Historically speaking, the age-old debt trap introduced by the loan sharks is the main culprit for spreading other unethical diseases around. In fact, the financial state we are in today is the “by product” of unfair indebtedness - at individual, local or global level.
Obviously, lenders from lower level have progressed to higher levels and having been re-classified as financial institutions they work day and night to earn money through borrowing from any source to do the lending business with a purpose of earning interest income - left and right.
Tricky Debt system is the creation of the loan sharks of the past, who eventually became more sophisticated machines of milking money.
Most troubling is “the needy’s desperation” to get loan at whatever cost - depending on the nature of urgency or lack of qualifying for the loan due to missing collateral.
debt load passes on to people [google image]
Painfully, most of the countries are facing debt crises today as the debt usually grows year-after-year. And, with each additional deficit, the debt continues to grow.
Recently, a rescue package was given to Athens from euro zone governments and International Monetary Fund. And a range of some other austerity measures have put some brakes on the growth across the region.
OBAMA LOOKS WORRIED
Also, President Barack Hussain Obama, during the deficit discussions, warned the Americans about economic doomsday - if the country defaults on its debt, therefore, credit limit needs be increased to fulfil its promised obligations - meaning more borrowed dollars to pay for legally binding obligations.
In fact, deficit and budget quagmire is not an easy scenario to handle, and it has serious consequences.
In Canada, the size of the overall external debt had reached $58.698 billion during the third quarter (July-September) The total debt in Canada is 4.599 trillion$ and the nominal GDP is 1.622 trillion (according to the Canada Budget 2011 document). The total debt to GDP is 283% of the year 2010.
|Please save me I am drowning in debt (google image)|
Canadians generally have taken advantage of the country's historically low interest rates to borrow cash at advantageous terms. But, experts have begun ringing the alarm bell regarding higher debt levels for individuals. As Bank of Canada governor Mark Carney warned in a recent speech that Canadians had debt including mortgages (valued at 150 % of disposable income). This is quite worrisome.
With regard to Italian loans to Pakistan, the former has agreed to waive latter’s total bilateral debt by swapping half of it for expenditure incurred on Afghan refugees, while the remaining amount of debts of $26.52 million and 58.74 million euros will be swapped for the jointly-agreed social and developmental projects under Debt for Development Swap Agreement in 2006. Pakistan’s total external debt amounted to $58.393 billion at the end of December 2010 while official liquid reserves of the country stood at $14.126 billion in the same quarter (October-December) of the last year.
In many other countries, Public services are being slashed and public assets are being sold off to balance budgets that can't be balanced because the money supply itself has shrunk. Governments usually get the blame for excessive spending, but governments did not actually initiate the crisis. The flaw is in the banking system and in the credit system which is responsible for creating and sustaining.
Admittedly, there is big problem of excessive deficit financing for which there is no repayment plan and that is pushing the world to the most Destructive Economic Tsunami of the 21st century.
Furthermore, Inflationary pressure is fast turning into hyperinflation, which is really deadly for the economies based on fake values. By deficit spending means spending the borrowed money or newly printed bills/notes as legal tender with a fake face value.
The result: Beyond control price hikes of goods and services are adding to economic hardship for the public and the governments in adversely affected regions. Particularly, when people are unable to earn enough money to pay their bills.
Coming back to the market manipulators who control the borrowers:
bye bye darling [google image]
It’s all about loan sharks community of yesterday, which has succeeded in becoming bankers of today.
Believe it or not, the legitimatized manipulating vampires are the major source of the world's financial woes.
Even the Haves are no longer in charge of the money machine they created. They have set into motion, forces over which they have no control any more.
And the financial dealers/wheelers have further sophisticated the system of exploitation to their advantage in order to steer the economy accordingly - but at the cost of the entire system which is about to go down.
Actual trick of the trade is through borrowing money at lower interest rate to produce goods and services or for lending to sub borrowers at a higher interest rate. However, some experts are of the opinion that it’s a legal variation of the illegal pyramid scam.
Furthermore, the astonishing scenario shows that the manipulators have approved questionable loans. They borrow huge sums for high-risk investments which is doomed for one reason or the other. That’s how they rip off billions of dollars and they just walk away from the collapsing companies.
It’s so true about the manipulators for they are good at tackling the Rules skilfully in order to milk billions of dollars from corporate retirement funds.
Surely, without major changes soon, the system is about to self-destruct.
In other words, big money lenders have succeeded in manipulating the laws and have legalized some very shady deals for themselves. For example, the illegal, 1930's-style loan sharking became legal and is now the property of the financial industry.
In the remote past, "loan sharking" was considered a serious crime and those caught went to jail.
Highly troubling, now the former criminal activity is legal. The criminals of the past have taken over the government, changed the laws and declared themselves to be immune from prosecution in many countries.
Nevertheless, it’s still illegal for you as an individual to charge any interest over 10%, but some corporations are now charging as much as 100% interest and that's perfectly legal. Credit card companies commonly charge you up to 30% or even more in certain cases.
In fact, most of the money today is not created by governments; it is created by private banks as loans. The private system of money creation has grown so powerful over the centuries that it has come to dominate governments globally.
Under the flawed system, the banks advance “bank credit” repayable with interest, continually requiring more money to be repaid than was created as loans; and the only way to get additional money from the private banking system is to take out yet more loans, at interest.