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BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

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BFCSA: China's Debt - whole world drawn into PONZI Scheme

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http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100027691/chinas-terrifying-debt-ratios-poised-to-breeze-past-us-levels/

 

China’s terrifying debt ratios poised to breeze past US levels

Last updated: July 22nd, 2014

By Ambrose Evans-PritchardEconomics

The China-US sorpasso is looming. I do not mean the much-exaggerated moment when China’s GDP will overtake America's GDP – which may not happen in the lifetime of anybody reading this blog post – as China slows to more pedestrian growth rates (an objective of premier Li Keqiang.)

The sorpasso may instead be the ominous moment when China’s debt ratios overtake the arch-debtor itself.  I had presumed that this inflection point was still a very long way off, but a new report from Stephen Green at Standard Chartered argues that China’s aggregate debt level has reached 251 per cent of GDP, as of June  This is up 20 percentage points of GDP since late 2013. The total is much higher than normal estimates, though it tallies with what I have heard privately from officials at the IMF and the BIS.

Mr Green – a highly-respected China veteran – includes total social financing (TSF), offshore cross-border bank borrowing (a story that we are going to hear a lot about), bond issuance, shadow banking of various kinds, and government debt.  The ratio has risen by 100 percentage points of GDP over the last five years. As Fitch has argued out in the past, this is more than double the rise seen in Japan over the five years before the Nikkei bubble burst in 1990, or in the US before subprime blew up in 2007, or in Korea before the Asian financial crisis.

It is the speed of the rise that worries credit rating agencies and regulators – including many at the Chinese central bank – as much as the volume itself. Though China is scary on both fronts. It has pushed debt to $26 trillion, more than the entire commercial banking systems of the US and Japan combined. The scale obviously has global ramifications.

The FT’s Jamil Anderlini points out here that the figure is very high for an emerging economy.  Mature economies can handle a higher debt ratio for all kinds of reasons, not least because they have large assets to offset their liabilities. British figures of household debt look much more threatening than they really are because the debt is mostly for mortgages, and is balanced by high levels of equity and wealth.

Total debt levels in the US are 260pc (if you assume that the Fed will never unwind QE, which I do). So unless the Politburo gets a grip very fast, and this too would be dangerous, it may catch the US by next year.  This does not mean that China is about to crash. It has a state-controlled banking system. Therefore any bust scenario will play out in a different way, probably through much lower growth and two decades of Japanese-style extend and pretend.

 

As the BIS implied in its annual report: almost the entire world has now been drawn into the Ponzi scheme of unsustainable debt.  We can inflate some of it away, or we can deflate into defaults and creditor haircuts. Pick your poison.

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  • PreySOS
    PreySOS Tuesday, 19 August 2014

    I am also a victim of this toxic lending fraud. Much worse my bank lender ANZ was very skillful to not only aim at my existing equity in my properties by selling the unaffordable loan when I have been no income, but also abused their right to close my account after capturing my business cash flow and turning it into greater equity for nearly half million dollars and destroyed my business investment income source while holding the newly approval bank's money for repayment deduction while making became unaffordable to repayments.

    So ANZ could benefit from this unlawful interest only deduction from my equity in asset exceeding $700,000 when they foreclose my properties after default notice.

    Now I have no money at all to afford any lawyer to get justice back. Our otherwise well reserved properties is now just like a lamb under custody of hungry bank to be lost in any time.

    The reality is our country's law system could only fair to affordable people which is loophole for all victims of banks/agents. But this injustice must be only avoided by effective support and intervention through fair government and parliament.

    I believe that we should make petition to Attorney-General for Australia to overturn such national scale banks lending fraud.

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