- Heidi is the proprietor of a bar in Chicago. She realizes
that virtually all of her customers are unemployed alcoholics and, as such,
can no longer afford to patronize her bar. To solve this problem, she comes
up with a new marketing plan that allows her customers to drink now, but
pay later.
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- Heidi keeps track of the drinks consumed on a ledger
(thereby granting the customers' loans). Word gets around about Heidi's
"drink now, pay later" marketing strategy and, as a result, increasing
numbers of customers flood into Heidi's bar. Soon she has the largest sales
volume for any bar in Chicago.
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- By providing her customers freedom from immediate payment
demands, Heidi gets no resistance when, at regular intervals, she substantially
increases her prices for wine and beer, the most consumed beverages. Consequently,
Heidi's gross sales volume increases massively.
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- A young and dynamic vice-president at the local bank
recognizes that these customer debts constitute valuable future assets
and increases Heidi's borrowing limit. He sees no reason for any undue
concern, since he has the debts of the unemployed alcoholics as collateral.
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- At the bank's corporate headquarters, expert traders
figure a way to make huge commissions, and transform these customer loans
into DRINKBONDS. These securities then are bundled and traded on international
securities markets.
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- Naive investors don't really understand that the securities
being sold to them as AAA secured bonds really are debts of unemployed
alcoholics. Nevertheless, the bond prices continuously climb, and the securities
soon become the hottest-selling items for some of the nation's leading
brokerage houses and are sold and bought world-wide.
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- One day, even though the bond prices still are climbing,
a risk manager at the original local bank decides that the time has come
to demand payment on the debts incurred by the drinkers at Heidi's bar.
He so informs Heidi.
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- Heidi then demands payment from her alcoholic patrons,
but being unemployed alcoholics they cannot pay back their drinking debts.
Since Heidi cannot fulfill her loan obligations she is forced into bankruptcy.
The bar closes and Heidi's 11 employees lose their jobs.
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- Overnight, DRINKBOND prices drop by 90%. The collapsed
bond asset value destroys the bank's liquidity and prevents it from issuing
new loans, thus freezing credit and economic activity in the community.
The suppliers of Heidi's bar had granted her generous payment extensions
and had invested their firms' pension funds in the BOND securities. They
find they are now faced with having to write off her bad debt and with
losing over 90% of the presumed value of the bonds. Her wine supplier also
claims bankruptcy, closing the doors on a family business that had endured
for three generations, her beer supplier is taken over by a competitor,
who immediately closes the local plant and lays off 150 workers.
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- Fortunately though, the bank, the brokerage houses and
their respective executives are saved and bailed out by a multibillion
dollar no-strings attached cash infusion from their cronies in government.
The funds required for this bailout are obtained by new taxes levied on
employed, middle-class, non-drinkers who have never been in Heidi's bar.
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- Now do you understand?
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- Benjamin Fulford 090-3439-5558
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