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?".

Sunday, 9 January 2011

Happy New Year 2011, Prime Minister (and sort out this mess, please)

It is somewhat nauseating to listen again and again about forthcoming massive bankers' bonuses, like in today's Prime Minister's interview on the Andrew Marr Show. The public is entertained continually with bankers' bashing exercises and anti-financial industry "hate campaign". It is all PR stunt to divert public attention from the grim financial reality of the 2011.

The current situation is bad it will get worse this year. Greece and Ireland were "rescued" last year. Portugal and Spain are next in line for such financial markets "benevolence". The UK time will eventually come too. And then the US'. Indeed as last week it was reported on BBC Newsnight Ben Bernanke started seriously hinting possible insolvency of the US. Well done, Mr Bernanke but this is nothing new and you may well wish to read (again?) a nearly two years old piece, "A US way out?", to realise that it may produce rather stunning outcome.

All western countries are waiting to be "rescued" (read: "fleeced") by the "successful", as today David Cameron has called it, financial industry. Indeed the Prime Minister showed today a mind-boggling art of squaring a circle: on one side he believed that the financial industry was lending irresponsibly (to a point that it brought about the financial crisis) but at the same he believed that it was a successful industry.

The reason for all these banks "rescue" campaigns is that the money multiplier remains huge and there is no way out of this mess without massive inflation or debt write offs (defaults), or both. The question is who is going to get hit: the banks are shifting direct loss consequences from themselves upon taxpayers. This is what the rescues are all about. Yet no mainstream media or pundits, politicians or experts dare to answer two questions: "what are the money multipliers of major western currencies, US dollar, Euro, Pound Sterling, etc?" and "what should the money multiplier be in order for the financial system to be solvent"? The answers to these questions may produce some uncomfortable truth: the western world is bust and is simply rolling over its problems. The banks are part of it. They are "rescuing" countries in order to help their insolvent balance sheets (i.e. they are rescuing themselves) shifting direct liabilities upon taxpayers (mainly hardworking middle classes)

In reality massive bankers' bonuses, whilst morally repugnant and even a rather dishonest way of funnelling taxpayers money to financiers' coffers, are a smokescreen, a PR stunt that suits the government and banks, designed to cover that the financial system is bust. It is buying time but this cannot keep going on forever. When your house is on fire you are not going to complain that someone is stealing small items from it. Therefore rather than talking, again and again, about the bankers' bonuses "Prime Minister, sort out this mess, please".


  1. Still no fraudulent bankers in prison yet then? We need a change of paradigm which will not occur without concerted action by the people. To ask the Prime Minister to act on this is like asking Scrooge to stop his child pickpockets stealing for him: it is the only thing that is keeping him going! You might think that what we need is a campaign to re-educate the people and that they will decide what to do next. Problem is that a lot of the 'people' are in on the scam so their interests are not in demasking it. 30% of the population are unable to buy houses versus 70% who have already bought. It's that simple.

  2. Indeed, the visible (often hardly taxed) banker profits are the tip of an Iceberg of Fraud; the majority of the financial system is fraud, and networks and layers of Ponzi schemes, government is effectively own by the banks! This is possible because of unbacked fiat money, fractional reserve banking, and compound usury, which ensure that all money is debt, thus an exponentially increasing debt that can never ever be repaid, thus must be regularly defaulted on and assets effectively pillaged!

    If we want remedy, fractional reserve banking and compound usury must permanently end, so that debt free money can be resurrected.

    Have a look at these, even with their flaws:



    Search for "Secret of Oz" movie and watch it.

    Note: The Red Shield are the Venetian banksters, now called the Rothschilds, and other family names, including JP Morgan Chase, Barclays etc.

    See http://www.zerohedge.com/ to see more of this rabbit hole.

  3. This Zero Hedge post pretty bluntly spells it out!: