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?".

Thursday 31 March 2011

(Sadly) the financial crisis proceeds as expected


Robert Peston published on his BBC blog, "Person's Picks"" an article "The unbelievable truth about Ireland and its banks". It is somewhat disconcerting that major media business commentators are surprised with the obvious. (At least to anyone who was bothered to read "The largest heist in history" published over two years ago.)

Indeed the current hit is no end to the Irish predicaments. The same fate is awaiting other countries that have been a part of the global pyramid scheme. UK and the US will not be immune so let us not be surprised with yet another liquidity crunch when it is sparked off by the financial instituions in the UK in order to extract yet more money from the taxpayers. In fact the British government has effectively invited the financial institutions to come for more money by making spending cuts thereby creating a room to borrow more to "help" the banks when they "need" it.

The very first and most spectacular victim of the pyramid collapse in 2008, Iceland, handled the crisis in the best way: took the loses, defaulted on their financial obligations, now negotiates with the creditors in a pretty tough way and pursues on criminal charges all those who engineered the crisis in the first instance. The governments of Ireland and the rest of Europe should take this as an example as otherwise the taxpayers will keep being exposed to the loan sharks' tactics currently pursued by the financial industry.

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