THE BIG LIE OF THE MEDIA ON THE ECONOMIC CRISIS
My guess, but not only mine, is that the crisis has been (and is) a maneuver carried out with the aim of creating great wealth for a few.
According to economist Antonio Casassa, we are immersed in an economic system that is based on nothing, that creates money out of thin air. We live in an age of false prosperity, of an apparent well-being; a wealth derived from the production of paper money not necessarily bound to the creation of real wealth: the world's stock markets capitalizing 10 times the GDP of the world.
Banks and insurance companies, which in essence are the main actors of the financial market and then the market itself, have created the 2008 crisis.
They sold the painting lead passing it off as gold, were paid billionaires bonuses to managers who they had skillfully guided to desired and planned failures, they are accumulated mountains of money in tax havens.
And finally, when the fraud has come to light, they are declared bankrupt.
Given that the current economic system can not function without the banks, all the world's governments have intervened to rifinanziarle. So, the "institutional thieves", as well as having the booty at safe in some banks in Hong Kong, were refinanced by governments with thousands of billions in interest-free loan.
Just two years after the largest ever global scam orchestrated (the 2008 crisis), the banks themselves, declare that Greece before, and Ireland after, are not healthy countries and therefore asks that the greek government and Irish, pay interest mind-boggling.
Essentially legalized thieves, refinanced by governments without interest, are now demanding wear rates to those who refinanced them, after they had looted the liquidity of the global financial system.
Besides the insult to injury.
It's capitalism of private losses and profits of public: speculation with other people's money, and if everything goes smoothly we pocketing all the profits. When it goes wrong (and you can even make it go bad on purpose, because it draws an advantage), the social impact would be so heavy that the government will be forced to re-write our debts.
It is so absurd that says Casassa? Apparently not.
The purpose of the crisis: power and profit
The financial elites have invented the last economic crisis to consolidate power and capitalize on the profits on the skin of billions of people, and then also apply for and obtain a widespread distribution of losses for taxpayers, which, as such, never will dream to claim a solidarity redistribution of earnings. Taking advantage of the market to the bone, illegally and with the complacency of governments, seeking to exhaust every productive vitality of the markets until they reach the total sterility.
The exploitation of markets is often implemented through the so-called "branches", which are created to achieve certain goals. When a certain branch of the market is exhausted, it is withdrawn, the profits are collected from the main summit through a game of Chinese boxes, and losses remain in the 'scope of the branch that has declared bankruptcy. Let's see how it happened: the main investment banks, Citigroup, Bear Stearns, Lehman Brothers and Merrill Lynch, among others, have made a sad ending. Lehman failed and went into voluntary administration, Merrill Lynch has instead been saved, or rather, bought by Bank of America.
Richard Fuld, the father-master of Lehman (was the fourth US investment bank) has come out of this crack in the foot: from 1993 to 2007 obtained from salaries, bonuses, stock options, a whopping 466 million dollars . Besides the good output of 22 million dollars, gained prior to the bank's failure. Ie after which he created a black hole of more than 639 billion dollars, the biggest slump in American economic history (more than ten times the hole already giant Enron, 63.4 billion).
Across Stanley O'Neal, former head of Merrill Lynch, leaves his prestigious office with a $ 161 million pension, and this after creating a chasm of 40 billion dollars.
The mega boss of Citigroup, Chuck Prince, has instead pocketed $ 68 million, and the former president of Bear Stearns, Jimmy Cayne, "only" $ 60 million.
The interesting thing is that this happens every time a company collapses and / or fails: the managers are always on top and with pockets full of money. taxpayers' money.
The banks that are closing are signs of covert operations by those who work behind the scenes. "This failure, however, is not of great empires controlled behind the scenes, but of the branch. In fact, the branches connected, as in botany, you can prune "when no longer needed.
Just look at who is behind the main shareholders of Lehman Brothers and Merrill Lynch: many listed companies that are attributable to these two groups that really control the global economy: the US subsidiary of the Rockefeller and the European Rothschilds. The two wings of the same vulture, which also control much of the media from around the world who deliberately disseminate misinformation among the public.
The entire performance of the market has been so distorted technically, through the collapse of the shares of the failed banks, or through bearish speculation. As they had been pumped to the rise in past years, to cover the enormous hidden chasms.
Technical tests of the last crisis, was previously carried out in 1997, when it was created sudden financial hemorrhage that hit Thailand and other emerging Asian economies: while the world's largest banks have been invited to invest in the Asian "tigers" , some large speculators had already started selling; the market crashed, always driven more bearish and cause enormous losses worldwide. As long as those who had brought down the market they do not reacquired shares at ridiculous prices, generating huge profits for themselves.
The profits of the crisis
It begins to be clearer where they burned money? Certainly end up in the hands of someone. And not "into thin air", as many people think .. Although not everything, of course. Because when a stock market is suffering from a fall, for example by 40%, the latter is the lost value, but does not represent the real money exchanged. But even if not everything, though, a good portion of that money "burned," goes into the pocket of someone who is at the tip of the pyramid. While collapsing bags, someone sees increase its profits exponentially. At the end of a speculative bubble, the final proceeds are concentrated in the hands of a small percentage of the population. In the case of the housing bubble and the crisis of sub-prime loans, it is clear that the money went into the hands of those who entered in real estate and have come out in time. also collected in the form of profits, companies in all these years have benefited from the strong demand financed by credit. This means that the banks and the large financiers have entered and are gone out by bubble in time for arricchirsene, have first bet on the collapse, of course, and then they detonated. It sucks a sector, then it comes out. Banks are not bankrupt, they simply exhausted their function.
While the economic crisis is raging in an ever more dramatic throughout the West, and include companies that are closing or relocating, unemployment rise to a dizzying pace, rights vaporize, a bit everywhere are imposed other sacrifices to workers, pensioners , the young people.
Yet there is also another side of the coin, for multinational companies and the big banks, the benefit of which was built the entire operation, they can decide the threshold of economic sustainability for small and medium-sized enterprises and entire peoples, having the size and resources to cope with or even cause a crisis, though this may result in an opportunity to win a market or on competitors.
Among the consequences of the 'crisis', there is also the increase in net profit of multinationals, obtained largely through layoffs, relocation and destruction of the world of work, ten times higher than the turnover. "This figure demonstrates unequivocally the reasons for a cataclysm presented as accidental, but actually deliberately designed to magically transform the tragedy of many in the bonanza of a few.
Thanks to this global financial meltdown, the financial domes will have in hand not only the raw materials and resources such as land, gold materials, diamonds, oil, but also primary goods such as water and electricity, given the continued push to privatization, which will ensure that you concentrate in their hands the control of global resources.
The art of these people is just to get hold of great riches and then hide in anonymity, infiltrating between the masses of the dispossessed to confuse those few who try to see a little more clearly.
Speculative bubbles exploit the 'irrationality and greed of the masses, the desire to get rich and to emulate the rich. Just to get rich without effort, everyone would be ready for anything: it confirms the more absurd bubble of all time, the first major speculative bubble in history, that of tulips, in 1600, in the Netherlands, that serves as a model for all the bubbles successive. Due to speculation in bulbs, these had become a status symbol, an object of tendency, their price had risen to the point that you could buy a house with the value of a single seedling. Then their market collapsed. The price of the bulbs is back to its value. And the people involved in the bubble have lost everything.
The bubbles are created by megaspeculatori. To create a bubble are necessary: a lot of money (with easy access to credit), the unbridled greed, and an object of desire, which is considered a safe bet, to put under the spotlight, and on which you have generalized expectations further increases, as the brick to the crisis of sub-prime mortgages. It happened for the stock ticker, which then led to the crisis of '29; And 'success with the Internet during the dot-com bubble; as it happened further back in time: in Holland, for the tulips, in 1600, in Britain, for the Company of the South Seas. All these objects of desire (clubs, companies, Internet), have had to do with an idea of glamor, attractive, again, were the popular imagination, and have been chosen to take root quickly and well in the range of desires and the most interesting prospects. The interest rises, and here come the plucking chickens, that is, small and medium investors. When you are scraped enough money, then you let explode the bubble.
In short, if you have expansionist ambitions, the control of information, manipulation and sophistication are fundamental.
The mutant capitalism
Capitalism does not age, simply turns, changing face. Where there is an ongoing speculation, it does not fail. Simply delete the old to create the new. Creating new speculation, new bubbles.
Capitalism is done by men. And at the head of this system, but there are few who know how again and again multiply the already endless possibility of profit.
This crisis was not a random event, but found to be a well-planned operation and well designed. In contrast to the industrial production of capitalism, which is totally anarchic (over-produce, without planning), here we find ourselves in front of a targeted and controlled management of the financial market, which is now reality.
This crisis is desired, because it allows you to speculate, raking the savings of small and medium investors, reducing salaries, increasing privatization and - in the 'last resort - profits. It is a time of re-organization of the capitalist system.
This crisis therefore is being planned.
economic crisis means social discontent and political chaos, violence, means greater chance of repression and social control.
You can no longer believe the intrinsic uncertainty in the financial markets.
Before, for example, there were no so-called derivatives: you could not openly bet on the collapse of a market, a currency, a company. Now you can, thanks to complex and specific financial products created ad hoc. And what makes it even easier to make money on uncertain markets: those who have invested heavily in the collapse of some companies, are able to work safely in the 'shadow and circulate information, even false, useful to their purposes.
If you think that the bags oscillate thanks to the ideas and states of mind of operators or because of the spontaneous performance of the commercial market, you have a romantic vision of the financial world. Often the real market are the same predictions, because they always act conscious people to "states of mind" of the other. And that amount of money is conducive to the fulfillment of the predictions, or their opposite: we are faced with a fraud, in all respects.
There is a class of speculators at the highest level who handle the market, the ones (as we said) to the tip of the pyramid: banks and investment fund managers, who manage large numbers. They can not do this directly, but through the so-called "special purpose entities", not included in the budget, through which you make the most of the "thorny operations" in a covert manner.
Finance the last twenty years is something very similar to the economic analysis of John Kenneth Galbraith: today has established itself step by step the perverse economics of the scam, legalized and formally accepted. For the American economist, we are faced with shameless liars, surrounded by a sea of naive and innocent carriers. Liars are the presidents and CEOs who become super-rich, who carry out an intentional fraudulent design. But it is also, and especially, a distortion of reality that at the beginning is deliberately pursued, but which later feeds on itself: "In a society not command the reality, but fashion and current account". One of the biggest problems is the influence that fashion (misleading) has on citizens-consumers, a herd driven by irrationality, greed and envy those who have more, and "shepherds" cunning and hidden that guide this flock do just leverage desire and on the 'illusion of people to earn easily. They are the same sheep of the flock that put in the hands of manipulators their savings, and these cunning manipulators then using them to place their bets in finance. "Man is a gregarious being deeply. Insulate yourself from the group generates insecurity and fear. People would rather cry together, rather than laughing alone," says JK Galbraith - "He who begins to work on speculative markets, makes us believe that the masses are led by a pastor with good intentions. "and, assuming the manipulability of the masses, just follow the direction of the flock," It 'clear that the sheep, which are small and medium investors, are then guided by a gang of ruthless demons disguised as wise shepherds.
Derivatives & C.: the racket of rating agencies
Compared to the past, the market and its tools have changed. Today in a matter of seconds you can bring down a bag or drag a coin in a bearish vortex. highly speculative financial instruments are used heavily on the debt of the states, investing in their bankruptcy.
The central role of the rating agencies: the main ones are the US Standard & Poor's, Moody's and Fitch, which assess companies and bonds (with a rating ranging from AAA to D), and are not independent, since they are private entities , structured as corporations (and are therefore subject to the principle of maximum profit), performing their paid assessments (with a potential conflict of interest, sometimes even when it is not required). Suffice to say that, according to a monitoring carried dall'Adusbef (Association defending consumers and users banking, financial and insurance) in 1000 reports of the rating agencies, or tips for purchases and / or sales, are erroneous results in 91% of cases, thus jeopardizing the savers' funds, but allowing those who are aware of the right information, you can speculate and earn. And the rating agencies have direct shareholdings - including by members of their governing boards - in larger corporations and international banks as well as in banks involved in derivative transactions, ie the speculation responsible for the speculative bubbles and financial crisis. They are therefore an organized structure of the major banks in the world, the same that control the financial system and debt of nations and the global private and public.
Among the financial products used to manipulate the market, one of the most popular is the derivative, which in practice consists of a second episode of a previous product: that is to say, when it has the possibility of a bottom, and the bottom of the option it gives you the privilege (not the obligation) to buy or sell. The price of the derivative is based on the price of something else, it is a kind of a quadratic equation complicated. And you can create a derivative of everything. Qundi you bet on everything, Wall Street is really a huge casino. And the derivatives in circulation in mid-2008 amounted to 765 billion dollars, the 'equivalent of 14 times the GDP of the world, based on their nominal value. However, being subject to a mild adjustment, as they are considered private contracts, you can not determine the exact amount, or how many of them are actually managed by institutional investors. They are a shadow market.
In the hands of unscrupulous speculators these tools can become a formidable means for making money.
Imagine you are aware of an event that, the following day, will bring down the financial markets and It will hit some companies in particular. How can we use this information to make as much money as possible, speculating on the impending disaster?
We may use credit default swaps, a type of derivative: are insurance against default, ie against the act of failing to pay due, that is when you fail to meet its debts. Their characteristic criminogenic is that they can be also on securities that do not possess.
imagine that I can secure your home against fire, and not only a political, but with ten policies. I became more interested in burning your house! Because you had the assessment of the damage, but I incasserei 10 times the value of your home.
And this also happens with the Member!
Because CDS are calculated based on the default risk, just think that, knowing the critical situation of a particular country, such as Greece, I begin to buy CDS on Greek bonds. They were not cheap due to obvious problems.
Then I make in circulate the news that greek debt is unsustainable, as it really is, through the media and the rating agencies.
Attention are focused on Greece, and those who own Greek bonds they try to sell them, but can not find buyers. This ignites the issue: the risk that no one buys Greek bonds grows and with it the evaluation of cds on them.
Someone seeks to "ensure" itself against default, and then I'll sell those cds that I had purchased cheaply, to a much higher value.
And if Greece goes into default or not actually do not care, the gain (huge) I brought it to home.
The system of derivatives and futures, out of control and limitation becomes a machine to destroy. In fact, the biggest gains are achieved when the shares will grow or shrink significantly, in general it is very difficult to earn a lot of money with a 'share (€ 100 or $ 100, for example) in a few days. So, if my goal is to earn, and are a bastard who manipulates the market for the management of confidential information (true or false), I use my power of manipulation in order to destroy a society rather than for ransom in order to slipping my quote. Destroying is easier than building, spread panic is less expensive to spread optimism.
And the first example is what is happening with the euro, which has long been under attack (speculative): by credit swaps, with which these contracts would be also insured against the risk of bankruptcy of an issuer of securities, it helps drag to the peak of the 'euro value, undermining the European economic stability and causing a financial crisis dictated by greed, and weakens an' recent financial covenant and still not well structured.
A survey by the New York Times revealed that Greece, supported by Goldman Sachs and other investment banks on Wall Street, has masked its public finances through financial trading mechanisms, bypassing the European Stability Pact. The same methods used by Wall Street to create the bubble of subprime mortgages, have been replicated with public finances of Greece and other European countries.
To enter the Maastricht Treaty, Italy and Greece, in particular, they have cut their deficits with the use of derivative instruments that are not officially appear in the financial statements.
And the same rating agencies, which have helped to hide the deficits of European countries, even speculated about them: downgrade the credit rating of Greece and Ireland, it was clearly a speculative maneuver, being they in cahoots with investment banks.
A speculative attack, orchestrated by the rating agencies? Against Italy in the spring of 2010: Moody, between 6 and 7 May it issued two news totally different. 6, at 11:47, the press agencies headlines: "Crisis :. Moody, at the risk of banks in Italy and in the other four countries' 7, at 9:35, however, the headlines:" Crisis :. Moody, the 'Italy is not among the countries at risk "in just over 24 hours, however, there was the swoop of all banking stocks. It 'was released a news not true, provoking a reaction from potential speculators, as admitted by the Italian Foreign Minister, Franco Frattini. The rating agencies and their cronies, in short, in addition to having generated systemic crises, getting richer thanks to the ups and downs of the market, or better, thanks to the consequences of their maneuvers.
In early March of 2010, the Wall Street Journal writes that the big American banks and large hedge funds, investment funds high-risk, they launched a massive attack on the euro: it is said that at a summit between these subjects, it was elaborated a plan: l 'inevitable collapse of Greece and then the collapse of the euro. In this way, the CDS would give huge gains. And this indeed happened. The hedge fund holders have decided to agree on a series of moves to speculate downward on the single European currency, to put more pressure on Europe, grappling with the risks of a greek default. The newspaper pointed out the number of futures contracts bearish signed during the week: about 60,000, according to Morgan Stanley.
To "save Greece", including billions of unlimited Federal Reserve swap program EU and International Monetary Fund, and the final price you pay will definitely higher than a trillion dollars. This hypothetical containment society is nothing more than a bailout (yet another) for the biggest banks in the world. Most of the debt of the PIIGS (Portugal, Ireland, Italy, Greece and Spain) is controlled by large French and German banks. A default would suddenly questioned the solvency of these banks for the second time in two years. Besides constituting a handhold for banks, offering breath for those governments, which have been affected or at risk of experiencing a civil conflict. also saves the restless equity markets. These are the main reasons that have led to a bailout.
Both the Old Continent that the state of California are realizing they must pay interest on their current debt, in addition to the bailout. It is also likely to contract new debt to finance the ongoing budget deficit. Who will be the only ones to gain one more time? The banks.
Wall Street 2 - Money Never Sleeps: invention or reality?
Awareness of attending a cinematographic "fiction" conveys automatically the idea that we are faced with to a pure fantasy invention, and this leads us not to take seriously the theme in the film. But often the Hollywood producers are having fun to paint just as they are some of the obscene reality of our society. In this regard, I strongly encourage you to watch the movie Wall Street 2 - Money Never Sleeps Oliver Stone.
It offers a precise and ruthlessly glimpse of last economic crisis, describing precisely the strong manipulability market. From what is an old (and widespread and illegal) tactic, namely the use of confidential ( or false ) informations, spreaded artfully some informations rather than others, such as to know in advance what actions will go up or go down; but someone goes a bit further by establishing well-targeted plots, in order to bring down a company, after they had bet on its collapse in the stock market.
Oliver Stone also sheds light on another aspect of perverse economy: the gain on losses. The film begins with the owner of the largest investment bank Keller Zabel Investments, who wonders how it is possible that his company can do so many millions of profit (which means it is going well, of course), but at the same time goes wrong the stock market, perhaps because is gaining focusing on losses ..
In Wall Street 2, not only that Keller Zabel (which could very well be the Lehman Brothers), is at the center of a fraudulent operation: another big investment bank, Churchill Schwartz, (through offshore funds and companies pip in the financial statements), a fortune betting on the collapse of Keller Zabel, with the purchase of derivatives and short selling (form of speculation downward, making headlines do not directly), and in the meantime have spread rumors that Keller Zabel is not doing too well, having invested too much in toxic assets.
All this, in the "fiction" film, producing the collapse of the title "Keller Zabel."
In a summit with all the major banks in the country, the Keller Zabel then asks desperately to be helped, but the Churchill Schwartz denies the help you need, despite all the banks have toxic assets in the financial statements, condemning it to failure. The Churchill Schwartz then offered to buy back the bank in crisis at a bargain price, at $ 3 per share, a pittance, given that it cost 79 a month before.
Result: a big bank eats another at very low cost. And do not forget the mega profits from winning bets on the collapse!
A hypothetical scenario, one that gives us Stone, yet really near to what really happened.
The true story of subprime mortgages
And what is behind the economic crisis broke out in 2006? It seems to be born from the US mortgage crisis, or so they explained the TV and newspapers. But it was not as simple as the media would have us believe.
A good explanation of the right Casassa, one evening, in a known Italian television broadcast, when he said something like (the Casassa videos have unfortunately disappeared from the network, and for some reason!): "They would like us to believe that this crisis stems from mortgages American sub-prime, a little as if in Pavia - a northern Italian town - none of the citizens would be willing to pay more compared to mortgage on the house, and this then leads to a global economic crisis. Something does not come back. "
We then share a few steps back: for many years the central banks (Fed, ECB) have kept artificially low interest rates, as well as the cost of borrowing. low interest rates have led millions of people in the Western world, and particularly in the United States, to get into debt to banks to buy the house or other property.
This has led to the widespread insolvency that we have seen, and the result of well-targeted speculative and precise maneuvers.
Nothing more and nothing less than the usual bubble that impoverishes many, and make rich few.
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