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Guest Post: As The World Crumbles: The ECB Spins, FED Smirks, And US Banks Pillage

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Submitted by Nomi Prins

As The World Crumbles: The ECB Spins, FED Smirks, And US Banks Pillage

Often, when I troll around websites of entities like the ECB and IMF, I uncover little of startling note. They design it that way. Plus, the pace at which the global financial system can leverage bets, eviscerate capital, and cry for bank bailouts financed through austerity measures far exceeds the reporting timeliness of these bodies.

That’s why, on the center of the ECB’s homepage, there’s a series of last week’s rates – and this relic - an interactive Inflation Game (I kid you not)  where in 22 different languages you can play the game of what happens when inflation goes up and down. If you’re feeling more adventurous, there’s also a game called Economia, where you can make up unemployment rates, growth rates and interest rates and see what happens.

What you can’t do is see what happens if you bet trillions of dollars against various countries to see how much you can break them, before the ECB, IMF, or Fed (yes, it'll happen) swoops in to provide “emergency” loans in return for cuts to pension funds, social programs, and national ownership of public assets. You also can’t input real world scenarios, where monetary policy doesn’t mean a thing in the face of  tidal waves of derivatives’ flow. You can’t gauge say, what happens if Goldman Sachs bets $20 billion in leveraged credit default swaps against Greece, and offsets them (partially) with JPM Chase which bets $20 billion, and offsets that with Bank of America, and then MF Global (oops) and then…..you see where I’m going with this.

We're doomed if even their board games don’t come close to mimicking the real situation in Europe, or in the US, yet they supply funds to banks torpedoing local populations with impunity. These central entities also don’t bother to examine (or notice) the intermingled effect of leveraged derivatives and debt transactions per country; which is why no amount of funding from the ECB, or any other body, will be able to stay ahead of the hot money racing in and out of various countries.  It’s not about inflation - it’s about the speed, leverage, and daring of capital flow, that has its own power to select winners and losers. It's not the 'inherent' weakness of national economies that a few years ago were doing fine, that's hurting the euro. It's the external bets on their success, failure, or economic capitulation running the show. Similarly, the US economy was doing much better before banks starting leveraging the hell out of our subprime market through a series of toxic, fraudulent, assets.

Elsewhere in my trolling, I came across a gem of a working paper on the IMF website, written by Ashoka Mody and Damiano Sandri,  entitled ‘The Eurozone Crisis; How Banks and Sovereigns Came to be Joined at the Hip” (The paper does not 'necessarily represent the views of the IMF or IMF policy’. )

The paper is full of mathematical formulas and statistical jargon, which may be why the media didn't pick up on it, but hey, I got a couple of degrees in Mathematics and Statistics, so I went all out.  And it’s fascinating stuff.

Basically, it shows that between the advent of the euro in 1999, and 2007, spreads between the bonds of peripheral countries and core ones in Europe were pretty stable. In other words, the risk of any country defaulting on its debt was fairly equal, and small. But after the 2007 US subprime asset crisis, and more specifically, the advent of  Federal Reserve / Treasury Department construed bailout-economics, all hell broke loose – international capital went AWOL daring default scenarios, targeting them for future bailouts, and when money leaves a country faster than it entered, the country tends to falter economically. The cycle is set. 

The US subprime crisis wasn’t so much about people defaulting on loans, but the mega-magnified effects of those defaults on a $14 trillion asset pyramid created by the banks. (Those assets were subsequently sold, and used as collateral for other borrowing and esoteric derivatives combinations, to create a global $140 trillion debt binge.) As I detail in It Takes Pillage, the biggest US banks manufactured more than 75% of those $14 trillion of assets. A significant portion was sold in Europe – to local banks, municipalities, and pension funds – as lovely AAA morsels against which more debt, or leverage, could be incurred. And even thought the assets died, the debts remained.

Greek banks bought US-minted AAA assets and leveraged them. Norway did too (through the course of working on a Norwegian documentary, I discovered that 8 tiny towns in Norway bought $200 million of junk assets from Citigroup, borrowed money from local banks to pay for them, and pledged 10 years of power receipts from hydroelectric plants in return. The AAA assets are now worth zero, the power has been curtailed for residents, and the Norwegian banks want their money back--blood from a stone.) The same kind of thing happend in Italy, Spain, Portugal, Ireland, Holland, France, and even Germany - in different degrees and with specific national issues mixed in.  Problem is - when you’ve already used worthless collateral to borrow tons of money you won’t ever be able to repay, and international capital slams you in other ways, and your funding costs rise, and your internal development and lending cease up, you’re screwed - or rather the people in your country are screwed.

In the IMF paper, the authors convincingly make the case that it wasn’t just the US subprime asset meltdown itself that initiated Europe’s implosion, but the fact that our Federal Reserve and Treasury Department adopted a reckless don't-let-em-fail doctrine. Even though Bear Stearns and Lehman Brothers failed, their investors, the huge ones anyway, were protected. The Fed subsidized, and still subsidizes, $29 billion of risk for JPM Chase's acquisition of Bear. The philosophy of saving banks and their practices poisoned Europe, as those same financial firms played euro-roulette in the global derivatives markets, once the subprime betting train slowed down.

The first fatal stop of the US bailout mentaility was the ECB’s 2010 bailout of Anglo Irish bank, which got the lion’s share of the ECB's Irish-bailout: $51 billion euro of ELA (Emergency Loan Assistance) and $100 billion euro of regular lending at the time. 

After the international financial community saw the pace and volume of Irish bank bailouts, the game of euro-roulette went turbo, country by country.  More 'fiscally conservative' governments are replacing any semblance of population-supportive ones. The practice of  extracting ‘fiscal prudency’ from people and providing bank subsidies for bets gone wrong has infected all of Europe. It will continue to do so, because anything less will threathen the entire Euro experiement, plus otherwise, the US banks might be on the hook again for losses, and the Fed and Treasury won’t let that happen. They’ve already demonstrated that. It'd be just sooo catastrophic.

In the wings, the smugness of Treasury Secretary Tim Geithner and Fed Chairman, Ben Bernanke is palpable – ‘hey, we acted heroically and "decisively" to provide a multi-trillion dollar smorgasbord  of subsidies for our biggest banks and look how great we  (er, they) are doing now? Seriously, Europe – get your act together already, don't do the trickle-bailout game - just dump a boatload of money into the same banks – and a few of your own before they go under  – do it for the sake of global economic stability. It’ll really work. Trust us.’

Most of the media goes along with the notion that US banks exposed to the ‘euro-contagion’ will hurt our (nonexistent) recovery. US Banks assure us, they don't have much exposure - it's all hedged. (Like it was all AAA.) The press doesn't tend to question the global harm caused by never having smacked US banks into place, cutting off their money supply, splitting them into commercial and speculative parts ala Glass-Steagall and letting the speculative parts that should have died, die, rather than enjoy public subsidization and the ability to go globe-hopping for more destructive opportunity, alongside some of the mega-global bank partners.

Today, the stock prices of the largest US banks are about as low as they were in the early part of 2009, not because of euro-contagion or Super-committee super-incompetence (a useless distraction anyway) but because of the ongoing transparency void surrouding the biggest banks amidst their central-bank-covered risks, and the political hot potato of how many emergency loans are required to keep them afloat at any given moment.  Because investors don’t know their true exposures, any more than in early 2009. Because US banks catalyzed the global crisis that is currently manifesting itself in Europe. Because there never was a separate US housing crisis and European debt crisis. Instead, there is a worldwide, systemic, unregulated, uncontained,  rapacious need for the most powerful banks and financial institutions to leverage whatever could be leveraged in whatever forms it could be leveraged in. So, now we’re just barely in the second quarter of the game of thrones, where the big banks are the kings, the ECB, IMF and the Fed are the money supply, and the populations are the powerless serfs. Yeah, let’s play the ECB inflation game, while the world crumbles.

 


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Tue, 11/22/2011 - 00:55 | Link to Comment AUD
AUD's picture

Today, the stock prices of the largest US banks are about as low as they were in the early part of 2009, not because of euro-contagion or Super-committee super-incompetence (a useless distraction anyway) but because of the ongoing transparency void surrouding the biggest banks amidst their central-bank-covered risks

Maybe but what are these stock prices denominated in? Why, I thinks it is obligations of the most hopelessly overleveraged & insolvent banks of all - the central banks.

But who gives a shit? Nobody that's who, so what are you complaining about?

Tue, 11/22/2011 - 02:36 | Link to Comment Michael
Michael's picture

At least the epic Chinese housing bubble bust should cure America of its China Envy.

Tue, 11/22/2011 - 00:55 | Link to Comment jomama
jomama's picture

epic collapse, bitchez.

Tue, 11/22/2011 - 05:04 | Link to Comment Andrew G
Andrew G's picture

And finally - the inevitable Hitler spoof on the Euro collapse: http://www.youtube.com/watch?v=29F50dGbfM8

Tue, 11/22/2011 - 07:09 | Link to Comment The Reich
The Reich's picture

Best ever!!!

ROFL

 

Tue, 11/22/2011 - 00:56 | Link to Comment Eireann go Brach
Eireann go Brach's picture

Fuck black Friday! Let's rename it blow up a fucking banker day!

Tue, 11/22/2011 - 01:48 | Link to Comment gangland
gangland's picture

start with ? i got at least a 10-way first place tie....line 'em up. we can do ten every friday for a year. Jubilee!

Tue, 11/22/2011 - 02:38 | Link to Comment Richard Chesler
Richard Chesler's picture

Turkey up 22% from last year.

Happy Thanksgiving dinner!

xoxo

Ben

http://theweek.com/article/index/221494/the-thanksgiving-dinner-inflatio...

Tue, 11/22/2011 - 04:08 | Link to Comment stopcpdotcom
stopcpdotcom's picture

$21.57 for a 16-pound turkey this year?

In the UK a similar turkey would be about $140.

Phew!

 

Tue, 11/22/2011 - 04:37 | Link to Comment Vlad Tepid
Vlad Tepid's picture

I guess that just means the Brits don't have the same warm spot for welfare millionaire farming-industrial complexes as red-blooded Americans.

Tue, 11/22/2011 - 07:55 | Link to Comment BandGap
BandGap's picture

Could be that Britain doesn't have a lot of turkey farms, too.  Think about it.

Tue, 11/22/2011 - 06:49 | Link to Comment achmachat
achmachat's picture

here in Luxembourg they've started to sell "thanksgiving" turkeys as well in the frozen aisles of the big supermarkets.

People have been watching so many US TV shows all these years that they've been brainwashed into thinking that eating turkey at that particular date is the normal thing to do.

And yes... a frozen turkey costs WAY more than $22 over here as well.

Tue, 11/22/2011 - 08:37 | Link to Comment Scalaris
Scalaris's picture

Here in Cyprus we don't even celebrate thanksgiving -bar a small percentage affected by the past decades of rampant westernization surge- so I guess we mainly have roasts or steaks during "festive" meals. Then again we are quite an ungrateful bunch.

Not surprised to see the absurdities of the food pricing phenomenon is worldwide, thank god for the US exported inflation/EU destructive monetary policies/Southern European political incompetencies, and of course Goldman Sachs.

Happy thanksgiving everyone.

Tue, 11/22/2011 - 09:10 | Link to Comment BrocilyBeef
BrocilyBeef's picture

Ahh, did your Pilgrims and Indians split a bowl of cranberries as well?

Tue, 11/22/2011 - 09:39 | Link to Comment Scalaris
Scalaris's picture

Shit, we 've been occupied by Egyptians, Persians, Arabs, French, Italians, British and Turks since 10000 B.C. so I'm assuming it'd be something along the lines of brie and foie gras stuffed shrimp and lamb kebab wrapped with month old cured prosciutto with a side of mash and yorkshire pudding.

Tue, 11/22/2011 - 08:24 | Link to Comment j0nx
j0nx's picture

$140 for a turkey?? Get the F out of here. Go shoot one yourself for $.080 (the cost of the shell) if that's true. ROFL @ $140 for a turkey...

Tue, 11/22/2011 - 09:54 | Link to Comment Jimmy Carter wa...
Jimmy Carter was right's picture

turkey comes with free growth hormones for the kiddies

Tue, 11/22/2011 - 08:09 | Link to Comment Schmuck Raker
Schmuck Raker's picture

"You can't eat turk......oh, wait?

Tue, 11/22/2011 - 01:04 | Link to Comment PulauHantu29
PulauHantu29's picture

Deflationary Death Spiral.

40% unemployment.

$250 oil.

SuperStagflation.

Good luck!

Syonara.

 

 

Tue, 11/22/2011 - 01:05 | Link to Comment JW n FL
JW n FL's picture

 

 

Uploaded by on Nov 21, 2011

From: http://www.youtube.com/user/ReutersVideo

November 21, 2011 - The United States has named Iran a "primary money laundering concern" as Treasury Secretary Timothy Geithner warns global banks should beware of doing business with Iran as it might aid its nuclear program. Rough Cut (no reporter narration).

http://www.youtube.com/watch?v=EvYHa4raAJA&feature=g-all&context=G1d4e0ALTsssmgAKAA

 

Tue, 11/22/2011 - 01:24 | Link to Comment dr.charlemagne
dr.charlemagne's picture

Translation: Iran is going to be bombed, no TBTF exposure there please, we have enuf bad bet contagion already

Tue, 11/22/2011 - 03:36 | Link to Comment Michael
Michael's picture

Thank God Iran has a shitload of UNSTOPPABLE missiles.

"IRAN WILL CLOSE THE STRATEGIC STRAIT OF HORMUZ THE WORLD'S VITAL OIL SUPPLY LINE BY IMPLEMENTING ASSYMATRIC NAVAL WARFARE WITH MASS AND DISPERSED SWARMING TACTICS. THE UNITED STATES NAVY AIRCRAFT CARRIERS AND CARRIER BATTLE GROUPS (NAVY FLEETS) WILL HAVE NO CHANCE. THEY ARE ALL DESTROYED JUST WITHIN A FEW MINUTES AFTER THE WAR STARTS. THE BEST OPTION FOR IRAN IS TO ATTACK FIRST. IRAN WILL USE VERY POWERFUL SUPERSONIC C802 ANTISHIP MISSILE (NOOR MISSILE) ATTACK FROM LAND BY USING SHORE BASED MISSILE BATTERIES AND MOBILE MISSILE LAUNCHER VEHICLES. C802 ANTISHIP MISSILE ATTACK FROM AIR BY USING C802 LOADED IRANIAN FIGHTER JETS AND ATTACK HELICOPTERS. IRAN WILL ALSO USE ITS MOST POWERFUL ULTRAFAST MISSILE BOATS LOADED WITH C802 MISSILE AND RUSSIAN MADE ULTRAFAST SHKVAL TORPEDO (IRAN HOOT TORPEDO) THIS SUPER TORPEDO IS SO FAST THAT IT IS CALLED A UNDER WATER MISSILE. IRAN WILL USE INNUMERABLE SMALL SUPERFAST SPEEDBOATS ARMED WITH POWERFUL ROCKET LAUNCHER AND POWERFUL SMALL ANTISHIP MISSILE IN MASS AND DISPERSED SWARMING STRATEGY. THE SLOW MOVING UNITED STATES AIR CRAFT CARRIER SHIP AND ITS SUPPORTING CRUISERS AND DESTROYERS ARE ATTACKED BY ALL SIDES FROM LAND, WATER AND AIR WITH INNUMERABLE SUPERSONIC ANTISHIP MISSILES, POWERFUL ROCKET LAUNCHERS AND UNSTOPPABLE SUPERCAVITATION SHKVAL (HOOT) TORPEDOS. IT IS JUST IMPOSSIBLE TO DEFEND FROM SUCH ALL SIDE ALL WAY ATTACK THE U.S.A. NAVY CARRIER BATTLE GROUP HAVE THE DEFENCE MEASURES SUCH AS THE RIM-116 Rolling Airframe Missile AND THE Phalanx CIWS SYSTEMS. FOR EXAMPLE IF TEN C802 ANTISHIP MISSILES ARE FIRED FROM LAND, AIR AND WATER TO ATTACK A U.S.A. NAVY SHIP AND SEVEN C802 MISSILES ARE INTERCEPTED OUT OF TEN AND ONLY THREE C802 MISSILE CAN HIT THAT NAVY SHIP TAHT WILL BE ALL. THE SHIP WILL BE COMPLETELY DESTROYED. AND THAT IS THE GAME IRAN WILL BE PLAYING. IRAN ALSO HAVE A SUFFICIENT NUMBER OF SMALL FAST SUBMARINES EQUIPPED WITH THAT UNSTOPPABLE SHKVAL SUPERCAVITATION TORPEDOS AND VERY POWERFUL LATEST GENERATION INNUMERABLE "BOTTOM" NAVAL MINES. INFACT THE NAVAL MINE CAPABILITIES OF IRAN'S MISSILE BOATS, SMALL SPEEDBOATS AND SMALL SUBMARINES IS MORE THAN ENOUGH FOR COMPLETELY BLOCKING THE STRATEGIC STRAIT OF HORMUZ FOR YEARS AND THAT IS THE GAME. --------------------------------------------------------------------------------­--------------------------------------------------------------------------------­------ AND NOW THE GRAND FINALE EVENT -------- THE ULTIMATE U.S.A. CARRIER KILLER WEAPON FOR IRAN TO KISS THE ASS OF U.S.A. NAVY CARRIER BATTLE GROUP ------- THE SUPERSONIC STEALTH UNINTERCEPTABLE SOLID FUEL ANTISHIP BALLISTIC MISSILE ----- """"" PERSIAN GULF MISSILE """""" -------- THE SUPER WEAPON OF IRAN. ----------- JUST FIRE "THREE" PERSIAN GULF MISSILE FOR EVERY SINGLE NAVY SHIPS OF THE U.S.A. NAVY ""5 TH FLEET"" AND THATS IT. ---------- PERHAPS 15 PERSIAN GULF MISSILE FOR THE BIG BOSS SHIP -- "AIRCRAFT CARRIER SHIP" -- ALONE. --------- THE U.S.A. 5 TH FLEET IS JUST SITTING DUCK FOR IRAN TO KISS THE ASS."

IRAN NAVY POWERFUL ANTISHIP MISSILE FOR STRAIT OF HORMUZ BLOCK WAR

http://www.youtube.com/watch?v=-41OyuzSyKw

Tue, 11/22/2011 - 04:59 | Link to Comment Vlad Tepid
Vlad Tepid's picture

No need for caps.  And, no offense, but whatever it is you're quoting from sounds like a breathless Iranian propaganda organ.

You'll notice, in the STRATFOR updates that TD provides, that carrier battle groups rarely enter the Straits of Hormuz.  In the prelude to war they will certainly not be found there.  No need for the Iranian "superweapons" you mentioned...older Exocet's could just as easily close the Strait and it's tankers and merchant ships that would be Iran's trump card in a war, not carriers.  Most of their weapons are export versions of Soviet weapons, including the Shkval torpedo.  However capable they might have been in the hands of the Soviet Navy, the Iranian Navy are not the Soviets and the Persians would be wise not to rely on the strength of their sea-faring tradition.

That having been said, they would shut down the Strait, wreak havoc in the world oil and shipping markets, probably obliterate the 5th Fleet HQ (stupidly based in Bahrain instead of Diego Garcia) and might take out some escorting US warships like the Iraqis did (using Exocets) in the Iran-Iraq War.  But the naval war will not be theirs.  Within days, their naval infrastructure, ships, and logistics will be a smoking ruin, but the Gulf will still be held hostage by a few mobile SSM launchers hidden in caves or underground along the coast.  Iran will win if they can draw the US (and whichever hapless "coalition" members join) into a ground war in the country.  

The war will indeed go asymmetric, but I expect direct or proxy terrorist events will be the main show of asymmetric force, not a bevy of littoral and suicide craft. Those will be a one time thing.

 

Tue, 11/22/2011 - 05:11 | Link to Comment Michael
Michael's picture

Their missiles are not for American ships necessarily, their for places like Dimona.

Tue, 11/22/2011 - 06:34 | Link to Comment LeBalance
LeBalance's picture

my iMIC is bigger than your iMIC!

whose iMIC will sell to both sides?

we can paint this iMIC blue and that iMIC red and have those "so different" iMICs sell to each side.

profit: chaos: distraction from iBANK iLeeches: multi-WIN.

:)

Tue, 11/22/2011 - 05:41 | Link to Comment Popo
Popo's picture

Silly Iranian propaganda.  First off,  carriers won't enter the straits.   The entire Iranian port infrastructure would be taken offline in the first 3 hours anyway -- along with principal bridges and airports.    Communications infrastructure shortly thereafter.     

And as for your "supercavitation torps"... just LOL.

Oil of course, will shoot the moon.

Tue, 11/22/2011 - 04:06 | Link to Comment vnguru
vnguru's picture

You are right! I afraid that Obama will let his sodiers attract Iran soon. I don't know what will happen after all. However, many people will be put down. Poor him! Viec Lam Dong Nai & Viec Lam Vinh Phuc are two of my friends, they live in Iran now. They work in  a futures trading company. They also give advices in forex trading. However, if the ward uccur, the company will closed. 

Tue, 11/22/2011 - 04:10 | Link to Comment Michael
Michael's picture

Cheer up.

Credit default swamp land for sale.

Say that ten times fast.

Tue, 11/22/2011 - 01:17 | Link to Comment tickhound
tickhound's picture

Does Frederick even know Sam is fucking Marie?  He acts like he doesn't know.  Tommy knows... he's weird.  And i don't trust that Tera chick 100%... There's somethin' else goin' on here, you can tell.  I hope nobody dies...   

Tue, 11/22/2011 - 01:24 | Link to Comment Peter K
Peter K's picture

"Because US banks catalyzed the global crisis that is currently manifesting itself in Europe."

Huu????????????? What movie are you watching?

Or maybe the proper question should be: Assclown Ratigan, is that you?

Tue, 11/22/2011 - 02:30 | Link to Comment CompassionateFascist
CompassionateFascist's picture

NP is not bullseye, but somewhere on target. After all, she used to be a wheel at the Squid. Plays both sides, in series: @ http://seductivejewess.wordpress.com/type-iii76-nomi-sarah-prins-jewess/ 

Tue, 11/22/2011 - 01:27 | Link to Comment lolmao500
lolmao500's picture

Americans are too busy playing Skyrim and watching Twilight to care.

Tue, 11/22/2011 - 01:53 | Link to Comment Dr. Engali
Dr. Engali's picture

No our wives are watching Twilight, it's too unbearable for me. I'd rather have a beer with Obummer , a black professor , and a police officer for the whole nation to watch, than watch Twilight.

I take that back. At least after the movie I have a chance of getting laid, instead of getting screwed after the beer.

Tue, 11/22/2011 - 03:53 | Link to Comment hardcleareye
hardcleareye's picture

 Not all wives, I believe Nomi is married....

Tue, 11/22/2011 - 05:58 | Link to Comment jeff montanye
jeff montanye's picture

i mean really.  what a pack of bozos.

Tue, 11/22/2011 - 01:28 | Link to Comment SHEEPFUKKER
SHEEPFUKKER's picture

It's more like a horror show than soap opera. 

Tue, 11/22/2011 - 01:33 | Link to Comment TruthInSunshine
TruthInSunshine's picture

The Bernank is reading this tonight - I have a feeling - and his lip is quivering and he is suffering nervous facial ticks and twitches.

The Ben '15 Minutes-Transitory-ZIRP4evercure-GreenShoots' Bernank is a failure of a central banker, economist, economic forecaster and human:

Ben Bernanke Forecasting the Future Back in 2005 (You Have To Watch This)
Tue, 11/22/2011 - 06:39 | Link to Comment LeBalance
LeBalance's picture

oh, and his bosses are?  and their orders to him are?

please gauge a man's success on his "truth in sunshine" job goals, not on some illusion of what you think his yearly review is about.

Tue, 11/22/2011 - 07:39 | Link to Comment GenXer
GenXer's picture

Gold was scrolling at 640 on one of those clips. That would be some tasty buying. Ben is a shill.

Tue, 11/22/2011 - 01:38 | Link to Comment Dr. Engali
Dr. Engali's picture

I do not understand why people aren't storming the gates. Maybe they have just grown numb to it all and it's become part of the norm to them.

Tue, 11/22/2011 - 02:15 | Link to Comment Mike2756
Mike2756's picture

The majority haven't a clue.

Tue, 11/22/2011 - 02:45 | Link to Comment dwdollar
dwdollar's picture

It doesn't take a majority, only a minority. The problem is, the minority hasn't got the balls yet. The ones who do have the balls are just labeled as 'crazies' and off they go to jail.

Tue, 11/22/2011 - 06:04 | Link to Comment jeff montanye
jeff montanye's picture

it will take more pain.  freedom sometimes is nothing left to lose.  it's coming.  the first banker/politician kidnapping/torture/assassination will probably get their attention.  not that i recommend that.  

i wonder what corzine's personal security detail looks like.  i'd be a bit leery of patronizing prostitutes at this stage.

Tue, 11/22/2011 - 02:45 | Link to Comment Michael
Michael's picture

I think it's best if they don't know. It's so much more entertaining to watch their clueless surprise as the shit falls apart.

Tue, 11/22/2011 - 02:25 | Link to Comment Sedaeng
Sedaeng's picture

or maybe the govt has upped the fluoridation in the drinking water to make the citizenry more docile... just saying, maybe?

http://www.fluoridedebate.com/Download/fluoridedebate.pdf

Tue, 11/22/2011 - 03:51 | Link to Comment oldman
oldman's picture

Doc,

You know damned well why they are not. Read the comments above and those that follow, and your knowledge about how moronic even the majority of readers today on ZH are will be confirmed.

We are too stupid, arrogant, ignorant, and egocentric to survive. This can be blamed on many things but it still is each of us who tolerates the constant personal attacks and abuse that is responsible for saying 'no more!'. We are idiots and it is time to begin accepting responsibility for this shitty house we live in: "Clean it up, you pigs!" is what needs to be screamed out loud.

Look at how many denigrating comments there are daily here about the Occupiers of Wall Street; the only people in the street----for whatever their individual reasons---are still the only ones in the street except for the bankers dogs.

If this offends anyone here, I apologize because this not a 'personal' comment about any one of us, but an honest frustrated emotional response to a nation full of whiners and ignorant individualists who deserve the shitty house in which we live.

I leave tonight for a few months because 'Love it or leave it' is becoming the hit song, once again       om

Tue, 11/22/2011 - 06:07 | Link to Comment jeff montanye
jeff montanye's picture

good thoughts.  ron paul should be the candidate for ows and the teaparty.

Tue, 11/22/2011 - 08:13 | Link to Comment dcb
dcb's picture

I have reached the conclusion that there are paid trolls who post. some conservative pac owned by koch or murdock sends folks round to attack ows, or other posts. it keeps the masses confused when you see different sides, and as long as there is confusion the money adgenda can advance more easily. think global warming.

Tue, 11/22/2011 - 01:39 | Link to Comment SilverDoctors
SilverDoctors's picture

The Morgue's world might be about to crumble...not sure about ours. 
Sprott Asset Management has filed a prospectus with the SEC for a $1.5 billion unit follow-on for PSLV.  
We're talking nearly 50 million ounces of PHYZZ people!!

Tue, 11/22/2011 - 02:03 | Link to Comment Manthong
Manthong's picture

Kinda' hard to stay short in the face of 50mm ounces worth of buy orders on the market.

Tue, 11/22/2011 - 01:41 | Link to Comment FutureShock
FutureShock's picture

Dec 21st 2012 that Myan shit seems like it is right on target. Something big will happen. Hopefully for the better. Wipe the worlds debt away, Some banking regulation tweaks, Smaller government, Stay with the founding fathers and I want to be load up on index funds and start not paying attention and watch shit like the Jersey Shore and Cardashians ;)

Tue, 11/22/2011 - 01:49 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

awesome!

and, she writes well, too!

Tue, 11/22/2011 - 02:06 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

Ya know, this surreal reel of make-us-believe-in-reality is starting to cast permanent nightmarish celluloid imagery onto my since infancy cathode-tubed mind into a kaleidoscopic cornucopial dread-spasm.

To wit, I feel like I'm about to be fucked from too many directions and orifices at once.

Tue, 11/22/2011 - 01:56 | Link to Comment chump666
chump666's picture

It's getting really messy, just checked out India's INR got hammered Asian session, that and Asian currencies all got sold.  So from Europe, to Asia and US down to a geo-political situation i.e Iran = major sell from an early meltup?   Just hoping we get a week or so of rallies, just hit that top.  So I can short on a massive liquidation trade coming soon

Tue, 11/22/2011 - 09:02 | Link to Comment Stax Edwards
Stax Edwards's picture

The rally in to year end is coming.  I am banking on running right through 1264 this time.

Tue, 11/22/2011 - 02:00 | Link to Comment Aquarius
Aquarius's picture

As I remeber back in '96 / '97 it was a well known fact that many of the larger European Banks were technically bankrupt where loans out far exceeded real assets. When I say "well known" I mean at an independant executive level dealing with Bank Executives; after hours stuff.

And, the pressures brought about by the politicans and Bureaucrats for the Banks to lend money to failing state owned and or supported "business ventures" (none of which were ever likely to turn a profit) was extremely high, so Europe was ready to pop anyway and the circumstances of the USA socio-economic and moral collapse came along just at that spontaneous moment.

2000/2001 was the leverage for 2008 and together - USA, UK, EU - that leverage with Japan and China the Optimusl Default Moment of 2011/2012 - Call it entanglement contagion.

http://verbewarp.blogspot.com/2006/07/global-economic-collapse-new-global.html

Tue, 11/22/2011 - 02:01 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

And the Rothschilds smile :0)

Tue, 11/22/2011 - 02:16 | Link to Comment Vic Vinegar
Vic Vinegar's picture

What does this mean?  I do not understand.

How about for every meaningless comment written on the internet re: the Rothschilds, I post a Kiss tune?  Seems like a fair trade as both don't do anything for anyone.*

Kiss - 2000 Man

http://www.youtube.com/watch?v=BgFlrB9w4tQ 

* - except Kiss fans

Tue, 11/22/2011 - 02:23 | Link to Comment CompassionateFascist
CompassionateFascist's picture

It means: as we get poorer, the RedShield gets richer.

Tue, 11/22/2011 - 02:26 | Link to Comment Vic Vinegar
Vic Vinegar's picture

So if this is true then what do you suggest we do about it?

Tue, 11/22/2011 - 02:39 | Link to Comment honestann
honestann's picture

Exterminate all predators.

Tue, 11/22/2011 - 02:24 | Link to Comment Mike2756
Mike2756's picture

Screw unplugged.

http://youtu.be/hks2CHv-7yY

Tue, 11/22/2011 - 02:33 | Link to Comment TruthInSunshine
TruthInSunshine's picture

It means that another Harvest is underway, and that a further concentration of wealth, not by means of capitalism or free enterprise, but by fractional reserve banking enabled Crony Capitalism, is underway.

This process is one of the worst 'isms' known to man, and often leads to the most tumultuous times that have been recorded in human history.

  Harvest
Tue, 11/22/2011 - 02:11 | Link to Comment HayekSchmittFri...
HayekSchmittFriedmanPinochet's picture

Nice to see some genuine analysis rather than the 'hang the Keynesians' and paranoid cultist posters.

The Keynesian era was derivative free. The idea was that banking was supposed to be boring... ie to finance the real economy.... Keynes foresaw what imposing unpayable debt would do to Germany and wrote it up as early as 1919. Whatever Bernank is up to it has nothing to do with Keynes... Bernanks intellectual godfather is Milton Friedman. Betting on financial futures was illegal until Friedman wrote a paper supporting it for $6000 paid to him by the trader Leo Melamud.What Americans call "Keynesianism" is really adapting some statements about 'sticky wages' into a fake social physics called 'economics'.

THis is a continuation of the neoliberal revolution, in and through the crisis it created. All the calls for 'small government', from Friedman to Reagan to Greenspan are really about a state stripped of social obligations to its citizens, a state devoted to facilitating international liquidity for speculative capital and surpressing dissent. Thats why when you get a real problem (ie climate change x peak oil) there are only two options: the state is enjoined to manufactures an 'efficient' new market for atmosphere derivitaves, or you manufacture a mirror world of fake science through corporate thinktanks and we all are constrained to 'acknowledge the controversy'... intellectual paralysis and political paralysis to follow. We spent the last 15 yrs praising The Market and Financial Evolution when we should have been building an alternative energy network and stripping out pointless uses of oil (think of the leafblower as a symbol of our times)

  As this is my first post to ZH, i want to thank ZH for an excellent education.

Tue, 11/22/2011 - 02:26 | Link to Comment TruthInSunshine
TruthInSunshine's picture

 

Keynesian Theory, even with all of its deficiencies, brought valid and meritorious observations to the study of economics, but it has been falsely painted as the crux of our modern crises, when in fact, fractional reserve banking is the mortal enemy of free society and destroyer of economic/social/political worlds.

Tue, 11/22/2011 - 02:52 | Link to Comment dwdollar
dwdollar's picture

Keeping working on that education.

Tue, 11/22/2011 - 03:42 | Link to Comment hardcleareye
hardcleareye's picture

Well put, keep on posting.

Tue, 11/22/2011 - 04:07 | Link to Comment Ghordius
Ghordius's picture

Excellent Article, full in line with my thoughts

Good first Post, HayekSchmitt

 

Small Gov? neoliberal revolution? I'd be grateful for a reset to the laws of the Sixties, including a ban on nearly all derivatives and the GlassSteagal Act. Small Gov with huge MegaBanks? Does it work? We would have to limit the size of all banks, first - this would be a classical anti-trust clean-up...

The typical comment poster in ZH is perhaps a touch nihilistic and prefers a simple "End the Fed" - I understand the feeling but don't agree on the feasibility of the method...

Tue, 11/22/2011 - 07:41 | Link to Comment spankfish
spankfish's picture

Neoliberal, neoconservative, neo this neo that... how about just gobhite wankers?

Tue, 11/22/2011 - 07:58 | Link to Comment Ghordius
Ghordius's picture

no, it is important - without some "school of thought" you cannot have useful political parties. You don't need a blasted ideology (though it seems to work) but you do need some theoretical agreement of any kind, a world outlook of sort.

That's the thing that makes me most worried about the USA. IMHO, there are no "parties" sharing a real and realistic ideal of how things should be organized. And we Allies depend on this...

Tue, 11/22/2011 - 08:07 | Link to Comment BandGap
BandGap's picture

Greed always needs a theory to hide behind.  This is less about economic theory and more about human nature.  Men are adept at twisting data to fit his arguement for plunder. I'm sure many a ponzi scheme looks quite pedestrian when presented to the man on the street.

Tue, 11/22/2011 - 08:09 | Link to Comment dcb
dcb's picture

Good points, I have over and ver written on this site that what people think of keynesian thought, and what it really is are rather different.

Tue, 11/22/2011 - 09:10 | Link to Comment flattrader
flattrader's picture

You wrote:

>>>All the calls for 'small government', from Friedman to Reagan to Greenspan are really about a state stripped of social obligations to its citizens, a state devoted to facilitating international liquidity for speculative capital and surpressing dissent.<<<

And never before have so many fat-assed, middle aged, white American been onboard with supporting the agenda of the predator class...Libertarian, Tea Party etc...

If they got what they wished for...end to or severe cuts to Social Security, Medicare, Medicaid...they'd be spending their entire day caring for elderly and or disabled relavtives and working a second or third job to foot the bill.

Tue, 11/22/2011 - 02:17 | Link to Comment Mike2756
Mike2756's picture

Wow. I can't wait to see the movie! Oh, wait..

Tue, 11/22/2011 - 02:29 | Link to Comment New American Re...
New American Revolution's picture

Say what you want, but looking at these currency charts, I'd say the FED has been in here keeping everyone afloat like they've been doing for the last 25 years or so.   They're just kind of feeding it in, hoping to keep it all together without the markets spinning out of control.   Gold is under pressure, but I think it will hit its low here soon and then work higher.   Just because all the currencies are staying at par only means they're all being devalued at the same rate.   It's a trick as old as the 1920's, it's the every country's money creation at par the FED has been practicing since 1913, whereas as I devalue my currency, everyone devalues at a similar rate, so it doesn't appear anyone is better than the next one.   It's just that they're all sinking at a barely perceptable rate of decline, but they are all sinking.

If you haven't figured it out by now, we're into QE III, they're just not telling anyone.   And as far as MFGlobal, how much sense does it make to have one of the major ex-cretins of Goldman take it down and basically wiped out a major portion of speculators in the commodity markets.   Don't think there isn't a major draw-down of accounts going on in the futures industry because no one wants to be next.   Where did $1.4 billion in segregated accounts disappear to (JPMorgan), that's not being returned even 2 weeks later, while the MFGlobal bankruptcy is being represented by a former attorney for who else, JPMorgan.

Now the 2B2Fails and the FED they own have an even greater hold on the markets to go along with their hold on the White House and A.G's office.   Their game, their rules.

I'd say its time for the New American Revolution.   Serfs Up!

Tue, 11/22/2011 - 02:42 | Link to Comment Mike2756
Mike2756's picture

They are trying, anyway. It's too big this time around.

Tue, 11/22/2011 - 05:19 | Link to Comment s2man
s2man's picture

Exactly.  They keep ratcheting the value of the currencies down, but comparatively they appear to remain steady.

Tue, 11/22/2011 - 04:08 | Link to Comment oldman
oldman's picture

Thank you Tyler for posting this piece. Intuitively it was known all along, but nice to have it articulated so well. It has seemed to this oldman all along that the derivatives could simply be declared null and void to be settled between parties as justly as possible without including any collateral damege to the various societies of humans living on the planet. The gamblers/speculators played the game and deserve the winning or losing side-----most of it will net out except for those participants who were so greedy that they bit off more than they could chew. Let the players settle it among themselves and leave us out of it, I say.

Nomi is correct also in the sense that the Fed, through its manipulative moves effectively crowded the rest of the world out of the bond market either on purpose or accidentally. The fact that the Euro and USD haver been relatively stable for the past several days suggests to me that some derivatives mey be being unwound and that many of the European banks are probably pretty light by now. Of course, we will see in an hour if this holds.

I wish that I understood some of this. I really do not, but do have enough experience, albeit twenty year ago, to intuit/sense/feel that this post is right on the target                 om 

Tue, 11/22/2011 - 06:23 | Link to Comment oogs66
oogs66's picture

Yes! We took away the wrong lessons - it was letting Lehman fail that gave us a chance but we stopped short and that is why the recovery is still tentative. More Lehman moments not fewer are required to correct the system and create sustainable growth

Tue, 11/22/2011 - 09:30 | Link to Comment oldman
oldman's picture

'sustainable growth' returns us to circa. 1950, so yes----we need to go back there as soon of some of these people go home; this just too b ig of a party

imo                   om

Tue, 11/22/2011 - 09:38 | Link to Comment flattrader
flattrader's picture

Yes, it beat the hell out of the quasi-intellectual and/or paranoid-schizo, etc...crap that passes for guest "contributions".  Entirely too much click-bait and not enough real analysis and narrative.

Tue, 11/22/2011 - 04:33 | Link to Comment HayekSchmittFri...
HayekSchmittFriedmanPinochet's picture

Ghordius,

You are right about anti-trust. The problem of liberal democracy is always how to have a state powerful enough to break up dangerous concentrations of economic power, and yet sufficiently separated in its powers to not become itself a dangerously concentrated power. This places a lot of weight on an active, conscious and educated citizenry.  Again, it was Chicago Law and Economics who redefined the corporation...no need for anti-trust as 'the market' would automatically discipline corporations! Again, Friedman who called for the abolition of public education and the abolition of the National Science Foundation. The death of the citizen and the 'sovereignty' of the consumer.

Hands up who was on the wrong side of the trade?

OWS needs a program and a party platform.

Ron Paul wants to abolish public education... and cut corporate taxes. Shrink the US empire, yes, but further undermine the citizen. and fatten the bonuses of the 1%? Come on Yanks, is that the best you can come up with?

 

Tue, 11/22/2011 - 04:47 | Link to Comment StychoKiller
StychoKiller's picture

Ron Paul wants to abolish public education...

I take issue with that statement -- the Govt has no business supplying education to anyone, and you should see that advocating same is advocating for Govt brainwashing of the young!

Tue, 11/22/2011 - 05:17 | Link to Comment Max Fischer
Max Fischer's picture

 

 

the Govt has no business supplying education to anyone...

Really?  So no more state universities in your world?

Max Fischer, Civis Mundi


Tue, 11/22/2011 - 07:55 | Link to Comment GoldBricker
GoldBricker's picture

Not really, but ideally.

I graduated from the U. of Calif. system in the 70s and thought I got a good deal. Since that time I have seen the value for money in US education decline sharply. It was always terrible in public schools, which are more about civil service and democratic voting blocks. What is a state-supported school for, if not to tell you that the state is wise and good? Try John Taylor Gatto's work on the history of public schools.

State-funded education has morphed into a bloated monster. Education debt has surpassed credit-card debt.

In both cases there is little connection between the customer and the service provided, with predictable results. I suggest a little experiment: get a copy of the McGuffey's Reader, a text aimed at 10-12-year-olds of a century ago, and ask some current college grads to read an essay and tell you what it's about, how its argument is structured. What you'll get in response will be the fruit of that person's education.

One judges the tree by its fruit, as J-C tells us.

Tue, 11/22/2011 - 11:21 | Link to Comment flattrader
flattrader's picture

You didn't get a good deal at UC.  You are an idiot...as evidenced by this:

>>>State-funded education has morphed into a bloated monster. Education debt has surpassed credit-card debt.<<<

So, because the student loan debt system is bad, public high education must be abolished.

Like I said, you are an idiot.

 

Tue, 11/22/2011 - 12:24 | Link to Comment GoldBricker
GoldBricker's picture

public high education must be abolished.

'High education'? I did get high from time to time. Does that make it 'high education'. One way to learn to recognize errors is to read a lot of good writing.

On the other hand, you have a point and I may have exaggerated. State U has been very good to me. At least I know the difference between high education and higher education.

My point is that there are very few things that will not happen unless the state makes them happen (mostly natural monopolies), while state interference, subsidies, etc. distort the market badly.

Tue, 11/22/2011 - 05:12 | Link to Comment s2man
s2man's picture

Eliminating the federal DOE does not equate to abolishing public education.  The idea is to remove federal involvement and return education responsibility to the individual states. The U.S. constitution gives limited and specific powers to the federal government, with remaining and non-specified powers to the states.  There is no mandate for the federal gov. to supply education.

Tue, 11/22/2011 - 08:06 | Link to Comment GoldBricker
GoldBricker's picture

And that, sir, is what Ron Paul is all about. Let's give the states something to do, besides being just another layer of bureaucracy and taxation. States should be different from each other, try new things ("the laboratory of the states", as Justice Oliver Wendell Holmes put it).

Tue, 11/22/2011 - 08:53 | Link to Comment Ghordius
Ghordius's picture

nice

I do try hard to comment little on US Politics, but I have to ask: does your call include going back to having the US Senators being appointed and recallable by the State's Legislatures (as originally done) instead of being directly voted? IMO and in the opinion of notable Libertarians this is the key point that makes Washington less answerable to the States.

------

I had a lot of comment wars because of many of our EU system's recallable appointees from the legislatures being called "unelected" and therefore "undemocratic". Nigel Farage has always a nice word about them, for example about the PM of Luxemburg - as if he would not represent a country because not directly elected while being the leader of a majority of elected MPs in Luxembourg's Parliament.

Tue, 11/22/2011 - 09:23 | Link to Comment GoldBricker
GoldBricker's picture

I live in the EU and haven't lived in the US for 20 years, and my knowledge is in any case insufficient to give you an informed answer, as much as I would like to.

Instead, let me try to give you some idea of what I mean by analogy to something I do know about, which is building complex software. In this field, the most reliable route to success is not the best ideas or the best people, but rather a process, closely adhered to, that experience has shown to work (Brooks, The Mythical Man-Month, or Holmes again "The life of the law has not been logic; it has been experience", or even the lovely Bruce Sterling story, Swarm).

The problem with relying on process is essentially political: we want to pick winners and losers. Example: we dislike nature's process: We root for the cute gazelle and deplore the bloodthirsty lion. So instead we short-circuit nature, put pennies in the fuse box, and burn down our houses. Liberal democracy appears to mandate this, as a majority of voters can be convinced that they get more from the state than they put in. In time a majority will feel that they must have the state, if only to pay them what was promised to them (in return for high taxes, natch).

So I'm not sure that democracy itself is the way out (and in fact, democracy will be ignored when it's most needed, as in the EU right now). As was true for individuals in all times and places, we can only run, and, with luck, hide.

Tue, 11/22/2011 - 08:59 | Link to Comment overmedicatedun...
overmedicatedundersexed's picture

so many trolls so little time..Hayek to just sum up you are a statist dick..

are you in the Hague?? a little gray man running some EU program on how water is not wet??

in short your BS was long ago discredited here..go back to that socialist hell you inhibit .

Tue, 11/22/2011 - 09:20 | Link to Comment Ghordius
Ghordius's picture

what BS exactly? his use of the words "liberal democracy" (which should be preceded by "classical" to be understood in the US - your politicos twisted nearly every previously commonly understood political term beyond recognition, sorry to say) or his view of the Libertarian's Movement contribution to hands-on solutions?

Tue, 11/22/2011 - 09:10 | Link to Comment Ghordius
Ghordius's picture

HayekSchmitt, about anti-trust I have some strong opinions that don't go down well with everybody.

Freedom to work is accepted. Freedom to set up a corporation with limited liability? Well, it might be called a right, but it should be a limited right. It is a special grant/charter from a sovereign country. Adam Smith is with me on this.

A (limited liability) corporation is - from the very nature of how most legal systems evolved - a foster child of the state. Originally they were Special Grants from the Sovereign For Special Purposes - for example the Dutch or British India Corporations.

So "Daddy" - which a "role" taken up by Government - has to make sure the child, equipped with more "economic firepower" and carrying less risk then the single citizen, "behaves".

This is doubly important when the charter-bearing corporation is allowed to partecipate in the creation of money supply, another Right of the Sovereign, i.e. us.

So whenever any corporation is too big to fail or too systemic relevant, Governments have a moral duty to cut them to pieces, like Baby-Bells.

Otherwise you have an unintended infringment on the very human freedom to work, due to unfair competition.

Tue, 11/22/2011 - 04:33 | Link to Comment Mike2756
Tue, 11/22/2011 - 04:34 | Link to Comment Temporalist
Temporalist's picture

Get ready for the unemployment line:

Wall Street Unoccupied With 200,000 Job Cuts

"a wave of firings that has washed away more than 200,000 jobs in the global financial-services industry this year, eclipsing 174,000 in 2009, data compiled by Bloomberg show. BNP Paribas (BNP) SA and UniCredit SpA (UCG) announced cuts last week, and the carnage likely will worsen as Europe’s sovereign-debt crisis roils markets.

“This is something very different,” said Huw Jenkins, a former head of investment banking at UBS AG (UBSN) who’s now a London- based managing partner at Brazil’s Banco BTG Pactual SA. “This is a structural change. The industry is shrinking.”"

http://www.bloomberg.com/news/2011-11-22/wall-street-unoccupied-with-200...

Tue, 11/22/2011 - 04:48 | Link to Comment GoldBricker
GoldBricker's picture

The discussion of the economic games is instructive. In effect, these are mini-models which incorporate established doctrine about trade-offs between factors like growth, uemployment, interest rates, etc. Presumably a model is a simplified simulation which helps us to get a handle on a more-complex underlying reality. But it can also serve as propaganda: when you agree to play the game, you accept its assumptions and limitations, you agree to ignore those factors that are left out of the game. Nomi helpfully identifies some of the big ones for us.

Tue, 11/22/2011 - 05:36 | Link to Comment Peter Pan
Peter Pan's picture

Banks and governments have become  complicit in servicing each others needs, covering each others mistakes but also threatening each other when one side is seen to be asking too much of the other.

The tab of course is picked up by voters/tax payers who yield little power between elections and suffer from restricted understanding due to a largely compromised press.

People should hope for a collapse so as to bring about a reckoning for those that have gamed and pillaged the system beyond repair.

Tue, 11/22/2011 - 05:55 | Link to Comment evolutionx
evolutionx's picture

European Central Bank commits suicide

Michael Mross on Russia Today: "Our central bank is committing suicide. On the one hand they are helping banks with billions and billions. They are buying junk bonds, billions and billions. I mean, where does this lead to? It is one of the last nails in the coffin of our central bank."

 

http://www.mmnews.de/index.php/english-news/8633-european-central-bank-commits-suicide

Tue, 11/22/2011 - 06:00 | Link to Comment Peter K
Peter K's picture

From the below posts, I see that the Obama kids are back from their protests, deliced and comfortably installed in their parents basements. :)

Viva la revolution,.....bu bu but....socialism es muerte.

Tue, 11/22/2011 - 06:20 | Link to Comment Peter K
Peter K's picture

Case in point:

"What you can’t do is see what happens if you bet trillions of dollars against various countries to see how much you can break them, before the ECB, IMF, or Fed (yes, it'll happen) swoops in to provide “emergency” loans in return for cuts to pension funds, social programs, and national ownership of public assets. You also can’t input real world scenarios, where monetary policy doesn’t mean a thing in the face of tidal waves of derivatives’ flow. You can’t gauge say, what happens if Goldman Sachs bets $20 billion in leveraged credit default swaps against Greece, and offsets them (partially) with JPM Chase which bets $20 billion, and offsets that with Bank of America, and then MF Global (oops) and then…..you see where I’m going with this."

No I can't see where you're going with this.

But then again, you forgot to mention that your "tidal wave of derivatives" is derived (think about it, derive, derivitive, sound familiar)from governments (politicians) debt financing operations. If the governments did not borrow more than they collect in tax revenues, they would not have a problem with derivatives. And that is because governments would not need to borrow from those bad bankers. Yes?

So once we put ALL the pieces of the puzzle together, looks like the bankers are at worst the facilitators, but definately NOT the root cause of the problems.

Tue, 11/22/2011 - 07:51 | Link to Comment Peter K
Peter K's picture

"What you can’t do is see what happens if you bet trillions of dollars against various countries to see how much you can break them, before the ECB, IMF, or Fed (yes, it'll happen) swoops in to provide “emergency” loans in return for cuts to pension funds, social programs, and national ownership of public assets."

Is the above the dumbest sentence ever written, or is it just me?

Tue, 11/22/2011 - 07:11 | Link to Comment Little Red Rooter
Little Red Rooter's picture

European stock markets rising - bad news is bullish, bitchez!

Tue, 11/22/2011 - 07:12 | Link to Comment spankfish
spankfish's picture

"Guest Post: As The World Crumbles: The ECB Spins, FED Smirks, And US Banks Pillage"

Your forgot rape, its "pillage and rape".  Every respectable Viking knows its "pillage and rape".

 

Tue, 11/22/2011 - 08:03 | Link to Comment GoldBricker
GoldBricker's picture

These vikings don't need rape. When you're as rich as TPTB, a taser can't keep the bitches off of you.

Tue, 11/22/2011 - 07:44 | Link to Comment magpie
magpie's picture

At what yields would a margin hike on French debt be conceivable (even without an overt downgrade) ?

Tue, 11/22/2011 - 08:29 | Link to Comment Zero Govt
Zero Govt's picture

Naomi Prins,

Very good article. 

Govts Treasuries and Finance Depts and their central banking crones Bernanke and Trichets mandate is to provide "economic staaaabiiiliiiityyy".

We're looking at the inflation game and told to watch interest rates and all the while the 'highly regulated' retail banks inflate a gambling junky bubble of 'IOU bets' of Death Star sized proportions in orbit around Planet Earth

As always Govt is a lying, dumb, totally corrupt and totally incompetent shithole ...and that's putting it nicely

Tue, 11/22/2011 - 08:21 | Link to Comment disabledvet
disabledvet's picture

Obviously this article makes no sense. You can't on the one hand say "the media agrees with the banks that they're hedged on theie European exposure" and "the media agrees with the fact that Europe is going to have a negative impact on the US economy" which obviously would have a negative impact on the banks. Why insert all this "jargon" when all we're dealing with here is a coordinated downturn of the industrialized economies followed by a war?

Tue, 11/22/2011 - 08:33 | Link to Comment Ghordius
Ghordius's picture

I'm sad to read this, I don't understand your POV enough to expand. I think the article is very good. Your conclusion is IMHO too straight for this twisted world.

Tue, 11/22/2011 - 08:56 | Link to Comment GoldBricker
GoldBricker's picture

all we're dealing with here is a coordinated downturn of the industrialized economies followed by a war?

True, and likely obvious to most of us here. We're just getting our jollies watching the thing crumble piece by piece, hoping to dodge falling masonry and make a buck betting on what will fall next. In this context, 'the media' is a bit like 'popular music'. The tunes and themes will vary quite a lot (after all, their goal is to sell newspapers, web clicks, and ads).

The media just can't violate certain un-written rules, such as names and photos of our real rulers or saying where they hang out. There is also one small country that is always right, no matter what it does. There are probably other rules, but they don't occur to me just now.

Tue, 11/22/2011 - 09:14 | Link to Comment jelyfish
jelyfish's picture

Thanks, great read.

Tue, 11/22/2011 - 11:01 | Link to Comment NuYawkFrankie
NuYawkFrankie's picture

...there is a worldwide, systemic, unregulated, uncontained,  rapacious need for the most powerful banks and financial institutions to leverage whatever could be leveraged in whatever forms it could be leveraged in. (...)the big banks are the kings, the ECB, IMF and the Fed are the money supply, and the populations are the powerless serfs

Succinct, to the point and devastatingly true. Just about says it all! 

Tue, 11/22/2011 - 11:32 | Link to Comment Fred Garvin
Fred Garvin's picture
In the wings, the smugness of Treasury Secretary Tim Geithner and Fed Chairman, Ben Bernanke is palpable –

Here is a clip of Benny and Timmy demonstrating the point perfectly...go to exactly 3 min 50 secs into the clip, the next 10 seconds says it all!

http://www.youtube.com/watch?v=-9l7C6fjvgE

Tue, 11/22/2011 - 17:18 | Link to Comment AldoHux_IV
AldoHux_IV's picture

Hang 'em high!

Do NOT follow this link or you will be banned from the site!