulnerable cannot endure his“survival of the fittest” ATOS test. Duncan-Smith’s own family, though, continue to receive around £1.2 million in annual welfare benefits – in the form of agricultural subsidies for their inherited land.

IDS’s other “flagship” policy is the Bedroom Tax. So vicious is this tax that it puts the most vulnerable in constant fear of eviction and, unbelievably, costs the government more! Both to pay the higher rents the private sector demands and in eviction fees. Meanwhile, Britain is encouraging mass economic migration and building fewer homes than any time since the 1920s, so as to keep property prices artificially high. Now Britons who don’t get Housing Benefit are, on average, paying a staggering 45 percent of their income on rent or mortgage costs.

A broken food market

The international grain trade, according to Oxfam, is now dominated by only five multinational companies. ADM, Bunge, Cargill, Glencore and Louis Dreyfus control 90 percent of this fundamental trade. Through the unregulated derivative markets’ ability to speculate on a future collapse in world food supplies, a hideous profit motive is being whispered of which enriches the few by pushing billions of people to the edge of starvation.

With the demise of the biggest traditional fish, meat and fruit and vegetable markets, deals are now cut behind closed doors for vast quantities of food, the economies of scale suiting buyer and seller alike. With only seven supermarket chains in the UK (Aldi, Asda, Lidl, Morrison’s, Sainsbury’s, Tesco and Waitrose) selling 85 percent of the country’s food they are able to coax almost every consumer with other basic essentials on the same site: petrol, banking and pharmacies, for example, driving traditional, locally owned shops to the wall.

As historian E.P. Thompson wrote in his 1979 book, “Writing by Candlelight,”quoting from an Elizabethan diary he found behind an oak panel in his library:

Fruit cannot go to Markett, not for Money nor even yett as Charitye for the Poor. Some say it be through a Sort of Monopolisers in the Dealing Trade, wch wd keep all Price at its Customary Heighth as it is set in any Leen Yeer. And that these Dealers wd rather that the Poor Starve, the Fruits fall Rotted and Wormey, and the Husbandmen & their Familys Toile & Swinke for no Reward – all so that their Proffits be not Sunke.

Prices paid to farmers today, they say, are driven down by the supermarkets while what the consumer pays is ratcheted up. The small grocers go to the wall and the poor cannot afford to eat, while the multinational food cartels become more powerful every day. With an exponential threefold rise in food bank use this Christmas, and food bank users set to top the 1 million mark in 2014, it seems that monopolies – after 400 years, the crooked markets of Elizabethan times – are back.

Spencer Platt/Getty Images/AFP

Spencer Platt/Getty Images/AFP

A broken energy market

One of the most damning indictments of Coalition Britain is the obscene way in which the destitute have been quietly and gradually made to pay the energy bills of the rich. An investment now in an energy company of £20,000, peanuts for the rich, delivers annual share dividends which will pay the annual gas and electricity bill of the average two or three-bedroom home. That investment grows above inflation too and will provide a tidy sum if the investor ever tires of his free energy. Through the privatization of the utilities, indentured servitude has been hardwired into the economy and the suffering.

At the other end of the spectrum, those living hand to mouth are forced off cheap direct debit payment schemes onto key meter energy tariffs, where they can pay as much as double what the rich are paying, or not paying, for each unit of energy they use. Such injustice and cruelty is scarcely conscionable in a nation proud to suit among the top ten wealthiest in the world. One can only speculate that this must be worked out on average wealth, a handful of billionaires surrounded by hoards of 16th Century destitute.

Perhaps these markets are not ‘broken’ at all?

Given that Britain’s plutocrats are doing very nicely, thank you, out of the £850 billion bank rescue in 2008 and the subsequent financial “crisis,” and that their friends in the London media have promised not to tread on their toes, let’s take an educated guess at what the real game might be here.

Perhaps there is no democracy? Perhaps all the political parties are bought and paid for lock, stock and barrel by the power elite who have no conscience, letting accountants run their affairs.

And when they have filled all their garages with the most ostentatious sports cars money can buy, the next thing up the pecking order perhaps is a government department or a newspaper or two?

“Nobody wants a crash,” some might say. But they’d be wrong. One of the unintended, or intended, consequences of deregulation in financial markets is that it’s now easier than ever to make a fortune from betting on disaster. What Naomi Klein calls “Disaster Capitalism” – economic warfare and deliberate sabotage of a nation’s economy – is more profitable than ever before.

The ordinary people of the world had better wise up and look sharp, because we are swimming in shark-infested waters. What the power elite don’t seem to have realized, though, is that we are teaching our children to watch those overnight subjects like hawks. The younger generation are good swimmers, and getting ready with their rocket harpoons.

The statements, views and opinions expressed in this column are solely those of the author and full editorial rights to print have been obtained.

Though they do not necessarily represent those of: Ace New Group

 

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“Creation of Money into Wealth Using Cap-It-All-ism as their First Watchword”

USA Financial Crisis 1914 -2#AceDebtNews says the simple act of creating wealth has long been disputed in the world of borrowing and lending ,many economists have argued over who is right or wrong about the next federal reserve move, or what should be done to balance the economy. Though one blatant thing stands out above all else, and that is without money or the use of the wealth ,we could not survive!

Or could we?

Grover Cleveland - Series of 1914 $20 bill

Grover Cleveland – Series of 1914 $20 bill (Photo credit: Wikipedia)

For a long time now and having tried and failed at setting in motion every conceivable system, of monetary control, from QE to the recent debacle of “Debt Ceiling” nothing ever works!

Unless people spend money!

Over many years of providing “Other Peoples Money” , that l simple shall term as “OPM” for this post, the simple fact was, as more people borrowed to get richer, they actually got poorer, Oh not in the pocket but simply in their heart!

The  richer they got ,the more they wanted and the More they wanted, the worst the economy became!

It was just like that drug called  “OPIUM” and they could not stop!

The Great Financial Crisis of 1914:

What Can We Learn from Aldrich-Vreeland Emergency Currency? 

William L. Silber*

USA Financial Crisis 1914At the outbreak of World War I, the biggest gold outflow in a generation posed a double-barrelled threat to American finance: An internal drain of currency from the banking system and an external drain of gold to Europe. The Federal Reserve System, newly authorized by Congress on December 23, 1913, remained on the sidelines during the summer of 1914, a  victim of political and administrative delays. The absence of an operational central bank encouraged Treasury Secretary William G. McAdoo to improvise the modern principle of aiming an independent weapon at each policy target. He employed a form of capital controls to deal with the external threat, shutting the New York Stock Exchange (NYSE) for more than four months to prevent Europeans from selling their American securities and demanding gold in return. And he invoked the emergency currency provisions of the Aldrich-Vreeland Act to deal with the internal threat, allowing banks to issue national bank notes, an important form of currency in pre-Federal Reserve days, without the normal requirement that the currency be secured by U.S. Government bonds.

So how did we get into this situation in the first place ,well everything has to have a beginning and will l am sorry to say have an end, but not an end in this case anyone will expect.

According to Friedman and Schwartz (1963, p.196), by November 1914 “the country had recovered from … the declaration of war in Europe, thanks in no small part to the availability of Aldrich-Vreeland emergency currency.” Friedman and Schwartz (1963, p. 172) also suggest that emergency currency “would have been equally effective on the occasion of the next threat of an inter-convertibility [sic] crisis which arose in late 1930.”

Robert Schwartz

Robert Schwartz (Photo credit: mlzafron)

This paper tests Friedman and Schwartz’s conjecture about the power of Aldrich-Vreeland emergency currency and draws lessons for monetary policy. Proof of the potency of the Aldrich-Vreeland Act, passed in 1908 to avoid a replay of the Panic of 1907, comes from a little-known experiment conducted by William McAdoo in1913. Friedman and Schwartz’s suggestion that the1930 banking crisis might have been nipped in the bud with an operational Aldrich-Vreeland Act gains credibility from a key characteristic of crisis control under the Act: liquidity flowed automatically to where it was needed most.

It was him that recommended that the Federal Reserve adopt the principles of the Aldrich-Vreeland Act in its administration of the discount window. This will help preserve the integrity of the banking system, especially under wartime conditions with impaired communications.

I. What happened in 1914?
Foreigners owned more than $4 billion U.S. rail-road stocks and bonds at the outbreak of the Great War, with $3 billion of that in British hands. These securities were liquid assets and could be sold quickly on the NYSE. Under the gold standard, foreign investors could then use their cash proceeds to acquire the precious metal from the American banking system. Fear that the United States would abandon the gold standard pushed the value of the dollar to unprecedented depths on world markets. The magnitude of the problem forced America to defend itself: At the outbreak of the war, reserves at New York banks would have been cut in half if the British sold only five percent of their holdings (see Noyes, 1916, p.94). People knew that the banks had tried to conserve reserves in 1907 by suspending the convertibility of deposits into currency. In 1914, the bankers worried that the gold outflow to Europe would “inspire fear” and trigger an added rush into cash before suspensions took effect. Without an operational Federal Reserve Systemthe currency shortage would spawn bank runs like “those experienced in the fall of 1907” — only worse.

English: The floor of the New York Stock Excha...

English: The floor of the New York Stock Exchange published in 1908. (Photo credit: Wikipedia)

The crisis began on July 27, 1914. The sale of dollars for pounds sterling in the foreign exchange market, and the increase in the exchange rate to $4.92 per pound, four cents above the gold export point, provoked gold shipments. On July 31, 1914, after the price of sterling failed to decline in response to record gold exports, Treasury Secretary McAdoo asked the NYSE to close. If foreigners could not sell their U.S. stocks, they could not raise dollars and demand gold in exchange. McAdoo had rejected the direct approach, suspending the gold standard, as too costly to American credibility. The NYSE remained shut through December 12, 1914, mitigating sales of American securities by foreigners and hampering their demand for gold.

Seal of the United States Office of the Comptr...

Seal of the United States Office of the Comptroller of the Currency, part of the Department of the Treasury. The design is the same as the Treasury seal with a Comptroller of the Currency inscription. (Photo credit: Wikipedia)

But the threat of a run on America’s bank reserves did not disappear. American debts denominated in British pounds matured during this period, and U.S. borrowers would need sterling or gold to meet their obligations. Moreover, precautionary withdrawals of currency from the banks threatened to exacerbate the loss in reserves from the gold outflow. Under the National Banking laws then in existence, commercial banks could create additional currency only by depositing U.S. Government bonds with the Office of the Comptroller of the Currency in the U.S. Treasury. The Treasury’s Bureau of Engraving and Printing would then ship newly printed national bank notes to the banks to meet depositor withdrawals. In the summer of 1914, national bank notes outstanding had already reached its maximum based on the outstanding supply of government securities.

Beginning August 4, 1914, after McAdoo invoked the Aldrich-Vreeland Act, banks could create currency, either by depositing municipal bonds directly with the Office of the Comptroller of the Currency or by depositing other securities or commercial paper with a local group of banks that had formed a National Currency Association under the Act. Thus a bank facing a sudden withdrawal of currency could create national bank notes to meet the demand, thanks to the emergency currency provisions of the “Aldrich-Vreeland Act”.

English: A crowd forms on Wall Street during t...

English: A crowd forms on Wall Street during the Bankers Panic of 1907.http://www.frbatlanta.org/invoke.cfm?objectid=83FD4128-9AF0-11D5-898400508BB89A83&method=display_body From the New York Public Library’s Digital Gallery, in the Irma and Paul Milstein Division of United States History, Local History and Genealogy Français : La foule se presse sur Wall Street pendant la panique causée par la crise bancaire d’octobre 1907. (Photo credit: Wikipedia)

McAdoo recognized the potential danger of his policies – closing the stock exchange left the capital markets without a rudder and flooding the country with emergency currency tempted inflation. McAdoo’s recipe for smothering the crisis included an exit strategy. He organized the Bureau of War Risk Insurance on September 3, 1914 to promote exports of cotton and wheat to Europe. Exports would generate gold inflows in payment for American goods, which could then settle foreign obligations. McAdoo’s policies prevented a panic. Banks never suspended their promise to convert deposits into currency and the U.S. Treasury never left the gold standard during the summer and fall of 1914. On November 11, 1914, less than four months after the onset of the crisis, and four days before the opening of the Federal Reserve Banks, the exchange rate of the dollar relative to the pound sterling fell below the gold export point, and gold exports ceased.

The threat to the American financial system disappeared!
Friedman and Schwartz (1963, p.196) are reasonably accurate in saying “by November 1914 the country had recovered from the immediate shock of the declaration of war in Europe,” but with so many components to McAdoo’s plan, perhaps they overreached when adding, “thanks in no small part to the availability of Aldrich-Vreeland emergency currency.”

Knickerbocker Trust CompanyThe contrast between 1914 and 1907 supports Friedman and Schwartz’s interpretation. The growth in emergency currency between August 1, 1914 and its peak at the end of October 1914, produced a seven percent increase in the monetary base. The money supply grew at an annual rate of 9.8 percent over the same period. By way of contrast, in 1907 the public’s obsession with currency beginning the week of October 22, 1907, when the “Knickerbocker  Trust Company” suspended payments, triggered a decline in the money supply at an annual rate of 11.6 percent during the final three months of the year. Additional evidence of the power of Aldrich-Vreeland emergency currency comes from a little-known experiment that McAdoo conducted a year before the European war erupted.

II. The Lesson of 1913: 

Description: Newspaper clipping USA, Woodrow W...

Description: Newspaper clipping USA, Woodrow Wilson signs creation of the Federal Reserve. Source: Date: 24 December 1913 (Photo credit: Wikipedia)

McAdoo flirted with Aldrich-Vreeland currency during the spring of 1913. The newly elected “President, Woodrow Wilson”, had proposed tariff reduction legislation that provoked considerable opposition in the business community. Wilson pushed for prompt passage of the “Federal Reserve Act”, in part because he expected that the new currency system could supply easy money during the first few months of reduced protection from foreign competition. When Wilson suspected that Republican Senators wanted to block currency revision to precipitate a financial panic and blame the Administration’s new tariff policies, he turned to McAdoo. In the evening of June 11, 1913, McAdoo announced (Washington Post, June 12, 1913) that “he would not hesitate to issue emergency currency to any banks making application and qualifying under the [Aldrich-Vreeland] Act.” When McAdoo was asked whether any applications had been made he simply said: “No.” The press noted that: “The only explanation obtainable as to Mr. McAdoo’s purpose…is that it is intended to give assurance…that the Wilson Administration will do its utmost to overcome any financial embarrassment that may come.”

 Would Aldrich-Vreeland currency succeed in calming the business community?

Opponents of the original legislation had argued that, instead of preventing a panic, the provision of emergency currency might backfire and provoke one. The then Comptroller of the Currency, William Ridgely, said (Comptroller of the Currency, 1907, p.74): “The issue of so-called emergency notes…would at once be a confession of weakness and a danger signal that no bank would dare make until in desperate condition.” Perhaps that is why no emergency currency had ever been requested since the Aldrich-Vreeland Act had been passed in May 1908. How did the business world respond to McAdoo’s June 11, 1913 invitation?

McAdoo released his statement invoking the Aldrich-Vreeland Act on the evening of June 11, after the stock market had closed. Thus, if McAdoo’s announcement had a material impact, for better or worse, it should have been reflected in stock price movements on June 12. The return of more than 2.5 percent in the index of railroad stocks (currently called the Dow Jones Transportation Average), and over 3 percent in the index of industrial stocks (currently called the Dow Jones Industrial Average), on June 12, 1913, are the largest statistically significant positive daily price movements during the first six months of 1913. Wall Street’s vote of confidence on June 12, 1913 demonstrated the potential power of the Aldrich-Vreeland Act. The record during the summer of 1914 confirmed it.

III. Liquidity in Wartime:
An important characteristic of the Aldrich-Vreeland Act was that once the Treasury Secretary declared a financial crisis under the Act, a bank could decide the timing and magnitude of securities to deposit as collateral for additional currency. Thus high-powered money expanded endogenously to meet a shortage of liquidity. According to Sprague (1915, p.517) this feature of the Aldrich-Vreeland Act accounted for its success: “For the first time since the establishment of the national banking system the banks exercising the powers conferred upon them by the Aldrich Vreeland Act of 1908 were able to issue bank notes freely in coping with a crisis.”

Direct aid to individual banks needing liquidity may be the best way to combat a panic under wartime conditions. Interruptions in communications facilities, caused by total war or by terrorist attacks, can precipitate liquidity shortages at specific financial institutions. McAndrews and Potter (2002, p.72) cite the importance of the Federal Reserve’s lending at the discount window to individual banks as the key to mitigating the financial consequences of the terrorist attacks of September 11, 2001. Open market operations, the preferred method of injecting funds in the modern banking system, may not have accomplished its objective. Impaired funds transfer prevented some banks that needed cash from borrowing it in the inter-bank market.

In 1914, the threat of an external drain of gold forced McAdoo to close the NYSE. Call loans secured by stock exchange collateral, which normally would have been the primary source of liquidity to an individual bank, disappeared. Under the Aldrich-Vreeland Act banks turned their assets into emergency national bank notes. Like Federal Reserve lending at the discount window during the September 11, 2001 crisis, Aldrich-Vreeland currency provided a universally accepted domestic medium of exchange directly to the banks needing it.

IV. 1930:
The two key characteristics of currency creation under the Aldrich-Vreeland Act — (1) direct aid to an individual bank, and (2) at the discretion of the bank — support Friedman and Schwartz’s (1963, p. 172) conjecture that emergency currency “would have been equally effective on …the next threat of an inter-convertibility [sic] crisis which arose in late 1930.” During the Great Depression the Federal Reserve knew of Bagehot’s principle of lending freely to stem an internal drain of currency, but did not implement it consistently (see Meltzer [2003, p.282]). The Aldrich-Vreeland Act would have eliminated discretionary delays, by allowing banks under liquidity pressure to exchange assets for currency automatically, had the Act not expired by Congressional design on June 30, 1915 (as part of the Federal Reserve Act of December 23, 1913). Although banks that were members of the Federal Reserve System could initiate a demand for reserves at the discount window in 1930, the Federal Reserve banks exercised considerable discretion (see Chandler, 1971, pp. 225-239).

Open market operations suffered from discretionary delays plus the potential for reserves to accumulate in banks that did not need funds. Unwarranted mistrust of otherwise sound institutions during the 1930’s (some mistrust was warranted, but some was not), meant that open market purchases might not channel the funds to banks under depositor attack, similar to the breakdown of communications on September 11, 2001 described by McAndrews’ and Potter (2002, p.72). The mechanism for currency creation under the Aldrich-Vreeland Act would have provided credit at the bank’s initiative directly to banks needing it most. V. A Concluding Recommendation for Current Federal Reserve Policy
The Aldrich Vreeland Act helped William G. McAdoo triumph over the financial crisis during the summer of 1914. Two key characteristics of the process — direct aid to an individual bank, at the initiative of the bank — suggest that the Aldrich Vreeland mechanism would be especially appropriate in avoiding discretionary delays in liquidity provision and in circumventing problems associated with funds transfers among financial institutions. The Federal Reserve’s revised guidelines for extending primary credit at the discount window moved in the direction of the Aldrich-Vreeland Act by limiting discretionary delays, but still falls short.

The Federal Reserve should complete the progress it has made towards incorporating the 1908 emergency currency legislation in its operating procedures.

VI. References:
Chandler, Lester V., 1971, American Monetary Policy: 1928-1941, Harper & Row publishers, New York.

Comptroller of the Currency, 1907, Annual Report, Government Printing Office, Washington, D.C.

Friedman, Milton, and Anna J. Schwartz, 1963, A Monetary History of the United States, Princeton University Press.

McAndrews, James J. and Simon M. Potter, 2002, “Liquidity Effects of the Events of September 11, 2001,” Federal Reserve Bank of New York

Review, November Meltzer, Allan H., 2003, A History of the Federal Reserve, Volume I, 1913-1951, Chicago, University of Chicago Press

Noyes, Alexander D., 1916, Financial Chapters of the War, Charles Scribner’s and Sons, New York

Silber, William L., 2007, When Washington Shut Down Wall Street: The Great Financial Crisis of 1914 and the Origins of America’s Monetary Supremacy, Princeton University Press

Sprague, O. M. W., 1915, “The Crisis of 1914 in the United States,” American Economic Review, Volume 5, No. 3, pp. 499-513

Conclusion: 

If the creation of wealth for the reason outlined had not been so manipulated as to eventually allow the use of “The Albert Vreeland Act” to be use in such a way, as to give rise to the eventually creation of “The Federal Reserve” allowing currency to become controlled under the “The Office of the Comptroller of the Currency in the offices of the US Treasury ” we would not be in the position we are today.

The blatant misuse of the certain acts, enabled a misdirection to take place, allowing the then “Treasury Secretary ” William McAdoo to as it was put – McAdoo flirted with Aldrich-Vreeland currency during the spring of 1913 allowing him to eventually both manipulate and control the price of gold and the eventual allowing banks to issue national bank notes, an important form of currency in pre-Federal Reserve days, without the normal requirement that the currency be secured by U.S. Government bonds.

The overall plan being to put in place a way of “Printing Currency at Times of Financial Crisis” or at such time of needing to raise “The Debt Ceiling” levels above their norm ,even when the amount owed in “Debt Repayments” exceeds the GDP of the country.

The fact that simply by “Creation of Currency Legislation” allowing control of “Peoples Spending” by valuation and devaluation of their effective currency, they could use the “Federal Reserve” as a tool for currency manipulation, and create what has become simply known as “Quantitative Easing” to borrow more against the book debt, by simply revaluing the book debt by how much you owe in debts.                   

This eventually led to what is now termed as inter-bank lending that was started here – “Open market operations, the preferred method of injecting funds in the modern banking system, may not have accomplished its objective. Impaired funds transfer prevented some banks that needed cash from borrowing it in the inter-bank market”. This was cited as ” Direct aid to individual banks needing liquidity may be the best way to combat a panic under wartime conditions”. Interruptions in communications facilities, caused by total war or by terrorist attacks, can precipitate liquidity shortages at specific financial institutions. McAndrews and Potter (2002, p.72) cite the importance of the Federal Reserve’s lending at the discount window to individual banks as the key to mitigating the financial consequences of the terrorist attacks of September 11, 2001.

Finally this led to the single currency of US of A and the creation of more of the same leading to the eventual “Financial Crash of 2008”

But of course the real reason was Money!

The route or root of all evil – but not so, as the real saying is ” The Love of Money is the of All Evil” and it is that word “Love” that makes all the difference, between “Good and Evil” as it measures the person as either “Wanting or Lacking” as so many a person now destitute or alone or having taken their own life, all for the “Want” of money!

The Bible steps up to the plate so many times as a way to change but simply put ” Change Or Be Damned” seems to fit the bill in this case, as chasing the ” Dollar a Day” as a way to build you future is gradually dying a death, as the new kid on the block “China” says no longer are you our ” “Preferred Reserve Currency” the question in the future will not be, is it the Chinese, Hungary, Russia, India, Syria or Turkey [C.H.R.I.S.T] that is in charge ,but simply –

“The Word of God ”

Amen.    

 

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