I’ve been meaning to show you a graph for the longest time but somehow I kept postponing it but today I finally found the time to get it to you.
This graph is very interesting and here is why.
The graph shows the debt distribution of 10 countries in December 2011.
I shows the debt distribution from both England and New Zealand and you see a staggering difference.
Let me first explain what the different colours mean
The light blue colour represents the debts of Corporations and other industries not connected to the financial sector.
The green colour represents the debt owed by financial institutions such as banks, hedge funds and pension funds
The orange colour represents the debts of governments
and the dark blue colour is the debt owed by us, the “little” people. These are owed in Mortgages, loans and perhaps small business loans.
When you look at the graph a few countries stick out. One of them being Japan. Japan’s government has a huge debt but the Japanese people own their own central banks so they are basically borrowing of themselves and if you want to know why that makes a huge difference here is Ellen Brown on the topic.
Two other countries stick out as well and those are the UK and New Zealand. The UK sticks out because of the huge debt of the Financial sector and New Zealand sticks out because of the almost non existent debt of the finance sector.
They also have a huge difference in the corporate debt and remember these are percentages of Debt to GDP and have nothing to do with the size of the population.
These figures show a huge difference and it is important to know why.It is important to know why because they are the result of government policy and if the English policies would be implemented here they would result in an absolute catastrophe in New Zealand.
First of all the huge green tranche of the graph in the UK bar is the result of being the most deregulated finance and banking sector in the world. In other words, the bankers were allowed to ride absolute roughshod over the rest of society in that they were allowed to develop financial instruments which were so risky and so fraudulent they are now threatening the entire global financial world and the global economy as a whole while concentrating the global wealth in the hands of only a very few people.
Second the very small green tranche in the New Zealand bar is the result of a very prudent and fiercely guarded banking sector and to be quit honest possibly due to the last Labour governments with Cullen at the financial helm not allowing the liberation and deregulation of the NZ banking system so prevalent around the rest of the world even though we were reliant on the international banks for our financing. Having the NZ owned Kiwi bank people could have their accounts in also helped.
But you ask what has changed why is the banking debt of importance to us and why is John Key trying to do the same in New Zealand?
The UK is what you might call the centre of the Ponzi scheme that is the global banking system and allows for a never ending re re rehypotecation of its banking debts. That’s a bit like whenever you want to re mortgage your house you can do so without any limit and without any guarantee you will ever be able to pay it back.
What’s more every collapse of an American or English bank over the last five years was the result of this scam. Banks such as Lehman, MF Global, Merrill Lynch (Yep, John Key’s bank) all collapsed because they did the dirty in London and leveraged themselves to the point they could no longer pretend and while in London you can rehypotecate till the cows come home you couldn’t in the USA.
And here is where John Key comes in. As you see the NZ banking debt is very small compared to the UK one. This is what is promising for bankers. First of all we are woefully unaware of their tricks and gullible to the point of almost deserving to be scammed. At least this is what the psychopaths in the city of London think. Our banking system is not leveraged enough and that is a potential for growth and big earnings as they blow up our economy while leveraging our debt to many times the GDP. John Key has often spoken of the possibility to make New Zealand like Ireland and while he says we shouldn’t end up like Ireland he’s happy to go the same route. A new super secret banking committee is working on changes needed to facilitate this as we speak.