Revolt against banks is starting in Ireland

People in Ireland are finding the courage to resist the corrupt banking system :

And a little treat : splendid rock song about the masters of the world :

Fear not, say no to banksters and others of their kind,

Love,

Leo

Copyright © Leo Foresta 2013

Illuminating interview on banking

“… no bank is absolutely safe …….….it is clear that banks have been egregiously mismanaged quite generally over a long time, and the only people who have done well out of them have been their top employees, which has been grotesque, and it is a genuine question whether these institutions as they are currently organised serve the interest of their shareholders…”

Martin Wolf, Chief Economic Editor of the Financial Times (and regular attendant of  Bilderberg meetings) during a BBC interview related to Barclays.

This interview is unusually candid from members of the establishment. If you are still unclear as to what the banking game is all about, listen to it attentively:

http://www.bbc.co.uk/news/business-23501624

Fear not, sip your tea.

Love,

Leo

Copyright © Leo Foresta 2013

Signs of awareness

It’s interesting to look at comments on articles in the mainstream press and spot the multiple signs of growing (if still partial) awareness.

Here is an example among many concerning the economy.

It’s from the Financial Times; the article is entitled US Jobs data: hints for the global economy
http://blogs.ft.com/the-a-list/2013/04/30/us-jobs-data-hints-for-the-global-economy/#axzz2Rvrh6yXZ

Nothing surprising in the article itself, but here is the comment (signed by “Is it that easy?”):

An excellent summation as always.

However, artificial job creation due to monetary means (e.g. housing, autos and other consumption) will by definition not exist when artificial means are withdrawn – just ask construction workers post 2007 or tech & telecom workers post 2000.

Combined with marginal buyers of assets at these artificial levels getting hammered and political pressure to fund govt/political obligations, the Fed will not normalise so we are left in a bizarre, distorted world, shovelling ever greater income and wealth to the wealthiest and stealing from our children.

Looking at job numbers and other metrics on asset prices, growth etc when we are in a deluded, artificial world doesn’t help much…what would it look like when normalised?

Fear not, keep watching behind the smokescreen of official propaganda.

Love,

Leo

Copyright © Leo Foresta 2013

London is Cyprus on a bigger scale

Ordinary Cypriots with bank deposits above €100 k are racketed by EU authorities because Cyprus has a disproportionally large banking sector in relation to the size of its economy.

Cyprus is small and weighs little in Europe and the world, but what about London?

London accounts for about 27% of the UK’s GDP. The latter is $ 2.5 trillion, so the economy of London is around $ 0.7 trillion.

Global financial assets (bank deposits, bonds and shares) are about 3 times the world GDP. The latter is $ 70 trillion, so global financial assets are in order of $ 210 trillion, of which say 15% at least must be held in London which is the world’s second financial centre.

So London based financial assets must be over $ 32 trillion, over 45 times London’s GDP, compared to an average ratio of 3 for the world.

Figures clearly show that the London’s financial sector is totally disproportionate in relation to the size of London’s (and the UK’s) economy.

As similar causes tend to produce similar effects, I let you imagine the script for future instalments in the world wide financial saga. You might also wish to refer to a previous post entitled Why the financial pyramid is finally collapsing.

Fear not, look at financial developments in the light of your spiritual approach.

Love,

Leo

Copyright © Leo Foresta 2013

From Cyprus drama to cash based informal economy

EU leaders are prepared to confiscate around 10% of money in bank deposits. A move without any precedent in civilised countries.

This incredible, desperate move shows how sick the whole system has become.

Ordinary citizens in Cyprus, Greece, Spain, Portugal, Ireland, Italy and elsewhere must be wondering what to do now that the unthinkable has happened and that no money is safe in any bank.

Many will withdraw large amounts before this becomes very difficult or impossible. What will they do with the cash? Keep it under the mattress or somewhere safer. Buy gold. Buy stuff.

In any case this will stimulate the cash based informal economy.

The informal economy has often been presented as “black” or “grey”, shady in any case, with hints of criminality. Of course some criminal activities are cash based. Then big chunks of the official economy are criminal too, on a massive scale: in banking, in big pharma, in agro business ….etc..

There are very positive aspects to the informal economy: when you buy cash healthy food from small local suppliers at a market stall, when you pay cash your trusted alternative healer, …

Contrary to “sheeple” subservient to the system, people with a firm alternative worldview are prepared for the period of great turbulence which the proposed official EU racket on ordinary folks’ money is now about to trigger.

They are prepared because they grasp the basic functioning of the corrupt system, and more importantly because their spiritual outlook allows them to avoid panic, tame fear and create bonds of trust with other people.

Fear not, be kind with innocent bank employees.

Love,

Leo

Copyright © Leo Foresta 2013

Swiss revolt is sign of times

Even the conservative Swiss have had enough of the elite’s preposterous arrogance.

In a referendum held yesterday, 68% of Swiss voters approved a plan to curb executive pay.

According to the Financial Times, “Brigitta Moser-Harder, an activist shareholder who spearheaded the yes-campaign together with entrepreneur Thomas Minder, said that the result, one of the most emphatic yes-votes ever in a Swiss referendum, sent a clear signal to companies both within and beyond Switzerland’s borders”.

More details at http://www.ft.com/intl/cms/s/0/ca90f1b4-83ff-11e2-b700-00144feabdc0.html#axzz2MZqqFmwG

But bear in mind that this is only a mirror episode in the illusory reality of the material world.

Fear not, watch the system’s elite become ever greedier and more afraid of their own shadows.

Love

Copyright © Leo Foresta 2013

 

Balance sheet alchemy

The euro was launched in January 1999.

You can see below how the European Central Bank’s balance sheet changed since.

ECB Balance Sheet 2012 v 1999

This is no mere technicality for experts. It’s the core mechanism supporting the social arrangement around which today’s society revolves: money.

Over 14 years the European Central Bank put close to 1 trillion euros into the accounts of commercial banks. These accounts increased tenfold in the period, from 106 to 1,057 billions.

This was achieved first through cheap loans granted by the ECB to commercial banks. The banks were able to leverage these generous injections of primary cash and create many trillions of secondary money by extending loans to their own customers and by buying shares, bonds and other “products” from the financial markets.

Loans granted by commercial banks went for a large part into property markets, which caused enormous increases in house prices and also went massively to financial institutions, which used the money to take extra positions in financial markets, causing booms and busts in various areas of these markets.

A relatively modest portion of the new money trickled down into the “real” economy (apart from property) where ordinary folks buy cars and other mundane stuff on credit. Some went to companies, more often the larger ones. Among the latter, the now famous private equity groups, whose business is to buy companies mainly with borrowed money to achieve maximum return.

After the financial crisis of September 2008, the ECB, like other central banks, was forced to extend even more credit on even cheaper terms to commercial banks to save them from total illiquidity.

And more recently, from 2011, the ECB was forced to start buying sovereign bonds to prevent excessive rise in interest rates on debt from countries in trouble.

No doubt it will continue this sort of policy in the hope of saving the euro, supporting financial and property markets and preventing the economy from going into severe contraction.

This, of course, amounts to giving ever larger doses of the drug that triggered the patient’s illness.

To keep abreast of monetary developments visible on the ECB balance sheet, check regularly the section “weekly financial statements” on the ECB web site

index.en.html

Fear not, remember all this is very small beer in the universe.

Love,

Leo

Copyright © Leo Foresta 2012

QE is their only card

Faced with a weak economy, central banks in the US, UK, Eurozone, Japan and other countries are engaging in further rounds of “Quantitative Easing” (QE).

This means they buy bonds in financial markets with new money that they just create for the purpose. The effect is to keep interest rates down and to inject cash in the economy.

The logic of the exercise was explained in detail by the US central bank (“the Fed”) when it embarked on such programmes in November 2010: http://www.newyorkfed.org/education/lsap/index.html

And the same logic is invoked again these days.

The Fed says it’s doing this to reduce unemployment by supporting demand for goods and services through more money flowing in the economy and cheaper credit for potential buyers.

Most experts doubt that this will work, pointing out that there is already a vast amount of money in circulation, and that what hampers demand is a general lack of confidence.

In fact new money created by central banks when buying bonds goes straight in the pockets of investors.

The latter use this money to acquire investible assets such as bonds, shares, derivative financial products, property and commodities, which pushes these markets up.

But very little new money actually trickles down into the “real economy”, i.e. purchases of (new) goods and services produced by the workforce.

In other words QE contributes to asset inflation while having hardly any effect on jobs.

The true reason for carrying out QE is not to protect jobs but to keep heavily indebted governments, banks and property owners afloat, thereby preventing massive defaults on debts which might bring down the global financial system.

While central banks in cahoots with governments are playing this big trick, companies keep squeezing their workforce. With the consequence that large sections of the middle classes (from whom comes most of the demand in the economy) are now poorer and feeling vulnerable.

No good news for demand; more weakness in the economy triggering yet more restructuring by companies.

The global economy looks on the brink of a downward spiral, but governments and central banks have no other card up their sleeves than QE.

As said over and over again on this blog, there are no technical “solutions” to the apparent global crisis as long as most people have their minds trapped in the materialist mode of thinking.

But a subtle change is happening beneath the surface, which a minority of intuitive individuals can already perceive.

Fear not, sharpen your intuitive capacity.

Love,

Leo

Copyright © Leo Foresta 2012

Love in response to banking scams

Bankers crossed all limits long ago: http://www.guardian.co.uk/business/2012/jun/30/banking-scandal-barclays-lawsuits-libor

And they continue.

But this is above our heads and there is nothing people like me can do about it. – Not true!

Banks create money. Money rules the modern economy. The modern economy is destroying the world. Your present incarnation is part of the world.

You are here for a mission assigned by universal consciousness. Not to sit on your bum and watch it all happen without uttering a word or emitting a thought.

Be lucid. Tell everyone to be lucid.

And pass the word round that the only response to scams, injustice, crimes, stupidity and horrors is the infinite energy of pure love. Love without judgments, segregations and restrictions.

The choice is between the pain of burning rage or the soothing of pure love.

There is nobody to fight. There is no enemy. No one to hurt. No need for wars, armies, drones and generals. There is only a system of thought that ignores love and kindness.

This system will soon be de-programmed by waves of pure love.

And you can be among the thousands of pure love emitters.

Fear not, watch the full moon.

Love,

Leo

Copyright © Leo Foresta 2012

Flickers of lucidity in mainstream press

The recent article “Our volatile age defies spreadsheet strategy” by Gillian Tett in the Financial Times is one illustration that the depth of the crisis is at last starting to shake established certainties:

http://www.ft.com/intl/cms/s/0/acc852ee-ac0a-11e1-a8a0-00144feabdc0.html#axzz1wkbSGcp3

Here is an extract:

“Ever since the computing revolution took hold on Wall Street and the City of London in the 1970s, finance has been treated not as an art but a science – and banks have operated as if computer models could not just explain the past but predict the future, too.

Now those “quants” and rocket scientists find themselves at sea. Computer models alone can no longer calculate meaningful probabilities about what will happen next in the eurozone.

Instead, what really matters now in places ranging from Finland to Greece are non-quantitative issues such as political values, social cohesion and civic identity.

Above all, the question of “credit” is key to working out whether bonds can ever be repaid. But this is not credit in the mathematical sense by which banks have often defined it (as a projected probability on a chart), but in the old fashioned, Latin – social – meaning (belief).

The crucial variable, in other words, is whether voters have faith in their governments and central banks. Do they trust the safety of their banks? Are citizens willing to trust each other, and co-operate, when pain is imposed?”

And the article’s last sentence reveals a budding awareness of reality:

“We have entered a new “age of volatility”, and not just in finance and economics, but in politics and society, too”.

Only reality is much broader and more subtle than anything materialist thinking is able to convey, as regular readers of this blog know very well.

Still, it is encouraging to find in the main press a partial acknowledgement of the extraordinary transition unfolding before our eyes.

Fear not, read papers now and again.

Love,

Leo

Copyright © Leo Foresta 2012

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