Drowned by a system of debt
Madam – With reference to the Anglo Tapes and the scandalous behaviour of our 'banksters', it is very important that we realise how our sovereign uses a "debt-based monetary system". With the inception of the euro in 1999, capital borders quite literally disappeared overnight and we entered into the boom era of European cross-border credit lending. The likes of Anglo Irish grabbed the opportunity and so a manic phase of lending and borrowing occurred. Ironically, at the same time, in 1999, President Bill Clinton lifted the Glass Steagall Act.
This act was created after the Thirties' Great Depression, to prevent fractional reserve banking – where the lending out of more than real deposits actually deposited in a bank could occur. As well, there was the raising of the Gold Standard in 1971 by President Nixon, where the term Fiat Currency appeared and paper money did not have to be backed by hard assets, ie gold. Our global financial system since then has been built on debt, and based on constant future growth to pay it back. There is now considerably more debt in the system than sound money.
The disastrous decisions made in 2008 by the Government to socialise the banking debt and not let our banks fail, has fully created a system where the wealthy are completely protected and the taxpayer must foot the bill. This was the biggest failure ever to take place in modern democratic history.