Fundamentals behind our Investment programs
The global financial system involves banks ranging for the federal (gov) banks down to the smaller local banks. In order to play the global money game banks continuously need more capital and therefore turn to central or federal banks for a loan. However for the central banks to provide a loan with a magnitude of several billion the central bank demands that the requesting bank shall have a) a proper credit rating and b) sufficient liquid assets of their own to cover the risks of the loan. Many banks are requesting a loan specifically because they are running short on capital, thus fulfilling requirement b is obviously an implicit challenge. In order to overcome this obstacle they need to boost their liquidity, for instance with 100 million, in order to receive a loan.
One way for a borrowing bank to increase liquidity is finding an external loan of 100 million. This is a quite regular method. The procedure for this type of transaction is however complicated, very strict and supervised by independent institutes and involves dedicated bank accounts and special transfers. Failure to follow the procedure exactly might lead to a lock-down of funds which then will be very difficult to unlock again. There is only a handful of people who can set up and execute this procedure. Most of them are senior ex-banker that are all FCA regulated.
By directly or indirectly adding cash or physical gold to their assets, a bank's liquidity is increased too. In fact, adding does not have to be physically or taking ownership. Simply being able to use assets as a collateral without owning it is already regarded as an increase of assets. Ownership and full control stays with the current and legal owner. Also the collateral remains where it currently is. Although the bank doesn’t own the collateral they can in fact use it as if it were their own, without being able to put any kind of claim on it in case they default on the loan. In the case of default the full risk remains entirely with the borrowing bank, because it involves a government to government loan mechanism based on bank notes and only works via internationally well-known parties.
This methodology is approved and backed by the American Federal bank, European Central Bank and the Bank of England.
All investment programs offered by MM Global Invest Ltd are based on this principal of Colleterallized Investing.