Busted: Bankers and The Global Economy

November 21, 2010

Old News, New News

Filed under: banking, central bank, corporatism, economy, federal reserve, globalization, recession — Tags: , , , , , , — digitaleconomy @ 11:26 am

“Capital must protect itself in every possible way, both by combination and legislation. Debts must be collected, mortgages foreclosed as rapidly as possible. When, through the process of law, the common people lose their homes, they will become more docile and more easily governed through the strong arm of government applied by a central power of wealth under leading financiers. These truths are well known among our principal men who are now engaged in forming an imperialism to govern the world. By dividing the voter through the political party system, we can get them to expend their energies in fighting for questions of no importance. It is thus by discreet action we can secure for ourselves that which has been so well planned and so successfully accomplished.”

– Montagu Norman, Governor of The Bank Of England, addressing the United States Bankers’ Association, NYC 1924

 

September 11, 2008

The Con Game of Securitization and Wealth

crisis through securitization

crisis through securitization

According to Federal Reserve’s Vice Chairman Donald Kohn, “One reason for the loosening of standards was the expectation that house prices would continue to rise and even more certainly that they could not fall in all regions at the same time, supporting diversification through securitization.”

This small sentence combined with a summary of all the accumulated evidence maintained by the Federal Reserve shows the propensity for a lack of regard for economic concerns over the immediate concerns of profit.

“Rising prices would enable lenders to recoup their funds even if the borrower was unable to service the loan, mostly because the borrower would be able to obtain extra cash through refinancing. Expectations of house price appreciation facilitated and interacted with the increasing complexity of mortgage securities, including multiple securitizations of the same loan, which made it virtually impossible for ultimate lenders to monitor the creditworthiness of borrowers. This was a task they had outsourced to credit rating agencies. The absence of investor caution and due diligence was especially noticeable for the highest-rated tranches of securitized debt.”

securitized vomit

securitized vomit

Who started the securitization of loans to begin with? Give the government geniuses at Fannie Mae and Freddie Mac credit for the wunderkind of shaky banking ‘o so many years ago. That is why authorities in banking and in government are quite mum about the evil and deception of securitized bonds. What is worse, they have no intent to change a thing.

The Federal Reserve is still brainstorming new ways to “ameliorate systemic risk. That said, a host of difficult judgments are inherent in how we establish such a system.” That is the trillion dollar question. In the words of Donald Kohn; “How we can structure these requirements and other aspects of regulation to damp, rather than reinforce, the natural procyclical tendencies of the financial system?”

economic usury

economic usury

If the U.S. economy were equated to an automobile engine, we would be running on half the cylinders. The Federal Reserve and other surrogate economists don’t have a clue and are now discussing “solutions” among themselves. Global bankers long for a solution to the trillion dollar question and they want to continue doing the same old things as long as it makes them money for the short-term. The idea is not what is good for any economy, but what is good for quick profits for themselves. That is what banking around the world has come to represent: corporate profit behind the scenes and personal profit while that is possible. Never forget that the Federal Reserve and global central bankers are corporations bent on making a profit, part of a “franchise” of banks that loosely report to Swiss and Roman bankers. They live off of the world; therefore economies are simply tools for wealth. That is the danger nations, governments and peoples face.

Don’t fool yourself. Global bankers are running the world to your peril. However, the sophisticated United States government and others are all for making a profit while they can, oblivious to the danger or convinced that they will live forever while central banking pumps them dry. ~ E. Manning

August 1, 2008

Oasis Wealth & Fraud: Simply Unsustainable

Since World War II, the United States has been the center of global finance. It has used that position to virtually dictate the conditions under which many other nations get access to capital. Letting weak and mismanaged companies fail has been high on the list. As of late, this reality is no longer the case as bailout fever ensues to glorify national confidence.

Henry Paulson, the U.S. Treasury boss, has not reigned in criticism of other countries that have nationalized corporations in the past. Since March, he has been in the position of recommending the same ideal himself. How times change. Fascism has come home to roost in America.

The U.S. economy is a shambles for most, perhaps subsistence at best. However, this does not include the up-and-coming flank of investors and administrators that are tapped into commodities futures. Unhappily, this too is a desert vision of an oasis. Eventually, thirsty investors will be gobbling down sand in an effort to sate their thirst for money and profits. This has already happened with the mortgage crisis. As the environmentalists would say: “this is isn’t sustainable.” The multi-level marketing scheme will become oversaturated and lose its potency. Eventually, the poison of fraud takes hold of those that practice it.

The U.S. is now enjoying the reality of an economic hangover from unbridled credit, financing and speculation compounded by ignorance and mismanagement. Wages haven’t kept pace for what seems like an eternity for all but the wealthiest. This was conveniently ignored as long as the nation thought borrowing would sustain the national lust for the appearance of wealth. The desert vision wasn’t sustainable and now, like the Japanese, Americans are thirstily looking for the next oasis. Surely corporate wealth and the corporate oligarchy will sustain us. Most plans for unbridled wealth are unsustainable. Is yours? ~ E. Manning

June 28, 2008

Global Storm Predicted by EU Bankers

Global confidence in banking has been breached as far as some European investment bankers are concerned. British-based Barclays sees a perfect financial storm on the horizon and a complete loss of credibility by the U.S. Federal Reserve. Barclays Capital has advised clients to batten down the hatches for a worldwide financial storm, warning that the US Federal Reserve has allowed the inflation genie out of the bottle and let its credibility fall “below zero”.

This is a strong admission for any banking institution. Most have quietly struggled while fearfully or relunctantly forging ahead over the last six months or so. Now, Barclays is not holding back on any punches.“We’re in a nasty environment,” said Tim Bond, the bank’s chief equity strategist. “There is an inflation shock underway. This is going to be very negative for financial assets. We are going into tortoise mood and are retreating into our shell. Investors will do well if they can preserve their wealth.”

Wow. The Royal Bank of Scotland has (more…)

April 15, 2008

The Fed: Part of a New World Order

World Bankers don’t usually have the gift of great visionary prose. They haven’t yet revealed the man to field those ideas to the world, but the ideas of world revolution are in place right now. Federal Reserve Governor Kevin Warsh has expressed the kernel of sweeping global change in a new world vision! Does he know what he has? Yes. A new voice is needed, a new translation of vision. Global banking needs a global talking head. This new figurehead will be on the scene soon to express the beautiful truth of international visionary profiteering that will solve the problems of the world! The world has the makings of a new global structure, even religion. The saviors of the world are here at last! ~ E.M.

The sleepy complacency of the past has been rudely interrupted by a liquidity shock of colossal proportions. The skies of finance are dark and stormy. The drama within the banking and financial industries is unprecedented. The old financial system has not kept pace with the creativity of the minds in banking. New structured products designed to create profit and a new generation of wealth has frozen the core and means of banking and monetary finance. Fear rises like a giant bird of prey.

The old engineers of the new world in financing created only financial turmoil and calamity. The lack of understanding and foresight in their own system is fully birthed. The authority of the Federal Reserve and the world of central bankers stepped as a White Knight to supply the golden nectar of liquidity, the support of national confidence in the financial community. The golden nectar has laid the appearance of a new foundation and a new measure of confidence. (more…)

February 1, 2008

Make Bankers Pay?

Imagine a world that wasn’t threatened by greedy bankers and financial institutions. Imagine a world where financial institutions were actually responsible for what they did and could be held to a standard besides thievery. The repeated occurrences of financial tsunamis is a true indicator that bankers and financial institutions cannot be trusted and shouldn’t be.

brokenbank.jpgThe problem lies in the fact that the finance and banking industry is full of “commissioned salesmen” that have the promise of wealth in front of them every single day if they push more “banking products”. You’ve heard that power corrupts and that absolute power corrupts absolutely. For years, the banking system has been allowed to monitor itself without restraint with the blessing of the current administration. President Bush wanted the “free market” to work and the market certainly has to the embarassment of all. I remember back in 2004 when I heard President Bush glow with pride and confidence in the self-regulation of the finance industry. Remember “Bad Credit? No Problem!” “Zero Percent Down Payment!” just a few years ago? Enter the mortgage broker. Mortgage brokers occupy an unregulated niche of the lending world making a commission for every borrower they refer to a mortgage lender. These brokers became financial drug dealers as they farmed the nation for fresh prospects in a financial meat market.

Then we have world-wise bankers that create investment vehicles out of risky investments to remove the investments from the bank ledgers. Unfortunately, this strategy only conceals the risk for a time. When the money stops flowing, the game is up. Can you imagine having a license to steal and the guarantee that you will be bailed out by the government? There is little incentive for honesty or accountability when you are going to pay for that lack with funding from the Federal Reserve and further increase the national debt.

Wealthy banking chiefs have plundered the country while making millions for themselves as they bend the regulations and laws any way they are able. The fractional reserve that is required for banks is not enough capital to insure liquidity during downturns and reverses in the lending market. The finance industry is no longer interested in the long-term success of any venture, but rather the short-term commissions and profitability. The turnover of employees and managers within the industry virtually insures the worst kind of corruption. The rich commissions made from the “subprime mortgage bubble” have already been made and spent. The banking industry has been caught red-handed once again. What is really being done about it? ~ E. Manning

January 28, 2008

The Global Banking Addiction

moneyillusion.jpgThe addiction to fiat money is huge. The value of this wealth on paper that circles the globe is difficult to estimate. The Bank for International Settlements guesses at $600 trillion dollars deduced by wading through tomes of data. Global gross national product is estimated at $50 trillion dollars yearly. If that figure is correct, the world is overextended by about 12 years of global production. All the credit and faith in government cannot pay for the debt that the International Society of Bankers has managed to create in the form of fiat money. The people of the world cannot pay the debt that has been created nor can the bankers except by printing more paper. How much of the debt is secured by real assets is impossible to say although a guess could be made based on the fractional reserve. Commercial banking has become addicted to creative banking procedures in an effort to create larger profits. Unfortunately, because of the complexity of a dozen creative banking instruments like SIVs and CDOs, even the best guess of the amount of real debt is probably impossible to calculate. The global banking economy is in an intimidating and complex situation.

The unease in banking and finance about subprime mortgages gives the world a tiny snapshot of what is ahead based on the current system in place. Other banking “derivatives” within the industry include private-equity, mutual funds, pension funds and hedge funds. This debt is a major issue since every piece represents a debt that must be repaid. When a creditor expects money, the demand must be met by the debtor. If enough default exists within the global banking economy or a smaller banking community, a house of cards scenario will ensue. The pursuit of the fractional reserve virtually guarantees that the global addiction to fiat money will backfire as bank write-offs for bad debt are posted.

Someone will bear the loss first. A banking conglomerate can bear catastrophic losses based on worthless credit that has been extended as debt. The infection can quickly become epidemic, much as the subprime mortgage problem spread to the entire mortgage industry and continues to proliferate in the global banking system. A collapse of the housing market along with a collapse of other asset markets is virtually inevitable based on the current global debt structure. The addiction to the illusion of money can create a global catastrophe as the International Society of Bankers actually possesses most of the gold and worthwhile assets as security including the people of the nations in debt. The slavery to this “New World Order of Banking” will become apparent to all involved. The reality is that this scenario is effectively in place. It just has not been noticed by most people yet. The reality of world addiction has not set in.

In the meantime, central banks or Federal Reserve bankers see the danger in the regional global markets and are ready to stand by with more fiat money to bolster liquidity where it is needed. Bankers require security and more often that security is becoming more speculative in nature. The International Society of Bankers has no intention of absorbing junk security. They clearly specify that they are not in the position to bail out mismanagement and malfeasance of the commercial banking and finance industry. Hyperinflation/devaluation caused by printing of more currency threatens to make some major currencies worthless. In order to overcome this plague, a redesign of the global banking and financial system seems in the immediate future. Quiet rumblings persist even now. This rumbling makes sense since national economies or even the global economy could be effectively shut down while the redesign and its negotiation are in the works. This would not only be counterproductive, but bite into further profits that the International Society of Bankers can make. In the meantime, commercial bankers are oblivious as they seek to pursue their regular course of business and profits in the hope that new global change will pass them by. ~ E.M.

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