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, 22 June 2010

A nightmare round the corner?


With the current budget the Chancellor paved a way to the UK rating being downgraded soon. Do not be misled by the reaction of the guild market today. Before it the UK was so much in debt that it could not have been downgraded (as should have if ratings were honest measures of the market) as it would simply not pay (and the whole rating system would have been undermined). Now as the Chancellor made a lot of savings thereby creating a capacity for the government to borrow and spend more, the so called financial markets (i.e. bankers) will come back and ask the taxpayers to share it. To get it the UK rating looks likely to be reduced. It will not happen instantly and some pretext will be used.

The taxpayers must watch how much of their hard saved and paid money to the Exchequer, thanks to the Chancellor current budget, will result in the UK debt reduction and how much will be siphoned off to the banks to keep funding on-going salaries and bonus bonanza there and to keep on supporting the financial pyramid that the financial system has become. This is the way the relationship between banks and taxpayers has become akin to loan sharks and their victims.

4 comments:

  1. Have to pay my second tranche of income tax on 31st July - do I send it to HMRC or shall I just divvy it up between the banks and have done with it?

    Sorry Greg, this is no time for levity but it's either that or start crying.

    ReplyDelete
  2. Hi Caratacus, the Chancellor is right to eliminate the structural deficit as it is living beyond the means and unsustainable. But equally the government must eliminate any risk of any further bail outs or subsidies to the financial industry (especially if they can be forced by them). If it is not done it is very likely to happen (such is the rational economic behaviour of the bankers - do no blame them, blame the government for stupidity of being so exposed).

    For a basic five point plan how to sort out this mess, please read:

    http://gregpytel.blogspot.com/2010/06/prime-minister-sort-out-this-mess.html

    What really concerns me is that neither mainstream media not the politician (the government and opposition alike) do anything to defuse this gigaton financial time bomb. And when it happens they will feed us with the following BS: global banking crisis, "nobody could predict it", "with the benefit of hindsight" etc, whilst all these stuff is so blatantly obvious NOW.

    BTW, if you think my blog deserves it, please spread the link to it around.

    Best

    Greg

    ReplyDelete
  3. BTW, if you think my blog deserves it, please spread the link to it around.

    Already have old horse. Muchly!

    ReplyDelete
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    ReplyDelete