THE MASTERS OF MONEY: WHAT'S BEHIND THE DEBT CRISIS
In the U.S. we see, as never before, million people who suffer from the heavy impact of foreclosures and unemployment, in Greece, Spain, Portugal, Ireland and Italy, harsh austerity measures are imposed on the entire population, all joined to the collapse of major banks in Iceland, United Kingdom and the United States, In addition to indecent bailouts of bankers' too big to fail ".
No doubt the bulk of the responsibility for these crashes falls on the shoulders of governments of these nations, that are subordinated to the interests and objectives of economic power. Everywhere, this is accompanied by an intrinsic corruption, which is particularly evident today in United Kingdom, Italy and the United States.
Analyzing in this article some of the key components of financial models, one hopes that readers can gain a better understanding of why we are in this crisis that will worsen in the months and years to come.
Fundamentals of a false and failed model
Masquerading under the guise of "laws" which is assumed to govern fake "globalized markets and economies", This financial model has allowed a small group of people to amass and maintain an overwhelming power markets, on large companies, Industries, governments and global media. The irresponsible and criminal consequences of their actions are now under the eyes of all.
The "model", which we describe briefly, lies in the structure of a larger system of global power very unfair, that was conceived and designed by the upper echelons of private centers geoeconomic1 and geopolitical, which act to promote the agenda of a global power elite preparing their "New World Order", even a neologism for a coming world government2.
In this case, we are talking about "think tank" key as the Council on Foreign Relations, The Trilateral Commission, The Bilderberg Group and other similar institutions, As the Cato Institute (monetary issues), the American Enterprise Institute and the Project for a New American Century, which form a strong network, very powerful and intricate designs and manages the interests and objectives of the New World Order.
Writing from the viewpoint of an Argentine citizen, I admit I have some "benefits" on the citizens of industrialized nations like the U.S., l’Inghilterra, the European Union, Japan or Australia, the fact that in recent decades we have had direct experience of a catastrophic series of national crisis caused by inflation, hyper-inflation, collasso the banking system, renewals of currency, mega-swap of government bonds, military coups and wars lost.
Finance against Business
The financial system (basically a virtual world, symbolic and parasitic) increasingly operates in a direction that is contrary to the interests of the real economy (the real and practical world of work, production, l’industria, fatigue, the effort and the sacrifice of real people). In the past decades, economics and finance are to go their separate ways completely separate and antagonistic, and no longer work in a healthy and balanced relationship that gives priority to the "common good of the people". This enormous conflict can be seen, among other things, in modern economic and financial systems, whose primary support is based on the paradigm of debt, namely, that nothing can be done unless you first get the credit, grants and loans. Then, the real economy becomes distorted by the employee and objectives, fluctuations in interest and finance virtual3.
A system based on debt
The real economy should be funded real; However, in time, the global banking elite has managed to give up a sovereign nation after another to his inalienable function of issuing the correct amount of national currency as a primary financial instrument to support the real economy. This requires decisive action in each country, with policies to promote the common good of "we as a people" and to ensure national interests against the dangers posed by opponents to be internal or external.
We can then better understand why the "law" which requires that financial central banks are always totally "independent" by the government and the state has become a veritable dogma. It's just another way to make sure that central banks are increasingly subordinated to the interests of private banks, both locally and globally to every nation in the world.
We see this pattern prevail in all countries: Argentina, Brazil, Japan, Mexico, European Union and in almost every country that adopts the financial practice called "Western". Perhaps the best (or better, worst) example is the United States, where the Federal Reserve System is an institution openly controlled by private, with about 97% of its shares owned by members of the same banks (admittedly has no plan of accumulation / distribution of shares), despite the bankers who run the Fed do anything to make it appear as if it were an entity "public", operated by the government, thing that is absolutely not.
One of the objectives of the Global System permanent supranational (and was) maintain full control of all central banks in almost all nations, to control their currencies public4. This, your back, allows him to impose a fundamental condition (for them) so there is never the right amount of public money in circulation to meet the actual demand and needs of the Real Economy. And it is here that those same private banks that control the central banks come into the scene to "meet the demand for money" of the Real Economy, artificially creating money from nothing private banks. They call them "loans and receivables" and offer to supply the Real Economy, but with a "value added" (for them): (A) will charge a substantial interest (often at levels of wear) And (b) create most of this money out of thin air through fractional lending system.
At one level, geo-economic, This has also generated a huge public debt and useless ruler in the world, one nation after another. Argentina is a good example, whose governments are in office systematically ignorant and reluctant to use one of the key powers of a sovereign state: the issue of public money that does not generate interest (see below for a more detailed definition). Instead, Argentina has authorized the so-called "recipes" IMF (International Monetary Fund), that reflect the imposition of the interests of the global banking cartel of the core subjects – such as those that should be the proper functions of its central bank, sovereign debt, fiscal policy – and other banking and financial mechanisms that are used systematically against the common good of the Argentine people and against the national interests.
This system and its frightening results, now and in the past, are so similar in so many countries (Brazil, Mexico, Greece, Ireland, Iceland, United Kingdom, Portugal, Spain, Italy, Indonesia, Hungary, Ucraina…) that can only reflect a plan carefully designed and engineered, coming from the highest echelons of the global power elite.
Inthe bank loan fractional
This concept is used in all the world's financial markets and allow private banks to create money "virtual" out of nothing (that is, written records, electronic records in the current accounts and deposit accounts and a vast array of credit lines), in a ratio of 8, 10, 30, 50 times greater than the actual amount of cash (public money) deposited in your bank safe. In exchange for the loan of "money" created out of nothing private, bankers collect interest, require guarantees with intrinsic value and, if the debtor is insolvent, can also seize his property or other assets.
The relationship between the amount of dollars or pesos into the coffers and the amount of credit that a private bank generates is determined by the central bank, which determines the level of leverage of the loan fractional (that's why the control of central banks is so strategically vital signs of private bankers). This level of leverage is a reserve based on actuarial calculations of the statistical portion of the depositary, in normal times, go to the ATM to withdraw their deposits in cash (notes that public money). The key factor is that this works well in normal times, but "normal" is basically a concept of collective psychology intimately tied to what these depositors, and the general population, feels in regards to the financial system in general and in particular any bank.
So when, for any reason, coming periods "abnormal" (that is, whenever there are periodic crises vaguely predictable, bank runs, economic shocks and periods of financial panic that seem to suddenly explode as happened in Argentina in 2001 and is now happening in the U.S., United Kingdom, Ireland, Greece, Iceland, Portugal, Spain, Italy and a growing number of nations), that we are witnessing here is a run of all depositors at branches of banks for groped to get their cash. And that's when they discover that there is no enough money to pay all cash in banks, except for a small fraction of depositors (staff generally "aware" or "friends of the bankers').
For the rest of us mere mortals "there is no more money", which means that they must make use of any public insurance scheme that may be or may not be (eg, U.S. is the Federal Deposit Insurance Corporation, public body, that "guarantees" to 250.000 dollar account with the money of the tax (ndt. in Italy, the Interbank Fund for the Protection covers up to Savers 103.000 Euro). However, in countries such as Argentina, there is no other option than to take to the streets banging pots and pans against those claims bronze doors and gates of the banks tightened accurately. All this thanks to the fraudulent system of fractional bank loan.
In the U.S. the so-called "commercial banks" are those that have large portfolios of accounts, savings accounts and fixed deposit accounts for individuals or companies (such as names of streets in the center as CitiBank, Bank of America, JPMorganChase, etc.; Standard Bank in Argentina have, BBVA, Galicia, HSBC and other). Commercial banks operate with levels of leverage fractional lending which allows them to pay dollars or pesos "virtual" in amounts equal to 6, 8 the 10 Sometimes the cash deposited in their vaults; these banks are usually supervised by local monetary authorities of the state.
However, different story in the U.S. (and elsewhere) The so-called "investment banks" global (those that make loans to mega-corporations, important customers and sovereign states), on which there is much less control, so their leverage ratios are very fractional loan, much higher. This flexibility is what allowed the investment banks in the U.S. to "make loans" creating from nothing, eg, 26 "virtual" Dollars for each real dollar cash held in safe (see. Goldman Sachs), 30 virtual dollars (Morgan Stanley), over 60 virtual dollars (Merrill Lynch until shortly before his bankruptcy on 15 September 2008) or even more 100 virtual dollars in the case of Bear Stearns collapsed and Lehman Brothers5.
Private vs. Money. public money
At this point in our analysis is essential to distinguish clearly between two types of money or currency:
Private money - This is the currency of "virtual" created from nothing by the system of private banks. Generate interest on loans, which increases the amount of private money in circulation (electronic) that spreads and spreads to the whole economy. We perceive this phenomenon as "inflation". In reality, the main cause of inflation in the economy is structural in the interests of the bank loan system fractional, even in industrialized nations. The cause of inflation today is not so much over the issue of public money from the government, as so-called banking experts would have us believe, but rather the combined effect of the fractional loan and interest on the money of private banks.
Public money - This is the only real money that there is. These are the notes actually printed by the national mint, which has a monopoly (the central bank or some other government agency) And, as public money, does not generate interests should not be created by anyone else outside of the state. Anyone else does is a forger and should go to jail, counterfeits of public money because it is tantamount to robbing the real economy (“noi lavoratori”) Labour, of labor and production capacity without contributing anything in return in terms of socially productive work. The same principle should apply to private bankers of the loan relative to the current system fractional: counterfeit currency (that is, create it from scratch as writing on a ledger or update a database table) is equivalent to robbing the real economy of labor and production capacity, contribute without any equivalent in terms of work.
Because we have the financial crises
Un concetto fondamentale sotteso alle radici stesse dell’attuale modello finanziario può essere trovato nel modo in cui immensi profitti parassitari da una parte e perdite sistemiche catastrofiche dall’altra sono in effetti trasferite a settori specifici dell’economia, through all sorts of boundary or public control.
Like all models, what we experience today has its own internal logic that, Once properly understood, make the model predicted. The people who know very well designed which is ruled by the great cycles that have specific stages of expansion and contraction and specific roadmaps. They can then make sure that, during periods of bull market (growing) increments and huge profits (ie while the system is in full growth, relatively stable and generates tons of money from nothing), all profits are privatized centralizing towards specific institutions, economic sectors, shareholders, Speculators, bonuses of CEOs, top manager e trader, “investitori”, etc., maneuvering gears and keep the whole system up and working perfectly.
However, They also know that, Like all roller coaster rides, When you reach the top begins to go down: the system turns into bear market (decreasing), that destabilizes, becomes uncontrollable, contracts and hopelessly collapses, as happened in Argentina in 2001, and other areas of the planet from 2008; in this case, all losses are socialized, causing them to absorb the governments via various mechanisms of transfer that download these huge liabilities primarily on population (either in the form of generalized inflation, catastrophic hyperinflation, bank collapses, commissariamenti, tax hikes, sovereign debt default, forced nationalization, extreme austerity measures, etc.).
The pyramid scheme of "Ponzi" four-sided
As we know, respecting each pyramid has four sides, and since the global financial system is based on a pattern of "Ponzi" pyramid, there is no reason why this particular pyramid should not also have four faces.
Below I will introduce a summary of the pyramid scheme of "Ponzi" four faces that is the cornerstone of today's financial model, indicating how these "faces" significant work in a coordinated and sequential.
First face - create a lack of public money. This is achieved as shown above, controlling the national government agency issuing the public currency. The goal is to demonetize the real economy in a manner that is then forced to seek "alternative financing" for its needs (so there is no other option but to resort to loans from private banks).
Second face - impose fractional loans of private banks. This, As we explained, Virtual Private money is created out of nothing on which bankers raise interest – often at levels of wear – thereby generating huge profits for "investors", creditors, and all other kinds of entities and individuals that act as parasites living behind the work of others. This would never have happened if every central bank had been able to generate in a flexible manner the correct amount of public money needed to meet the needs of the real economy in every country or region.
Third face - To promote an economic system based on debt. In fact, the whole pyramid model is based on the ability to promote the general paradigm that affirms the lie that what really "makes" the economy is not so much public and private work, creativity, the effort and commitment of workers, but rather "private investors", "Bank loans" and credit, ie the debt. With time, this paradigm has replaced the concept infinitely wiser, sane and solid reinvestment of corporate profits and real personal savings used as a foundation for future prosperity and security. A little 'style with which Henry Ford Sr. His company developed the most successful.
Today the debt is king and this paradigm is rooted in the consciousness of people through traditional media (mainstream) and specialized publications, in joint action with the economics departments of universities of the Ivy League, all of which are able to impose this idea as "politically correct" approach to economic issues, especially those related to the nature and function of public money.
The fact is that this model generates unnecessary loans so that bank lenders can receive immense profits, and this through the promotion of an uncontrolled consumerism unconscious, often pathological, that goes hand in hand with the gradual abandonment of the traditional value of "saving for hard times".
These debts, having the political and strategic objectives rather than purely financial, are dressed with a slight appearance of "legality" in such a way that may be imposed by creditors on debtors (in the case of The Merchant of Venice, the guarantee noted between Antonio and Shylock gave it the legal right to a pound of flesh for the first; in the case of chronically indebted countries like Argentina, the "legality" is achieved through a complex mechanism for recycling6 the debt created by a succession of caretaker governments formally "democratic" that comes up today ) .
Fourth face - Privatize Profits / Finally, the socialization of losses, knowing full well that, in the long run, accounts of the entire cycle of this model never return and that the whole system is inevitably doomed to collapse, the model imposes a financial architecture, Legal and media highly complex and ingenious that allows to privatize profits and socialize losses. In Argentina, this cycle has become more and more visible for those who want to view it, because in our nation's cycle of the pyramid "Ponzi" lasts an average of 15 to 17 years, that we have successive collapses that involved a brutal devaluation (1975), iperinflazione (1989) and collapse of the banking system (2001); however, in the industrialized world, This cycle is designed to last almost 80 years (three generations over time from 1929 to 1980) .
The fundamental cause of the global financial collapse we are witnessing, exerting a massive destruction on the real economy ( and the resulting social problems, suffering and violence) is clear: Virtual finance the pedestal has usurped the supremacy of the real economy, that does not belong legitimately. Finance should always be subordinate to and serve the real economy just as the economy must take account of law and social needs of a political model which was made by a sovereign nation-state (l'scomponendo system interoperability, So we can understand why it is necessary for the global power elite first erode the sovereignty of nation-states and eventually abolish them altogether to achieve its ends monetary and financial policy).
In fact, if you look at the facts in their proper perspective, we will see that many of the national economies are more or less intact, Instead of having been deeply dented by the financial collapse. It is the finance to be in the middle of a massive global collapse, since this financial model Ponzi has grown to become a type of cancer which has now metastasized, threatening to kill the whole economy and politics of the social body, in every single country in the world and certainly in the industrialized nations.
The comparison made above today's financial system with a malignant tumor is more than a mere metaphor. If we look at the figures, We can immediately see signs of "metastasis" financial. eg, edition of the New York Times 22 September 2008 explains that the main trigger of the financial collapse exploded a week ago (the 15 September) was, as we all know, mismanagement and lack of oversight of the derivatives market. The Times then goes on to explain that twenty years before, in 1988, there was no market for derivatives; in 2002, however, derivatives were grown in a global market 102 trillions of dollars (that is 50% higher than the gross domestic product of all the nations of the world including the U.S., European Union, Japan and BRICS), and in September 2008, derivatives were inflated in a global market 531 trillions of dollars. This is eight times the GDP of the entire planet! "Financial Metastases" at their worst. Since then some have estimated that the figure of the global derivatives market is close to a quadrillion dollars.
Course, when the collapse began, governments in office in the U.S., European Union and in any other nation, immediately sprang to action and fielded the operation "rescue" of all the mega-banks, insurance companies, bags and speculative markets, and their respective operators, controllers and "friends". So trillions of trillions of dollars, Euro, pounds were given to Goldman Sachs, Citicorp, Morgan Stanley, AIG, HSBC and other financial institutions "too-big-to-fail", simply a neologism for "too-powerful-to-fail", because clinch rulers, political parties and entire governments.
Everything was paid for with taxpayer dollars, or, worse, with emissions uncontrolled and irresponsible public money in cash or treasury bills, especially by the Federal Reserve Bank, which has virtually hyper-inflated U.S. dollar (technically speaking): call it "Quantitative Easing", the usual neologism for hyperinflation.
Up to now, however, like the proverbial Naked King, no one dares say so openly. At least until some event "uncontrolled" trigger the clear awareness of what should by now be clear to all: King dollar is totally and completely naked7. When this happens we will see social and bloody wars break out all over the civilized world and not only in Greece and Argentina.
But now at this point, As always happens, the powerful gang banksters (NDT: untranslatable play on words between banker and gangster) and their highly paid professionals and financial media, will be watching the whole show Hell, nestled safely in the sumptuous halls of the board on top of skyscrapers in New York, London, Frankfurt, Buenos Aires and San Paolo.
1. The concept of "geo-economics" was coined by the Council on Foreign Relations (con sede a New York) through a group of essays in honor of Maurice Greenberg, The financier who for decades was CEO of American International Group (AIG) which collapsed in 2008 and had strong ties to a conflict of interest with the company of important agencies Marsh Group of insurance and reinsurance, whose CEO was his son Jeffrey. Both, father and son, were indicted for fraud by the then Attorney General Elliot Spitzer of New York. Spitzer was later paid dearly for this when, after he became governor of New York, someone "discovered" his sexual escapades who rode at once into a major scandal in the New York Times.
2. We have described the basic structure, model and objectives of the global power elite in our e-book "The Coming World Government : Tragedy & Hope?"Available on www.asalbuchi.com.ar.
3. For more information, see the third pillar of the Second Republic Project: “Reject the Debt-Based Economy” (Rejecting the economy based on debt) his www.secondrepublicproject.com.
4. Some notable exceptions: Today, Libya, Iran, Syria, China; in the past, Peron's Argentina, Germany and Italy during the 30 And 40. We see a pattern in all this?
5. Vedi The New York Times, 22 September 2008
6. See report that compares the mechanisms of recycling of debt with those of money laundering, in the third pillar of the Second Republic Project: “Reject the Debt-Based Economy” (Rejecting the economy based on debt) his www.secondrepublicproject.com.
7. This is described in more detail by the author in his book The Coming World Government: Tragedy & Hope?, Chapter in "Death&Resurrection of US Dollar” (death and resurrection of the U.S. dollar). Details of www.asalbuchi.com.ar. Also available on request by e-mail to email@example.com.
Adrian is a political analyst Salbuchi, author, presenter and talk-show host in Argentina. He has published several books of geopolitics and economics in Spanish and has recently published his first e-book in English: “The Coming World Government: Tragedy & Hope”, which can be ordered on its website www.asalbuchi.com.ar or may be required details via email to firstname.lastname@example.org. Salbuchi also works as a strategic consultant for domestic and international companies. It was also the founder of "Project Second Republic" in Argentina, which has expanded internationally (www.secondrepublicproject.com).