Firstly, get out of the Euro and default on any foreign debt. It is beyond control and the ECB (EG Big Germany) will take all your sovereignty and tell you how to run your country while stripping up all yourÂ countriesÂ assets and advise further austerity.
Once you have done this, time to re-build.
The Greeks are now faced with the perfect opportunity to be a pioneer for sustainable banking.
So second thing is, replace all the toxic debt based money created by banks, with debt free money.
Simply put, a newly appointed independent monetary authority creates debt free number money on a server.
I would use this to pay down the domestic national debt and this will pour a load of money into the economy without inflating the total money supply. You are simply replacing one form of money with another form, but without the interest.
This cannot be used to pay foreign debt, as the money will leave the country and not cause the necessary stimulus.
Now time to reform the banks by using some of this debt free money and lend it (once off) to all the Greek banks, equal to the amount of money they have created through loans.
As bondholders money starts to reach the economy aa the government does not need to borrow anymore, people pay down their debts and the banksÂ graduallyÂ repay this money back to the Greek treasury and this makes it’s way back into the country as the country reducing taxes for everybody.
Now we foresee banks to separate current accounts and investment accounts for their customers as described in the video and their is no liability on Greek taxpayers to bailout the banks again.
Society decides where they are going to direct their savings and the economy rebuilds itself sustainably based on the values of the Greek people, not on the values of the banks.
The Greeks are now more sustainable, more stable and more equal.
It was a great honor to present at TEDx last weekend. I have been a TED fan for years and have always believed that the message about banking is an idea worth spreading through TED.
But now we need your support in order to get tis message on the big TED stage where people like Bill Clinton, Bill Gates, Steven Hawkins, Tony Robbins, Richard Branson and the greatest minds and achievers in the world have shared their ideas.
Once that happens we can get millions exposed to the flaws in banking as some TED videos have up to 4 million views.
Lets tell the world about the flaws of banking so we can get that debate from the top.
For those of you new to TED, here is a little summary from their website:
TED is a nonprofit devoted to Ideas Worth Spreading.
It started out (in 1984) as a conference bringing together people from three worlds: Technology, Entertainment, Design.
Since then its scope has become ever broader. Along with two annual conferences — the TED Conference in Long Beach and Palm Springs each spring, and the TEDGlobal conference in Edinburgh UK each summer — TED includes the award-winning TEDTalks video site, the Open Translation Project and TED Conversations, the inspiring TED Fellows and TEDx programs, and the annual TED Prize.
So I was recently invited onto Press TV to review a documentary called ‘Capitalism is the crisis’.
It blames us business people for all problems in the world – from austerity to student debt to riots to bankers bonuses and everything in between.
Now if the documentary was called ‘banking is the crisis’ or ‘corporatism is the crisis’ then I think there would be an interesting case.
But, my experience of capitalism and the majority of capitalism consists of small businesses and entrepreneurs just like you and me, is the opposite of the picture the documentary tries to paint.
Every day I meet business people and attend a lot of Ecademy events.
7 times out of 10 I hear the same story -
An entrepreneur that seeks to solve a big problem in the world that is important to them. They create products to solve their customers needs and in many cases have a big vision and mission behind it.
Very often it is a social mission that they dared to dream they could impact.
In the process of trying to make their vision a reality they suffer financial hardship and often pay their staff first in order to make it happen. After many struggles they break through and to call them the cause of the crisis is a slap in the face of all their effort.
They were fed up of expecting the government to solve their problem so they decided to create a business to solve such a problem.
And guess what – staff and product cost money and effort deserves to be rewarded through profit.
For the documentary to blame these people for all problems in the world is both misleading and insulting.
I am sure the film maker comes from a good intent and I wrote to him on Facebook to check. I can confirm he comes from a real place of care, we just differ in views.
This old socialist v. capitalism argument is one that is completely false.
The reality is that banking has completely distorted the socialists view of capitalism and to call an economy like the UK where 40% of the workforce is employed by the government a capitalist country is dead wrong.
I also think on the flip side that banks have been exploiting governments for years and the capitalist view of socialism is warped too.
My hope is that one day we will realize that there is a roll for government, there is huge need for business, there is definitely a need for banking, but it may look a lot better when the government realizes we don’t need banks for the creation of money and in fact Google, Facebook, Amazon and Apple might do a good job at it too.
Love to hear your comments if you cannot join me at Waterstones in person.
Founder of Benedix
Author ‘Bank To The Future: Protect Your Future Before Governments Go Bust’ & ‘Student To CEO: 97 Ways To Influence Your Way To The Top In Banking & Finance’
While Fred Goodwin seems to be the focus of many today with the stripping of his knighthood, it is very easy to single out somebody to blame for the mess we are in today, but a quick look at reality and he just happened to be CEO of a bank at a time when whoever was in charge would have had the same fate.
I am not for defending banking CEOâ€™s right now, but the former RBS CEO was in the wrong place at the wrong time.
Banking is a ticking time bomb and if the government wants growth in our economy, then they require banks to lend more money. That is why everybody is giving the banks a hard time for not lending more right now.
When you have to lend and lend and lend there comes a time when you cannot lend anymore without taking bad risks, but remember the government and the economy require banks to lend so we can keep up the illusion of growth.
Under Fred Goodwinâ€™s leadership RBS lent and lent and lent and when it could not lend anymore, it got creative, just like every other bank. This has been a trend for decades now and Fred Goodwin happened to be CEO at the time when the ticking time bomb was due to explode.
Did he make a lot of money out of the ticking time bomb? Yes, but so did the government and so did we when we all bought into the property bubbles created by them. We borrowed the money that banks offered us. We are all a part of it, but the easy thing to do is get angry at those who got paid the biggest cheque. Goodwin got paid a very big cheque and so we all look at him in anger. Stripping his knighthood may make us all feel better, but remember who gave it to him in the first place – the same people that wanted the economy to grow falsely by lending more and more and more.
Now the question we are left with is…are we going to focus on blame and stripping knighthoods or are we going to change the rules of money and banking so we can prevent it happening again? Experience tells me we will choose blame over real reform and wait for a bigger and badder crash.
Every New Years Day I pull out the financial charts and make some forecasts. (What a geek I know, it has been since my days trading for an investment bank).
So in true New Years tradition this morning I pulled out the charts to make some forecasts.
There is good news and bad news.
So lets start with the good news – we will have a market recovery in 2017 according to key points on the market charts.
The bad news – the markets are going to get progressively worse for the next 5 years.
So the questions are…
…what is going to happen between now and 2017, what is going to cause a recovery in 2017 and what do you need to do to prepare?
After consulting my crystal ball and studying several company charts here is my forecast…
The markets will not recover because we are not doing anything to fix a lie we have told the world called ‘banking’.
For decades we have had a progressive shift to rule by banks and countries worldwide are protecting the lie and creating policies with the specific intention of doing one thing – getting individuals, businesses and countries deeper and deeper into debt.
So any false temporary recovery you will see over the next five years will be because central bankers (Basically bankers), governments (In debt to the bankers) and economists (Spreading the lie we call banking at universities) will come up with a new plan for how to solve the worlds debt crisis, with guess what – more debt.
This will continue for five years. The markets will crash because they are reacting to the reality of unsustainable debt by individuals, companies and countries, followed by brief market recoveries when new innovation (A new form of Quantitative Easing, a new rescue plan, a new bailout plan, a new financial product called toxic shit) is released.
But the net effect of all innovation and policy will be to help individuals, companies and countries solve their debt problems with more debt!
Hence the brief unsustainable bursts of recovery followed by more bad news.
The rich / poor divide is going to get progressively worse in this period.
So what does that mean for your business, who will be the big winners in such a market…
…and who will just about survive past 2017…?
The big winners will be any company that can serve the rich and the poor at the same time.
And the survivors…?
Companies that leverage the big winners.
So lets start with the big winners…
The biggest winners will have the following business model:
They dominate a market by offering something valuable for free to the masses, help those with little money to make money, and earn the majority of their revenue from those who have money.
Google dominates free search to the masses, hence they have the eyeballs of the world, they help small businesses make money by sharing their advertising revenue with those who place Google Ads on their sites, but the majority of their money is made from large advertisers who have lots of money.
Apple offers free iTunes and iPhones to the masses (When you sign a contract with a telephone company), allows developers and artists to make money by selling their albums and apps, but makes the majority of their money from people who can afford to buy everything Apple sells.
Facebook offers a place to socialise with your friends for free, allows developers to make money by selling applications and games on Facebook and makes the majority of their money from advertisers with large budgets.
Other big winners…
Others that will do well are businesses that dominate an essential market, have access to the financial markets for capital raising and help people buy stuff cheaper.
Tesco and Sainsburys are established public companies that offer something we cannot live without cheaper than most corner shops – food.
Amazon and Groupon allow us to buy goods cheaper than we can get anywhere else and are large public companies (Or will be). They also allow people to make money by selling their goods.
Ebay allows us to buy goods on the cheap and allows people to make money.
So what about the survivors…
Well, it will be a challenge, but if you leverage the big winners over the next five years, you will make it to the end of the tunnel in 2017…
Lean businesses that partner with Google, Amazon, Apple, Ebay, Facebook, PayPal, Tesco etc. will make it.
So if you own a business that partners with the winners to get eyeballs to your service by having free Google search engine results, Apps on the App store, books and products on Amazon and kindle, communities and followers on the social networks, local services at discounts on Groupon, products on Tesco’s shelf or auction things through Ebay, then you may be OK.
The moral of the story, if you continue to make the big winners richer, you will be able to come out on the other side ready for the boom in 2017.
The challenge is making sure you have enough capital to make this happen by having a tiny overhead. Fortunately that is possible today.
So that is my forecast, but what about the rest?
Unfortunately most will be a statistic in the market crash as more and more go under.
And what will happen in 2017?
The next five years is going to cause the public to get very angry and will eventually lead to mass riots as more and more become unemployed.
By the end of it, the lie we call banking will be exposed and their business model will be disrupted, releasing the world from the death grip that banks currently have over our world.
We are in this economy because we are holding on to a banking system that cannot work and the undisruptable will finally be disrupted after the masses demand it by 2017…
Love to hear what you are up to in 2012…
Founder of Benedix
Author ‘Bank To The Future: Protect Your Future Before Governments Go Bust’ & ‘Student To CEO: 97 Ways To Influence Your Way To The Top In Banking & Finance’
OK, while the documentary ‘the secret’ has some value, positive thinking alone will get you in a bit of trouble right now.
I prefer – expect the best, but prepare for the worst and take massive action, don’t try and rely on the universe fixing everything for you right now.
Just in case you have not been following, now is the time to prepare your business for a collapse in the Euro.
Here is why:
Germany recently attempted to auction it’s bonds and was only able to sell one third of them.
For you non-finance geeks like me, this means that the appetite for lending to the government is at an all time low and we pretty much have a German run Euro anyway!
Every country in the Euro operates from a position of insolvency right now and our government led Euro-ponzi schemes rely on ever increasing levels of government debt to maintain their current positions…let alone grow.
Italy was forced to pay yields at all time highs at an auction of â‚¬7.5bn of debt on Tuesday but managed to raise nearly all it’s target range. God only knows why investors would put their money there, forget the yields, no thank you!
For you non-finance geeks again, this means that investors were only willing to lend to the government at a very high interest rate.
Bond auctions by Italy, Spain, Belgium and France are to follow to keep the ponzi scheme alive.
So all leaders balieve that the solution to a debt crisis, is guess what?
Ever tried that one – where did you end up!
As Europe’s political leaders are failing to control the spreading debt crisis, large businesses are preparing their companies against a crash that can no longer be wished away.
When German chancellor Angela Merkel and French president Nicolas Sarkozy suggested a Greek exit from the Eurozone, for the first time they questioned their little experiment in large scale centralized control of money called the Euro.
They are now discussing bailouts including the possibility of issuing European Central Bank loans to struggling countries via the International Monetary Fund.
I.e. More debt!
In my upcoming book ‘Bank To The Future: Protect Your Future Before Governments Go Bust’, I described how this is simply the IMF creating money out of nothing and issuing illegitimate loans to struggling countries, resulting eventually in takeover of that countries resources to outside control – a movement to centralised consolidation of power and taking over a countries assets.
The FT reported that car manufacturers, energy groups, consumer goods firms and other multinationals are placing cash reserves in safe investments and controlling non-essential expenditure, so you should probably be thinking along the same lines.
Siemens has even established its own bank in order to deposit funds with the European Central Bank directly preparing for a banking collapse.
The European Central Bank will end-up buying government bonds in huge quantities and we will continue the cycle as outlined in my video ‘The Great Depression of 2013″.
Anyway, yesterday is the time to start thinking about your exposure to contracts with European companies if you have any and start thinking about any exposure your business or investments have to the eurozone if you have not done so already.
George Osborn is preparing for a lost decade in the UK.
This may sound like doom and gloom, but there is light at the end of the tunnel…
…this financial mess is a human created problem, not a natural disaster, there are solutions, but for now…
…keep investing in your social capital, increase the size of your network and it is my belief that we will see some big reform ahead.
I have just returned from presetting at a European Conference on Banking Reform and I am getting lots of support and invitations to speak and present at some very high-end gigs, so I am doing all I can to help move towards a sustainable person to person led financial system where we can gain a level of protection from all this turbulence…
…and of course, I will continue to offer solutions to any central bankers and politicians that will listen.
My advise? – your social capital will be your number 1 asset in the future, build strong relationship online and offline, you will need a good network to figure this one out ahead.
When I told the world years ago that banking was unsustainable and due a collapse because of banks ability to create money, I was often called a conspiracy theorist.
When I told economists that their theories are built upon a misunderstanding of money, I was outcasted by academics.
When I told students that most will leave university with pieces of paper, lots of debt and no job, I was hated by university careers advisors.
When I told students and graduates that wanted to work in banking that they should spend less time applying for large banks and more time building contacts at boutique and mid cap financial institutions, I was accused of lying to help my friends recruit for their own financial institutions.
When I told the team at my student training company that I was pulling all sponsorship deals that my company had with the large banks because I wanted to spread my message about banks, they thought it was business suicide.
When I said unemployment is only going down and contracting will replace employment contracts more and more, I was ridiculed.
When I told my clients that the old way of securing careers will no longer work and you will need to adjust to learn more about personal branding, social media, freelancing, building contacts and less on MBA’s and Masters, I was accused of being a scammer trying to sell training courses.
When I said that people need to protect themselves for when governments go bust and default on their debt, they said I need to stop eating coco pops.
Today, they ask me to write a book on it!
With the rise of occupy wall street, countries going bankrupt, banking bailouts and injustice, I have found that more people are willing to listen and act and that the doubters are coming back.
I was asked recently to present with some Members of Parliament on how entrepreneurs and businesses are changing banking, happy to hear your comments…
P.S. Will be presenting at Occupy London on Sunday November 13th @ 11.30 in a marque outside St. Pauls Cathedral if you want to join me (Wish me luck!)
I did a whole chapter on how money will evolve into social media platforms in the future.
Thought I would share this interesting take with you here as it features a few of my friends…
Facebook ad revenue is growing fast, but its currency system, called “Credits,” is growing even faster.
Facebook will collect revenue of $470 million this year from Credits alone, according to a new estimate from eMarketer, up from $140 million in 2010.
Facebook in July began requiring that all merchants in its ecosystem use the Credits currency. The social network takes 30% of all transactions.
While advertising remains Facebook’s biggest source of revenue, the Credits program now accounts for 11% of Facebook revenue
Anyway, thought it was worthÂ sharingÂ as it interested me, to keep you in the loop, the new book has just made it’s way to the publishers and is with the designers now. It will be called ‘Bank To The Future: Get Ready To Make Money In The Final Collapse’ and is meant as guide to your future as we transition to the socialism of money under banking reform.
So the ICB report is out and we can now say for sure that the Positive Money submission for real banking reform was not actioned in any way.
It is clear to me from the final report that it is really a game of trying to please banks and submit to their threats of crashing the UK economy and trying to please the public by showing some kind of action.
I like the fact that there is some banking reform, unfortunately it is an expensive experiment that will not prevent the upcoming crash I forecasted in my YouTube video â€œThe Great Depression of 2013â€.
Here is a summary of the report:
- Ring-fencing is here and banks must separate domestic retail banking from global wholesale/investment banking.
- The commission is not clear whether banking for large companies should be in or outside the ring-fence
- The ring-fenced part of the bank should have its own board and be legally and operationally separate from the parent bank.
- Ring-fenced banks should have a capital cushion of up to 20% comprising equity of 10%, with an extra amount of other capital such as bonds.
- Capital could be moved from the ring-fenced bank to the investment bank, as long as the capital ratio of the ring-fenced bank did not fall below the 10% minimum.
- It should be easier to switch bank accounts and the ICB recommends “the early introduction” of a system that makes it easier to move accounts that is “free of risk and cost to customers”.
- The industry should be referred for a competition investigation in 2015.
In my upcoming book â€˜Bank To The Future: How You Can Boom When Banks Go Bust & The One Investment Everybody Needs To Makeâ€, I recommended the three commandment of banking reform based on the Positive Money submission:
1. Thou shalt make the banks ask depositors permission before they lend.
2. Thou shalt make the banks disclose to the depositors how they use their money.
3. Thou shalt give the license to create money to a democratic power.
So how did the ICB Vickers Report do?
Ring fencing goes a tiny way to actioning the second commandment on disclosure, but only a tiny way.
And that is about it.
The bank still becomes the legal owner of your money when you deposit money with them, they can still use that money for whatever they wish and they can still use it as collateral to create money.
So my forecast for the banking crash still stands.
The problem with requiring banks to hold additional reserves is as follows:
Without an alternative monetary system, requiring banks to increase their reserves only results in a reduction in the economy’s money supply leading to a recession and further unemployment as they replace staff with technology to cut costs, but with no more stability.
We still have more debt than money in our economy, we still need to increase debt in order to move out of the recession and any increase in reserves still leads to a decrease in the money supply in our economy.
The funny thing is, these reforms will cost just as much as real reforms and the problem will still remain.
I like the recommendations to encourage competition, but I want that competition to come from a full reserve bank.
I have been providing lots of commentary in mainstream media, so feel free to contact me if you are from the media and would like some commentary.
In case you did not see it, here is my forecast ahead.
Over the years I have been looking at many proposals for monetary reform. I have met many monetary reformers and of those the most influential in my work have been James Robertson and Ben Dyson. From the work of James Robertson and spending many hours with Ben Dyson I have copied a proposal below which I fully back. The proposal is taken from Ben Dyson’s website www.bendyson.com.
The following is a proposal for reform that can be implement in the UK Keep Reading…
As we speak I am in the midst of a PR road show presenting the causes, consequences and solutions of the financial crisis and the need for monetary reform across the UK.
I have been presenting to audiences totaling about 2000 a month. and my new venture in banking without banks is making progress.
After presenting to this many people and meeting this many bankers, you start to recognise some common themes in the questions that come up repeatedly that I would like to address in this post.
After my presentation where I demonstrate to the audience how 97% of our money supply is created privately through private debt loans and that money creation by banks is an expanding process in which money created by past loans is perpetually recycled, re-loaned, providing an endless supply of new money, building up into a vast infinitely ballooning total of money and debt that eventually renders unaffordable interest repayments, I open up the floor to questions.
Similar questions tend to arise at each presentation. Keep Reading…
Today, as I write, the new merged UK banking giant Lloyds has underestimated the loss that is about to be incurred as a result of the merger with HBOS. The banking giant has received a huge bailout selling more shares to the government and is on its way to being yet another private bank doomed to nationalisation.
On the television I hear no mention of why this might be apart from propaganda trying to make the public angry about the CEO’s who have taken too much bonus and ’caused’ all this mess. It is very easy to divert attention away from our unsustainable system by blaming the crisis on greed when you have every newspaper and television show focusing Keep Reading…
As you research this topic further, monetary reform is often presented alongside a full blown conspiracy theory, which claims that the financial system is being shielded from criticism and deliberately employed as a device for keeping people in a state of dependency, so as to advance a high-level political agenda. But this conspiracy theory is far from proven. Certainly, most political figures clearly know nothing of the weakness of conventional economics.
What dominates the world is not a conspiracy, it is a philosophy, a philosophy Keep Reading…
Our debt based monetary system is directly responsible for world export warfare and third world debts. In order to understand the need for exports it is necessary to understand that there is no such thing as a supply of permanent money to the economy, and the vast bulk of money within the economy has its origins in loans and is represented by a matching domestic debt. When goods are exported, foreign money is brought back into the economy, but the debt behind that money remains overseas, in the country of origin. Through exporting, money that has been borrowed into existence in another country is brought into the economy free of debt. The money can easily be turned into domestic currency via the foreign Keep Reading…
As a direct consequence of a debt based money supply our entire economy is plagued by intense competition for money to pay interest in an economy that suffers from an impossible lack of purchasing power. The chart belowthat plots the growth of money stock (M4) and domestic debt over a 33 year period in the UK clearly highlights that the total debts carried by consumers and industry is greater than the money that exists in the entire economy. Keep Reading…