April 26, 2016
Translated by Kristina Kharlova
What was the main advantage of the West over all other parts of the world? What are its ideals? Two things – freedom and stability. And if freedom is an abstract concept, stability is a very specific thing. The West offered it not in the sense of absence of terrorist attacks (these acts of intimidation occurred for decades), but in the sense of life stability. Its predictability over a long period.
Let’s think about what are the attributes of this beautiful stable and DEFINITELY quiet life, which seduced the citizens of the USSR?
House. Car. Bank account. Savings. Pension. Decent life in a peaceful place, with a predictable future, with clear rules.
What is left of this idyll?
Not much. Almost nothing.
Stability very quickly began to disappear against the backdrop of civil war in Ukraine, the influx of hundreds of thousands of undocumented persons (refugees) and the apparent saber-rattling by the US. Which, in fact, represents NATO. But is far from Europe and so feels free to saber-rattle.
Retirement age began a steady and rapid rise and there is no chance that the age limit of work life will stop rising. Pension funds are invested in all sorts of ‘securities’, all the ‘value’ of which is extremely doubtful, and rests solely on the ‘faith’ of investors. And on general stability, which has now become very unstable.
Today, however, I would like to draw your attention to the evidence that the international banksters (the owners of money) began the process of liquidation of global financial system in its current form. As strange as it may sound, but they are those who would seem to be most interested in the stability of global financial system (because for them it is not only a ‘product’ they produce, but also the means of global conquest and retention of power over it).
Dollar – is a dollar even in Africa. This rule STILL holds. Major currencies continue to occupy a leading role. But the dollar is clearly not the same. Remember what you could buy for the same amount of American currency ten years ago, and how much it costs today. Monetary inflation is high. This is the first factor of destruction of stability. But it is least noticeable. There are others that are on the surface. We just have to put the pieces of the puzzle together.
Back to the idealistic image of Western stability. A man works and saves for the entire life. Receives a pension. And lives happily ever after on savings + interest. This scheme no longer works.
NEGATIVE interest rates on deposits are becoming the norm in Western banks. You put in 100 euros, take out 95.
Why did it happen? Because Central Banks lowered the cost of money LITERALLY down to zero and banks are now not interested in attracting depositors’ funds. Why pay percent on deposits if the ECB will give money for free? Meanwhile, almost two years earlier the ECB gave money for just 0.05%. But it was not enough and European Central Bank practically embodied the Soviet Communist party program – the money became free, a sort of banking communism came true! But if all is fun and well for major banks, it has become very sad for all the European depositors. Interest on deposits became negative. Does the inability to PRESERVE and INCREASE money, to do what used to be called SAVINGS, undermine the stability of the Western world? Of course. If every year your bank deposit will melt by 5% you certainly won’t feel confident.
Here it is appropriate to recall that all interest rates are invented by humans, and not nature. Why did the ECB begin to systematically undermine the stability of global finance and confidence of Western people that they live in the best system in the history of mankind?
But that’s not all. What happens if against all logic (and what’s important, bank interest logic), banks will introduce negative interest everywhere? People will not deposit money in their accounts and will begin to withdraw it. And then banks ‘suddenly’ decide to create paid banks accounts! For the mass market. That is, they used to pay a percentage to the client, now they will take not only the interest but a ‘monthly fee’.
This is a direct incitement for people to simply stop keeping money in the bank EN masse. Now we have moved into cash and the notorious glass jars, where we used to keep our savings. But here we also see that the bankers are destroying this part of stability. The fact is Europe decided… to withdraw banknotes of 500 euros from circulation. That is exactly the tool, where the former depositors dissatisfied by negative percentage would store their money! Against this background the Swiss Central Bank announced the launch of the new 50 franc banknote. It is worth noting that the ‘line-up’ of Swiss franks includes a very convenient for savings denomination of 1,000 francs (a little more than $1000). That is why it makes up 61% of the total value of money of Swiss National Bank. This banknote will also be changed in the future. Or not changed? There is no clarity. So – there is no stability and predictability…
The situation, which did not arise on its own. This situation was consciously manufactured.
It is impossible to save money in banks. To stash them in ‘jars’ is also problematic. When will the pension come, and what will it be — is unclear. There is no interest on money, stock markets are dropping before our eyes, banknotes change and can begin to change at any time (remember Perestroika and Pavlov’s reform with the exchange of 50- and 100-Ruble notes!). Stable, very stable instability!
What is a layman supposed to do?
To live in debt.
Not to have savings.
I do not think that there is one person in the world that imagines a stable world in that way.
But since this situation is simulated artificially, we must ask a question. Who needs it? Why did Switzerland abandon banking secrecy, Cyprus destroy the ‘cornerstone’ of its prosperity, robbing the depositors of Cypriot banks? Why did the ‘independent’ journalists begin to destroy off-shore secrecy and bring to light the misdeeds of Western politicians in the so-called “Panama scandal”? After all, it destroys the foundations of the global financial world order.
Why did those, who rule the world and determine the development of global finance, begin to destroy it?
We will talk about it in the next article.
The smell of impending war instead of the serenity of the 2000’s is in the air.