Mortgage loan dropped to a ten year low in January 2010, this has been figured out by the Council of Mortgage Lenders (CML) and revealed today. Total mortgage lending dropped an estimated amount £9.1 billion within the month, a 32% drop on December’s figure and 21% lower than the last year January.

However, this downfall was expected at the starting of the year, the down fall of January shifted lending to its lowest level and this is the lowest since February 2000, and brought to ending months of the rising interest rates from borrowers.

The CML stated that the lending aggravated by the traditional post-Christmas due to the flood of buyers to acquire properties before 31st December 2009, the temporary stamp duty holiday end on houses costs less than £175, 000 and it was probably to be the beginning of the quiet period in house marketing.

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The Bank of England has recently decided to maintain the interest rates at their present level.

Following this, the head of Central London commercial research, James Roberts, said that he would have preferred to see the Bank take a more cautious, wait-and-see approach in order to further advance the Quantitative Easing, as the actual condition of the UK economy still seems uncertain.

Last month, the first estimate of Q3 GDP was released which was based on 44% hard data and 56% computer forecasts.

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The Bank of England figures showed today that for the first time since 1993, people paid off mortgage debt faster last month than they took on new debt, suggesting that a real housing market recovery could be on its ways.

People are paying off their debt, taking advantage of the current low-interest rate

According to the Bank, mortgage repayments exceeded new borrowing by £418m in July, as people are taking advantage of the period of ultra-low interest rates to pay off the capital on their mortgages, especially if they have benefited from being on a tracker mortgage.

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According to the Bank of England Report published yesterday, Low interest rates could be with us for some time.

The Centre for Economics and Business Research (Cebr) said that the reality of a deep recession and slow recovery has dawned upon the MPC, recognizing that dull growth and downward pressure on prices may be of the greater concern.

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While that the changes that has taken place will likely hold, with traders that are waiting for fresh incentives so that currencies could be pushed in new directions, as the summer vacation season begins to reduce trading flows and volatile trading is possible.

Key events that could have their effects on currency markets next week include the summit meeting of leaders from the Group of Eight countries in Italy which would begin from Wednesday.

On one side the negative correlation between equities and commodities markets and on the other side the U.S dollar that has in recent months governed currency trading will likely remain in play, although it’s not anticipated that it will generate enough momentum to push any of the major currencies out of recent trading ranges.

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The creation of money is called most astounding sleight of hand ever invented. The creation of money is now privatized, as it is now being hold by a private banking cartel instead of congress. Most people think that government is the authority behind the issuance of money, but actually this is not the case. Except of the coins, the banks create all money, not the government. Federal Reserve Notes are issued by a private banking cooperation named the Federal Reserve, and lent to the government. Moreover Federal Reserve Notes and coins together compose less then 3% of the money supply. The other 97% is created by the commercial banks as loans.

This seems unbelievable that banks create money, they lend. Same was the feeling of jury in Landmark Minnesota case, until they heard the evidence. First national bank of Montgomery vs. Daly (1969) was a courtroom drama worthy of a movie script. Defendant Jerome Daly opposed the bank’s foreclosure on his $14,000 home mortgage loan on the ground that there was no consideration for the loan. Daly, an attorney representing himself, argued that the bank had put up no real money for his loan. Associate Justice Bill Drexler recorded the courtroom proceedings; he said his role was to keep order in the courtroom. Drexler had not given much mental acceptance for defense and watching this The Bank President Mr. Morgan took a stand and admitted that the banks routinely created money for loans and that this was standard banking practice. Presiding Justice Martin Mahoney and the jurors all agreed that it seems like a fraud.

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Here are some thought provoking quotes on money and banking.   I hope you will enjoy reading them. They become even more interesting as you see them in perspective of current global financial crisis.

“The bank hath benefit of interest on all moneys which it creates out of nothing.” — William Paterson, founder of the Bank of England, 1694.

“All the perplexities, confusion and distresses in America arise not from defects in the constitution or confederation, nor from want of honor or virtue, as much from downright ignorance of the nature of coin, credit, and circulation.” — John Adams, letter to Thomas Jefferson.

If congress has the right under the Constitution to issue paper money, it was given them to use themselves, not to be delegated to individuals or corporations. — US President Andrew Jackson.

“The Government should create, issue, and circulate all the currency and credits needed to satisfy the spending power of the Government and the buying power of consumers. By the adoption of these principles, the taxpayers will be saved immense sums of interest. Money will cease to be master and become the servant of humanity.” — US President Abraham Lincoln

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