The Parasites of Western Economy, Part 1: Motorvehicle Insurance Scammers.

The Parasites of Western Economy, Part 1: Motorvehicle Insurance Scammers

by tonytran2015 (Melbourne, Australia).

Click here for a full, up to date ORIGINAL ARTICLE and to help fighting the stealing of readers’ traffic.

(Blog No.62).

#parasite, #motor vehicle, #transportation, #insurance, #scam, #rip off

The Parasites of Western Economy, Part 1: Motorvehicle Insurance Scammers.

If you have ever been to Vietnam, you will see more than 40 million motorbikes on the roads. They go on their daily routines, occasionally causing minor accidents and damage but people don’t threaten their road sharers with law suits. Owning a motorbike there is thus mostly an advantage and very rarely a liability (it is so only when the owner is outrageously stupid). How can they do that and why cannot Westerners do it?
They can do it because they have not been brainwashed and enslaved by Vehicle Insurance Parasites.

1. The Vietnamese way of handling non-fatal traffic accidents.


1a. If you lose a small paint scratch then consider it part of wear and tear of a quickly depreciating asset. You have to be tolerant to the other party who may be inexperienced just like you years ago, when you were young, or may be just like your kids.
1b. If you lose a turn indicator lamp then consider who has more damage and remain tolerant:
If the other party suffers no damage and is clearly at fault then ask him to pay a realistic repair cost to you right on the spot.
On the other hand, if he suffers much more damage than you do then consider that you have been lucky not to get hurt and he has already been taught a good traffic lesson.
1c. If your motorbike is badly damage:
You may ask the other party to pay for the actual repair costs and usually he will agree to it or beg you to let him pay by installments or only part of it.
You should think that accident avoidance is the responsibility of both him and YOU. Be tolerant and consider who suffers more damage.

2. The Enslaved Litigious English way of handling non-fatal traffic accidents.


2a. If you lose a small paint scratch then force the other party to follow a costly legal course of arguments to assign faults and threaten the other party with a law suit to take away his house. On the other hand, if you are at fault, you still employ a lawyer to reply to the other party that you won’t pay even a single cent for his fair repairs cost.
2b. If you lose a turn indicator lamp then take your vehicle to a shop that will try to assign hundreds of small previous wear and tear to the accident and ask the other party to pay for all that. You will hope to have a partially brand new vehicle after those repairs.
The reality would turn out that the shop WILL POCKET most of the costs and you will ONLY have the main damage shoddily repaired: You have been used by the repairer to scam money on the poor other party! Do you want to sue the repairer (your former partner in crime!) now?
2c. If your motorbike is badly damaged:
You may ask the other party to pay for the (often pretended) psychological damage for fear of traffic, plus inflated repair costs.

3. Where does the money go in the Enslaved Litigious English World?


3a. You pay the lawyers to threaten one another unnecessarily. All of you are forced to join insurance schemes and pay their excessive costs to avoid being threatened.
3b. You pay the lawyers to play expensive legal games. You also pay excessive repair costs to non-existent repairs.
3c. You pay the lawyers to play legal games to rip off other insurance contributors on pretended psychological injuries. You also pay excessive repair costs to non-existent repairs.
(See references [1,2]).

4. Parasites ripping-off your transportation system.


You now know why transportation costs are so expensive in English speaking White countries. There are parasites feeding on your transportation costs, you are enslaved into paying annual insurance premiums that is about 5 times the cost of the actual repairs if paid out directly by owners instead.
There used to be Mutual typed Insurance Companies (AMP, Colonial Mutual, NRMA) which are not for profit organizations (such as NRMA motor vehicle Insurance for member). The financiers had successfully used immoral ways to rip off the Mutual funds to give money contributed by many previous generations of members to directors and fund members at that only time. The rip off was called “Demutualization” (around 1995 in Australia). Those mutual insurers were then wound up to leave the market to only for profit insurers. Without competition from those non-profit organizations, insurance premiums have shot up.
You should demand a law reform to reduce the legal rip-offs by transport insurance schemes.
I am no fan of the political system in Vietnam but I admire the way the population there cooperates in their daily commutation. At least, each Westerner should experience the rip-off free transportation system in Vietnam (before it become infected by the Insurance associated parasites) to know how much you have been ripped-off by the parasites..
It should be remembered that a fish won’t know that it is in water unless it can somehow, sometimes jump out of the water.

References:

[1]. wikipedia Compensation_culture, accessed 05May2017.

[2]. www.iaapa.org CompensationCulturePuttnam.pdf, accessed 05May2017.

[3]. the car insurance industry is a disgusting racket, https://www.spectator.co.uk/2015/10/the-car-insurance-industry-is-a-disgusting-racket/

[4]. https://www.theguardian.com/commentisfree/2011/jun/27/jack-straw-car-insurance-racket

[5]. http://trafficlaw.com.au/forum/viewtopic.php?t=3737

[6]. ALEKS DEVIC, Car crash racket runs rampant in Victoria, with thousands left without car, huge bills, Herald Sun, http://www.heraldsun.com.au/news/victoria/car-crash-racket-runs-rampant-in-victoria-with-thousands-left-without-car-huge-bills/news-story/f0f217204e4c959ac67fe7f1f18abf3c , May 22, 2016 9:00pm

Added after 2017 Dec 28:

[7]. http://asic.gov.au/about-asic/media-centre/find-a-media-release/2016-releases/16-049mr-insurers-take-car-buyers-for-a-ride/

[8]. https://www.moneysmart.gov.au/insurance/car-insurance/add-on-insurance

[9]. https://consumeraction.org.au/junk-insurance-and-rubbish-warranties/

INSURANCES WITH NO VALUE

[10]. http://straightlinelogic.com/2018/04/29/and-yet-another-wells-fargo-banking-scandal-by-simon-black/

ADD ON INSURANCE

Swann, owned by IAG, only paid out around 10 per cent of the $1.07 billion in add-on insurance premiums it collected over a 10-year period, the royal commission has heard.

[11]. http://mobile.abc.net.au/news/2018-09-18/banking-royal-commission-live-blog/10262384

[12]. http://uphindia.com/2019/04/22/it-is-not-mandatory-to-buy-car-insurance-from-auto-dealer/

[13]. https://www.reuters.com/article/us-wells-fargo-settlement-idUSKCN1T81RM

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QE may be just another scam to steal national wealth.

QE may be just another scam to steal national wealth

by tonytran2015 (Melbourne, Australia).

Click here for a full, up to date ORIGINAL ARTICLE and to help fighting the stealing of readers’ traffic.

(Blog No.55).

#treasury bonds #QE #quantitative #easing #scam #stealth, #zero interest,

Figure: Fiat money relies on the payments to government employees with it and the power to collect it back as taxes on the population.

It has been a US policy of borrowing from bankers through Treasury bonds (the method is given in section 1). USA have thus been designed to be in a perpetual state of indebtedness to bond holder bankers. Quantitative Easing is an even more outrageous extension of that monopoly. This posting shows why.

1. Borrowing from the population.

(as previously posted in ref. [2], sect. 7)

We note that the US government regularly issues and has been using its own Fiat money. When the government wants to borrow X units of its fiat money from its citizens, it may have to conduct an “auction”.

b. It may offer to all of its people to give the government any each of their spare $1000 now to receive a (transferable, resellable) certificate to receive $30 every year and hold it until the end of 10th year to get $30 plus the principal of $1000.

Too many of its citizens may accept the offer and the total amount of their money may far exceed the requirement of the government. If that is the case, it may next say No, not $30/year anymore, but $20/year. The amount may goes up again until the acceptance has only about X units, the amount it requires.

This is the idea of Treasury Notes, Treasury Bonds.

Anti-corruption requires that the bidding process be public and transparent.

If the final auction price is $30/year of for $1000 of money then the Treasury Bond rate is 30/1000 or 3.0% per annum.

The transferable T-Bonds is then available for resale on the financial market. Initially it is worth $1000 then it may drift up or down.

Its value at any time is the worth of all money collected from the remaining time compared to prevailing market.

Example:

A $1000 bond entitled to $30/year has 9 years left. The economy now has 0.01% interest and this rate will extend past the redemption date.

When interest rate is at 0.01%, the present value of the bond is worth nearly

$30 X 9 + $1000 = $1270,

(To be exact, the inflation discounted values should be used. Inflation has been assumed to be zero in the calculation).

It has been US government practice to always keep the US in debt with Treasury bonds. There has been no plan to ever free the US from debts.

It would be alright if the debts are spread to ordinary US citizen. In reality, the debts are concentrated to only a handful of billionaires. The indebtedness to a handful of them may threaten the democracy of the US and these people have now extended their grip into another scheme for skimming national wealth called Quantitative Easing.

2. Quantitative Easing.

Quantitative Easing is an even more outrageous extension of the manipulations on Treasury bonds.

When the government wants to have more money circulated in the economy of the population, it can buy gold from the population so that the population keeps the money and the government keeps the gold for future resale. Beside gold the government can also buy infrastructures or services from the population.

But instead of doing that the US government carried out QE (Quantitative Easing) (see reference [7], [8]). This is what the government does in a QE (continuing with the example at the end of section 1):

The government now buy back the Treasury Bond at a price of nearly $1270 from bankers a bond it has previously sold 1 year ago for $1000.

So the government has given away $270. The government lost money for nothing. That why US debt has ballooned up after Quantitative Easing. See reference [6] for the new level of debt.

The injection of money should have been done by government buying gold, infrastructures (including hiring people to build anew or maintain infrastructures) or services from the population.

Notes:

1. Reference [4] stated that “A central bank enacts quantitative easing by purchasing—without reference to the interest rate—a set quantity of bonds or other financial assets on financial markets from private financial institutions. .. QE does directly increase the broad money supply even without further bank lending.”

2. If inflation had been targeted by the government to be 2% (see reference [5]), buying back a 9 year bond at $1180 is just giving away $180, and bankers will be happy to take that.

3. QE gives bond holders surprised gifts.

As long as the bond holders know that the government wants to buy back an enormous amount of X dollars of immatured bonds, they will hold tight to their bonds until the auctioning bid reaches its present value discounted by inflation. Any reasonable bond holder would do that.

After that, the absurdity of zero interest rate is born.

4. Social effects of absurd zero interest rate.

With zero interest rate, pension (or superannuation) funds will not have incomes on any future investments in bonds. They will have to keep cash, gold or plunge into the share markets. This shows that even well designed pension funds will face more risks from the share markets.
Bond holders (including some pension funds) got a surprise gift of free money through QE by the government, but the gift will not drip down to pension funds and individuals on fixed term deposit with the banks.

5. Conclusions.

Having PRIVATE Federal Reserve Banks, practicing obfuscated Quantitative Easing all look like plans to defraud American people of their wealth and permanently enslave them with ever increasing debts to bankers.

References:

[1]. Your fiat money (Part 2), posted January 12, 2017.

[2]. Your fiat money, posted January 9, 2017.

[3]. Quantitative Easing, Investopedia, http://www.investopedia.com/terms/q/quantitative-easing.asp, accessed 1st Mar 2017.

[4]. Quantitative easing, Wikipedia, https://en.wikipedia.org/wiki/Quantitative_easing, updated on 02 March 2017, accessed 03 Mar 2017.

[5]. Why does the Federal Reserve aim for 2 percent inflation over time?, Board of Governors of the Federal Reserve System, https://www.federalreserve.gov/faqs/economy_14400.htm, updated January 26, 2015, accessed 03 Mar 2017.

[6]. kchild2013, US national debt soars by $100 billion. . . in just 8 hours, sentinelblog, https://sentinelblog.com/2017/01/05/us-national-debt-soars-by-100-billion-in-just-8-hours/, January 5, 2017

[7]. sdbast, Ripped-off Britons: Osborne finally admits BofE’s QE payouts gifted min £600bn to the wealthy, worth half the national debt: https://t.co/WNp9Kw7XVb, sdbast.wordpress.com, https://sdbast.wordpress.com/2016/12/18/ripped-off-britons-osborne-finally-admits-bofes-qe-payouts-gifted-min-600bn-to-the-wealthy-worth-half-the-national-debt-httpst-cownp9kw7xvb/, Dec 18, 2016.

[8]. peoples trust toronto, Bank Of Japan Said To Start Preparing For Losses On Its “Huge” Debt Holdings Once QE Ends, https://peoplestrusttoronto.wordpress.com/2016/05/20/bank-of-japan-said-to-start-preparing-for-losses-on-its-huge-debt-holdings-once-qe-ends/, 2016 May 20.

[9]. https://www.treasurydirect.gov/
[10]. , Reuter , https://www.reuters.com/article/uk-us-economy-imf-idUKBRE95O0P720130625, June 25, 2013.
Added after 2018 Feb 02:
[11]. https://venitism.wordpress.com/2018/01/08/what-has-quantitative-easing-wrought/
[12]. https://us-issues.com/2018/04/21/black-tuesday-october-29th-1929-revisited/

[13]. https://straightlinelogic.com/2018/04/23/this-is-not-a-market-by-raul-ilargi-meijer/

[14]. https://www.theautomaticearth.com/author/ilargi/

[15]. https://dailyreckoning.com/central-banks-great-experiment-failed/

[16]. https://riggedgame.blog/2018/05/15/central-banks-the-great-experiment-has-failed/

[17]. https://www.rollingstone.com/politics/politics-news/stock-market-slump-trump-737792/

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