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"Who owns the Bank of England? A brief history of World Banksters By Dark Politricks First a few historical comments by people who helped create two of the worlds most famous central banks, the Bank of England and the Federal Reserve. "I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men." - Woodrow Wilson, after signing the Federal Reserve into existence The Bank of England was created in 1694 by a Scotsman William Paterson who famously said: The bank hath benefit of interest on all moneys which it creates out of nothing. - William Paterson The history of the Bank of England and how it was taken over by one powerful family hundreds of years ago. Up until 1946 when it was nationalised the Bank of England was a private run bank that lent money it created out of nothing to the English government and was paid back with interest. A very famous story relates to the Bank of England and the infamous Rothschilds, that all powerful banking family. This story was re-told recently in a BBC documentary about the creation of money and the Bank of England. It revolves around the Battle of Waterloo in which Nathan Rothschild used his inside knowledge of the outcome and his faster horses and couriers to play the market by getting the result of the battle before anyone else knew the outcome. He quickly sold his English bonds and gave all the traders who looked to him for guidance the impression that the French had won at Waterloo. The other traders all rus

Meanwhile, illegal NSA spying is expected to cost USA Cloud Computing companies $35 Billion in lost sales and services. "whistleblower Edward Snowden worked for the CIA, rather than the NSA. Here's the original text in the Guardian: By 2007, the CIA stationed him with diplomatic cover in Geneva, Switzerland. His responsibility for maintaining computer network security meant he had clearance to access a wide array of classified documents. That access, along with the almost three years he spent around CIA officers, led him to begin seriously questioning the rightness of what he saw. He described as formative an incident in which he claimed CIA operatives were attempting to recruit a Swiss banker to obtain secret banking information. Snowden said they achieved this by purposely getting the banker drunk and encouraging him to drive home in his car. When the banker was arrested for drunk driving, the undercover agent seeking to befriend him offered to help, and a bond was formed that led to successful recruitment. In that quotation, there's the nugget of information that the CIA was not targeting terrorists on this occasion, at least not directly, but "attempting to recruit a Swiss banker to obtain secret banking information". That raises an interesting possibility for the heightened interest in Germany, as revealed by Boundless Informant. Given that the NSA is gathering information on a large scale -- even though we don't know exactly how large -- it's inevitable that some of that data will include sensitive information about business activities in foreign countries. That could be very handy for US companies seeking to gain a competitive advantage, and it's not hard to imagine the NSA passing it on in a suitably discreet way. Germany is known as the industrial and economic powerhouse of Europe, so it would make sense to keep a particularly close eye on what people are doing there -- especially if those people happen to work in companies that compete with US firms.

Closely related: see http://www.theguardian.com/business/2013/aug/02/telecoms-bt-vodafone-cables-gchq (,) an article on British telecom's collaboration with wiretapping by the UK's counterpart to the NSA, GCHQ. According to an inside source: "The source said analysts used four criteria for determining what was examined: security, terror, organised crime and Britain's economic wellbeing." I also recall that years ago during the furor over the Echelon system, an EU Parliament investigation had concluded that there were concrete instances of commercial intelligence being passed on by NSA to American companies. Specifically, I recall a finding that during development of the AirBus, details of its design had been intercepted by NSA and passed on to Boeing. There was testimony received that more generically discussed the types of economic surveillance conducted. http://cryptome.org/echelon-nh.htm (page search for "economic"). The same researcher stressed that in public statements: "Those targets like terrorism and weapons transport are used as a cover for the traditional areas of spying, the predominant areas of spying, which are political, diplomatic, economic and military."

Diigo is screwing up the URL AGAIN!!!!! WTF!!! The correct title is "Larry Summers and the Secret "End-Game" Memo :: http://goo.gl/wDhDhL From the marbux treasure trove of truth we have financial expert Greg Palast describing how the Banksters engineered the 2008 World Financial Collapse. Greg names names, sighting an important 1997 memo signed by then Deputy Treasury Secretary, Larry Summers. The memo describes the Banksters "end game", and authorizes pulling the trigger on a process of forcing the world's financial institutions to accept the game of derivative roulette where high risk financial schemes and casino bets had to be accepted as "financial assets". Good story and as from everything I know, the absolute truth. Read it carefully because these same Banksters control the Obama Administration and seek to continue the great shakedown. One item of note is the recent resignation of Larry Summers as Obama nominee to head the Federal Reserve Bankster Cartel. Summers is one of the architects of the 2008 financial collapse, but is seen be Wall Street as hesitant to continue with the current Bernake flooding of the money markets with $85 Billion per month in freshly minted paper. Even the hint of rolling back the Bankster bailout a bit is enough to do in Summers. alternative Fed Banster Czar Janette Yellin promises to up the $85 Billion monthly bailout, and Wall Street celebrated with a near doubling of trades. We're so screwed! We started the "Socialism and the End of the American Dream" Diigo group in September of 2008 as an effort to understand the financial collapse. In this short article, Greg Palast summarizes the story and places the important facts on the table for all to see. Pray with me for his health and safety. excerpt: "The year was 1997.  US Treasury Secretary Robert Rubin was pushing hard to de-regulate banks.  That required, first, repeal of the Glass-Steagall Act to dismantle the barrier between commercial ba

Related link: Summers Withdraws From Consideration for Fed Chairmanship, http://www.bloomberg.com/news/2013-09-15/obama-said-he-accepted-summers-decision-to-withdraw-his-name.html

From the marbux treasure trove of truth we have financial expert Greg Palast describing how the Banksters engineered the 2008 World Financial Collapse. Greg names names, sighting an important 1997 memo signed by then Deputy Treasury Secretary, Larry Summers. The memo describes the Banksters "end game", and authorizes pulling the trigger on a process of forcing the world's financial institutions to accept the game of derivative roulette where high risk financial schemes and casino bets had to be accepted as "financial assets". Good story and as from everything I know, the absolute truth. Read it carefully because these same Banksters control the Obama Administration and seek to continue the great shakedown. One item of note is the recent resignation of Larry Summers as Obama nominee to head the Federal Reserve Bankster Cartel. Summers is one of the architects of the 2008 financial collapse, but is seen be Wall Street as hesitant to continue with the current Bernake flooding of the money markets with $85 Billion per month in freshly minted paper. Even the hint of rolling back the Bankster bailout a bit is enough to do in Summers. alternative Fed Banster Czar Janette Yellin promises to up the $85 Billion monthly bailout, and Wall Street celebrated with a near doubling of trades. We're so screwed! We started the "Socialism and the End of the American Dream" Diigo group in September of 2008 as an effort to understand the financial collapse. In this short article, Greg Palast summarizes the story and places the important facts on the table for all to see. Pray with me for his health and safety. excerpt: "The year was 1997.  US Treasury Secretary Robert Rubin was pushing hard to de-regulate banks.  That required, first, repeal of the Glass-Steagall Act to dismantle the barrier between commercial banks and investment banks.  It was like replacing bank vaults with roulette wheels. Second, the banks wanted the right to play a new high-risk game:  "d

excerpt: "The year was 1997.  US Treasury Secretary Robert Rubin was pushing hard to de-regulate banks.  That required, first, repeal of the Glass-Steagall Act to dismantle the barrier between commercial banks and investment banks.  It was like replacing bank vaults with roulette wheels. Second, the banks wanted the right to play a new high-risk game:  "derivatives trading."  JP Morgan alone would soon carry $88 trillion of these pseudo-securities on its books as "assets." Deputy Treasury Secretary Summers (soon to replace Rubin as Secretary) body-blocked any attempt to control derivatives. But what was the use of turning US banks into derivatives casinos if money would flee to nations with safer banking laws? The answer conceived by the Big Bank Five:  eliminate controls on banks in every nation on the planet - in one single move.    It was as brilliant as it was insanely dangerous. How could they pull off this mad caper?  The bankers' and Summers' game was to use the Financial Services Agreement, an abstruse and benign addendum to the international trade agreements policed by the World Trade Organization. Until the bankers began their play, the WTO agreements dealt simply with trade in goods-that is, my cars for your bananas.  The new rules ginned-up by Summers and the banks would force all nations to accept trade in "bads" - toxic assets like financial derivatives. Until the bankers' re-draft of the FSA, each nation controlled and chartered the banks within their own borders.  The new rules of the game would force every nation to open their markets to Citibank, JP Morgan and their derivatives "products." And all 156 nations in the WTO would have to smash down their own Glass-Steagall divisions between commercial savings banks and the investment banks that gamble with derivatives. The job of turning the FSA into the bankers' battering ram was given to Geithner, who was named Ambassador to the World Trade Organization. "

Greg Palast does good work. I'm reminded of a passage from Carl Oglesby's The Yankee and Cowboy War where he argued rather convincingly that conspiracy is the norm rather than the exception at the boundary line between government and big business.

An accidental find, the full text online of USMC Maj. Gen. Smedley Butler's 1935 book, War Is a Racket. Butler served in the Marine Corps from 1899 to 1931 and at the time of his retirement was the most-decorated Marine in history, for both valor and accomplishments. Following his retirement, he became a vehement anti-war activist and public speaker.  This book is easily his most-cited and most-quoted published work. You can capture the flavor from an article he published in a magazine that included the following lines: "I spent 33 years and four months in active military service and during that period I spent most of my time as a high class muscle man for Big Business, for Wall Street and the bankers. In short, I was a racketeer, a gangster for capitalism. I helped make Mexico and especially Tampico safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefit of Wall Street. I helped purify Nicaragua for the International Banking House of Brown Brothers in 1902-1912. I brought light to the Dominican Republic for the American sugar interests in 1916. I helped make Honduras right for the American fruit companies in 1903. In China in 1927 I helped see to it that Standard Oil went on its way unmolested. Looking back on it, I might have given Al Capone a few hints. The best he could do was to operate his racket in three districts. I operated on three continents." http://en.wikipedia.org/wiki/Smedley_Butler#Lectures  I look forward to reading this book. The book was reprinted in 2003 and is available from the linked web site, together with two bonus titles. 

"WAR IS A RACKET" - free online book CHAPTER ONE WAR is a racket. It always has been. It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives. A racket is best described, I believe, as something that is not what it seems to the majority of the people. Only a small "inside" group knows what it is about. It is conducted for the benefit of the very few, at the expense of the very many. Out of war a few people make huge fortunes. In the World War [I] a mere handful garnered the profits of the conflict. At least 21,000 new millionaires and billionaires were made in the United States during the World War. That many admitted their huge blood gains in their income tax returns. How many other war millionaires falsified their tax returns no one knows. How many of these war millionaires shouldered a rifle? How many of them dug a trench? How many of them knew what it meant to go hungry in a rat-infested dug-out? How many of them spent sleepless, frightened nights, ducking shells and shrapnel and machine gun bullets? How many of them parried a bayonet thrust of an enemy? How many of them were wounded or killed in battle? Out of war nations acquire additional territory, if they are victorious. They just take it. This newly acquired territory promptly is exploited by the few - the selfsame few who wrung dollars out of blood in the war. The general public shoulders the bill. And what is this bill? This bill renders a horrible accounting. Newly placed gravestones. Mangled bodies. Shattered minds. Broken hearts and homes. Economic instability. Depression and all its attendant miseries. Back-breaking taxation for generations and generations. For a great many years, as a soldier, I had a suspicion that war was a racket; not until I retired to civil life did I fully realize it. Now that I see the international war clouds g

"ALL WARS ARE BANKERS' WARS! Click here for PDF version of this article By Michael Rivero "Banking was conceived in iniquity and was born in sin. The Bankers own the Earth. Take it away from them, but leave them the power to create deposits, and with the flick of a pen they will create enough deposits to buy it back again. However, take it away from them, and all the fortunes like mine will disappear, and they ought to disappear, for this world would be a happier and better world to live in. But if you wish to remain slaves of the Bankers and pay for the cost of your own slavery, let them continue to create deposits." -- Sir Josiah Stamp, President of the Bank of England in the 1920s, the second richest man in Britain I know many people have a great deal of difficulty comprehending just how many wars are started for no other purpose than to force private central banks onto nations, so let me share a few examples, so that you understand why the US Government is mired in so many wars against so many foreign nations. There is ample precedent for this. The United States fought the American Revolution primarily over King George III's Currency act, which forced the colonists to conduct their business only using printed bank notes borrowed from the Bank of England at interest."

"If the American people truly understood how the Federal Reserve system works and what it has done to us, they would be screaming for it to be abolished immediately.  It is a system that was designed by international bankers for the benefit of international bankers, and it is systematically impoverishing the American people.  The Federal Reserve system is the primary reason why our currency has declined in value by well over 95 percent and our national debt has gotten more than 5000 times larger over the past 100 years.  The Fed creates our "booms" and our "busts", and they have done an absolutely miserable job of managing our economy.  But why do we need a bunch of unelected private bankers to manage our economy and print our money for us in the first place?  Wouldn't our economy function much more efficiently if we allowed the free market to set interest rates?  And according to Article I, Section 8 of the U.S. Constitution, the U.S. Congress is the one that is supposed to have the authority to "coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures".  So why is the Federal Reserve doing it?  Sadly, this is the way it works all over the globe today.  In fact, all 187 nationsthat belong to the IMF have a central bank.  But the truth is that there are much better alternatives.  We just need to get people educated. The following are 11 reasons why the Federal Reserve should be abolished..."

Socialist blogger and Rolling Stone Magazine journalist Matt Taibi has made a career out of exposing Banksters and their criminal activities causing the 2008 collapse of the global financial industry.  Here he sights a story in American Banker that fully demonstrates the depths of depravity and criminal activities that continues to characterize big Banksters. The mortgage-foreclosure-robo signing scandal is just the tip of the ice berg.  Matt recounts the story of Linda Almonte, a JP Morgan Chase employee in charge of Credit Card debt bundling.  It's horrific. Money shot: The financial crash wouldn't have happened if even a slim plurality of financial executives had done what Linda Almonte did, i.e. simply refuse to sign off on a bogus transaction. If companies had merely upheld their own stated policies and stayed within the ballpark of the law, none of these messes could have accumulated: fraudulent mortgages wouldn't have been sold, families wouldn't have been foreclosed upon based on robo-signed documentation, investors wouldn't have been duped into buying huge packets of "misrepresented assets." ............. excerpt: In a story that should be getting lots of attention, American Banker has released an excellent and disturbing exposé of J.P. Morgan Chase's credit card services division, relying on multiple current and former Chase employees. One of them, Linda Almonte, is a whistleblower whom I've known since last September; I'm working on a recount of her story for my next book. One of the things we were promised by the lawmakers who passed the Dodd-Frank reform bill a few years back is that this would be a new era for whistleblowers who come forward to tell the world about problems in our financial infrastructure. This story now looms as a test case for that proposition. American Banker reporter Jeff Horwitz did an outstanding job in this story detailing the sweeping irregularities in-house at Chase, but his very thoroughness means the news may have ram

As Kiyosaki writes in his book:  "So has there been a conspiracy?  I believe so, in a way."  He goes on to explain why he believes so, citing the lack of financial education in the school systems, the Federal Reserve Act, and Nixon's 1971 dismissal of the gold standard.  And most interestingly, Kiyosaki believes that 401(k) retirement vehicles placed the retirement money of average people in the hands of Wall Street. The first chapter of the book is entitled 'Can Obama Save the World?'  Kiyosaki's answer is no.  And apparently, Obama doesn't want to even if he could.  For he appointed Summers and Geithner, both of who played a part in repealing the Glass Steagall Act.  In other words, it's the same old same old.  Nothing has changed.  Which means that the average person needs to understand how taxes, debt, inflation, and retirement affect them.  Kiyosaki sums up the chapter by stating that once one understands the new rules of money, then one can "opt out of the conspiracy of the rich." From there, Kiyosaki moves on to explain how we got where we are.  He points the finger at the Federal Reserve Bank, which inflates the money supply, which destroys the value of savings and retirement plans.  And he makes it very clear that the rules of money changed dramatically when the U.S. went off the gold standard in 1971.  For up until that time, "technically, prior to 1971, the U.S. dollar was a derivative of gold.  After 1971, the U.S. dollar became a derivative of debt." Kiyosaki proceeds to discuss what he calls 'The Invisible Bank Robbery.'  He says "since money is invisible, a derivative of debt, bank robberies by bankers have become invisible."  Two ways these invisible robberies occur are:  fractional reserve banking, which is nothing more than banks lending money they don't have; and deposit insurance, which "protects the bankers - not savers."  Then he asks a very pertinent question:  "why should an ins

this is extreme stuff.  Which is perhaps why such an outlandish plan might actually work.  Bastardos! excerpt: an authoritarian control system engineered by the bankers and the global elite. "This new and complete Revolution we contemplate can be defined in a very few words. It is … outright world-socialism, scientifically planned and directed," H.G. Wells wrote in The New World Order. It is a mistake to believe the Cloward-Piven Strategy is scheme cooked up by academic Marxists of "New Left" bent dedicated to the destruction of capitalism in the name of some sort of vaguely defined humanitarianism. In fact, "the destruction of capitalism in America by swelling the welfare rolls to the point of collapsing our economy and then implementing socialism by nationalizing many private institutions" is a meticulous plan on the part of the global elite to consolidate power and destroy all opposition. It has nothing to do with liberating the proletariat but rather subjecting them to banker engineered "world-socialism, scientifically planned and directed" and devised to transform the planet into a banker dominated high-tech prison gulag.

Incredible.  Watch your breathing rate as you read this.  Otherwise you might pass out. excerpt: Who actually owns the Federal Reserve Central Banks? The ownership of the 12 Central banks, a very well kept secret, has been revealed: Rothschild Bank of London Warburg Bank of Hamburg Rothschild Bank of Berlin Lehman Brothers of New York Lazard Brothers of Paris Kuhn Loeb Bank of New York Israel Moses Seif Banks of Italy Goldman, Sachs of New York Warburg Bank of Amsterdam Chase Manhattan Bank of New York (Reference 14, P. 13, Reference 12, P. 152) These bankers are connected to London Banking Houses which ultimately control the FED. When England lost the Revolutionary War with America (our forefathers were fighting their own government), they planned to control us by controlling our banking system, the printing of our money, and our debt (Reference 4, 22). The individuals listed below owned banks which in turn owned shares in the FED. The banks listed below have significant control over the New York FED District, which controls the other 11 FED Districts. These banks also are partly foreign owned and control the New York FED District Bank. (Reference 22) First National Bank of New York James Stillman National City Bank, New York Mary W. Harnman National Bank of Commerce, New York A.D. Jiullard Hanover National Bank, New York Jacob Schiff Chase National Bank, New York Thomas F. Ryan Paul Warburg William Rockefeller Levi P. Morton M.T. Pyne George F. Baker Percy Pyne Mrs. G.F. St. George J.W. Sterling Katherine St. George H.P. Davidson J.P. Morgan (Equitable Life/Mutual Life) Edith Brevour T. Baker (Reference 4 for above, Reference 22 has details, P. 92, 93, 96, 179) How did it happen? After previous attempts to push the Federal Reserve Act through Congress, a group of bankers funded and staffed Woodrow Wilson's campaign for President. He had committed to sign this act. In 1913, a Senator, Nelson Aldrich, maternal grandfather to the Rockefell

Those bastard banks have taken over $2 Trillion from the taxpayers, and are using this cash to invest in emerging markets instead of the USA.  The Feds are providing interest free money to central banks, which then are used to invest in emerging economies.  The bankers get the profits and USA taxpayers get stuck with the cost.   There is no possible upside for USA taxpayers unless of course you agree with Obama that the USA standard of living and extraordinary economic prosperity must be lowered before global economic equality can be achieved.  This isn't just about greedy bankers and self interested international corporations.  Wealth redistribution is now the official policy of our government.  And the Federal Reserve is carrying it out with unexpected zeal. The numbers are coming in.  The facts are on the table.  The USA is being gutted. excerpt:  Asian stock prices are shooting up, in part due to low interest rates in the U.S. Investors looking for higher yields are borrowing in U.S. dollars and then pouring that money "into countries that are growing more rapidly," said Stephen Cecchetti, chief economist at the Bank for International Settlements, the central banks' central bank, which warned early of the last asset bubble and is beginning to do so again. "That runs the risk of creating property and equity booms in those countries." About $53 billion has gone into emerging-market stock funds this year, according to data collector EPFR Global. Through Monday's trading, the broad MSCI Barra Emerging Markets Index this year was up 60.7%. Brazil was up 100%, and Indonesia had gains of 102.7%. Over the same period, the Dow Jones Industrial Average was up 11.5%.

Excellent article explaining how and why the Federal Reserve ended Obama's nutty plan to produce a Trillion dollar coin.  Short story: the T-Coin threatens the Federal Reserve's monopoly on the just as phony and totally debased dollar.  The author also discusses the dollar's role as the world's reserve currency and what that means.   The author also explains that the US has been borrowing over a Trillion dollars per year to finance the war and welfare Obama machine, PLUS, borrowing even more to finance the near $4 Trillion dollars of past debt that rolls over each and every year!   excerpts: When the Federal Reserve system was initially created back in 1913, the bankers that created it intended for it to be a perpetual debt machine that would extract massive amounts of wealth from the U.S. government (and ultimately from all of us) through the mechanism of compound interest.  Each year, hundreds of billions of dollars of interest are transferred into the pockets of the wealthy bankers and foreign nations that own our debt.  This is one of the reasons why I preach about the evils of government debt until I am blue in the face. The debt-based Federal Reserve system is a way to systematically steal the wealth of the United States, and it is happening right in front of our eyes, but very few people actually understand it well enough to complain about it. Unfortunately, we are rapidly getting to the point where we have accumulated so much debt that it is threatening to collapse our entire financial system.  The following comes from a recent Zero Hedge article...  "Unfortunately, the rest of the world is starting to move away from the U.S. dollar.  Over the past couple of years, a whole host of international currency agreements have been signed that are intended to start reducing the use of the U.S. dollar in international trade.  For much more on this, please see the following article: "The Giant Currency Superstorm That Is Coming To The Shores Of Americ

"THE AGE OF NEO-FEUDALISM: A GOVERNMENT OF THE RICH, BY THE RICH, AND FOR THE CORPORATIONS" excerpt: "The shaping of the will of Congress and the choosing of the American president has become a privilege reserved to the country's equestrian classes, a.k.a. the 20% of the population that holds 93% of the wealth, the happy few who run the corporations and the banks, own and operate the news and entertainment media, compose the laws and govern the universities, control the philanthropic foundations, the policy institutes, the casinos, and the sports arenas." - Journalist Lewis Lapham The pomp and circumstance of the presidential inauguration has died down. Members of Congress have taken their seats on Capitol Hill, and Barack Obama has reclaimed his seat in the White House. The circus of the presidential election has become a faint memory. The long months of debates, rallies, and political advertisements have slipped from our consciousness. Now we are left with the feeling that nothing has really changed, nor will it. This is not by accident. The media circus leading up to the elections, the name calling in the halls of Congress, the vitriol and barbs traded back and forth among people who are supposed to be working together to improve the country, are all components of the game set up by those who run the show. The movers and shakers behind these engaging, but ultimately trite, political exercises are the elite, the so-called upper class, who benefit from the status quo. This status quo is marked by an economic crisis with no end in sight, by the slow but steady growth of a police state aimed at the lowest rungs of society, and a political circus which keeps us enraptured long enough that we don't question what's really going on. Meanwhile, this elite, composed of corporations profiting off of our ignorance, avoid being brought to task for their destruction of democratic governance and the economy. These are the corporations who sent our econo

This interview should be must reading for every citizen of this world.  Doug Casey lays it out, explaining in the simplest of terms the problem of corrupt governments and banksters.  Put this RSS feed right next to Sir Charles' Priced In Gold" blog as essential to start your day with reading. excerpt: "Anyone with any sense should withdraw whatever cash they have in European banks, whether in euros or any other currency, immediately. Cyprus demonstrated that governments are quite willing and able to confiscate money sitting in a bank account in order to preserve the banking system. We live in Bizarro World. L: Why would it spread? Cyprus was said to be particularly vulnerable because of its strong Greek connections; Cypriot banks had bought of lot Greek debt. Would people in Luxembourg be as exposed? Doug: All banks are in effect creatures of the state at this point. They all own a lot of government bonds, which are considered the most secure form of capital. Of course, that's the opposite of the truth; all these governments are bankrupt as well. The Greek government is just more overtly bankrupt than most. Actually, we should take a minute here to discuss what a properly run banking system looks like. Historically, banks offered two types of accounts: demand deposits and time deposits. Demand deposits are what we call checking accounts today, but the original idea was that you'd pay your bank to store your money securely, and you had the right to "demand" your deposit back immediately, and to transfer funds via check. The idea of time deposits, which became savings accounts, was that the bank would pay you interest when you deposited your money with them for a specific period of time. That's why it's called a "time" deposit; you lent the bank your money for a given time, as did other depositors, and the banks would always know how much money they could lend out - at higher interest rates. Furthermore, loans made against time deposits were always short term