Pol.9100.0001.0616 0001
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POL.9100.0001.0616_0001 Dear Commissioner, WHEREAS Australia has one of the strongest and most stable banking, superannuation and financial services industries in the world, which performs critical roles in pinning under the Australian economy, yielding profit for the Money Power, shareholders and their acolytes and burdening the citizens of Australia who have little choice but to use this industry. A banking industry serving the prophesied "Banana Republic" with its demolished productive sector AND a superannuation industry from which said acolytes may siphon AND a financial services industry boasting speculation which dwarfs that of the "Pokie Nation", non-banking speculative sector. AND Australia's banking system is systemically strong and applies this strength in concealing its speculative activities and squashing what is left of the productive sector under internationally recognised and world's best prudential regulation and oversight on behalf of the Money Power. AND most Australians are consumers of banking, superannuation and other financial services. The superannuation system alone has created more than a $2 trillion retirement savings pool. AND this superannuation continues to grow rapidly and compels all working Australians to defer income today for their retirement, which most may never see because of siphoning mentioned earlier. AND to fulfil the prophesied end of "the age of entitlement" all banking entities are being protected by Too-Big-To-Fail status, able to be propped up at all cost regardless of detriment to individual citizens (through 100% bail-in of 100% of financial instruments by APRA) and the collective Australian public (through bailout by the Australian Government) so that further the prophesy may be fulfilled that "the poorest people either don't have cars or actually don't drive very far in many cases". AND all Australians have the right to be treated honestly and fairly in their dealings with banking, superannuation and financial services providers but the Australian Government acting directly and by proxy via its regulators rarely uphold these rights AND the Australian Government continues to delegate more banking functions to an industry captured by the Money Power AND does not exercise its power to take these functions back, which would restore honesty and fairness to an industry being shown to be bereft of both by this very Commission. AND these standards should continue to be complemented by strong regulatory and supervisory frameworks that ensure that all Australian consumers, including business, have confidence and trust in the financial system, lest they realise the five point plan of the Citizens Electoral Council (CEC), with its tried and tested elements adapted for modern Australia, will lift the prosperity and amenity levels of every Australian, rich or poor, strong or weak, young or old. I submit that the answer to your first question 'Why did it happen?' goes to the very heart of many matters plaguing humanity. The oligopoly of banks in Australia is supervised by APRA which limits new entrants to the Australian banking industry and is paid for with a bank levy and acts under the auspices of the FSB of the Money Power's Bank for International Settlements (BIS). The "Big Four'' have been given Too-Big-To-Fail status by the Australian Government, a status they exploit to the detriment of every Australian citizen fooled by the so-called deposit guarantee they have and their seemingly endless supply of credit to loan out. Professor Wilson Sy, a Principal Researcher at APRA from 2004 to 2010, can describe to the Commission the financial status of the banks using publicly available data. More than anyone, he can assist in answering this first question, having researched this industry at APRA for this time. I ask that you call him to testify to the Commission. The tyranny of the oligopoly of banks is echoed in the supermarkets, petrol companies and a myriad other industries that deliver much less than would be available if there were more players on the scene of each industry. The political "two-party preferred system" is the cruellest of devices POL.9100.0001.0616_0002 exploited by the Money Power via the bankrolling of election campaigns by their banking minions. Likewise, schools of economics and finance are heavily infiltrated by ideologies which serve the purposes of the Money Power because they are promoted by "think-tanks" sponsored by their minions. The media in Australia puts Goebbels to shame - it is the velvet glove that hides the Money Power's iron fist, and it does this with the cunning and stealth of an assassin. At the top, bankrupt governments or their delegated Treasuries or other departments may create government bonds which private central banks may accept and exchange for a credit loan which the central bank may recall according to the terms of the bond. Bankrupt Greece (which has fought tyranny for centuries) sits broken by the Money Power. Bankrupt Australia, bankrupt America and bankrupt financial districts stand. As pointed out in my submission 0001 .0001.9366 of 22/7/18 10:39:44pm, quantitative tightening and bail-in is being done at the behest of the Money Power. All who ca n be broken stand to be broken if one recalls the form of the Money Power. I believe the answer to 'Why did it happen?' lies in the fact that Australia's banks have become one-stop shops. Each added service has allowed this "industry" to create more wealth for its employees, owners and acolytes. Loaning to credit-unworthy recipients, speculating and crippling Australia's productive sector and hence ability to withstand the ravages ready to unfold all point to the complicity of APRA. Exposure of the volatility of these three things will crush Australia financially if the U.S. Fed makes good on its promise of continuing quantitative tightening. APRA has made loaning to the housing bubble easier than loaning to our productive sector. It has overseen the growth of derivatives, many of which are set to be paid out with changes in parameters of the housing bubble. The dwarfing of assets and deposits by speculation for each of the Big Four is shown in the graph below. APRA, and ultimately its masters in the BIS (clearing house of the U.S. Fed and other central banks) stand responsible for any misery to come in the next banker-orchestrated GFC. I say banker-orchestrated because S & P Global and Moody's Investors Service, the biggest of the "Big Three" credit rating agencies responsible for not identifying sub-prime loans as sub-prime until too late in 2008, are publicly traded companies which still trade with the same stature. Bank Derivatives vs. Assets and Deposits-2017 "' Der ivatives (notional value) 12 ? :>! Assets / ---1 Customer Deposits 10 ? 7.88(2015) 4 2 ANZ Commonwealth NAB Westpac Source: 2017 bank annual reports Regarding the question of What can be done to avoid it happening again?' I ask that the Commission divide and conquer functions of the banks. Regulation of banks is too big a task for the Australian government, with its own ex-banker quota overflowing. Divide and conquer techniques have successfully been used throughout the ages when faced with a formidable foe. POL.9100.0001.0616_0003 Example 1 of regulatory capture. Treasury is an Australian government body which for five years denied bail-legislation was "in-train" (evidence in my previous submission PWF.0001.0001 .5272 of 26/4/18 10:33:52am) and continues to deny APRA has the power to "convert" deposits and "any other instrument" to shares in an insolvent bank (i.e. worthless shares). I ask that you decide the implications of conversion and write-off provisions of the Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Act 2018 as they appear ins. 11CAA Definitions, s. 36A Definitions ands. 230AAB Definitions which is printed as such: conversion and write-off provisions means the provisions of the prudential standards that relate to the conversion or writing off of: (a) Additional Tier 1 and Tier 2 capital; or (b) any other instrument. How can Treasury attest that "any other instrument" cannot lawfully mean "any other instrument"? Example 2 of regulatory capture. The Reserve Bank of Australia has stated since 2014 on their website that "Bailing-in unsecured derivatives obligations risks contagion given their widespread use as a risk management tool" and "Bail-in can, in principle, be applied to any unsecured debt instrument, including (uninsured) deposits, bonds, .. ." . Example 3 of regulatory capture. ASIC have not prosecuted one bank or banker for growing derivative holdings of each bank, putting deposits and bonds at increasing risk, especially since after the Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Act 2018 was assented to 5 March 2018. Example 4 of regulatory capture. As mentioned above, APRA oversaw the starving of the productive sector, the growth of the housing bubble whose deflation will likely trigger payout of many derivatives which APRA has overseen the growth of. The following graph shows total growth of derivatives in Australia by Australia's banks under APRA's supervision. Total Derivatives of Australian Banks June 1989-December 2017 40 35 30 ..,, 25 c ·;::~ 20 ..,..::::. 15 10 5 Source: Reserve Bank of Australia POL.9100.0001.0616_0004 With the Australian Treasury, Reserve Bank of Australia, APRA and ASIC very little industry capture was necessary. These regulators are all dictated to by the Australian Council of Financial Regulators which in turn strives to implement the dictates of the Financial Stability Board of the Bank for International Settlements (BIS). If inquiring into the conflicting interests of bankers who both trade instruments in the BIS and influence the rules by which those instruments behave within the jurisdictions they exist is beyond the remit of this Royal Commission I ask that you recommend the Australian Government extricate Australia from this system.