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'The ability to perceive or think differently is more important than the knowledge gained.'
(David Bohm)


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Wednesday, 1 February 2012

The Unsustainable World. Economic Meltdown or Global Systemic Crisis of Capitalism.

‘These elites do not have a vision. They know only one word: more. They will continue to exploit the nation, the global economy and the ecosystem. And they will use their money to hide in gated compounds when it all implodes.’ (Chris Hedges) 

Money. Rolling pound coins
Rolling pound coins
(© 2011 LightColourShade)
Any economic system built by humans is in itself unsustainable since it’s always based on some kind of exploitation and eventually degenerates through unbridled greed and corruption. In the end, The Excess of Evil Destroys the Evil.

First and foremost, any Ponzi scam is bound to tumble down sooner or later like a cardcastle, and basically that’s what modern capitalist economy is — a giant global Ponzi scheme disguised with fancy terms and phoney financial structures (stock exchange, bonds, fiat money, shares, legal speculation like short-selling, swaps, deferred taxes, etc.) wrapped in convoluted equations, and as such is riding for a fall.
The rating agencies, the governments, and the rich in general are in the same gang — a bunch of smart drones who live off the backs of worker ants. They'll tell you any lie that serves their interests. I bet members of rival parties slap each other on the backs after each parliamentary session, debates or whatever show they have on. Their rivalry boils down to whose snout is first at the trough, the only thing they have to worry about is providing panem et circenses (bread and circuses) for the plebs to keep them at bay.

“Any serious financial or natural disaster could trigger the long overdue collapse and bring the Ponzi-type deck of cards down almost overnight on top of us. In the meantime Washington and European governments will simply throw its people’s wealth and promised benefits at the problem thus buying them more time to do what they do best — steal all the money and power they can.” (Jim Sinclair

The rating agencies, the banks, financial lawyers and other "experts" perfectly knew where the sub-primes sham would land them, otherwise they should be considered mentally retarded — so far they've successfully stashed piles of money and ingots in tax havens and Swiss banks and won't let go a cent of it, so to keep the status quo they have to convince us the morons that we have to tighten the belt, slash social services, pay more taxes and work more. They aren’t the kind of guys who would willingly sells assets to pay off debts; instead, they'll rip off someone else.

The cornerstone of this ever snowballing cozenage was firmly laid when fiat money was first introduced in Europe sometime in the 19th century in the form of “bills of credit”, although the first historical example of paper as fiat money was in China back in the 10th century and the experiment, by the way, didn’t end well. Another famous bank run was the South Sea Bubble, which produced bank notes not backed by sufficient reserves.

The definition itself of fiat currency / fiat money is already revealing enough as to the nature of the economic system behind it: ‘a monetary system in which the money used as the circulating medium of exchange is not backed by or directly convertible into any specific physical commodity, but rather has value because the society that created the system has assigned it value.’

“Fiat money/currency. Legal tender, especially paper currency, authorized by a government but not based on or convertible into gold or silver. money declared by a government to be legal tender though it is not convertible into standard specie.” That is, it’s just printed paper with bogus value.

‘Historically, there have existed monetary systems where currency used in trade was directly exchangeable for a predetermined amount of a physical commodity, which was usually a precious metal such as gold, silver, platinum, palladium, or copper, although some systems had money that was redeemable for other commodity items such as crops, beasts of burden, or food.’

In other words, specie backed money or hard currency is the only real-value paper money that should exist in healthy, non-speculative financial system based on honour and honesty, which is, of course, pure utopia.

‘By the World War I most nations had a legalized government monopoly on bank notes and the legal tender status thereof. In theory, governments still promised to redeem notes in specie on demand. However, the costs of the war and the massive expansion afterwards made governments suspend redemption in specie’ — that’s when we definitely kissed good-bye to the specie currency.

‘Since there was no direct penalty for doing so, governments were not responsible for the economic consequences of “running the printing presses”, and the 20th century found itself facing a new economic terror: hyperinflation.’

To put it more exactly, “a certain amount of bullion is stored in the Treasury while the equivalent paper in circulation" represents the bullion”.

By the same token, common sense tells us that in a healthy economic system total amount of the banknotes printed in the country should be equivalent at least to its GDP + gold reserve + available natural resources.

Since ‘all money not directly based on specie redeemable on demand is “fiat money”, it means that today all the currencies are fiat money, because none is based on specie redeemable on demand (generally gold).’

New York stock-exchange.
The stock exchanges are fashionable places for speculation.
'Any act of placing money in a financial vehicle with the intent of producing returns over a period of time, most ventured money—including funds placed in the world's stock markets—is actually not investment but speculation.' Investment, therefore, is a fancy word for speculation.

Quantity theorists claim that the assets ­— the gold and bonds of the central bank or the tax collecting ability of the government that issued it — all paper and credit money is backed by are irrelevant to the value of the central bank’s money. Since, despite that, all modern central banks do in fact maintain assets as collateral against the money they issue only a dimwit wouldn't ask why these assets are universally held!  

On the other hand, confidence in a fiat currency could fall if the gold reserves 'backing' that currency were reduced, especially during a period when confidence was already in a fragile state for other reasons. Sounds familiar, doesn't it?

(Speculation index)

Instead, ‘hard currency or strong currency, in economics, refers to a globally traded currency that can serve as a reliable and stable store of value. Factors contributing to a currency's hard status can include political stability, low inflation, consistent monetary and fiscal policies, backing by reserves of precious metals, and long-term stable or upward-trending valuation against other currencies on a trade-weighted basis.’
I highly doubt any country’s currency really meets any of these conditions nowadays. Political stability depends in great part on economic stability which is, it turns out, currently rather wobbly due to the insatiable greed of banking elites and the like among other reasons. Inflation has been growing at different rates ever since money was invented, which allows for unbridled speculation, little wonder that financial moguls has always been afraid of and therefore eager to stamp deflation at any cost since it would only benefit the lower social classes. In light of recent events, global monetary and fiscal policies hardly qualify as consistent, given that big fortunes have at their disposal a whole host of loopholes and tax havens that nobody has the intention of shutting down in the foreseeable future. No one even asks what tax havens were created for in the first place. (The answer is pretty simple -- instead of cutting taxes for everyone, which would be a reasonable move, the elites seek to be exempt of paying taxes while imposing high rate taxes on middle classes. Keep in mind that most of the elites' fortunes come from tapping into the taxpayer money).

I also suspect that “backing by reserves of precious metals” belongs in the realm of applied mythology that modern economists are so good at.

As an aside, whether the Federal Reserve System, and central banks in general still preserve the golden ingots or bullions they are supposed to store as reserves is anybody's guess, and I have a sneaking suspicion that the vaults are filled with gold-plated lead (or tungsten) bullions. Sounds crazy, but what if, as some conspiracy crackpots claim, all this chicanery with budget deficits, sovereign debts, bank bail-outs, inability to pay off matured debts and what-have-you are just a camouflage to disguise some kind of global scheme to suck as much money out of hoi polloi as possible in the face of imminent alien invasion, catastrophe or migration to other worlds through the portals to other dimensions? Think the worse and you won’t be far wrong ;).

After all, do the plebs ever get to know what’s going on with the accounts of the central bank and the Treasury, or how Governments interchange or send money among each other — in cash, ingots or electronic transfer?

Long-term stable or upward-trending valuation against other currencies on a trade-weighted basis? Until recently German marks used to be the most stable currency, although it didn’t last much longer than about 50 years, but in all honesty, which currency today can boast such good health?

At this point it doesn't take a particularly quick brain to understand that paper money was introduced precisely to allow all kinds of scoundrels and speculators, especially bankers, to amass fortunes through issuing worthless paper and juggling with them ever since. They capitalise on the fact that "the average American or citizen of any other country is blithely unconcerned that his or her plight is the result of a complex of personal and economic and governmental actions...beyond the normal citizen's comprehension and control". Plus “economics has been made intentionally complex by banking interests intent on concealing what is really going on”.

Paternoster Square, City of London.
(Pillar of British economy and World Centre of Financial Wheeling-Dealing)

“There is no other possible end state then a full collapse of paper and digital wealth, which in today’s world would be a catastrophe of civilization-destroying capacity.

The dollar collapse will be the single largest event in human history. This will be the first event that will touch every single living person in the world. All human activity is controlled by money. Our wealth, our work, our food, our government, even our relationships are affected by money. No money in human history has had as much reach in both breadth and depth as the dollar. It is the de facto world currency. All other currency collapses will pale in comparison to this big one. All other currency crises have been regional and there were other currencies for people to grasp on to. This collapse will be global and it will bring down not only the dollar but also all other fiat currencies as they are fundamentally no different. The collapse of currencies will lead to the collapse of ALL paper assets. The repercussions to this will have incredible results worldwide.

Those areas that have lived highest on the hog in the dollar paradigm will most likely be the worst places to live when the dollar collapses. We will not be as fortunate to muddle through this collapse like we did in 2008 when it was a corporate problem. This time around, it is a national and global problem. The global Ponzi scheme has run out of gas as the demographics decline, as cheap abundant oil declines, as hegemonic power declines.” (Silver Shield)

The current global economic system, that is, a debt-based monetary system is an economic system where money is created primarily through fractional reserve banking, in other words, banks issue more credit than they hold as reserves. While this sham could work if used in moderation, it becomes unsustainable on a large scale.

It’s like a giant wheel of Governments, firms, households etc. borrowing money that doesn't exist physically to pay off debts of money that doesn't exist either. It’s not real economy, but rather conceptual or virtual economy that manipulates some inexistent abstract values along the lines of imaginary and complex numbers, although unlike maths in economics these imaginary values don’t cancel each other out at the end of operations, on the contrary – they turn the whole system into an illusion.

In the past, it was romantic maidens who envisioned fairy realms where they built their aerial palaces, today it’s romantic bankers who actually live the fairy tale — not only do they build aerial palaces and weave the invisible cloths, aka as “financial products” or simply “debts”, but also manage to sell or rent them out. In their magic world different laws of mathematics apply: 2+2 = 5 for them and 2+2 = 3 for us the lesser mortals. Until someone cries out loudly ‘THE EMPEROR IS NAKED!’, and the whole house of cards tumbles down upon our (not their) heads.

In scientific terms, if all of a sudden virtual money disappears or people stop taking it for face value, stock markets will crash.

“For a couple of years now it’s been clear that the world was about to fall apart, with the only question being which local failure turns out to be the catalyst for a systemic breakdown. So many things were on the verge of blowing up… yet none of them did. The world’s governments have engaged in a heroic period of “extend and pretend” that has kept the system together longer than seemed possible. But now the game seems to be ending. It’s still not clear which bomb will go off first, but a bunch of fuses have gotten very short indeed.” (John Rubino)

Money rules
Money rules.
(© 2011 LightColourShade)

Information technology has made the scheme even easier to run: today money is basically numbers on the computer screen. Whenever a bank gives a loan it doesn't take money from the existing deposits, or gold and other assets, instead it simply writes a new data entry — for each, say, dollar banks lend 10, expecting to collect interests on money they don’t have. As a result, almost all money in the system is debt money, and while there’s debt there’re interests paid, but problems start when the debtors can’t pay any more.

If all nations are in debt, the question is: who are they in debt to? Some say to private banks. But which private banks? The Federal Reserve Bank in USA; The European Central Bank in Europe (except Great Britain); and The Bank of England which, it turns out, are the private central banks or at least have both private and public aspects, and they in turn are controlled by a private financial institution — The Bank for International Settlements, based in Basel, Switzerland. The entity, by the way, advocates for printing more money as a possible solution for the "financial" crisis. Probably no one outside a cabal of puppeteers knows for certain who really calls the shots in these institutions (Bilderberg club, Club of Rome, Masons, etc?), but mind you, hardly anyone who is in the public eye. There might even exist “invisible banks” operating under the cover of official banks, so the real culprits will never be held accountable for the global financial trickery.

Not to mention The Shadow Banking System (I logically deduced its existence after dabbling in the workings of economics, googled it and it popped up!)  — "the collection of financial entities, infrastructure and practices which support financial transactions that occur beyond the reach of existing state sanctioned monitoring and regulation. It includes entities such as hedge funds, money market funds, conduits and structured investment vehicles". In short, they basically sell vacuum in different packagings. And the best part of it is that it's LEGAL!

Bank for International Settlements
headquarters in Basel, Switzerland

That said, it’s pretty obvious that ever growing sovereign debts are unpayable in the foreseeable future, if at all, so what are the governments going to do? In old days, when French kings owed to the Jewish money-lenders more dough than they could or wanted to return, they chose the simplest way to avoid paying the debts off — to kill the creditor. Eventually, modern governments might brush up on their history and become aware that this is the only solution left. Let’s wait and see who wins the showdown.

However, the boundaries between the banks and the governments are becoming increasingly blurry — over the last decades it has gradually come home to almost everyone that the so-called “elected” leaders are but puppets in the hands of elite clique of global financiers and corporations. So who is going to arm-wrestle whom? An alternative solution would be to cancel these bogus debts equation out once and for all since every single country on the face of the earth is in some other country’s debt, or write them off altogether (come on guys, you can delete a number on a computer screen as easily as you create it, can’t you?), but who would willingly let go of the money?

The incessant merry-go-round of experts haranguing on the propriety of rescuing the banks with the taxpayer money, printing more money, and other brilliant solutions along these lines poses some questions that nobody bothers to answer:

Can, for instance, US eternally raise debt ceiling?
Would the US default?
Would it mean foreclosing the country's assets?
What public assets could be actually sold, Mail Service, Social Security, Police, Army?
Is, say Federal Reserve still full? Has anyone actually seen the vaults full of ingots? If the bullions still exist, are they pure gold or have tungsten core, as that’s how bullions are often falsified?
Or will the US resort to old-as-the-hills strategy — to cancel debts, kill the creditor?

Well, that would mean war, and war is good for business.

Zuerich Boerse.
(A rather gloomy mausolean building -- not a deceiving appearance in this case)

At this point, it’s pretty clear that neither US no Europe have the intention of ever paying off the debts, it's all about speculation with interests, stringing idiots along and buying time to pass the buck to future generations. No one takes loans they’re well aware they can't possibly liquidate in the foreseeable future and intends to do so. But then again that, I'm afraid, is the road to another WORLD WAR.

“Today we find the United States and most of Europe in a similar situation. We risk an eruption and collapse of the mountain of unsustainable sovereign debt built up over the last two decades. Frankly, the U.S. dollar and national debt situation is so dire and our means to contain a sovereign debt crisis so limited by multiple wars, Washington’s debt and political incompetence at home that anything could happen—almost overnight. Even a minor foreign policy or economic event like a Greek default or Middle East crisis could wreak havoc with the precarious interlocking sovereign debt pyramid in the West. American and most European governments and the central banking elites, which created the criminal sovereign debt fiasco, are only trying to buy more time to delay the inevitable. This inaction means the threat of an immediate U.S. dollar collapse cannot be ruled out.” (Ron Holland)

Makes one wonder if the crisis was artificially stoked up by the banks so that they had the pretext to ask for rescue, thus getting their hands on the treasury, and the governments could justify giving it to the banks.

Like I said, they must be preparing for an alien invasion or their evasion to other planets when this one becomes uninhabitable. Otherwise their behaviour doesn't make much sense even in the light of pathological greed.

‘MBS (mortgage-backed security) fraudsters, bank balance sheet fraudsters, derivatives fraudsters and their malfeasant regulators” won’t stop until we have mortgaged every asset in this world in a desperate attempt to salvage the "live now, pay later" society’.

The ruling class writes the laws that favour the rich and powerful, that is, themselves, with numerous legal loopholes such as, for example,

Palais Brongniart Paris.
 Even this place is elegant in Paris

Shell corporations — "companies that are incorporated, but have no significant assets or operations. Shell corporations are not in themselves illegal and they may have legitimate business purposes. However, they are a main component of the underground economy, especially those based in tax havens. They may also be known as International Business Corporations (IBCs), Personal Investment Companies (PICs), front companies, or "mailbox" companies.

A classic tax avoidance operation is based on the buying and selling through tax haven shell companies to disguise true profits. The firm does its international operations through this shell corporation, thus not having to report to its country the sums involved, avoiding any taxes. Oxfam International calculates that the flux of money flowing out from developing countries and deposited in tax havens at $50 billion a year.”

Even such a pillar of modern economy as Stock Exchange, is mainly based on speculation, and therefore is inherently another big fraud.

I’m at a loss to understand what kind of collective mental derangement is responsible for widespread belief that growth and expansion of economies can continue forever on a conspicuously non-expanding planet. Well, most people only believe what they want to.

Unless the laws of physics start to change, never-ending growth cannot take place in a finite system, sooner or later the growth has to stop. Of course we could always spill our economies out into other planets or parallel universes, let’s hope the Hadron Collider (that's what this expensive toy has been built for, hasn't it?) provides a portal to one soon.

This isn't the whole picture, though — the structural cracks run deeper and affect all layers of the society, making it unsustainable from top to bottom.

The so-called “state of social wellbeing” is nothing but a bone thrown on credit to the plebs by the ruling class from their table of everlasting feast. Now it turns out to keep the orgy going they have to rule out the bone (and desirably replace it with comforters / toys).

What put us into this plight are highly praised American (or universal) virtues, such as ambitiousness, undertaking, aggressive business making, competition, competitiveness which proved to be precisely the tools of destruction that led to savage capitalism… all because as a species we are absolutely unable to grasp the concept of measure. The so-called American or Occidental dream turned nightmare is just shark race for having more money than the neighbour.

In the meantime economists seem to be living in some kind of wonderland and therefore stubbornly refuse to acknowledge

that there can’t be infinite economic growth on a physically finite planet;
that economy based on single use low quality products is unsustainable and destructive;
that the real value of the company shouldn't be based on its share price determined or affected by the investors’ rumours, speculations or whatever garbage it depends on, but rather on the quality of its production and, in lesser degree, demand;
that countries and companies wield virtual money that doesn't exist, state debts are mere numbers on the computer screens that don’t represent any real money, unless they sell gold bullions, thus artificially raising the price of gold to reduce their debts.

Goldman Sachs headquarters
in New York
(Thieves' den)

Yet there’s no consistent clamour against the usurers, aka banks, being given the taxpayers' money for their "bad" management, a sort of bonus for botched up job, while the plebs are told to tighten the belt as the treasury is empty and pensioners in some European countries will have to work until the age of 67 upwards (which means that pensioners will be kicked out of jobs without pensions, but youth won’t be taken on either).

Where are the profits that banks had amassed in the years before the crisis? How come they haven’t put away money for lean years? Actually, they did, but in tax havens and Swiss banks, whose approach to bank secrecy, as someone rightly put it, looks more like a street-corner fake.

What if instead of firing people when the profit growth rate is slightly lower millionaires simply decided to do without extra houses, cars, bank accounts etc.? What if they bring their factories back from China (that thrive thanks to slaveholding) to create jobs here (instead of hypocritical patriotic drivel) and stop stashing away profits in tax havens? (This would make good lyrics for a romantic song, along the lines of “What a Wonderful World”, “I Have a Dream” or “The Land of Oz”.)

Nope, this would seriously injure their self-esteem – in modern society success equals money, and they’re well aware that without money they are hollow shells.

So they keep rambling on about the unsustainability of the state of social wellbeing because they have to keep being stinking rich, and that requires going back to slavery times.

What is indeed unsustainable is their greed. Probably drastic measures such as cutting useless jobs;
eliminating the concept of neither-reward-nor-punishment government job,
shutting down tax havens and exacting tax payments on fortunes piled up in Swiss banks;
reducing the CEO’s indecent salaries;
eliminating pointless agencies, organs or institutions like Moody’s, Standard and Poor’s, pointless ONG’s (often pictured in films as a cover for secret agencies), to name but few;
starting to address overpopulation issue, etc, etc, etc, could have helped to sort out the crisis, but then again, would anyone willingly take them? The answer is obvious for anyone with minimal understanding of human nature.

A perfect example of an absurd organization is an international agency that makes a publicly funded living by measuring Corruption Perception Index meant to measure perception and not "reality" — which is basically as useful as outlining the smoke or measuring the quantity of sea foam on the beach — a mere survey task that a statistical agency could have perfectly coped with! Those holding cushy artificial jobs in the agency argue that "perceptions matter in their own right, since... firms and individuals take actions based on perceptions”. You see, truth doesn't matter — firms and individuals take actions based on perceptions, are unable to think logically or rationally, have no idea of scientific method and therefore are prone to wayward decision-making. In other words, if you see the lines twisted, you will trust only your perception regardless of facts. They openly take us for idiots and make no secret of it. Blatant sham!

Palazzo mezzanotte, Rome.
As its name suggests,
a place of shady activities. 

However, the ruling kleptocrats have short memory — record shows that when they squeeze the plebs out of their possessions beyond reasonable limits, revolutions can be triggered with a spark. Beware, patience is wearing thin, although upper classes feel safe thanks to the unprecedented technological means of control and repression served to them by unscrupulous scientists.

The only solution? As I was saying, the rich elite should rein in their greed and settle for significantly less profits. Not a hope in hell! For the present fat cats flip their collective lid if the profit growth rate just slows down.

I wonder where they’re going to take their gold bars and the stuff other than to the grave? To hand them down to their seed so that even after their death the money is still linked to their name, genes and ultimately to them;

either that or like the pharaohs of ancient Egypt they hope to wake up into the next life amid the treasures they had been buried with ­— in this case it would make sense to be the richest in the graveyard.

In the meantime, those on the lower trophic levels can only survive if they game the system, and everything stays the same:

No one in the high places is trying to find any solutions to the crisis, they just make believe they are in order to justify their salaries — ­their only concern being how to horde as much wealth as the agonising system can render. Mind, ‘the milk is running dry, now they are after the meat and blood’ — just like Shylock they’d sooner cut off a pound of your flesh than write off your debt.

Governments pursue nolens volens the same profligate policy as “any attempt to exercise some control on financial system is immediately thwarted by financial ringleaders”, which ensures cartel bank profits, housing bubble collapse, property acquisition by the banks at car-boot sale prices among other traits of an economy based on speculation and consumerism.

“Public relations aka political Leaders coerced into spending to create unpayable debt (via the fiat currency fraud) leads to national assets being sold off again at car-boot sale prices.” As a result almost all the governments and the entire population of the planet has been sucked into a vicious circle of debt, while banksters speculate with interests and a shadowy "power behind the throne" is fleshing out as a new global government. Who controls the Debt, controls/rules the world.

“New debt is issued and the proceeds are used to repay the maturing debt plus interest due.

Greece agreed to bind itself in another round of debt servitude. Violent demonstrations notwithstanding, members approved another round of tax increases and spending cuts to keep Europe’s own extend-and-pretend game going a while longer. Think of Greece as maxed out on five credit cards, taking on a second part-time job, holding yard sales and applying for a sixth card just to keep up minimum payments on the other five. Everyone knows it’s a losing game but they, as well as other governments around the world, have been playing at the table of unlimited debt through credit.

At the start of the second half of 2011, with a global economy in complete disarray, an increasingly unstable global monetary system and financial centers in desperate straits, all this despite the thousands of billions of public money invested to avoid precisely this type of situation. The insolvency of the global financial system, and of the Western financial system in the first place, returns again to the front of the stage after just over a year of political cosmetics aimed at burying this fundamental problem under truckloads of cash.” (GEAB.)

‘The EU and the European political establishment are beholden to the bankers and their “free market” – as in free to loot and plunder – neoliberal policies and have now pulled out all the stops in an effort to crush resistance to endless bailouts designed to crash local economies and destroy national sovereignty. False flag terror events will be used by the corporate media to portray opponents to the bankster scam as child killing terrorists. For the global elite, mass murder blamed on political opponents is a legitimate tool in the plan to take down national economies and install a one-world totalitarian government and banking system run in neo-feudal fashion.’

(The diminishing dollar: the price of gold in U.S. dollars is jumping, ... by Scaliger, Charles)

The envisioned global central bank would operate along precisely the same lines as the Federal Reserve or any other modern national central bank: It would issue fiat currency (money not backed by a precious commodity such as gold), manipulate interest rates, and (at least in theory) "control inflation”.’

Bolsa Mexicana de Valores
The symbol of a poor country.

(Why changes in gold production don't matter by Steven Saville.)

A few examples just to illustrate the point: when Gordon Brown made a timid attempt to tax financial speculations, next day US secretary of economics rushed to London to reprimand him, claiming it would harm US interests, namely the US speculators’ interests.

Now the roles are reversed and it’s Cameron who won’t agree to any taxation on the City’s financial wheeling-dealing. Recently, France and other eight European countries have had their credit ratings downgraded.

Who pays these agencies? What do they live off? Why should anyone trust or take notice of their ratings after several faulty evaluations in the first place? Cui prodest?

Isn't it that rating agencies ruled by British banks pay the agencies to use their ratings as leverage to blackmail France and other Euro zone countries so that they don’t try to impose taxation on international bank transactions or control on UK banks? No wonder Cameron dug in his heels — services, particularly banking, insurance, and business services, in other words, aerial palaces account by far for the largest proportion (about 90%) of British GDP while industry continues to decline in importance.

Turns out, the whole country subsists on speculation with ethereal commodities; so if the bubble suddenly bursts, literally overnight Britain could find itself between rock and hard place, begging for international aid.

Companies worldwide, such as Nissan or Seat, sack staff because the profit growth rate has declined, despite the fact that the staff had earned them huge profits in the previous years — a classic example of corporate greed and callousness;

UN maintains that to eradicate hunger in the world they need  $50 billion, yet governments handed out 50 times that amount in bailout money to banks (on the other hand, pure hypocrisy — UN doesn't offer any solutions to unchecked birth rate in poor countries, had hunger been eliminated);

Shanghai Stock Exchange Building
Emerging economy following suit.

European Union countries pay billions of dollars each year for the obsolete European fighter aircraft project because banks, the military and corporations won't let the governments abandon it for obvious reasons;

Equatorial Guinea aid money goes to the dictator who keeps his gold (that is, the aid money) in European banks which collect interests on it or use it as credit money — thus the money stays at home and makes more money;

Governments slash salaries and pensions, which will lead to progressive pauperisation of a large part of the society, and then will pay some pencil pushers for useless research to determine the growth rate of pauperisation;

and the list goes on…

“The middle classes around the world are being impoverished just to pay interest on the sovereign debts to the banking elites who are enjoying the life of the filthy rich.”

EU knew the economic reality of Greece, yet German, American, British and French banks fought to offer Greece cheap loans the same way ‘they scrambled to lend money to deadbeat borrowers on overpriced homes’.

Undoubtedly, borrowers are to blame for taking out loans they can’t repay, but so are lenders for giving out loans without prudence.

“If you think that the banking system of the western world is strong enough to guarantee the debt of the western world, you’re totally out of your mind. That’s the reason they’ll do everything possible to paper over the Euro crisis to prevent the defaults in order to prevent another crisis in banking that definitively would occur, that absolutely would occur from a default. This fact is ravingly positive for gold. You would have a complete collapse of the western banking system if Greece goes down”. (Jim Sinclair)

Financial crisis. Consumer spendings
Financial crisis

You may well ask, why would banks loan money to someone clearly insolvent? As far as my modest knowledge of economics goes, apart from receiving interests on the debts, the debts themselves are presented as financial products (the invisible cloth) that can be then foisted off to some dupes, and also serve as bogus assets (aerial palaces) that help inflate a bank’s worth.

However, looking at the bigger picture one becomes aware that all this utterly insouciant financial policy and reckless money-lending is part of private banks' strategy to grab as much taxpayers' money as possible until public treasuries run dry and every human on this planet is so badly in debt that their very survival depends on the banks, which in turn will lead to totalitarian world government that only an alien invasion would overthrow or stop from expanding further throughout the galaxy. An empire expands until another empire stops it, and this time it's one global empire in the making.

Bombay Stock Exchange 
Only the members
of the highest caste allowed

The scheme is pretty simple: German, French and other private banks gave loans to insolvent countries knowing that in case of default EU will have to rescue them for the sake of stability in the euro zone. The bailout is paid by European Union Rescue Fund that is set up and replenished with the taxpayers' money. This money is then used by Greece and the like to keep repaying ever-growing interests on sovereign debts to their creditors, that is, German, French and other private banks. Thus, the top money-lenders have found a way to tap sneakily and indirectly into public money and pump it right into their pockets. Brilliant!

In all fairness, I must add we are all at fault: let's face it,
most of us love the rich,
we want to be and live like them,
we envy their life style,
we crowd in droves to greet Royal parasites living off the taxpayers' money with flags when they parade by,
we pay to see millionaire sportsmen,
we pay to gawk at mediocre movie stars that turn indecent profits,
we buy pointless technological toys that only benefit their creators,
we pay to bellow to the roar of yelling pop star’s concerts, and we’re clearly unable to judge the products on their own merits and not on any advertising claims, etc., etc., etc.
We make them rich — we deserve to be swindled.

Granted, there're things we can't do without, but what about those we can — would we willingly forgo them? So it's not just about bankers, corrupt politicians and the like, but about human nature — most people regardless of social class, religion, colour or creed would do as the rich do if given the chance to take their place. There's no worse slaveholder than a former slave.

"Concentration of wealth is at obscene levels and these are the people that Jesus the Rabbi talked about when he talked about the rich, the eye of needles and the chances of getting into heaven. From what I have seen these people are not planning on going to heaven and in fact have been spending billions of their dollars building underground centers and complexes. Seems like human hell for can you imagine these people having to live in tight quarters with each other?” (Jim Sinclair)

To sum up the above, there’s no way out of the global crisis — economy based on speculation and squandering is doomed to collapse sooner or later. Brace up!

To be continued...

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1 comment:

  1. The bare truth about the current status quo. Very insightful.


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