Masukuma, this is good learning for even dummies like me.

Thank you. Thank you.

So i understand why these inflation keeps on rising,just because a few want to be rich n more NKTest

If I got it correctly;


lets say I, Yesuwangu, is a third world country like Kenya, Masukuma is the west and Dossy and Mtu biz are the multinationals like shell, barclays and coca cola.


So, lets say I discover oil etc, like Uganda has. Masukuma, being in love with oil, wants it too.


Masukuma gives me 'loan' to develop these resources e.g. build super highways, ports, terminals etc.


But it only happens that I dont get the cash in my hands. Masukuma gives it to Dossy and Mtu biz who then construct these things for me in my land.


So it appears that there is massive infrastructure development in my land, true, it can be seen. But not all, minority, of my (YW) family members actually benefit. Because its capitalism, stupid!


Yet the entire family is put in debt that they cannot repay.


Masukuma lends me more money to pay back the initial loan. Whats the logic in that, you might ask. I do not know, I just take it. This time, I must make more concessions and akina Dossy and Mtu biz now come in big time. They merge even and swallow up or push aside my familys' cottage industries.


Meanwhile Masukuma has all but got me on a leash and I vote for him in the UN to go to war on the other side of the world. Or at least I dont oppose it. How can I? The loan.


Then because the world is unsafer, due to the war, Masukuma tells me I need a military base on my land.


My family members, tired with me and Masukuma, openly oppose akina Dossy & Mtu biz & the military base. I agree with my family members.



Masukuma, having 'invested' a lot on my land seeks to get rid of me. If I hurt him real bac, he can poison me or if that is not in fashion, he sends in his slaughter squads after me like he did to Saddam and Gadaffi.


Now my family members are alone. So ensure compliance and pliability, Masukuma, through various means, ensures that my family members live in abject poverty. He needs access to the oil and akina Dossy & Mtu biz need market for what they make. Smart move.


But remember Dossy and Mtu biz are still around and in the absence of competition from my family members, they consolidate their market. My family members are now dependent on them for virtually everything. From soda and drinking water, where they store their pittance of shillings to whatever.


Dossy and Mtu biz can afford to threaten the family 'central' bank and devalue the shilling with ease, or hoard the oil and raise pump prices with equal ease. See how much power they flex in our faces with impunity. Damn multinationals.



But maybe Masukuma still thought I was useful to him. So lets say I, Yesuwangu, am still around.


Masukumas' loan still has to be paid back. It has accrued interest. Masukuma says my family cuts public spending in education, etc in order to keep making debt payment.



My family members get upset that I am not doing enough for them, that instead, I send out the little money we have to Masukuma.



They get angry at me and at Masukuma. That is the time the real unpleasantness begins.


My family members take up arms or anything they can get hold of to chase away Dossy & Mtu biz, even me Yesuwangu, from the land.


Lo and behold, 'terrorists' are born. Where are the slaughter squads?




Masukuma rules the world!



Sorry for the long narration. Sorry if I have digressed.

system ya ubepari, its a rich man eat poor man world.did you know that Africa is a net aid giver to the western countries, the leaders raid the coffers and deposit it in swiss banks, jersey and when we want the money back we have to "prove that the money was stolen" WTF??

Yesu Wangu spot on analysis

a couple of nice videos on Money masters available as well (http://www.youtube.com/watch?v=lXb-LrVkuwM&feature=youtu.be)

By the way the Fed came about during the goldrush when people started panicking that their money was not safe coz the country was going into a depression. There was a major run on the banks where people demanded their money back, but the banks did not have the money since banks dont put money in vaults like most people think, banks are a business whose main goal is to make a profit. When you deposit your money in the bank, banks in turn invest that money to make a profit while paying you a measly interest. So when there was a run on the banks, banks realized that to avoid this from ever happening again, they have to assure people that their money is safe. Thus the Fed and later the FDIC were born, which insures that upto $250k of your money is insured regardless of whether the bank fails. During the Lehman collapse, people started panicking about their money and they had to be reassured over and over about the FDIC insurance of money upto $250k.

Here is someone who actually knows what he is talking about.

http://www.youtube.com/w...?NR=1&v=m_atOvrTtT8

Notice the caller is complaining that she paid a $600 utility bill yet she doesnt even make $10/hour. How about you turn off that AC, (drink cold water instead), lower your heating bill ( use extra blankets instead), sell off those 3 plasma tvs ( its still the same show on a regular tv), sell off your extra cars, dump the SUV, use public transportation, stop eating out, stop going to watch movies that repeat the same theme, only different actors, cut off the cable and most important go to the Library and pick up a book! It must suck to be an elected official when most of your constituents suffer from acute victim mentality!

I'm not really sure what you are alluding to, fractional reserve aka reserve ratio is the amount of money a bank has to have on hand, remember in the spirit of capitalism banks would love to invest all the deposited money, but the Federal reserve polices banks to ensure that a certain amount is on hand. In this respect, The Fed is actually acting in the best interest of the people. Fractional reserve has nothing to do with creating money, the Treasury is in charge of that. You are right about being accused of creating a ponzi scheme, banks do have a monopoly on money in the US. Dont quote me, but I am pretty sure it is illegal to have a chama in the US, especially those merry go round chamas. The irony is chamas are fluorishing in Kenya and making people more financially independent. About the reason why the Fed has not been audited, I'd have to dig into my books, im not an Economics major so maybe an Econ major can answer, but im sure there is a good reason. I do know though from my Econ professor that it is next to impossible to step into a Federal Reserve building, he tried to get a job thereand despite his very high qualifications has never heard back from them. But if you think objectively about, these are a bunch of filthy rich people who put up their own money ( J.P Morgan was the first one to put up his own money to avoid a collapse of the banking system), in this regard they invested and i'm sure they expected returns. If I had put upalot of my money when no one else would, I wouldnt want to be questioned about what/how I am using my money either. At an individual level, the Federal Reserve has no negative impact, if anything it helps the common mwananchi.

There is no fraud there nor fine print. It was clear that you are moving from a small house to a big one, at some point it must have occured to you that more money would be needed. It doesnt make sense to move from a small to big house without expecting there to be an increase in payment. You cant call that fraud coz then no business person would ever be able to turn a profit. If you buy eggs at kshs 20 and sell them at kshs30, should you inform your buyer of the profit you are about to make off of them? With your reasoning, its evil not to tell them. Please lets stop the hypocrisy, you see the greed on the part of the bank but dont see the gred on the part of the homeowner. He/she got that home based on greed so he can show it off to his friends, host alot of parties and be the envy of everyone, now that he is being foreclosed on, he conveniently plays the victim.
Wealth may not be destroyed as you say but in this case the banks lost alot of money. Imagine a house sitting empty for months, weeds growing everywhere, rodents invading the house and to make matters worse, squatters move in so the bank has to follow legal/ expensive steps to kick them out. The bank is a victim too if you want to play that game.