When writing novels that contain aspects of politics, social issues, ethnic cultures and religion, research is an imperative. Not just for the immediate past but back to the dawn of ideas that have driven the most divisive and damaging policies of our society.

The fraud the modern Banking system continues to perpetrate upon societies and cultures all over the world, is a wonder to behold and perhaps one of the most dangerous events to threaten human beings on our planet, except perhaps for Global Thermo-Nuclear War.

Exaggeration?

The greedy, obsessive and unfettered pursuit of profit by the Banking Industry is nothing new. In fact the modern day fraud can be traced back directly to John Law, a Scotsman who bankrupted France and was forced to flee the country when his stock trading scheme went ‘belly-up’ in 1720.  His idea was to sell stock in The Mississippi Company in Louisiana, a French owned territory in America, in order to bolster France’s ownership claims by injecting money into the Territory. The stock (paper notes) was underwritten by the French Government’s material wealth, namely gold and silver coinage. John Law conceived a great marketing plan promising almost limitless and high returns, which sent a gullible public into a buying frenzy in their greed for untold wealth. Money for nothing.

Just a minor problem with this plan. More stock was sold than the French Government had coinage to pay for, a fact that became evident when those that had opposed the scheme at the very beginning banded together and attempted to cash in their “notes”, knowing that there was no money to pay for them.

John Law was forced to flee France for Venice.

Jump forward many centuries and arrive in Jefferson County Alabama, where a County Council was desperate to build a new sewer system but didn’t have the money. Enter JP Morgan Chase and their Investment Credit Swap deal, a plan so devious and complicated that those to whom it was being marketed had no idea what it entailed, except that their agreement was paid for by large deposits into their bank accounts..

JP Morgan overcharged the county on the swaps to cover the cost of more than $8 million in secret payments made to friends of county commissioners who worked for local companies, a step to secure JPMorgan’s lead role in the debt deal, according to the SEC.

Cash strapped County and City Councils around the USA had no idea what it was they were really buying. Credit swap debt deals complete, the US banks then decided it was a great money maker for them, so they increased the bonuses of Senior Executives by millions and proceeded to sell the plan to the Italian Government, the Spanish Government and of course the Greek Government.

Net result the US economy is on life-support (as is most of Europe) and the cost of sewage utilities for the people of Jefferson County has increased ten times and the council had to file for bankruptcy.

But what of JP Morgan Chase?

Jaime Dimon, the CEO, is laughing all the way to his offshore bank account and also laughing at the Senate Investigating committee, most of whom he gave untold sums for their re-ection campaigns.  He is also laughing because the US Government underwrites his Bank to the tune of $14 billion a year. In effect, Jaime Dimon is a Government employee with an over-inflated multi-miillion dollar salary who may well actually control Congress.

Back in 1841 Charles Mackay wrote a book entitled, “Memoirs of Extraordinary Popular Delusions and the Madness of Crowds”.  http://www.econlib.org/library/Mackay/macEx2.html

In the Preface he wrote:

“The object of the Author in the following pages has been to collect the most remarkable instances of those moral epidemics which have been excited, sometimes by one cause and sometimes by another, and to show how easily the masses have been led astray, and how imitative and gregarious men are, even in their infatuations and crimes.”

Imitative is so true and JAmie Dimon can certainly be called gregarious as he seems to actually enjoy his notoriety. What the Banks are doing now is what they did several hundred years ago, create a legal con-job, gambling with other-people’s-money and not caring a jot if those people lose everything, providing the Banks themselves make a killing.

Robert Walpole one of the biggest critics of The South Sea Company and its creation of stock trading based on imaginary value said that “Stock-trading will divert the country’s energy away from trade and industry” and that “the directors (of the company) will become Masters of the Government and in fact Dictators.” The South Sea Bubble nearly bankrupted England, especially when the Directors of The South Sea Company decided to implement John Law’s plan.

Most pro-Bank organizations argue that regulating the Banks is a bad idea.

Bad for who?

We have Laws that limit what ordinary people can and cannot do, but apparently Banks are impervious to Law even though the Supreme Court with its Citizens United decision decided that companies are “People” and therefore are protected under the First Amendment, but are not people when it comes to Bank Regulation. But I guess when the Banks own the Supreme Court they don’t need Laws and Regulations to govern their behaviour.

The modern dynasty of Banks controlling the economies of countries really stems from the back room deals of Ronald Reagan and Maggie Thatcher, when deregulation became the rule; Wall Street and the London Stock Exchange became the controllers of Government Policy and manufacturing industry, that had boomed after World War II, started its decline.

“Some in clandestine companies combine;
Erect new stocks to trade beyond the line;
With air and empty names beguile the town,
And raise new credits first, then cry ’em down;
Divide the empty nothing into shares,
And set the crowd together by the ears.”
Daniel Defoe 1659-1731