Thursday, March 13, 2014

Of Zombie Banks and Fraudulatives

HSBC Bank on Verge of Collapse: Second Major Banking Crash Imminent‏


Assalamu ‘Alaikum,

Aah the magic of banking how a RM10,000 cash deposit allows the bank to further create  and lend another 24,000 money out of thin air which nobody knows any different because all settle with cheques which banks sets off against each other. The fraud will appear if everybody starts to demand cash. RM25,000 money is floating round but only RM1000 cash is available. That describes a bank in crisis.

 
Picture all the borrowers go to the bank to demand cash, bank cannot honour as there is not enough cash. If they agree to settle in cheques everything is fine again. Similarly if all the depositors go to collect their cash out. Not only it has been lent out but 25 times the amount deposited have been lent out. It pleases the bank if we deal in cheque books instead of cash.
 
However what's happening to HSBC pales in comparison to the actual situation of the big banks in the US. In the US we have what are called zombie banks i.e. banks who are dead a long time ago but kept alive, by dishonest accounting and complicit dishonest auditing by the big international audit firms.
 
Remember the toxic assets of the subprime crisis 2008. Much is still sitting on the current assets of banks. Now 101 audit requires you to display assets at lower of market or book value, right? However the fraudulatives are made to be so complex only the big banks can put a value to it and the auditors fooled and the audit partners closed eyes on instructions from further up, if you get the drift. Hence if proper accounting and auditing is done as they are prone to lecture the world to do, these banks are long ago deceased, dead, kaput.
 
However that is the fraud that is America, where Dow Jones are manipulated and a privately owned central bank called the Federal Reserve can literally pluck USD out of the air to cheat internally, and to pay the world for produce sold to America.
 
What surprises really is not that they can commit the fraud but the psychophants throughout the world who still sees beautiful clothes on a stark raving naked emperor!
 
Wassalam,
Zahid


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