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The government bonds fraud

Anyone who wants to understand the workings of banksters and central banksters cannot avoid dealing with the grossest fraud machine, government bonds. The following questions need to be answered here: Who actually issues government bonds, the grossest temptation to destroy capital since the advent of junk bonds?? Who is going to buy these stale guarantees of the state, which are not even worth the paper they are printed on?? And what happens to these fiat securitizations afterwards??

Who issues government bonds?

Government bonds are, as most German citizens do not know, issued by the Federal Republic of Germany Finance Agency GmbH, based in Frankfurt am Main. The purpose of the Company is to provide services to the Federal Ministry of Finance for the budget and cash financing of the Federal Republic of Germany and its special funds on the financial markets. This includes, in particular, services relating to the issuance of German Government securities, borrowing by means of promissory note loans, the conclusion of swap transactions and money market transactions (borrowing and investment) to balance the account of the Federal Republic of Germany with the Deutsche Bundesbank.

The Wishing Table

"Financial expert" Gunther Schild promotes the Federal Finance Agency

The company with a share capital of only 50.000 DM (today about 25.000 Euro) was founded on 19. September 2000 by changing the articles of association from the Berlin CVU Systemhaus Abwicklungsgesellschaft mbH and has its headquarters in Frankfurt am Main. Should the Federal Republic of Germany thus in the course of the next years likewise be liquidated like the former GDR, the enterprise has thus immediately the correct pedigree.

Who buys government bonds?

The gross purchasers of government bonds are predominantly gross, private companies, commonly referred to as gross banks. When the federal government needs money, the commercial banks negotiate an interest rate with the Federal Republic of Germany Finance Agency GmbH – and if an agreement is reached, the corresponding sum of money is deposited in the account of the Federal Republic of Germany Finance Agency GmbH.

Let us assume that the Federal Government needs 10 billion euros on one day. Then BRD Finanzagentur GmbH will tender government bonds in the amount of this sum and ask certain banks at which interest rate this massive debt can be financed. Let’s say a bank X buys all government bonds at 3.25%. The bank now has the right (and, from an accounting point of view, the obligation) to include the government bonds in the amount of 10 billion euros in its balance sheet and to grant the Federal Republic of Germany Finance Agency GmbH sight deposits in the amount of 10 billion euros in the same amount.

On the assets side of a bank’s balance sheet, this item is referred to as bonds and other fixed-income securities, and on the liabilities side as liabilities to customers. This allows the bank to extend its balance sheet by 10 billion euros, i.E.H. The balance sheet of the commercial bank is now 10 billion euros higher than it was before this transaction. This transaction has created 10 billion euros in new banknotes, which the Federal Republic of Germany Finance Agency GmbH can now use immediately to make payments, e.G.B. By bank transfer. The banks, which are actually bankrupt in a financial crisis, thus create new money for the purchase of government bonds through a deal with the said financial agency.

The money miracle

If a large number of bonds are bought by banks, the federal government can now, in turn, in addition to its debt management, grant banks loans of unimagined size or even take a stake in them in exchange for cash. Thus the balance sheet shrinkages of the banks are balanced by the deflationary effects of a bank crisis and the balance sheets are reorganized at expense of the taxpayers.

If the banks now find enough stupid people who buy the government bonds from them again, usually state citizens or foreign investors who believe that the underlying state cannot go bankrupt, then these can be bewitched with a profit. If in a world economic crisis not enough stupid people want to buy worthless securitizations, the central bank can buy government bonds from the banks (this is called "quantitative easing"). Politics and banks have created the perfect monetary perpetum mobile. The federal government has new money, the banks have made a huge profit from rising bond prices and are about to get rid of their new debts.

The central bank can keep the prices of government bonds high for a certain period of time by buying them up, thus keeping interest rates low despite the threat of national bankruptcy and the junk bond status of the bonds. This can also happen, in particular, when foreign creditors suddenly lose faith in government bonds (e.G. B. The Chinese sword of Damocles against the U.S. Economy). The purchase of government bonds of the banks by the central banks represents as last construction a girales economic miracle, which is based however differently than the economic miracle of Ludwig Erhard not on the increase of the real wages, but on an inflationary expansion of the money supply. Therefore, gold must fall in price for the money fetishists and the flight into the U.S. Dollar and into U.S. Government bonds must be propagated as the last refuge of planetary monetary peace. The headquarters of neoliberalism let greet when capitalism goes down. The crisis is dead, long live the next crisis, Karl Marx would sum up.

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