How it was started:
George: We are in crisis, bro – my friend Christine just told me. There is a cocktail of threats we are facing. Here is our family inheritance, this large house. But we, the family, are just living in it, rather than privatising it and turning it into a business.
Duped: But we own this house, we all work hard and live within our means.
George: That’s not what Christine says. She says, we are bankrupt.
Duped: And who the hell is this Christine? Even if we were bankrupt, it would be our business to solve it. She is not family member, not our accountant or advisor. She is nobody.
George: But she told me that there is a gap on her balance sheet and we have to fix the problem by privatising the house and borrowing from her. Otherwise we will go bankrupt.
Duped (confused): So are we bankrupt, or not?
George: We shall go bankrupt, if we don’t follow what she says. She will put our house under all sorts of sanctions and boycotts. She will devalue our house. Do you want that to happen? Do you want to live in isolation from the world?
Duped (even more confused): No, but …
George (thrilled): But it’s a no-issue to fix the issue. Banks are rolling in money – they create new money whenever they lend to someone. So I will do as Christine told me, and borrow from her bank on behalf of the family. You will never see the money I borrow, nevertheless on the paperwork of the loan the whole family will be made responsible for the loan-repayment. From the loan I will privatise the house to myself and will operate the house as a hotel – Christine ordered me to do so. She allowed me to let the family members stay in the house – but hey, there is no such thing “free-lunch”, so if you stay, all of you will have to pay the high market room-prices and have to work hard at a very low wage, to maintain the hotel. Such austerity is necessary, so Christine’s balance sheet would remain in balance. She says, her bank is too big to fail.
Duped (even more confused): But …
George: No but. You all need to work hard and save a lot of money to repay the loan at the high interest rate. Our house is the collateral. If you can’t afford to stay, you can move into another house. That’s even better, because then I can offer the rooms at even higher prices for the wealthiest strangers. But mind you, for you to find an affordable house to move in, won’t be easy. Christine made sure that all houses go through the same transformation as ours, so all of them are very expensive. And as a stranger in another house, you will have to work even harder, longer hours and for even less.
Duped (laughing, with his eyes searching for hidden cameras): You’re kidding, right? What a brilliant prank!
George (squinting, switching to sinister tone): No, serious, bro. I already signed the agreement with Christine.
In fact, I already borrowed from her several times, but forgot to let you know. In fact, she and her bank are the owners of the house, so if we fail to comply, she can claim her property any time.
Duped (laughing): I don’t believe you. And even if it is true, you can’t force me to accept.
George (laughing, pointing at the contract): Of course I can. The law entitles me to.
- In case someone missed the point: above describes the global fraud that all countries are subjected to under the hoax of phony Crisis, Debt, Austerity, Privatisation, Crisis.
How it’s continued at present – the UK version:
The brewing perfect storm, IMF, Osborne’s threat-cocktail and the UK-version of Greek Debt Crisis