June sees upturn in sales - global recession may have just ended

June sees upturn in sales - global recession may have just ended
-

A lot of companies seeing June revenues up - its possible
the recession is now over and everybody getting back to
ordering electronics gadgets.

Time for Linux to spread it wings and grab even more
market share seeing that it never flinched during
the entire recession as it replaced expensive
proprietary and gave income to a lot of retailers
and factories throughout the recession period.


Still - what to do about the bloated banking and service
sectors and pen pushing classes creating tons of debt
and consuming vast amounts of money demanding
to be fed and clothed by those engaged in manufacturing?

Their greed may yet create lots of mini recessions
for years to come.


Why banks are not lending
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Why are all banks collectively not lending to businesses?

Because a fundamental rule about interest payments has been broken
after years and years of consolidation of banks.

Your local bank when it lends your money is supposed
to charge interest and that interest varies according
to purpose. If you are investing in property, it can be
low interest. If you are borrowing to finance derivative
trading or play with stock market then they are right
to charge a high interest because you may gamble it away
and they can't recover their money.

Through consolidation however, your local bank's deposits
are effectively STOLEN by the big parent bank that owns
your branch to do as they will.

They are not going to pay the local branch for borrowing
your money from your local branch because it is not a business
unit in its own right. Years of consolidation
has seen to it that the local branch is not a bank
but just an office of the main bank.
That difference is crucial.
Now your money is not being lent from the local branch
to the main branch where it has to pay varying levels
of interest depending on which purpose the main branch
had borrowed the money for.

Because head office took that money, they are not obliged
to pay you interest according to the purpose to which
it has been used. Staggering amounts of money can be hoovered
up by head office and used for playing the stock markets and
still they owe you nothing.

Their argument is that they can make more money in one day
than lend to hundreds of businesses.

The point they forgotten is that the money they are playing
with belongs to customers and the local branch and they owe
them disproportionate amount of interest on the purpose they
used it for because its NOT their money, it belongs to customers.

Ah then they say, the local branch is their own office.
Its not a separate banking entity and we don't anyone
any money when we siphon off money from the local branches.
Well, no. Even when a bank is consolidated all its
branches into one bank, the rules were that merchant banking
and retail banking were separate. So even within head office,
the rule was that the money could only be lent from retail
banking division to merchant banking division. The idea
was that the retail banking division still represented the
customer interest and charged all its lending rates
according to the risks that the merchant bankers loaned
the money for.

Over the years these Chinese walls have come down and
merchant bankers simply take the retail bank's
money without paying proper due interest and to top it all
the regulations become slack allowing customers to
never see any of their just rewards for lending money
to high risk merchant banks being realized.

So the real reason why banks are not lending money
to businesses is that their merchant division are not
paying the true and just higher rate of interest
they owe to the retail banking divisions.

To fix this, the Bank of England governor should ORDER
THE RETAIL DIVISION OF BANKS TO LEVY BANKING CHARGES
AND INTEREST TO MERCHANT DIVISIONS and compensate the
customer fairly and equitably for the risks they have
taken. To prevent fraud, the Bank of England
governor should dictate that the retail banking
division's accounts CANNOT be mixed up and mashed
up to hide the details of the flow of money from
the interest being charged to interest being
paid back to customers and fine banks that do this
on a daily basis until the accounts are submitted
satisfactorily.

Once the retail banking divisions are forced to
look after customer interests and charge the merchant
divisions interest according to the risks they pose
then suddenly merchant banking division don't want to
borrow as much money as before because at the end
of the day they have to both make money and pay
back the interest on loans. If they failed to pay
all of it back and the interest, they will have to
sell their prized stocks at a loss and by the end
of the trading day and very quickly they don't
look so good after all.

The customer's money is safe because the retail
banking division can go after all the assets
of the merchant banking division to recover debts
without having to call in the police.

The retail banking division will now also begin
to have piles of money lying around because if the
merchant bankers don't want to borrow much
at the proper interest rates that compensate the
depositors for the risks they are taking,
then that money is just sitting there
for the retail division to go lend it to businesses
and home buyers at the proper interest rates
that reflect the risks the banks and the depositors
are taking when they lend to that particular customer.

The merchant banking division will never be
able to force banks to not lend to businesses
once these Chinese walls are restored within banks
that gets the merchant bankers properly paying
for the interest on the money they borrow from
the retail banking division and the bank's customers.