Money out of nothing, guaranteed by the Irish taxpayers, as the recent (Feb 28) information release of the Central Bank of Ireland titled Money and Banking Statistics: January 2011 reveals on page 10:
Uncovered “own use” bank bonds – In recent weeks, a number of credit institutions have issued bonds which they retain for their own use. The ECB has authorised the use of these bonds in substitution for collateral that is no longer eligible in normal Eurosystem operations; this reduces the need for reliance on exceptional liquidity assistance (ELA). Just as with ELA, credit risk to the Central Bank in respect of repo operations on these bonds is effectively mitigated by Government guarantee inasmuch as these bonds have been issued under the ELG scheme. In Money and Banking Statistics, these debt securities appear as both assets and liabilities of the credit institutions concerned. For example, Debt Securities Issued: Irish Residents on the liabilities side of Table A.4 and A.4.1 (series 36) and Holdings of Securities Issued by Irish Residents: Monetary Financial Institutions on the assets side (series 21), will both reflect movements in these Government guaranteed bond issuances.
It would be a proper time to hold Europe-wide mass executions of all those bankers who are responsible for this system or who have worked to ensure its continuing survival. There should be no mercy and their assets should be returned to the native peoples of Europe from whom the parasitic deceivers in the financial industry have stolen countless billions.
Update: It occurred to me that maybe I should point out that the only reason it makes sense for a bank to issue debt securities to itself is that this procedure under fractional reserve rules apparently indeed allows the bank to create money out of thin air and that under ordinary circumstances this only occurs when the bank issues loans to others (they still create money out of nothing even then).
It should be bloody obvious to anyone that stuff like this can’t be fair and shouldn’t be the way banking works.