The Zombie Spider in the City of London

In the dark heart of Dickens’ good old City squats a spider…

Now, spiders are necessary to the natural order of things. Until, that is, they succumb to a parasite of  particular cruelty.

It is well known that certain parasites control the behaviour of their host for their own benefit.

The Zatypota species of parasitic wasp infests the social Anelosimus eximius spider, of the Ecquadorian Amazon. It lays eggs on the abdomen of the spider. When the larva hatches, it then feeds upon its host’s blood, growing until it subsumes much of the spider’s body. As it feeds, it injects a brain-altering hormone into the spider’s blood stream. This hormone hijacks the host’s brain and behaviour, compelling it to abandon its colony and build a cocoon web. The parasitic wasp larva then devours what is left of its host and slithers into the cocoon which it uses an incubator. After it emerges as a mature wasp, the cycle begins anew.

Infected ‘Zombie Spiders’ Forced to Build Incubation Chambers for Their Parasitic Overlords

The spider squatting in the City is infected by a parasite of a similar, yet different nature. The larva of this W.A.S.P takes the form of a self-propagating viral meme or morphic field. It was laid onto the belly of the beast by the 0.01% financial elite of White Anglo-Saxon Protestant England at least as far back as the 17th century. Rather than individual spiders, it hijacked a whole colony, compelling them to abandon their compatriots, extract wealth from them and spin cocoons to nurture its parasitic life cycle through to today.

This bloated arachnid and its children now ply gossamer threads that span the globe.

At the centre of the web, a mere square mile, where democracy holds no sway, where even the Queen needs permission to tread, lies the crux of world misery.

To see the minions of this deep state in their true form, one must look with the corners of one’s eyes, past the perception filter of ridiculous, old-boys pomp and pageantry fused with the image of modern financial acumen and quant jocks. Beyond this deceptive veneer is a network of privileged kleptocrats, born and bred to lay an invisible siege to the beleaguered masses of the planet. A network that  plunders wealth and transfers it to a few plutocrats at the top of this corrupt pyramid of dark empire, sustaining it in perpetuity.

The Golden Egg?

The City of London, “a convenient term for a collection of financial interests” as Labour Prime Minister, Clement Atlee once told us, delights in presenting itself to those on the outside as the goose that lays golden eggs.

Around £35 billion in tax, more than that raised from everyone in Scotland and Wales combined and enough to pay for the UK transport budget, 360,000 banking jobs, £300 billion lent to UK businesses and mortgages for 700,000 homes in one year alone. The economy would collapse without it, as the mantra drones on and on.

If one widens one’s gaze however, one sees that the token contribution that these financial interests make is dwarfed by the wealth plundered and the economic harm wreaked upon the UK and indeed the world:

Firstly, it has been estimated that due to the City’s tax haven activities, the UK loses £18.5 billion per year from high-net worth individuals and large UK companies.

Secondly, the UK government must pay £49 billion in annual interest on the public debt which currently stands at £2 trillion.

What has this to do with the City of London?

The City is the home of global banking.

Representative banks from twenty-six countries cluster in homage around the Old Lady of Threadneedle Street, the dark empire’s financial engine of destruction, the Bank of England.

Long ago this entity, the model for virtually all central banks in the world today, was granted a monopoly on magic monopoly moneythe power to conjure money from the very air and lend it out at interest.

Deep Empire: Merchants of Misery

Today, the Bank plays more of a symbolic role as the regulator and overseer of the private banking system. The real power to create money has been transferred to these private banks. Paper money has been replaced with electrons. When private banks make loans, they simply type numbers and enter them into electronic deposit accounts. These electrons function as 97% of the money in our economy.

The most powerful UK banks, the “Four Horsemen” of Perfidious Albion are:

•           Barclays

•           HSBC

•           Lloyds Banking Group

•           The Royal Bank of Scotland Group

Private banks create money out of nothing and lend it at interest.

People struggle to believe that this is what actually happens. Their cognitive dissonance is understandable because it does indeed sound absurd but it is the case. When people do finally understand it, they usually forget it as soon as their attention turns to other matters. Like “the Silence”, the alien race in the UK series “Dr Who”, this knowledge is “memory-proof”, anyone who sees it, forgets it as soon as their gaze shifts away. It must be learnt and unlearnt again and again, wrestled, screaming, from the suppressed depths of the national sub-conscious.

Private banks create money out of nothing and lend it at interest.

This “memory-proof” aura pervades throughout the City of London and with good reason, from the perspective of financial oligarchs at least:

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”

Henry Ford

So long as this institutionalised fraud is allowed to persist, then we will never live in a true democracy.

Ex-Nihilo: Monopoly Counterfeiting UK

The Public Debt

Let us now return to the public debt which currently stands at £2 trillion, of which the UK government must pay £49 billion in annual interest.

Who owns the debt?

The Bank of England owns about 25%, a quarter – £0.5 trillion

UK financial institutions such as private banks own 17%, just over a sixth – £0.34 trillion

UK insurance companies and pension funds own about 30%, almost a third – £0.6 trillion

Then we have the UK’s external debt on which the interest payments go out of the UK. This makes up about 27%, another quarter, owed to foreign institutions£0.54 trillion.

Now, we must remind ourselves:

Private banks create money out of nothing and lend it at interest.

Firstly, UK external debt, owed to foreign institutions. These are of course made up of foreign banks, which also create money and other foreign financial institutions which obtain easy credit from foreign private banks. Together these created £0.54 trillion out of nothing and lent it to the UK government.

Now, UK internal debt,

The Bank of England created £0.5 trillion out of nothing and lent it to the government.

UK private banks and other UK financial institutions, which obtain easy credit from private banks, created £0.34 trillion out of nothing and lent it to the government.

UK insurance companies and pension funds, which obtain easy credit from private banks, and free money from the Bank of England, created £0.6 trillion out of nothing and lent it to the government.

Through Quantitative Easing, The Bank of England created £445 billion of new money in response to the financial crisis of 2008 and bought back government bonds from the UK insurance companies and pension funds at increasing profit. This increased the amount of commercial bank money in the accounts of these companies held at one of the major UK banks in a professed attempt to “replace” the lost money in the economy.

Did this help the economy?


As you may have guessed, the UK insurance companies and pension funds ploughed the money into the financial markets. This drove up bond and stock markets up 20%, to their highest level in history. The trickle-down economics cover story claimed that people should spend more as they felt wealthier. But wait, 40% of the stock market is owned by the wealthiest 5% of the population, the proportion that also has the greatest share in the pension funds.   Once again, wealth was transferred from poor to rich.

It has been pointed out that the amount of money owed to the state-owned Bank of England, £0.5 trillion, on account of the government bonds it purchased on which the annual interest is around £13 billion,  is actually owed by the government to itself.

One must ask, why the necessity for this ridiculous charade that is still a brake on public spending? The answer is because this money is channelled indirectly back into the Bank of England’s financial network and ultimately the private banks in the City of London.

Transfer of Risk/Wealth

As mentioned earlier, The Bank of England current role is mainly as a regulatory body that oversees the existing network of private banks. A major function is to support any bank or financial institution that gets into trouble.

How can banks that can create money out of nothing, ever get into trouble?

To create money out of nothing, banks require a borrower. The amount of the loan is typed into the borrower’s account as a liability of the bank. This liability is balanced by nothing other than the borrower’s signed promise to pay back the loan.

If the borrower pays back the loan, the principal is destroyed, the amount signified by the signed contract and the liability is removed from the books. The interest however, goes towards the bank’s voluminous profits. In fact, it is preferable, from the bank’s point of view, for the loan, which cost the bank nothing, to never be paid off so that it can draw perpetual interest from the borrower.

If the borrower defaults on the loan, then the amount signified by the signed contract is removed, creating an imbalance on the books. Enough imbalances and the bank can become insolvent. It can borrow from the other private banks, but if they are unable or unwilling, it is in trouble. This is when the Bank of England can step in and create its own special central bank money, which only private banks can use, to either lend or give to the bank in trouble in order to balance its books.

Effectively, a private bank can thus create unlimited amounts of electronic money and lend it out without ever having to suffer the consequences. This, of course leads to price inflation and speculative bubbles of prodigious proportions. It is important to note that when one talks of “risky lending”, the risk is not borne by the banking system but is transferred to the rest of the economy. In fact, rather than risk, it should be termed “certain danger” as a transfer of wealth from the poor to the rich, is a threat to our democracy. A “demockracy” which is looking more and more like a plutocracy as each day passes.

In the financial crisis of 2009, the UK banks were bailed out, at the public taxpayer’s expense, to the tune of over £130 billion. The banking sector continues to this day to receive over £23 billion annually in subsidy due to its protections and its magic monopoly money making privilege.

The Rotten Egg

Let us summarise thus far. The group of financial interests known as the “City of London” claims that it is a boon to the UK economy due to:

  • Around £35 billion in annual tax revenue.
  • 360,000 banking jobs
  • £300 billion lent to UK businesses and mortgages for 700,000 homes in one year

However, if we remove the £18 billion lost to the web of tax havens run by the City, and the £23 billion in effective subsidies we arrive at a deficit of -£6 billion per year.

Then we should remove the interest on the debt paid to the UK City banks and institutions of around £36 billion, which was created from nothing. The deficit of the City of London now stands at -£42 billion per year.

What about the Downton abbey-esque argument of 360,000 banking jobs? Well, first off, a job is not an act of charity, it is money exchanged for labour. Secondly, most people agree that banker’s salaries and bonuses awarded to the privileged few, money paid from the financial sector to itself, also does not constitute a boon to the UK economy. Finally, an oversized banking sector is a drain on more productive sectors and is actually harmful to the economy as we shall see.

This leaves us with the £300 billion lent to UK businesses and mortgages for 700,000 homes in one year. Once again, a loan is not an act of charity, much less a loan created from nothing. This £300 billion was of course created from nothing by private banks and lent to the UK businesses and families at interest. While it left these UK businesses and families saddled with debt, it cost the banks nothing and actually provided them with annual interest of at least around £7 billion. This dubious boon could have been provided by the government if they had decided to take the power of private money creation away from private banks.

It’s the banks, stupid

But this, unfortunately dear reader, is not all, far from it.

The Finance Curse

Our oversized financial sector, our bloated zombie spider, extracts wealth from other parts of the economy, damaging our ability to create real wealth that benefits everybody.

As set out by Nicholas Shaxson:

The finance curse: how the outsized power of the City of London makes Britain poorer

Financial crises are a clear example of this process in action. It has been estimated that the lost economic output caused by the crisis from 2007 to 2015, amounts to £1.8 trillion. That is a staggering £225 billion per year on average.

On top of this is the loss attributed to “misallocation”. This is when the finance sector is diverted from useful investment (less than 4% of loans go to manufacturing)  to predatory activities that distort and drain wealth from the economy. This amounts to £2.7 trillion from 1995-2015 or an eye-watering £135 billion per year on average.

Together this is £360 billion per year on average of  potential wealth lost due to the existence of the Zombie Spider in the City of London.

Qui Bono?

Let us remind ourselves of who benefits.

Those who have the power to issue money.

The state-owned Bank of England or rather the Bank of England-owned state and the network of private banks, both commercial and investment banks, other financial institutions and law firms operating out of the City of London.

As Dominic Frisby so ably demonstrates in this short video:

Fiat Money

Then the favoured large corporations and high net-worth individuals that get this money early, then spend it before the prices of the goods and services they buy has risen to reflect the new money in circulation.

The main holders of these assets such as real estate and shares will then see gains. The main holders are, of course, the same group of financial interests that own and control the private network of banks and corporations at the top of the pyramid.

Who loses?

Everybody else outside the privileged circle. Those on fixed wages, with savings but no inside information or friends in high places. Wages don’t increase, their savings buy them less and they often have to go into debt to afford the things they were previously able to buy. The whole process merely redistributes wealth from the bottom to the top of the pyramid – Dedistribution.

The rest of the economy outside the financial sector.

All developing nations.

The entire planet.


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