If you are new to this blog, you are invited to read first “The Largest Heist in History” which was accepted as evidence and published by the British Parliament, House of Commons, Treasury Committee.

"It is typically characterised by strong, compelling, logic. I loosely use the term 'pyramid selling' to describe the activities of the City but you explain in crystal clear terms why this is so." commented Dr Vincent Cable MP to the author.

This blog demonstrates that:

- the financial system was turned into a pyramid scheme in a technical, legal sense (not just proverbial);

- the current crisis was easily predictable (without any benefit of hindsight) by any competent financier, i.e. with rudimentary knowledge of mathematics, hence avoidable.

It is up to readers to draw their own conclusions. Whether this crisis is a result of a conspiracy to defraud taxpayers, or a massive negligence, or it is just a misfortune, or maybe a Swedish count, Axel Oxenstierna, was right when he said to his son in the 17th century: "Do you not know, my son, with how little wisdom the world is governed?".

Tuesday, 5 May 2009

Lights are on



Mr Dan Roberts, a very respected British financial journalist, published a presentation: "The global financial pyramid scheme explained".

On one of the slides he observed: An unstable pyramid? Viewed from the bottom up, the explosion in debt and assets prices that occurred during the boom years looks unstable and top-heavy. It even bears similarity to the pyramid, or ‘Ponzi’, schemes carried out by fund managers like Bernard Madoff.”

Well spotted. If it walks like a duck, quacks like a duck, looks like a duck, it must be a duck. Indeed the current crisis is a result of a classic criminal financial pyramid scheme akin to the ones created by Albanian gangsters in 1996 - 1997.

It is very disappointing that, apart from rare exceptions on a pretty rudimentary, descriptive level, mainstream financial analysts, economists and journalists do not look at the current crisis as a pyramid scheme. Is it a sign of their substandard aptitude and intelect? Or is it an orchestrated, not too sophisticated, action designed to cover up criminal activities and protect the pyramid's beneficiaries? Establishment protecting establishment maybe?

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