The graphs above (FT 6/30/2010 - MW) show that temptations actually increase consumer spending, the key to all economic expansion.
June 30, 2010
Why is it that the economists always congregate around the wrong trees? Is it because economy is not a real science but rather a religion as was claimed by the US Secretary of Treasury, Paul O'Neill. former CEO of Alcoa, a highly profitable largest Aluminum company of that time. Mr. O'Neill served under President George W. Bush over the transition period and the beginning of his first term at reigns of the USA.
We all know that the consumer is the only key that can create and maintain a working economy and thus the well being of the consumer must be guarded more carefully than anything else.
The graphs above (FT 6/30/2010 - MW) show that temptations actually increase consumer spending, the key to all economic expansion.
It is interesting also that our debt repayments have ended up as debt to our governments and that seems to be happening around the world just because we bailed out their banking systems. We also know that at in the USA the banks got about US$ 3.9 Trillion emergency "aid" to save the financial system of the "World". It starts looking more and more that the consumers/tax payers were just taken on the cleaners.
So in addition of us paying out our debts to these banks we get new debt to pay out also as tax payers to the same banks that failed, at least in the USA, where our reserve bank is a privately owned bank, owned by the same banks that we just bailed out.
Looking back our banks have behaved worse than drug addicts and for this there is no other solution than to nationalize all private central banks, e.g. the FED is in the USA. We must now pay even interest to the private bankers that have nothing to do with our own printed dollars. We may get even more agitated as many have seen their consumer debts to carry an courageous 15% to 30% interest and we know that some must use the "pay day" lenders that charge annual interest well above the usury limits up to 400% when their fees are annualized.
Below graph illustrates what the Anglo-American & Dutch banking empire does directly and by lending selectively to their inner circle do magnify the rip off the remaining pension wealth from the small people down in the gutters. In mid April 2010 a major switch on the markets was turned again upside down during a two weeks time period. This surfaced suddenly from the call put ratios covering major indexes and equities. This kind of massive change can not be accomplished without cooperation with the big money like was done on September 15th, 2008 when markets dropped like there would be no bottom. The message on September 15th was that people at large started withdrawing money and that was the reason why markets tanked. No way my Hose, the little people knew nothing before they came back from work and at that time this gigantic move was already history.
And guess what, the markets have been sliding down since mid April this year with no end in sight. And the small investors still do believe all the BS they hear from CNBC and others. What comes out is totally "pre scripted" nonsense aimed to entertain people while they are financially slaughtered.
Each of us has their own comfort zone for debt and it appears that in the USA that comfort zone has been around 25% compared to our our financial assets. The consumers elsewhere have seen from TV how some of us live and want to have the same comforts that we all appear to have. To get there many have learned to tolerate much higher debt comfort zone than we ever can do. We have known forever that the world is not fair to all and that our government is certainly not there if we need help and we must guard our lives against unexpected.
Had our banks made the stimulus money available to consumers as Congress was expecting at reasonable interest rates i.e. using their customary margins the US consumers would have joined the bankers game again and upped their comfort zone beyond the magic 25%. With that this recession would have ended a year ago. The US banks unlike their counterparts in Europe are secretive regarding their loan margins. In major banks in northern Europe the margins are currently at or around 0.8% and banks are speculating that they might be able to raise them during the coming year perhaps up to 1.5% if the economy improves.
But unfortunately the US consumers saw only a bunch of selfish crooks running our biggest banks. With this blatant stealing well visible they joined to the raising undeclared consumption strike. A large portion of consumers will simply pay off their consumer debts to zero and after that they will likely continue their newly found life style until there is a change in our banking system - the small crooks are fired and the big ones are behind the bars.
We have much more than 5% threshold in this consumer rebel group, enough to change anything in a consumer driven society. And at the end every free society is run by the consumers. They are the ones who buy products and if these consumers have a common voice over only 5% those trying to work against their power are doomed to lose be them businesses providing services or products to the consumers or even financial institutions.
Armed with this knowledge the consumers are no more slaves as the politicians in Washington and the bankers of the Anglo-US & Dutch banking Empire had dreamed. This could become dangerous for the current power structures as 5% of the voters might also get the idea to look why the US Congress votes often for the ideas that only 3% of the population supports - especially in issues concerning the Middle-East. This battle if it starts is going to be long as this same 3% of the US population has used their power already almost a century and are now intertwined to every sector and level of the society. This guarantees them even a majority vote in both the US House and the US Senate every time they choose to exercise their unity. They have been very careful but the facts are already in open and the wheels of fortune are in motion and with that this hidden oligarchy can be dismantled but not in a day, nor a year but in a couple of decades.
June 25, 2010
With ever lower public education the Anglo-US-Dutch banking empire was finally able to create the derivatives business to a totally new level. Originally derivatives were created to secure stabile food prices to the growing population centers moving to a larger scale some three thousand years ago.
A farmer could now sell his future crops at set price using a put option before even putting the seeds into ground. The buyer or current owner of this option, valued at a few percentage point of the future value of the corresponding crop, had now the right and obligation to collect the full crop at the harvest time at the set price of the option.
This was great relief for all those who lived in the emerging towns and cities. Later on this type of contracts expanded to all commodities and currencies at about equal transaction costs level than the farmers had created. This is the only valid reason to have derivatives. With the global GDP at level of about US$ 60-70 Trillion a few percent points of this all is well below US$ 10 Trillion.
Why do we have derivatives contracts that add today up to US$ 615 Trillion? To control that we need US$ 20 Trillion at any given point to be invested to keep the contracts valid.
We have a US$ 615 Trillion derivatives Casino created by the Anglo-US-Dutch banking empire to protect, what? This is not to protect anybody. These bankers have created a gambling platform where they make huge bets in currencies and raw materials knowing that we here in the gutters and dust must rescue them if their bets ever go wrong!
And believe or not this Casino is also rigged! These banking empires are the heart of the Bilderberg group who invite annually prominent politicians from around the world to their secretive annual meetings to "discuss" the global issues at hand and to tell what they think is going to happen in the future. These meetings serve as perfect platform to "hand down" their plans for the word to the politicians (they are already executing). There is no need to make any persuasion at all so it all looks innocent and honest. The politicians know how their earlier predictions have proven right almost to the letter. With this they will take these predictions to their Nations and try to steer the policies that would accommodate what might be coming - and when they do that the plans of the Bilderberg group are executed. ( This same phenomena is happening right now with the GM foods in the USA . As soon as about 5% of the US population start asking only for non GM foods the the GM foods start disappearing from the markets. This 5% was the actual threshold in Europe and the same will inevitable happen sooner or later also in the USA).
The housing bubble was obvious to come when house owners were lured to mortgage their houses to 125% of their value; the oil price was first driven to sky high in effort to destroy the Chinese economy, but the Chinese had coal and were also smarter and had already secured themselves the needed energy resources around the globe; the Russians were to be destroyed after that using the low oil price, but here we have a problem from the environmental movement, the renewable energy will not evolve if the oil price is below US$ 80 per barrel; The Chinese are smartest in this game also as they simply made a law that each utility in the country must buy up to 20% of their electricity sales from any renewable electricity producer regardless of the price of this electricity inside their service area until they reach this 20% threshold.
With this China is the trouble maker that has outsmarted the Bilderberg group during the past decade and their financial footprint is now to large leaving the war as the only option to destroy them. In that case what will Russia and India do, whom will they support? Russia has enough nuclear weapons to destroy all life from the planet many times over and they simply can not be ignored.
The Bilderberg group might be now in trouble. Before China coming financially so powerful like it is they knew perfectly well how to use the derivatives to multiply their wealth at rate that will never be achieved in any ordinary business where we the slaves will labor and sweat. Don't believe just look at the banking sector assets (below) compared to the GDP below in the UK and the USA ( 60% is the more correct value for the USA than the shown 40%).
We the ordinary people all are and remain as the slaves of the Anglo-US-Dutch banking empire until the derivatives Casino is brought down by bulldozing it there and we put the leadership of their banking empire behind the bars where they belong! They have done more damage to ordinary people than anything else on this planet during the past two hundred years.
The wars both physical and financial have always been organized by the aristocracy. They must keep on doing this to destroy the wealth of the meritocracy accumulating to the hands of those who work hard and are smart. If these families would be allowed to do this for a few generations the power of compounding interest would make many them wealthy enough to challenge the wisdom of the currently ruling aristocracy that is safely in charge of all wealthy nations.
The wars have killed hundreds of millions of people during the past millenniums. These are very effective in destroying of the wealth of the ordinary people but their real target is the wealth of the meritocracy. The ordinary people feed the nations while the meritocracy takes them forward. Without control over these two components aristocracy is powerless and will disappear. The trick is to prevent this huge majority from ever getting wealthy and the wars and financial trickery are the only options. Some of this financial trickery is criminalized but that is only a drop in the ocean.
Take e.g. Baron Rothschild's trick in 1815 when he manipulate the British stock market to chaos using the battle of Waterloo as his tool, a great execution that made him the wealthiest man in Britain after the King and the majority owner in the Bank of England; take 1881 and the first ayaliyah, the secret plan of Zionist just just take palestine from it's current owners; take Mr. J.P. Morgan in 1907 who created the bank run of 1907 in the USA leading to establishment of FED in 1913 and we can bet that you do not know but the FED is still owned by the 1913 Anglo-US & Dutch banking empire; take the WW I with piece treaty in Versailles that guaranteed that WW II would erupt, the real goal of it all was the Balfour declaration of 1917 ; take 1929 and the Great Depression resulting from the need to transfer Gold to safety in the USA from Germany as the coming WW II was not a sure win for the allied forces; take 1946 and the UN acceptance of the Balfour Declaration and establishment of the Zionist State of Israel.
Fast forward to 1973 and the first oil crisis and the new era of global domination as the wars had not disappeared but they had become too expensive and now with nuclear weapons they could also mean self destruction. The Anglo-US & Dutch banking empire controlled already the US military force, the single most powerful force on the planet but it is useless against such powers like Russia as the outcome is total destruction of both counties. ENRON was one of the first test cases for the global domination by money. It was soon followed by housing crisis that gave FED an excuse to give Trillions of dollars to it's owners to "prevent" the destruction of the global financial system - means for the Anglo-US & Dutch banking empire the dollar must remain as the only reserve currency of the world. The new game was easy as they had silently dismantled all the laws put into books after the great depression and with that nothing was there to prevent them from creating the above mentioned US$ 615 derivatives bubble that brings down everything on the planet if it is triggered to fall down. The latest abuse started with the housing crisis and a global burst in short selling of all markets on September 15th 2008. It has now expanded to Greece and as they hope soon it will dismantle the EU.
Only few understand fully how the USA foreign policy is controlled by the Israeli Lobby using money given to it by the US government. They have been in charge for a couple of decades and enjoy by frequently called "show ups" the full support of both houses in the US Congress. Here is the latest: U.S. Senator John Cornyn (R-Texas) today (June 27) hailed passage of his resolution, which passed the Senate overwhelmingly on a voice vote, expressing the sense of the Senate that Israel has an undeniable right to self-defense and condemning the recent destabilizing actions by extremists aboard the Mavi Marmara. This resolution will be interpreted by IDF and the Israeli government as free hands to kill American citizens whenever they oppose Israel's policies and are outside the US borders. Perhaps it does not take long any more to reach the point where IDF and Mossad can do the same also inside the US borders resulting to an increasing chain of unexplained deaths by the victims' own hands with "no leads" pointing to homicides.
The aristocracy in the West is free to do financial (a few dollars for the ordinary man) crimes that would put an ordinary man from the street instantly to jail. This ordinary man on the street is so ignorant it does not even comprehend that the laws are different for him and the for those who do the real financial crimes in millions, billions and even Trillions as we have seen just recently. This was best illustrated by Napoleon when he said: "Only the Church keeps the ordinary man from beheading every aristocrat they can locate and catch." If the ordinary man would know what is really happening right now around us they today would react regardless. The aristocracy might win still as with ever less educated are moving in increasing numbers to the class of the believers. Albert Einstein was a Jew by birth but for him as he wrote to his friend when he was already at mature age that "the teachings of the Torahs were just fables for the children".
June 25, 2010
What is going on in ECB and EU?
ECB was paralyzed when the UK and US banking empires organized a run down of Euro using Greece as the reason to secure their invisible printing press in high gear spewing out US dollars - the only reserve currency of the world.
They got fooled by President Sarkozy from France into believing that the sky was falling. It is not, and Germany illustrated this by instantly telling to everybody that it would impose a ban of naked short selling in 24 hours covering all government debt and the shares of all major German corporations. The did not get it but are still following the plan set out by the Bilderberg group.
Short selling of securities means that that you borrow or buy the securities first and then sell them short using a contract that keeps you as the legal owner of these securities. This is the only way normal mortals can sell short. However, if you are an "approved" person or a major bank you don't have any rules nor this expensive and potentially dangerous route to short selling. You simply sell the put options for small cash immediately while you own nothing at all you just must deliver the securities at the expiration date of the options - this is "naked" short selling. With enough cooperation among the "approved" persons and banks no company nor even all countries can withstand the raw power of naked short selling and the irony is that if us mortals own these same securities and have any borrowed money against them the brokers will suddenly want more cash immediately from the mortals to fill the margin requirements. If not available they simply liquidate enough or all of these positions in a fire sale and guess who buys these securities now from this fire sale.
Only few can remember that Mr. J.P. Morgan, a major banker already, created a corresponding "fire sale" with bank run in 1907 in the USA. He "slipped" a rumor to the press that one of his major competitors was about to file for bankruptcy. Somehow he failed to mention the name of this competitor. In reality none of his competitors was actually in trouble at the time but as Mr. Morgan's word was powerful suddenly all the other banks were in grave danger. With people panicking they started withdrawing their life saving in cash and no bank can withstand what was to come. It was a new beginning for Mr. J.P. Morgan and his banks.
Mr. Morgan of course was not alone in this world. This bank run created havoc in the US industries and banking system that lasted for years until the US government agreed that there has to be a central Bank in the USA that could help in such a grave situations. As by accident it was proven that Mr. Morgan and others private European bakers had the real experience how to handle this kind of situations they got the job and permission to establish the Federal Reserve Bank of the USA or FED as it is known today. The year was 1913, just about one hundred years form the time when Baron Rothschild after receiving the keys of Bank of England started dreaming to expand into the USA together with his associates the powerful European private bankers. To have another family owned central bank could print also money. Two central banks of the two most powerful nations on earth would take their descendants closer to the total domination of the world.
Fast forward today into EU where tiny financial droplet called Greece with excessive amounts was now daily in the headlines trumpeting of a huge trouble for the EU. The plan of the bankers was working like a clockwork. The former right wing governments they brought in power also in several other Mediterranean countries had done their job exactly as requested. These countries had had open checkbooks at these banks and like small children without set spending limits they owed these bankers plenty while they kept the good times humming for the privileged in those countries. Suddenly it was the pay back time. With global financial press in the hands the banking empires it was child's play to get the people of the EU believing that Greece was bust and that it might bring the whole EU down as Spain, Portugal, Italy, Ireland and even the UK were not much better off. To this point all worked like a clockwork but this foreplay did not get Germany excited.
The Anglo-US-Dutch baking empire had overplayed their hand with Germany confirming the issue the Swiss bankers saw the opportunity to give them back from their recent needless humiliation organized by the US banking arm of the banking empires. At this time the Swiss hermit crabs on the streets had come back from hiking and woke up noticing the ridiculous decisions of their government to open the bank secrets to highly hypocrite nations filled with exacting accounts they now accused Swiss banks and started putting their house in order.
This reaction was not unseen by the old money of the world and some of it had become upset and left - recently about 40% of all private money was slumbering in the Swiss bank vaults or was invested to every corner of the planet for the best opportunities that ever had existed. With the awakening of the streets this money started coming back. The Swiss government knew by instinct received in their mothers milk that they are facing one of the greatest opportunities of the century and must start executing immediately as their Franc was not waiting. They printing presses started humming and the government purchased all kind of sovereign debt from around the Europe as there was a clear "fire sale" going on. The floodgates are open and the so called "huge" debt of Greece does not even count. The Euro may split to two but it does not even matter in this game.