Since the Second World War, Rabobank (formerly Raifeissenbank and Boerenleenbank) gradually became a monoplolist in lending to Dutch farmers. Rabobank provides work for the appraisers. They are fully dependent on Rabobank and follow its instructions.
When a farmer stops, he sells his land. If the value has fallen, he cannot pay his debts. If the value has risen sharply, he can pay his debt to Rabobank and has a pension.
As soon as the value of the land decreases, Rabobank has a huge problem. All farms will have debts far greater than the value of their property. Then the Rabobank will have to write off a huge amount of money. That is not what the bankers want. Fortunately, the appraisers work for Rabobank. That makes life a lot easier. Every year the land is valued higher. The farmer is happy and the Rabobank is happy. The debt is always passed on to the next generation of farmers.
Currently the appraisers of the Rabo bank state, that farmland has a value of more than 80,000 euro for a ha (10,000 square meters).
The Rabo bank is since the '1970s the bank of the farmers. All appraisers for farmland work for the Rabo bank and are dependent of the Rabo bank. An appraiser that did not want to follow the demands of the Rabo bank testified to me, that the Rabo bank did no longer asked for his services.
Since the '1980s the Rabobank has been driving up the appraisal of farmland. Because of this, farmers did not go into bankruptcy. So on paper, the Rabobank did not loose money on the farmers. The debts were shifted to the next generation of farmers. And now the farmers are burdened with enormous debts, because the price of farmland has become obscene.
One ha. delivers 45 tons of potatoes. That is about 9000 euros. In order to grow and harvest those potatoes, the farmer has to incur costs. That is about 7,500 euros (in 2019). So a ha. yields 1,500 euros. And that is a very optimistic estimate.
The farmer also has to make some money. And he needs to set aside a part of the revenue for years with failing crops. Say 1,250 euros. That leaves 250 euros for the land. If you multiply this by 30 years, you get a value of 7,500 euros per ha.
The appraisers of the Rabo bank were forced to increase the appraisal of the farmland every year. The average selling price of a ha of farmland is therefore almost ten times its value in use. This can of course not go well.
This scheme is in fact a pyramid scheme. In decent countries that would be illegal. But not in the Netherlands.
The appraisers artificially raised the price of farmland every year. If the farmers had payed the real value of the farmland, then former farmers had gone bankrupt.
With this scheme, the Rabobank prevented bankruptcy of farmers. So they did not have to write of debts. They shifted the burden to new farmers. The farmers have to pay interest on their debts. They pay these interests to the Rabo bank.
And this is how the Rabo bank steals all the European agricultural subsidies from the farmers.
All the politicians in the Netherlands know this. And they all look away.
The farmers get subsidies from the EU. And they have to hand these subsidies over to the Rabobank to pay for the interest on their loans.
In 2018 the EU gave a standard subsidy of 267.34 euro per ha. This means that the EU will actually double the yield of the land. Why does the EU do this? This money ends up at Rabobank and similar banks. It costs the taxpayer a lot of money. And the farmers don't get anything out of it.
Do you think this is a criminal game?
Do you want the Rabo bank to be punished for this scheme?
Do you get the feeling, that the Rabobank is a criminal organization?
The Rabo bank opened a bank near the Mexican border at a town called Calexico. Apparently this bank was dedicated to money laundering services for an extremely violent Mexican drug cartel. See: RABO-bank betrayed Mexican Drug Cartel.
People who know the Rabobank will initially laugh at this title. The rabobank is known as one of the richest banks in the world. They don't go bankrupt that fast, do they?
But is Rabobank really that rich? Or are their books wrong? 'Did they cook the books?'
If Rabobank has to write off 80% of the money lent to farmers, it has 'a little problem'.
The Rabobank has lent a huge amount of money to Dutch farmers. Their main collateral is their land. The debts of these farmers should be covered by the value of the land.
This raises the question: How much is the value of farmland? Or rather: Has Rabobank been messing around with the value of the farmland?
The Rabobank lend about 26 billion Euro to farmers. If farmland is valued according to the yield of the land, then more than 20 billion Euro is not covered by the value of the land.
And it is not just the Rabobank. Throughout the EU there are many other agricultural banks that have been messing with the value of farmland.
This pyramid game went well for decades. But now the government has to take nitrogen measures. As a result, the cattle of the farmers must be halved. Oops! Now the whole house of cards is collapsing.
If farmers produce less per area of land, the value of agricultural land decreases. Presumably, the appraised value of the land is about eight to ten times ( !!! ) the value of the use. This could mean, that the Rabobank has to write off 80 percent of the amount lent to the farmers.
By now, Rabobank's policy and the EU's agricultural policy have come into direct conflict with physical reality. A catastrophe is looming for the farmers. In fact, almost all Dutch farmers are on the verge of bankruptcy.
It is possible to save the Dutch farmers. But then we have to sacrifice Rabobank.
We should oblige Rabobank to remediate all farmers' loans.
Arable land prices must be brought back into line with the actual value in use. The net yield of the land must be the basis of the value.
Farmers should receive income support as far as they need it. They work for society and for the people. If we don't reward them enough, it's actually slavery.
You could also say that the farmers are just treated like money cattle. If you can read Dutch, see De Boeren: Het geldvee van de Rabo bank
It is of course unlikely that Rabobank will be sacrificed. Rabobank has friends in The Hague and Brussels. The farmers there are hardly welcome.
But Rabobank has a problem. The farmers now realize what Rabobank has done. They are very angry now. And rightly so!
In this article I focus on the problems of the Rabobank and the farmers in the Netherlands.
It seems, that many other EU-countries have the same problems. The prices of farmland are much higher than the yield of that land. Banks are playing pyramid-games with the price of farmland. The EU taxpayers are billed for these games. The banks grow fat. The politicians get nice jobs with the financial corporations after their 'tour-of-duty' in politics. And the people of Europe are robbed.
More and more people become aware of the evil games the bankers and politicians play. It is nearly 1789 again and the European 'leaders' do not realize this. (1789 is the year of the French revolution.) Monseigneur de Guillotine is waiting backstage for a majestic comeback. And the band plays on.
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Artikel 120 of the Dutch constitution says:
When evaluating a case in the court of law, the judge is not allowed to ignore a law that is unconstitutional.
The political hooligans of the Netherlands did create a loophole in the constitution, that invalidates the whole constitution.
The political hooligans can make laws that violate the constitution and the courts have to apply them, according to article 120 of the Dutch constitution.
The Netherlands developed an extremely insidious policy, which they call 'Gedoogbeleid' (Toleration policy.) They tolerate gross violations of the law, when it suits their purpose. When they don't like you, they have an enormous arsenal of outrageous laws to punish and torment minorities and people who are different.
In this century, all Ministers of finance of the Netherlands refused to protect the people against criminal financial corporations. Every bit of decency has been sold or leased. The whole political system is rotted down to the core.
Since 1995 Ministers of Finance have been warned for criminal products and schemes, like loan shark policies, interest manipulation, et cetera.
All Ministers of Finance protected the criminal bankers. After their 'tour-of-duty' in politics they harvest their rewards.
The Netherlands is a paradise for financial criminality. Large financial corporations steal and rob as much as they want.
The Minister of Finance and the Dutch Central Bank should regulate these corporations, but they refuse to do so.
After their 'tour-of-duty' in Dutch politics, former Ministers of Finance and members of parliament are rewarded by the financial corporations with very lucrative 'jobs'.
The AFM (Authority Financial Markets) should protect the European Consumer Rights when it comes to financial products sold to consumers, but they refuse to accept any complaints from consumers.
The ACM (Authority Consumers and Market) should protect against abuse of power by cartels, but they behave like a criminal organization.
Toleration policy is the translation of the Dutch word 'Gedoogbeleid'. It is an extremely insidious policy.
It means that the authorities decide if they tolerate violations of the law or that they punish you for it. When you have friends in 'the system', you get away with everything. When 'the system' wants to trample you, the civil servants have an enormous arsenal of laws, that nobody can keep.