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?".

Wednesday, 17 November 2010

Irish crisis: why British government cut public spending


The ongoing financial farce in Ireland shows with crystal clarity why Britain was "persuaded" by the, so-called, "financial markets", pundits and all sorts of experts to cut the public spending. If British kept on spending as much as they used to it would not have enough money to rescue Ireland. The UK would have been on the financial edge itself. According to the Bank of International Settlements in Basel the UK banks' exposure to the Irish debt is 222.4 billion euros (page 16 of the report). If Ireland is bailed out, in fact, it will be British financial insitutions that will be bailed out too. Without having made the spending cuts a few months ago Britain would not simply have money to do so. Hence the UK banks would have ended up in a very deep trouble (if not bankruptcy). To summarise the whole saga (which shows the, so-called, "financial markets" modus operandi):

- first Irish banks were run out of money, thanks to a pyramid scheme that was operated, and ended up in a deep financial trouble; Ireland was "persuaded" to make deep cuts to rescue them; i.e. banks' debt was propagated as the country's debt;

- after everything was squeezed out of Ireland itself its rating was downgraded in order to generate even greater liabilities of Ireland towards the, so-called, "financial markets";

- then countries like the UK, Germany were persuaded by the, so-called, "financial markets" to make cuts in order to create a budgetary room to pay more to the, so-called' "financial markets";

- now Ireland has been "attacked" by the, so-called, "financial markets"; Ireland is simply a conduit to squeeze other countries (like Britain, Germany) that are tied to the Irish debt and make them keep paying to the, so-called, "financial markets".

- after Ireland is "rescued" the, so-called, "financial markets" will continue operating according to this modus operandi; there are more countries in a queue waiting to be "rescued"; the, so-called, "financial markets" will decide the timing.

Is this a conspiracy? No, it is not. This is how, so-called, "financial markets" work. This what the City and Wall Street are really all about. (The rest is simply a pretty transparent smokescreen creating a pretence of legitimate business. Like some Greek restaurants operating, in fact, as illegal cassinos.)

The author of this blog described this mechanism well over a year ago. It is well known to governments, policy and decision makers. The, so-called, "financial markets" are so primitive in executing it that any half intelligent and quarter competent financial observer picks it up immediately. This is, in fact, the very same mechanism that typical loan sharks use to extort money from their victims: tie them up to debt, then set the rules that the debt is ever increasing, persuade them to save on everything, borrow from others and work harder in order to increase payments to loan sharks (these days called: "the financial markets"). Simple and primitive, inni't?

If the British government believe that by making cuts, in the way they do them, they will lead the country to recovery and prosperity, they either do not understand the causes behind the current crisis or are actually working for the interest of the, so-called, "financial markets" (for example, hoping to get a job in the City and get spolis of their actions). Or both. The obviousness of that behaviour defies belief. Or maybe one of blog readers can offer a better explanation? There is a way out however: "Prime Minister, sort out this mess, please". It is not that difficult but it requires really tough decisions (including prosecuting the financial fraudsters and liquidating the pyramid scheme).

5 comments:

  1. Yes, I can provide a "better explanation" of the British government. It is intentional genocide. The policy is to collapse the nation state system and impose a global fascist world empire and "cull the herd" through means of managed chaos.

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  2. Dear John

    Thanks for reading my blog. On the face of it, your "better" explanation appears to be well over the top. But:

    1. This first World War is sometimes considered as an orchestrated way of population control at the time of its rapid growth and as a way of suppressing development of socialist tendencies by channeling people's emotions in nationalisms.

    But leaving this aside:

    2. The global crisis that started with the crash in October 1929 ended with the World War Two and massive genocide in general.

    The world might indeed be on a slippery slope towards something very nasty indeed. Rather than dismissing your rather over the top comment or my rather alarmist view, people should think whether we are not approaching something really nasty. This may help to prevent it and ensure that our comments will remain only theoretical speculations.

    If you think my blog merits it, please spread the link to it to others.

    Best

    Greg

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  3. Greg,

    I have followed your blog for two years. After reading your blog back in Nov 2007 I was convinced the UK was heading for economic meltdown. I bought more than £200k in gold bullion/gold shares and thanks to you I have made about £45k profit on gold. Thanks for that :)

    At the same time I enrolled on a diploma in economics course (OU), which I completed (graduated) 3 weeks ago.

    However, now I have a better understanding of economics I have to say this:

    1. It seems to me that economies in the 20th/21st century cannot "collapse". If a country's economy starts to circle a black hole (plughole), it drags the other more successful economies toward the hole and they all pitch in to save themselves- the result is a general dip in everyone's welfare, slightly higher taxes everywhere, slightly lower standard of living everywhere, a few million more people in 3rd word countries starving, but not a lot of change over the whole world.

    2.You have commented on the bank crisis accurately in 2007/8. You have commented accurately on the world economic crisis in 2008/9. Now I think it is about time you offerred some predictions of what is going to happen in the next 5-10 years?

    3. Will we end up in a 3rd world war? One theory I have heard is EU troop sin Ireland to control social unrest leading to a confrontation on the Irish border with Northern Ireland leading to was between the UK and the UE!!!

    4. Will it all fizzle out in 5 years with everone paying massive taxes to fix the deficit?

    5. Will growth surge again, paying off teh current deficitss??

    What do YOU think will happen?

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  4. Hi Mark

    First of all congratulation. Both on your profit and degree. This is great. One thing is to make analysis (like I do) the other is to act on it (like you did). Therefore I do not have any claim (moral or otherwise) over your profit:-) What you did is entirely thanks to your talents and it is great to hear about it.

    I do not really have predictions. In fact my analysis is very simple at the end: there is a massive money multiplier in the system (some, like Will Hutton, say it is at least 50 but possibly far more, 150, 500, 1500, any guess is good really) which must and will be reduced to a sustainable level (say around 5 - 8). It does not matter that much whichever way it happens: there will be losers. Massive losers. Powerful losers, like China. This is likely to lead to instability. Whether we end up in some kind of World War Three (which I think is reasonably likely) or some other mess, I simply do not know. What my analysis tells me that this problem is not going to go away easily by tweaking taxes and public spending. The rest can be anyone's guess. Based on history we should fear something rather dramatic. I always repeat: the financial crisis that started with stock market crash in October 1929 ended up 10 year later with World War Two. I repeat it with a hope that if people realise the seriousness of the current situation such fat will be avoided this time and the way out will be negotiated rather than fought on the battle fields (military, financial, cyber warfare, etc).

    Best wishes (and wishing you even more success)

    Greg

    PS. Please do not consider this as predictions or any kind of advice but my personal views.

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  5. Dear Greg

    Thanks for your reply. My only response is to suggest that you read the statements of prominent British establishment types over recent years, examine in detail global policies related to "climate change", and our commitment to permanent warfare throughout the planet (soon to be Iran), and ask yourself if this is all just co-incidence.

    No. The powers-that-be intend to reduce world population, and the economic crisis is the lever by which they will force nations to give up their sovereignty, in order that the required policies can be implemented: under a fascist dictatorship across the entire EU.

    But first, to achieve this goal, the Empire must first destroy the United States. This is now well in progress following the recent "election" and expansion of QE2 under the bankrupt Federal reserve system (itself also controlled from London).

    Kind Regards,
    John

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