‘Government bail out of banks is theft from the taxpayer’

July 24, 2016

Godfrey Bloom

RIGGED SYSTEM: Former Euro-MP Godfrey Bloom said in 2013 said in a speech to the European Parliament on the Crisis in the Euro-zone that central banks were repressing interest rates so that consumers did not know the real cost of money.

ECB Central Bank Frankfurt

PUBLIC PROTEST: This picture shows banners outside the European Central bank headquarters in Frankfurt. Is quantitative easing by the ECB and national banks effectively a legal form of counterfeiting, as suggested by Bloom?

Lord Turner of Ecchinswell

BANKING BONUS: Lord Turner of Ecchinswell, who was heckled by Godfrey Bloom in his 2009 Mansion House speech after it alleged by Bloom when he heckled him in the peer’s speech that as the then chairman of the FSA he had given bonuses to staff at a time when there had been regulatory banking failure.

 

AN astonishing attack on the banking system and politicians in the Strasbourg Parliament by a former Euro MP – buried by the mainstream press – has emerged on social media.

You will not find this speech has been covered by Sky News or the BBC as it could be construed as uncomfortable viewing and “politically incorrect” – it was released by the group Anonymous on its Facebook page. This is in the public domain but has been sidelined. It has had 13 million views.  It was made back in September 2013 but surely is relevant to today.

Godfrey Bloom was a UKIP MEP for Yorkshire and the Humber between 2004 and 2014 and had previously worked in the banking industry.

It has to be said the former politician concerned is outspoken in his views on many issues and left UKIP in 2014 due to it being too “politically correct”.

In September 2013 in a confrontation with BBC economics journalist Michael Crick at the UKIP conference, he slapped him with a conference brochure.

Four years previously in a speech given to Mansion House given by then chairman of the Financial Services Authority, Lord Turner of Ecchinswell, he heckled him for giving FSA staff bonuses who oversaw the regulatory failure for 2008/09 and Bloom  was subsequently thrown out.

In Bloom suggests institutions like the European Central Bank, Deutsche Bank and the Bank of England, were complicit in counterfeiting money through banks through “quantitative easing” when the average member of the public would have done their porridge if they had done the same thing.

Addressing the commission for banking, Bloom said at the time: “it is my opinion that you do not understand the concept of banking. All the banks are broke. Bank Santander, Deutsche Bank, Royal Bank of Scotland… they are all broke.

“And why are they broke? It isn’t an act of God. It isn’t some sort of tsunami. They’re broke because they have a system called fractional reserve banking which means banks can loan money that they don’t actually have. It is a criminal scandal and has been going on for too long.

“To add to that problem, you have moral hazard, a very significant moral hazard from the political sphere. Most of the problem starts in politics and central banks that are part of the same political system. We have counterfeiting, sometimes called ‘quantitative easing’, but counterfeiting by any other name. It is the artificial printing of money which if any ordinary person did they would go to prison for a very long time and yet governments and central banks do it all the time.”

“Central banks repress interest rates so we don’t have the real cost of money and yet we blame the retail banks for manipulating Libor.”

Libor is the London Interbank Offered Rate is the average of interest rates estimated by each of the leading banks in London that would be charged if it chose to borrow.

Bloom went on: “The sheer effrontery of this is quite astonishing. It’s central banks that manipulate interest rates, Commissioner, and plus underneath all this, we talk loosely at a rather cavalier fashion, do we not? About deposit guarantee.

“So when banks go broke through their own incompetence and chicanery, the taxpayer picks up the tab! It’s theft from the taxpayer.

“Until we start sending bankers, and I mean central bankers, and politicians to prison for this outrage, it will continue.”

 

 

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