The banking system, according to Godfrey Bloom, is a scam that has been operating for centuries. It involves financial institutions, such as banks, manipulating the money supply and engaging in risky practices that can lead to economic crises and financial collapse. One way that banks have historically been able to carry out this scam is by creating money out of thin air through the practice of fractional reserve banking. This means that banks are able to lend out more money than they actually have on hand, creating the illusion of greater wealth and stability. However, when too many people begin to default on their loans, the whole system can come crashing down, as was seen during the global financial crisis of 2008.
“The whole banking system is a scam, is it not?” said Bloom. “We have bailed out a load of incompetent banks. We have borrowed billions and billions and billions of taxpayers’ money to do so. And we have done nothing for the poor, downtrodden taxpayer.”
Bloom argued that the bailout of banks was a mistake and that it was unfair for taxpayers to bear the burden of bailing out banks that had made poor decisions. He also suggested that the focus should be on helping ordinary people, rather than rescuing banks.
In addition to this, Godfrey Bloom also criticized the EU’s plans to create a single supervisory mechanism for the banking union. This mechanism would allow the EU to have greater control over the financial activities of member states and ensure that they are in compliance with EU regulations. While the intention behind this mechanism may be to create greater stability and transparency in the financial system, Godfrey Bloom argued that it would simply allow the EU to have more power to regulate and control member states, rather than addressing the underlying problems with the banking system.
“What we should have done is taken the opportunity to restructure the banking system,” said Bloom. “To have a complete change in the way the banking system works. To get rid of all the useless people at the top of these banks who have brought us to this terrible mess.”
Here is the transcript of that speech:
“It is my opinion that you do not really understand the concept of banking. All the banks are broke. Bank Santander, Deutsche Bank, Royal Bank of Scotland…they’re 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 we have a system called fractional reserve banking, which means that banks can loan money that they don’t actually have. It’s a criminal scandal and it’s 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 which are part of the same political system. We have counterfeiting sometimes called “quantitative easing” but counterfeiting by any other name. The artificial printing of money which if any ordinary person did, they’d 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.
The sheer effrontery of this is quite astonishing. It’s central banks. It’s central banks that manipulate interest rates.
And plus, underneath all this, we talk loosely at a rather Cavalier fashion, do we not? About deposit guarantees. So, when banks go broke because of their own incompetence, and chicanery, the taxpayer picks up the tab!
It’s theft from the taxpayer!
And until we start sending bankers, and I include central bankers, and politicians to prison for this outrage, it will continue!”
Ultimately, according to Godfrey Bloom, the only way to truly fix the banking system and prevent future crises is to completely overhaul the way it operates. This would involve getting rid of fractional reserve banking, introducing new forms of money that are not tied to the traditional financial system, and creating more transparency and accountability in the banking industry.
Overall, Bloom’s speech highlighted the frustration and anger that many people feel towards the banking system and the way it has been handled in recent years. While some may agree with his views, others may disagree and argue that the bailout of banks was necessary to prevent a complete collapse of the financial system. Regardless of one’s perspective, it is clear that the issue of the banking system and its regulation remains a contentious and complex issue.
