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, 25 April 2012

Crisis? This is how it works

Today, not surprisingly, it was announced that the UK is again in recession. Politicians and mainstream commentators keep saying that, somehow, we have been experiencing a crisis, an economic downturn or a double dip recession. Maybe this is correct by some textbook definitions but in reality it is not a crisis or an economic downturn. This is how the current economic system was designed to work. It has very little, if anything, to do with the workings of the free market or capitalism, but much more to do with another, much more disturbing innovation system, that of communism for the rich.

For over a decade, the "captains" of the finance industry with the blessing or possibly the collusion, of the politicians and regulators have engineered a massive global pyramid scheme, the largest heist in history. It is the largest-ever transfer of the wealth generated and accumulated by the middle classes to the super-rich. Every spending cut, increase in taxes, every negative differential of interest rates, i.e. when saving rates are below the inflation, the negative differential between wage inflation and price inflation, additional money printed (so-called Quantitative Easing), significant drop in house prices, amounts to a massive raid on wages, savings, pensions, endowments and generally the wealth accumulated for lifetimes and sometimes through the generations by the middle classes. This heist, this massive misappropriation, continues. We also clearly see the other side of wealth accumulation: the global market for premium properties and luxury goods is thriving and there is no sign of the financial crisis in offshore financial centres.

Obviously the politicians keep saying that they are fighting the crisis and want to bring back stability and prosperity. We have been hearing this since 2008. Maybe some of them, those that are not particularly smart, even believe what they are saying. But this is just a front so that the system, which is extremely efficient in transferring middle class wealth to the super-rich, is allowed to continue operating at full speed. The so-called "financial markets", which are grotesque and primitive parodies of the concept of the free market, keep ruining the economy and the lives of ordinary people. And despite the rhetoric of the politicians and many in the main stream media which supports their claims to be fighting the crisis, this is effectively just a smokescreen behind which the real agenda is hidden, that of cleaning out the middle classes. Both the media and the politicians ensure that the largest heist in history continues and are fully aware of what is going on.


  1. Oh Greg - if it wasn't so horribly true. How much did Dick Fuld manage to pay himself from Lehmans before it went bust - was it 485 million USD (I wonder how much tax he paid on this) and he's just one of the poster boys of his ilk.

  2. Hi Richmond

    thanks for your comment. My point is that people should realise that we do not experience a problem with the government policy. The opposition (based on their announcements would not do any better.) We experience a fundamental problem with the system. The route to recovery will start when we all realise that. (There is a very strong parellel between this process and the communism system when it was on its last legs in the 1980's.)

    Best, Greg

  3. Hi Greg,
    Yes communism for the rich or heads you loose and tails they win. Again as you say the political parties are just two sides of the same coin constantly being tossed by the media. I seem to recall communism looking rock solid for years until it collapsed!

  4. Hi Richmond

    Could not agree more: the current system is simply not sustainable. But timing is unknown. I remember some analysts who, in the 1980's' predicted the collapse of communism in 200 years or so. Fortunately it came much faster. So I would say that the the collapse of the current system is likely to come quite soon.

    Best, Greg

  5. Hi Greg, I'm a beginner of understanding of this world problem. I have read all your posts and as I gain more knowledge from my own limited experiences I find that what you say makes more and more sense.
    My question has to be this; If the middle classes wealth is being redistributed to the super rich, then just 'who' are these people? Is it time to name them and the companies that afford them the vehicles to be able to carry out this crime? I find that 'them' is no longer enough! I want to know WHO!

    1. To N.B.

      "Wealth of richest grows to record levels"


      we are all in it together, Are we not? Has anyone heard about a sane person buying a private pension scheme in the last 2 years? I did not.


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  7. Grateful thanks for this. Our financial system has been a closed book to me and I suspect the majority - you've opened the book and the horrors therein are becoming clearer by the day.
    What is your opinion on Steve Keen's Jubilee solution?

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