The Banking con – A stark reminder

The Immorality of Banking –  a plain tale (written in 2017).

Of Old King Coal, fake LOBO loans and illusory debt, exposed to the bones.

I have written many times about the fraudulent nature of the banking system;  I have even fallen prey to its genocidal ways and co-produced a film about it, TGBMS.  I’m not going to stop writing about it either, so long as it is necessary to expose its immoral machinations for what they are.

Money and its creation is the world’s biggest religion. It holds everyone in thrall.  It is a racket that permeates every aspect of our lives, no matter which level of so-called society we find ourselves at.

As Michael of Bernicia states in the trailer to the aforementioned film,

‘What would you do if you knew that every bank loan was a complete and utter fraud? That the banking industry is a huge con?”

Some might, quite understandably, take the view that he who has been tricked deserves to be tricked. After all, if he was unable to see through the con trick at the time it was played, then more fool he. Were we not warned via the programming of the brand known as Shakespeare, to be wary of usury and Jewish money lenders (The Merchant of Venice)? Was it not laid out clearly to us in Hamlet? –

Neither a borrower nor a lender be,

For loan oft loses both itself and friend,

And borrowing dulls the edge of husbandry.

Hamlet Act 1, scene 3, 75–77

And what of Jesus overturning the money-changers’ tables in the temple?

When everyone and everything is in hock to the banksters, one cannot help but think, how did it get to this? The history of banking, its use of fiat currencies, of usury and the hidden practices of credit creation via the honourable promise to pay are there to be explored by the critical thinker and it behoves him to do so at the earliest opportunity.

How and why so many fail to understand the fraud that is committed by the banks every minute of every day is a question which can be answered by a brief examination of the state’s deliberate policy of dumbing down the population via its programme of mass schooling. Notice I state schooling and not education, which is something completely different.

Schools exist not to liberate the individual and inspire him to become whatever he so chooses to be but, rather, have been created to deliberately dumb down the people into a collective mass of stupidity which neither knows of nor cares to understand the matrix of deceit that has been constructed around it. Standardised tests measure the ability to regurgitate information – it is the Frankfurt School of thought whereby shit in equals shit out. The masses are effectively dumbed down and those who can parrot, without question, the information they have been fed are rewarded with the jobs in ‘human resource’ organisation and other low grade service sector positions of management. They are paid according to how well they tow the line. They are not paid to think:

“Mass dumbness is vital to modern society. The dumb person is wonderfully flexible clay for psychological shaping by market research, government policymakers; public-opinion leaders, and any other interest group. The more pre-thought thoughts a person has memorized, the easier it is to predict what choices he or she will make. What dumb people cannot do is think for themselves or ever be alone for very long without feeling crazy. That is the whole point of national forced schooling; we aren’t supposed to be able to think for ourselves because independent thinking gets in the way of “professional” think-ing, which is believed to follow rules of scientific precision.” John Taylor Gatto, The Tyranny Of Compulsory Schooling

Few of us escape this tyranny and its effectiveness is amply demonstrated by those who are most supplicant to the collectivist mindset: politicians of all hues.

Politicians are not only incapable of thinking and acting outside the fake paradigms of the state, they are jointly and singularly, notoriously self-serving. It doesn’t take much research to demonstrate that fact.

Yet the pretence that they are there to serve the people continues to linger.

It is their self-serving egoic modus operandi that leaves them wide open for manipulation by the deep government that controls the puppet show commonly known as politics, a theatre where ego abounds and honour is dead.

Can we imagine how things might be if those who work in the political field actually did so with the interests of the people at heart, rather than the promotion of state-corporate-collectivist agendas? A collection of individuals who were not subject to the fake left-right paradigms?

Whilst I remain dubious of any politician and his intentions, I was pleasantly surprised by Donald Trump’s support of the coal miners, which can be read about here.

Imagine if a British leader came forward like Trump and announced legislation that brought back the mining industry and its associated industry?

“It is time to acknowledge that the decision to close the coal mines was a catastrophe for the people of this nation. Communities were destroyed, families torn apart and the nation’s independence was compromised to such an extent that we now have foreign companies purportedly owning much of the country’s power industry. It is time to reverse that. The rich coal seams that exist across the lands and off shore will be reopened and an associated power generation scheme will mean the establishment of efficient, non-polluting energy.


In the meantime, we will also be funding alternative sources of generating electricity via Tesla technology and over-unity devices that will serve to resurrect the latent steel and engineering industries, which have similarly suffered over the last 5 decades.


Engineering will once more come to the fore in the isles of Britain, after all, we have a rich history of invention and innovation. The government will no longer be taking up fake loans from the usual coterie of Rothschild dominated banks. Instead, the Great British Pound will be printed by the treasury, free and clear of usury, which is to be outlawed in accordance with the ancient laws of these lands. Community banks will be established and special funds created for the commencement and revival of these industrial initiatives. No longer will we be held to ransom by the private interests of the Bank of England and its associated licenced minions in the credit industry.”

Could you imagine the stooge May doing it? Or even the Fabian puppet Corbyn? Would that happen under the current political regime?

Not a chance.

And yet, the coal reserves underground and off-shore around |the British Isles remain substantial enough to reestablish the self-sufficiency in power production that was until only recently a hallmark of these lands.

“There are vast coal resources beneath parts of Yorkshire, Nottinghamshire, Lincolnshire and NE Leicestershire (henceforth referred to as the Yorkshire-Nottinghamshire Coalfield). This coalfield has been extensively and intensively exploited for hundreds of years, particularly since the industrial revolution. Over 400 collieries were open at its peak in the late 19th and early part of the 20th Century. Over the centuries mining has gradually advanced to the east, exploiting progressively deeper seams. Nottinghamshire’s pits were some of the deepest in the country. For example, Bevercotes (opened in the 1960s but now closed) and Harworth have shafts more than 1000 m deep.” source

Following the brutal destruction of the coal mining industry by the Thatcher government, the country is left in the ridiculous position whereby,

“Currently 40% of the electricity we use is generated from coal-fired power stations and UK Coal supplies the fuel that makes 4% of the country’s electricity. This means that 70% of the coal used to generate the nation’s energy is imported from places such as Russia, America and Colombia.” source

So, a country that was self-sufficient in coal just a generation ago is now dependent upon imports simply because a draconian government fraudulently auctioned off the industry to the carpet baggers? Is that not an extreme state of affairs?

Indeed, we currently live in an extreme state, where ‘Benefit fraud’ leads to jail. But banking fraud? Where does that lead?  Usually, a cover up or a slap on the wrist fine for whichever bank has been caught operating fraudulently, wth the proceeds ending up who knows where, but most likely in her Maj’s Treasury. That is extremism personified.

In 2009, James Crosby admitted that HBOS had engaged in High Risk lending and putting client funds at risk – and the SFO reported “over $200 million still missing and unaccounted for” in their Press release in 2008 – huge moneys,still not found!  This is demonstrably because of Fraud at the Board level of HBOS PLC (James Crosby was the FCA’s deputy chairman at the material time engaging in insider dealing it appears, and pulling strings – with no punishment for these gross violations of Public trust).” E Watson.

Anyone who does not believe the banks are effectively acting as the deep state would do well to note this:

 “Brzezinski, co-founder of the Trilateral Commission and David Rockefeller’s intellectual flunkey: “The nation state as a fundamental unit of man’s organised life has ceased to be the principal creative force: International banks and multinational corporations are acting and planning in terms that are far in advance of the political concepts of the nation-state.”

For now, at least, the banks are running it. The Great British Mortgage Swindle is an example of how the banks steal money via the very homes we live in and the LOBO loans taken out by many councils from c. 2003 to 2012 are another stark example.

Lender option borrower option or lender’s option borrower’s option (LOBO) is a long term borrowing instrument available in the United Kingdom. They involve periodic interest re-fixings, which incorporates two linked options:


lender’s option: option for the lender to set revised (usually higher) interest rates at predetermined interest reset dates such as annually.


borrower’s option: linked option for the borrower (exercisable only if the lender’s option is exercised) to pay the revised interest rate or to redeem the bond although that may involve exit fees.


They are provided by banks and the loan contract runs for between 40 and 70 years. There is no regulatory body responsible for overseeing their use … Campaign group Debt Resistance UK researched LOBOs using the Freedom of Information Act.Banks, such as Barclays and Royal Bank of Scotland (RBS), provide LOBO loans to about 240 UK councils (63% of all councils in 2013) with a total value of £15 billion. Out of this £15 billion it is estimated that about £1 billion in upfront profits was made by the lenders. LOBOs are currently almost a fifth of all council borrowing.


LOBOs were recommended to councils by specialist financial advisers who, unknown to the council, were in turn paid commission by the banks providing the LOBOs.


At least 12 councils have the most expensive types of LOBO loan. Most of these have “inverse floaters” taken out with RBS – interest rates for the loan are increased if general bank lending rates decrease.


As a direct consequence of making repayments on LOBOs, councils have had to make major cuts in services to their residents. It has been calculated that if councils were free to relinquish their LOBO contracts at no penalty and instead borrow at a more typical market rate it would save them about £145 million for 2015 alone. Some councils are considering taking legal action.  source

For instance, take Kirklees Council in West Yorkshire: this comment from the local newspaper summarises it neatly:

“Kirklees have L.O.B.O loans for £500 million to be repaid in the future, you are paying £4 million a year interest, you seem reluctant to mention this. I suggest everybody googles lobo loans and and Kirklees liability it makes interesting reading.” source

Interest payments on the purported loans are taken to service the debt directly from the people via unlawful council tax. A fake debt at that. Just like a mortgage. No consideration by the banks. No disclosure as to how the credit is created and disguised as a ‘loan’.

Huddersfield Town Hall.

Little wonder said council has just added 10% to its council tax bills. The politicians who took out the loans have fecked up and the ‘tax payer’ is footing the ever rising ‘bill’:

“Hear Hear I have tried to get the Kirklees L.O.B.O. loans mentioned in the Examiner in the past but the subject seems to be taboo, but they are one of the main reasons why Kirklees is in such dire financial straits, with massive interest repayments and no accounting for what these loans were used for!”


“Well said David, my estimate of £500m is on the conservative side for 30yrs interest, couple this with £500m unsecured pension liabilities and Kirklees has a future deficit of 1Trillion. Perhaps unqualified Sheard and Turner would care to comment?” source


Read more on LOBO loan swindle here and here.

These LOBO loans are widespread:

“Newham council, Labour 60 / 60, took out 27 loans at a face value of £563m which now cost £959m. Sir Robert Andrew “Robin” Wales is Mayor on £80,029 / year and oversaw a £111m project to relocate council offices, including £18.7m of design and refurbishment costs.”


Update: “Britain’s most enthusiastic council for taking out Lobo loans, Newham, has ditched the scheme saving up to £100 million.

Newham has agreed with its lender, thought to be Barclays, to overhaul £248.5 million of Lobo loans — an acronym for lender option borrower option — and move to traditional fixed-rate borrowing.

It will save £1.6 million a year over an almost 60-year period, or £94 million in total.” source

The bottom line? If one borrows something, then one has to give it back. Whether it be a lawn mower, a hole punch or someone’s pet chimp, it has to be returned to its owner. Simple.

The councils who took out these false loans have had to make massive cutbacks in public services just to keep up on the interest payments – repayments can run for 40 to 70 years.

It is yet another massive swindle.

The corollary of this is plain. Did you borrow anything? If not, then you are under no moral obligation  to ‘pay it back’. How could you be?

It is a question of morality. How much fecking clearer can it get?

If no actual loan takes place, then how can you pay it back?  And that point applies to councils and companies just as much as it applies to individuals. The LOBO loans have lead to cut backs in museum and library services, to name but two in Kirklees alone.  And all because the fake loans and their criminal interest rates have to be ‘serviced’.

Says who? Do they really have to serviced?

Someone with balls would do well to demand that the usual suspects, Barclays and Royal Bank Scotland actually prove they made a loan from their own coffers and that the credit extension was not simply created via a few strokes on a computer keyboard. All loans are created out of thin air!

If it is simply an extension of credit, facilitated by the administrative procedures of the bank, then from where does the moral obligation come to ‘pay it back’? Nothing has been loaned. No deposits, bank or customers – the loan has been created out of nothing. It is merely a conjuring trick.

The Icelandic peoples demonstrated what happens when the banksters are told, in no uncertain terms, to feck off with their fake debts. When will a British Council do the same?  The game is up and it is surely only a matter of time before the whole rotten edifice of the banking racket crumbles and falls away.


Britain’s considerable coal reserves:

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