Our dear enemies, file 2: the processes they use?
Part 2 The process 3 The organization of economic and financial crises.
As early as 1924, this internal note defined the main objective of bankers: creating imperialism to govern the world.
This imperialism of the Anglo-Saxon financial oligarchy thus destroys the American dream of citizens who now intend to free themselves from this submission to this tyrannical and criminal imperialism.
A video features a cartoon that explains how this American dream was destroyed by bankers. The methods used in this file 2 on our dear enemies are present and explained in this cartoon.
We invite you to view it before discussing this technical documentation on the events that have taken place during these financial and economic crises.
After this cartoon focusing on American citizens and their leaders, we can discuss the organization and functioning of financial and economic crises, not only in the US but also in Europe and elsewhere in the world.
The first financial crisis in Europe caused by Venice and Florence in 1345.
How Venice will orchestrate the greatest financial disaster in history, Paul Gallagher.
This article appeared in the American quarterly Fidelio (Winter 95).
In 1345, the collapse of the large Florentine banking houses of the Bardi and Peruzzi led to a real financial disintegration. You can read in the chronicles of the time that « all of the credit went away at the same time ».
It is worth reading Frederick C. Lane, Money and Banking in Medieval and Renaissance Venice (Baltimore, Johns Hopkins University Press, 1985), which demonstrates that it was rather Venetian finance that controlled the « speculative bubble » global finance between 1275 and 1350, and that orchestrated the collapse Far from the « mythic coexistence » free trade, the Venetian oligarchs condemned their Florentine colleagues to bankruptcy and the economy of Europe and the Mediterranean with it. You could say that Florence was playing a role similar to New York today, with Wall Street and its big banks, while Venice was London; it manipulated bankers, sovereigns, popes and emperors through a very subtle financial network and its total dominance in the money and credit markets.
The French historian Fernand Braudel explains (Material Civilization, Economy and Capitalism, XVth-XVIIIth Century, Libraire Armand Colin, 1979, Volume III) that Venice, head of the Florentine, Genoese and Sienese bankers, committed from the beginning of the XIIIth century to a fight against the potential power of a modern nation state « Frédéric II’s success » Hohenstaufen (1994-1250) had already been outlined. This was in the tradition of the development of Carolingian reforms (improvement of education, agriculture, commercial infrastructure and the art of governance), a tradition that Dante Alighieri will try to revalue in De Monarchia.
Venice, writes Braudel, knowingly trapped the affected economies, especially the German economy, for his benefit; it has fed on it, preventing them from acting at their will and according to their own logic. » Moreover, « the new circuits of capitalism have meant such a power of monopoly to the benefit of the Italian and Dutch cities that the emerging territorial states, in England, France or Spain, have necessarily suffered the consequences. » In addition, Venice intervened to prevent Alphonse le Sage (1221-1284) from succeeding Frederick II on the imperial throne.
The « triumph » liberalism and the stifling in the bowl of nation-states define the background of the fourteenth-century disaster.
It was only a century later, when the Renaissance gave birth to the nation-states, first France under Louis XI, then England and Spain, that the European population will succeed in exiting barbarism and demographic collapse. The devastation caused by the Venetian merchant bankers and their » « in the second half of the 14th century is illustrated in Figure 1. In Europe, China and India (nearly three-quarters of the world’s population), the positive demographic trend reversed after four to six centuries of steady population growth. Famines, bubonic and pulmonary pests, epidemics and wars, all these factors wiped 100 million human beings out of the earth. It is estimated that the Mongolian hordes alone are killing between five and 10 million people. The demographics didn’t start with the 1340 crash, but this was the turning point.
Venice then played the role of banking center, slave market and spy center for the Mongolian Khan.
Between 1250 and 1350, the Venetian financiers set up a global speculation structure on currencies and precious metals that recalls in some ways the immense modern casino of « » derivatives. The dimensions of this phenomenon far outweighed the more modest speculation on debt, goods, and the trade of Florentine banks. The Venetians were able to take away the monarchs’ monopoly on the issuance and circulation of money.
Nevertheless, during the period 1325-1345, the situation was reversed. The ratio of gold to silver began to fall, from 15 to 1 to 9. By the time money prices were rising, after 1330, there was a huge supply in Venice. In 1340-50, « international trade in gold and money increased significantly », Lane says, who also documents a further rise in commodity prices.
Florentine bankers suddenly find themselves trapped. All of their investments are in gold, while the price of yellow metal is in free fall.
After the collapse of the gold caused by the Venetians with their new coins, the Florentines did not do so until 1334 when it was too late, the King of France waited 1337 and the King of England 1340 before launching the unfortunate attempt we mentioned.
According to Lane: « The fall in the price of gold, to which the Venetians had made a decisive contribution by making large exports of silver and imports of gold, by making profits, was detrimental to the Florentines. Although they were the leaders of international finance (…), the Florentines were not able, unlike the Venetians, to take advantage of the changes that took place between 1325 and 1345.
The Serenissima’s super-profits in global speculation continued until the bank disasters and market disintegration that occurred in 1345-47 and the following years.
End of document.
The origin of money and gold collected by Venice and Florence
This disastrous experience for bankers served as a lesson. They preferred not to make war between themselves but to organize wars led by kings, princes. Financing the armies was less risky. A banker in the defeated camp could prompt his king to fight a war again to plunder his neighbor and thus have enough to pay his banker back. The situation changed, as we saw with the corsaries and the flibushers who captured the Spanish and Portuguese Galions responsible for the riches of the Andes and Mexico. When they joined the Protestants, they used these fortunes to finance religious wars and then the beginnings of industrial society in the Protestant countries, not in France.
We recall here that the money was imported massively by the fleet of the Order of the Temple from the largest silver mines in the world, and still are in Mexico today to the port of La Rochelle. This new silver currency managed by the Templars enabled them to lead the expansion of the European civilization of the time of the cathedrals, the last flourishing period on the European continent and which lasted about two centuries before it was destroyed by the King of France on Friday 13 October 1307 when the Templar Knights were arrested.
This network organization was set up after the year 500 by the Benedictine monks who restored the practices taught in the temples of Egypt and Greece. These principles and methods of management and management are the basis for the first Carolingian and Charlemagne reforms and the management defended by the Templars and Knights’ orders. The currency in circulation after 1307 was thus picked up by the Italian bankers and especially in Venice and Florence.
Between the financial disaster of 1345 and the beginning of the Renaissance, a century later, we present in the chapter following the political, economic and health disorders and disorders that followed the destruction of the Temple order in France and the medieval culture of the time of the cathedrals, with the management of the common goods by the communal assemblies, the local participatory direct democracy. The Renaissance is poorly named because it is not the rebirth of the medieval period politically, but the transformation of royal absolutism into a » modern « nation-state. The state serves as a control structure for central power, and the state prohibits communal assemblies, the local participatory direct democracy that we call on fileane.com Our Life Networks.
We will come back to the Venice trade, the great plague and the beginning of religious wars between Catholics and Protestants. So for now let’s stay on top of the financial crises and try to understand them so that we can no longer use them in our Networks of Life, our choice of civilization after we have left power systems.
The financial takeover of the French monarchy
The money extorted to France by James (Jacob) and Karl Rothschild.
document source: http://algarath.com/2016/08/08/dynastie-rothschild-3-beau-coup-france-1818/
After their defeat in Waterloo, the French were struggling to get their feet under their feet financially. In 1817, they negotiated a substantial loan from the prestigious French bank Ouvrard and well-known London bankers Baring Brothers. The Rothschild were left out of the search, purposely ignored.
The following year, the French government needed another loan. Since the bonds issued in 1817 with the help of Ouvrard and Baring Brothers had increased in value on the Paris market, as well as in other European financial centers, it became clear that the French government would take the services of these two banks.
The Rothschild brothers tried most of their usual tricks from their vast repertoire to influence the French government to give them business. Their efforts were in vain.
The French aristocrats, who boasted of their elegance and their noble lineage, saw the Rothschild as mere peasants, who had to be put back in their place. The fact that the Rothschild had vast financial resources, lived in the most luxurious houses and dressed in expensive clothing did not appeal to the French nobility, very conscious of his class. The Rothschild were considered frugal people with a clear lack of social grace and class.
On November 5, 1818, something very unexpected happened. After a year of regular appreciation of the value of French government bonds, they began to fall. With each passing day, their value would drop sharply. In a short space of time, other public titles started to suffer too.
The atmosphere in the courtyard of Louis XVIII was suddenly tense. The aristocrats hoped for the best, but feared the worst. The only people who were not deeply concerned were James and Karl Rothschild. They smiled, but didn’t say anything.
Slowly, a stealth suspicion began to form in the minds of some observers about what was happening in the markets.
Could it be that the Rothschild brothers are directly the cause of the nation’s economic woes? Would they have secretly manipulated the bond market and fabricated the evil engineering that caused the panic?
A common Rothschild method, still used today: create and then pop a financial bubble, the Greenspan Put.
Yes, of course! During the month of October 1818, the Rothschild’s agents, using their masters’ unlimited reserves, had bought enormous amounts of French government bonds issued by their rivals Ouvrard and Baring Brothers. This caused the necessary effects to increase their value. Then, on November 5, 1818, they began to sell bonds in large quantities on the free market and in Europe’s main shopping centers, inducing panic in the market. The longer the purchasers had bought late when prices were high, the greater the losses. The manufactured bubble was monumental, ruining investors.
The creation of a massive bubble, and then the planned collapse of that bubble, was a method used in the 1929-1932 crisis, the Nasdaq crisis in 2000, the subprime mortgage crisis in 2008, and is the one that is occurring right now.
Currently, very few see danger coming, or they attribute it to an inevitable outcome without linking it to a gigantic bankster evil machination. History repeats itself. The current strategy, similar to that employed in France in 1818, is called the Greenspan Put.
We’ll explain it in a detailed post to come, and to read for those who want to understand what’s coming soon.
Let’s go back to France in 1818, which marked the success of the Rothschild Rush.
Suddenly, things moved very fast. The Rothschild, who had patiently roved their brake and waited quietly in an anteroom, were introduced in the presence of the King. They were now the focus. « Their money was the whooping cough of the best » borrowers. The Rothschild had taken control of France.
They’re still there today. And they are more than ever trying to take our money away with impunity if it is there, but that makes those who do not have it even poorer.
author of the document: Algart
The crisis of 1929
Between 1921 and 1929, the EDF increased the money supply again by more than 60%. Same conditions, same consequences.
This time, however, a new kind of loan appeared: « margin loan »( margin loan). With this loan, any investor could pay only 10% of the stock he wanted to acquire, with the remaining 90% coming directly from the broker. Margin lending became very popular in the 1920s; yet there was a condition that few paid attention to: it was at any time possible for the lender to claim a repayment of the loan within 24 hours. Direct consequence of such « margin call »: the sale of the shares acquired by the investor.
The massive call for the New York bank to repay the “margin loans” resulted in a crash in the market in October of 1929.
On Black Thursday, the original crash, came on October 24. The crash that caused widespread panic was “Black Tuesday,” five days later, October 29.
So instead of expanding the money supply, the Federal Reserve contracted it, creating the period known as the Great Depression.
MP Wright Patman, in “A Primer On Money,” reported that the money supply fell by $8 billion from 1929 to 1933, causing the bankruptcy of 11,630 banks out of the total of 26,401 in the United States. This allowed central bankers to buy back rival banks and entire corporations at paltry prices.
Interestingly, in the biographies of J.P. Morgan, Joe F. Kennedy, J.D. Rockefeller and Bernard Baruch, it is stated that they all managed to transfer their capital out of the market and convert it to gold just before the 1929 crash. Joe Kennedy went from a fortune of $4 million in 1929 to 100 million dollars in 1935.
Paul Warburg, a founder and member of the Federal Reserve, warned of the crisis and depression in an annual report to stockholders of his International Acceptance Bank: “If we allow the speculative powers to expand, the crisis that will come will clearly not only affect the speculators themselves, but will take the entire country into a general depression.” Paul Warburg, March 1929.
In 1929, the Federal Reserve Bank’s controlling bankers staged an economic coup by creating a full-fledged stock-market collapse.
The main companies involved have quietly withdrawn from the stock market in the previous months. They will then take advantage of this to get back to the most profitable business, to liquidate others, and to get their hands on huge land (more than two-thirds of independent farms west of Mississippi), which American farmers are forced to let go because of lack of cash. It is on this land that the great American utopia of the planet Suburbia will be built, over the next 30 years. « The 1929 crash was not an accident. It’s a carefully planned event. International bankers have sought to engender a desperate condition here, so that they can become our masters to all ». Louis T. McFadden, Chairman of the House Banking and Currency Committee, 1933.
Source: America’s Forgotten War on Central Banks
By Mike Hewitt, Financial Sense University, translated by Régis Mex for Mecanopolis
The secret of Franklin Delano Roosevelt’s bank reorganization. 8 October 2008 by Richard Freeman
The details of the measures taken under the Glass-Steagall Act to put banks back into the productive investment circuit and not into the speculation circuit in 1933.
The Bankers’ Conspiracy Against Roosevelt in 1933
President John Kennedy’s actions and certain relationships with his assassination
Kennedy called out the secret societies that are benefiting from this system of thieves.
“The presidential office was used to plot to crush the freedom of the American people, and before I leave that office, I must inform citizens of this critical state.”
John F. Kennedy, (At Columbia University, 12th Nov. 1963 – 10 days before his murder on November 22, 1963.)
John F. Kennedy’s speech of April 27, 1961, denounces « massive, ruthless » conspiracy and a complex »-to-destroy system that really wields power in the US and around the world. This bold commitment will be one of the direct causes of his murder.
On 4 June 1963, President Kennedy signed a presidential document called Executive Order 11110 (still applicable), which amended Executive Order 10289 of 19 September 1961.
The President of the United States has exercised the legal right to produce money, interest-free and debt-free. He had already printed US notes completely ignoring notes from the Federal Reserve in Private Banks (the EDF is a private organization, sic.) Records show that Kennedy printed § 4,292,893,825.
A few months later, in November 1963, he was murdered.
President Kennedy reduced the Federal Reserve Act, which was passed on Christmas Eve 1913, and gave the United States Congress the right to create its own money.
“Executive order 11110 was limited by President Lyndon Baines Johnson, thirty-sixth President of the United States – from 1963 to 1969 – while he was on the presidential airplane AirForce One, between Dallas and Washington, on the same day as President Kennedy was killed,” wrote a columnist (it would still be applicable in a matter of minutes by President Obama).
The presidential decree was never officially repealed, but its application was suspended.
The authorization to print new tickets and knock new coins was revoked, so that Executive Order No. 11110 remains officially in effect … in the stratosphere. Thus, Kennedy’s printing of United States notes was withdrawn or destroyed by an executive order from the new President Lyndon Johnson, the same one who ordered the USS Liberty to sink off Israel and Israel.
This assassination was perhaps a warning to future Presidents who would have followed Abraham Lincoln and John Fitzgerald Kennedy and cut bankers off their rent by eliminating the debt-currency system. John Fitzgerald Kennedy would have paid for his life this provocation to the power of international finance.
But we are here in the realm of the countless disturbing coincidences that have marked the life of this President, even though the speedy passage of President Johnson’s decision gives credit to that assumption. Eustace Mullins recalled that President Abraham Garfield had also been assassinated on July 2, 1881, after making a statement on the problems of the currency. What a coincidence!
Since President Kennedy, no successor has made any sense to bring any reform to the operation of the EDF.
The crisis of 2007.
With subprime mortgages, it has all the characteristics of a premeditated attack: after the failure of financial investments in Southeast Asia and then in web startups, in the face of China’s development, its monumental trade surpluses that are the consequence of the willingness to produce in that country at low cost to achieve considerable trade margins in developed countries, its uncompromising political will to set the price of its own currency and its own trade rules, one solution is to find once again a source of significant profits home!
The 1929 crisis showed that it is possible not to lose a single dollar when all the financial values were sold and invested in real estate. This is Rockefeller’s proven recipe.
In 2005, the aim was to create the conditions for a real estate speculative bubble
to distribute credits first to households that want to become homeowners and then to households that repay their loans or have already repaid their loans.
The commercial argument is simple: as your house gains value through the speculative bubble, even if you have lost your job as a result of your plant relocation, you can get new credits if you have confidence in the stock market and in the future.
With floating-rate credits, it is easy for bankers to create doubt and blow out the bubble they created. Unable to repay loans with sharply increased interest rates, banks seize houses, buy them at low prices and sell them to investment funds of which they own. The assets of their companies become considerably richer, while hundreds of thousands of households are on the streets and in poverty.
In 2007 the securitization of real estate claims to very risky or impossible repayment
This classic « maneuver » became much more dreadful in 2007 with the securitization of real-estate claims to a very risky, if not impossible, repayment. American bankers have been able to sell these rotten securities to foreign banks, especially European banks, and in 2010, these banks are on the verge of bankruptcy because of their inability to write off these bad debts. But the story doesn’t end there.
The way to organize a financial crisis is always the same, a classic of this kind.
The process begins by distributing credit in bulk with initially low variable interest rates.Private commercial banks have jurisdiction over this.
Then the private central bank raises its policy rate, borrowers can no longer repay, the market collapses and prices fall.
Finally, private commercial banks take money from their debtors, and with money borrowed from the private central bank (to save the economy), they buy back all the assets they want, and this, of course, at the lowest price.
The end of a financial crisis represents a raid on markets to buy back at a competitive price, concentrate power in powerful financial oligopolies, and impose a little more heavily on the world finance government through debt money and the widespread and long-term debt of all non-financial players in the economy.
This concentration of power at the level of the financial oligarchy, and we have just seen this lesson from the first financial crisis, can take place with a chain of financial crisis and then world war, as was the case with the crisis of 1929 and then the second world war (certainly already planned in watershed at the end of June 1919 in the Treaty of Versailles).
The application of this method through the sub-prime crisis of 2006
and its aftermath in 2008 and its consequences until today in 2022.
Wikipedia source document:
The » subprime « market consists of risky loans that can be mortgages (real estate or rechargeable), credit cards, car rental and others, given to low-credit customers or difficult credit history.
This market expanded widely in the United States from 2001 onwards, from $200 billion for mortgages in 2002 to $640 billion in 2006, representing 23% of the total mortgages. Risky borrowers can borrow real estate on this market, with a generally indexed repayable interest rate (e.g. on the Fed’s policy rate) plus a «, », very high risk premium.
The growth of this market was initially encouraged by historically low rates that encouraged credit institutions to increase the share of the subprime in their portfolios and take advantage of the high risk margins imposed on these loans. According to conservative columnist Thomas Sowell, they were encouraged by a 1977 Community Reinvestment Act.
These loans to people with low credit ratings helped create a housing bubble that itself fueled the credit bubble: as long as the real estate increases, the house acquired and mortgaged ensures that the transaction can only be completed, since in the event of a default, the bank will be able to repay the credit by grabbing and then selling the house.
Subprime contracts were also based on the assumption that house prices would not fall.
The United States Federal Reserve (« Fed ») has gradually raised its policy rate from 1% to 5.25% between 2004 and 2006; real-estate prices began to fall in several parts of the United States starting in 2006. The US housing market lost around 20 percent in the last 18 months before the crisis.
End of document.
Here are the facts behind the crisis: a debt that goes wrong because the measurement of risk has been bad as we’ll see.
Private commercial banks, even if they pack up the citizen or the government in debt, compete with each other in their financial markets for emulation and creativity.
Innovation in the « swap of the unpaid»
In terms of creativity, the crisis from 2006-2008 to the present, has done a great deal by revolutionizing the old “permutation of the unpaid” to innovate in credit default swaps.
This innovation, which is based on a statistical tool provided by mathematician David Li, Li’s girlfriend of JP Morgan Bank, was developed in this bank by the Blythe Masters team, starting in 1994 and especially after 2000.
She presents CDS as follows:
“By breaking down barriers between different classes, maturities, grades, senior debt levels, etc., derivatives will create huge opportunities to exploit and benefit from discontinuities associated with the assessment of a credit risk”
…/… “By extending liquidity, derivative credits are the equivalent of a “free part” in which both sellers and buyers of risk benefit from the efficiency associated with gains.”
Insure your neighbor to death, and then kill him to get the insurance premium
For a champion of “aggressive” speculation on the stock market like George Soros who does not like the financial crises triggered by others “Credit default swaps are destructive instruments that must be prohibited by law… It means insure your neighbor about death, and then kill him to get the insurance premium.” George Soros 12 June 2009 on Bloomberg Tv. (source: Blythe Masters, Pierre Jovanovic, The Garden of Books, 2011).
This innovation caused a number of financial damage. The process is mostly related to insurance techniques, but insurance reassures to pool risks and deal with them. This represents a huge amount of money to be held in place.
Create financial products from the debt of their customers without having to raise substantial funds.
Business banks, on the contrary, want to create financial products from their customers’ debt without having to raise substantial funds, and CDS product was designed to use even less capital assets as collateral… since statistically the risk was unachievable… even if it eventually came to life!
Fed’s “record” profit in 2011.
In March 2011, the Fed announced a « record profit of $82 billion last year, mainly from the toxic assets it bought from banks in distress during the » crisis, while it averaged $25 billion annually for the 10 years preceding the 2008-2009 financial crisis.
By buying back these subprime mortgages to the banks it controls or to the banks « friends », the private central bank is able to make profit because it can recover real estate on US territory, buy it to sell it, since the money is at home and not at the troubled banks.
Indeed, there are two categories of toxic securities or assets that are threatened with non-repayment:
- Mortgages taken on physical assets that exist in the real economy and that are no longer repaid because households have become unable to repay variable-rate loans that have increased sharply since the bankers decided that the increase in these loans that they have made caused a crisis of confidence and threats that their repayment would pose. Arguments made by them to demand much higher interest in a crisis of trust of which they are the organizers and culprits.
- The other category of toxic assets is credits issued to speculate on the stock market by playing down speculation in the values of companies, financial firms or simply on state public debts, on currencies. With these loans, speculators gain enormous maneuvering skills, but by playing down, these speculators develop a confidence crisis that quickly paralyzes central-currency exchanges between banks and with central banks, causing the economy to recession. At this point all are losing out, especially those who have speculated downwards by organizing the crisis. These speculative loans linked to the down-speculation but also to the NGOs which can no longer be repaid have mixed with mortgage loans through the securitization of claims and the removal of the separation between commercial banks and investment banks (the Glass-Steagall Act) which in 1933 enabled the exit of the 1929 global crisis.
The biggest hold up in history, another way to swing the unpaid debt even stronger and more incredible.
The way that bankers successfully emerged from the crisis after 2008 is summarized in this famous phrase: the biggest robbery in history, another way to swap the unpaid debt even stronger and more incredible … and whose citizens are the primary victims as usual in financial crises.
document: The biggest robbery in history
Monday, 07 February 2011 02:54 by Jean Paul Baquiast
Only now is it discovered that, when the US administration welcomed two official support measures to help banks, the Fed was issuing free « liquidity » for ten times as much, without anyone being warned.
The biggest hold-up in history – that is how the so-called measures « support for the economy » decided by the US Federal Reserve Bank between 2007 and 2010 – were expected to be released by Wikileaks on the Bank of America, which promises to be interesting, is the US Federal Reserve Board (US). Fed) itself, which released between December 1-4, 2000, documents detailing its most secretive operations at the height of the financial crisis of the last 3 years…
Our comment: this article shows the links between the heads of the EDF and the US Treasury. The FED’s men are placed in the treasury, and during the last crisis, they have run the treasury’s money-printing press to bail out the banks and in fact give them ammunition to speculate further, especially against Europe, the world’s richest economic zone (more than 40% of world trade). The ECB cannot legally act like the US Treasury or the EDF, the weapons of this fight are not equal, and Europe cannot hope for superiority on this ground. It needs to leave this financial system and lead the fight on a new level to eliminate the financial oligarchy that governs capitalism and the global economy.
Other document: The greatest turning point in human history
The alleged « of economic support»
Thus, the so-called measures « support for the economy » decided by the US Federal Reserve Bank between 2007 and 2010 could be described.
In France, the first bank bailout in 2006 used two financial means:
- First, to allow capital increases and thus increase banks’ reserves, the Treasury will set up the State Ownership Company (SPPE), to raise funds in all markets, with the 100% State Guarantee for a maximum amount of 40 billion Euro.
- Along with these contributions, another action was being carried out through the Société de Financing de l’Economie Française. It was to borrow funds to lend them to French banks in need of liquidity. More than €300 billion was initially envisaged, and … finally, €77 billion that will have been raised in the markets. In October 2009, once bank repayments had been made, SPPE’s operations had fallen to 7.65 billion euros. By early 2011, almost all banks had closed their operations with the SPPE.
The government will come forward to show that this bank rescue will have even gained significant interest. This hides the far greater negative consequences that the crisis continues to impose on citizens.
In the United States, on August 10, 2007, the US Federal Reserve injects 43 billion dollars to fluidize markets. But the sub-prime crisis continues, because the toxic products (CDS and other derivatives) that are in the assets of banks, insurance companies, companies, and individuals are short-term bankruptcy threats.
During this first turmoil, banks recorded asset depreciations (i.e. losses due to insolvencies at the base) of approximately $500 billion. To meet this challenge, they had to open up their capital for 300 billion dollars and cut their business by 200 billion dollars.
At the kind suggestion of the Bush administration, the Gulf Sovereign Wealth Funds are coming to the rescue and risking the big Western banks. In the end, the short-lived super-fund and the debt freeze are interrupting the sub-prime crisis.
Eliminating those toxic assets that rot banks’ balance sheets
However, nothing is settled. The crisis will resume in 2008.
Indeed, we must eliminate these toxic assets that are rotting banks’ balance sheets.
For starters, the emergency in 2008 is to rescue the insurance company (AIG) that guarantees CDSs and derivatives based on bank clients’ debts.
The Federal Reserve, for the first time, granted $123 billion in bridge loans to AIG in exchange for a majority-ownership measure that it had refused Lehman Brothers. It is no longer the nationalization of a mixed economy society, but that of a private society.
It soon became apparent that this unorthodox measure of laissez-faire was also intended to save AIG leaders who celebrate their nationalization by spending half a million dollars to rest a week in a California palace. The misfortunes of one make the others happy.
To benefit from EDF support, several major US investment banks turn into deposit banks. Others get redeemed in order to save their business: Bear Stearns, Merrill Lynch, Washington Mutual and Wachovia. JPMorganChase redeems Washington Mutual assets, while CityGroup acquires Wachovia.
Commercial banks are always wary of each other and are waiting to see how each one will dispose of its toxic assets.
The Federal Reserve is also waiting, which is understandable, because the heads of all these banks are on the same team and serve the same interests: taking advantage of the crisis to buy back competitors at their worst.
The crisis begins again in the summer of 2008.
Not all of them can wait for toxic assets to wipe out themselves.
All of this virtual money is going to disappear first, but ultimately, 25 trillion virtual dollars will go up in smoke, challenging American leadership. Everyone is trying to sell the securities they know are insolvent and buy that they hope are fair.
But it’s very hard to value them until you’ve found yourself covering it. Financial institutions thus trade securities by multiplying capital gains, but when consumers can no longer pay their loans, the institution that holds their claims goes bankrupt.
Even more distractable: players with better cash flow or a little luck can speculate downwards on the stock of poor institutions and make profits by hastening their bankruptcy.
Paulson’s plan: charge the federal government for insolvent credits.
The US Republican administration knows that elections are on the horizon and it needs to act. Finally, it develops a solution: the Paulson Plan, named after the Secretary of the Treasury and former head of Goldman Sachs.
Rather than organizing the bankruptcy of companies with bad loans, the idea is to save the financial bubble and the privileges that go with it by charging the federal government for insolvent loans.
Technically, we take the idea of a super-fund « » to satisfy the debts of financial institutions, but this time instead of being abundant by banks, it will be abundant by the state, that is by the taxpayers.
Announcing this plan immediately drops the dollar. Indeed, that $700 billion represents a one-quarter increase in the federal budget, without any input to balance it. The Administration will be forced to put the money-printing press on its feet, thereby undermining the value of the dollar, which speculators anticipate.
The Plan is rediscussed and amended and finally adopted. The $700 billion program to save the banking sector and the U.S. economy has been influenced by the measures taken by Britain and then by the European Union. The bailout becomes a $250 billion equity-take-away plan in banks. First, it will be possible to deal with nine major banking institutions that have agreed to buy preferential shares from the state.
For example, half of that first envelope, $125 billion, went to Citigroup, JPMorgan Chase, Bank of America, Wells Fargo, Goldman Sachs, Morgan Stanley, Merrill Lynch, Bank of New York Mellon, and State Street.
So the Bush team is doing the robbery of the century.
This will help institutions better respond to their vital mission of lending. In other words, despite the fact that they provoked the crisis in an effort to enrich themselves immeasurably with the CDS first, they are now continuing to strengthen their positions starting with state aid… and the almost free aid from the Federal Reserve is yet to come.
In other words, when the Authority saves a financial institution, it will have to prove that it has not taken advantage of it to enrich friends. But it will have no accountability when it allows another institution, as it did with Lehman Brothers.
In the end, the U.S. taxpayer will bail out those friends of the government who have made bad investments, while evictions will continue. Before leaving the White House, the Bush team did the robbery of the century.
We know afterwards that these American leaders were elected on the recommendation and with the support of the institutions of the world government, the Bilderberg Club, the CFR, the Trilateral… The Bush team did the job, and this world financial elite had been waiting for years.
Other European countries will follow the same regime and spend, actually, getting into debt, helping their banking systems. By mid-October 2008, through the various actions and plans, Britain had already spent EUR 636 billion to consolidate its banking system, Germany had EUR 400 billion, Portugal had EUR 20 billion available to banks.
Recovery of the economy so that it does not fall apart.
It is then a question of reviving the economy, growth and the fight against unemployment, in order to limit the impact of the financial crisis on the economy in order to avoid an economic crisis that will be added to the former.
In the US, the EDF helps the Treasury (and so indebts). In December 2010, the US Central Bank, while noticing a slight improvement in the US economy, confirmed its $600 billion bond buyback program and near-zero policy rates. The United States Central Bank (Fed) remains firm in its positions. Not surprisingly, the Fed has not reversed its controversial decision last month to commit to redeem $600 billion in long-term Treasury bonds. Instead, she confirmed it.
It is rentier income who benefit with their savings and not the real economy
And yet. While the purpose of these money-creating operations is to lower long-term rates to encourage households and businesses to borrow to consume and invest, the opposite is happening: 10-year bond yields rose from 2.57% in early november to 3.37% on tuesday. It is rentier income who benefit from it with their savings and not the real economy.
At this stage, we can make an initial assessment of the consequences of this crisis at the state level.
State aid to the financial sector in the European Union totaled EUR 1 600 billion between the start of the crisis in October 2008 and the end of December 2011, according to a document published by the European Commission on Friday. This represents 13% of EU GDP, according to the State Aid Scoreboard for 2011.
The vast majority, or 67%, were public guarantees of bank financing. (source: Expansion.com with AFP – published on 21/12/2012 at 13:49).
The losses in each state are beginning to be clear. The Bank of Spain calculates that the government can recover only $14 billion out of the $54 billion that was injected into the revival of the banking system during the crisis. The rescue of the Spanish financial sector is expected to cost the Spanish State some 40 billion euros. This is the calculation made by the Bank of Spain in a report which has just been made public. The organization reviews the accounts of the crisis and delivers the data, which was agreed on 31 December 2016. It calculates that €54.353 billion (and nearly €10 billion of the bank-fueled guarantee fund) has been injected into the system since the crisis began. At the moment, only $3,873 billion has returned to public coffers. The authors of the report calculate that the government should eventually recover another $10.402 billion, or $14.275 billion.
That means they are giving away 40 billion euros in public funds. The main way to get the public tender back should be the sale of Bankia. The Spanish State currently owns 65.9% of the capital of the fourth Spanish bank which was urgently bailed out in 2012, receiving EUR 22.4 billion through the Bank Resolution Fund.
The ECB will wait 4 years to pursue the same policy as the EDF and this weakens the EU.
This initial assessment would not be complete without revisiting the incomprehensible disconnect between the Fed’s policy in the US in 2010 to eliminate toxic assets from private commercial banks’ balance sheets, which is logical and efficient, indispensable, and the ECB’s policy in the eurozone that will wait four years before it intervenes.
ECB President Mario Draghi announced on Thursday (early October 2014) that ABS will be repurchased in the fourth quarter of 2014, as well as secure bonds from mid-October for at least two years. This debt buyback program is expected to reach close to €1.140 billion, or 10% of European GDP. The European Central Bank’s balance sheet is expected to reach €3.3 trillion, which is the target set in June 2014 when the ECB announced the launch of T-LTROs and a program of ABS buybacks and secured bonds.
Deutsche Bank is a real financial bomb in the heart of Europe.
Of course, Germany fiercely opposed these unconventional and unforeseen measures in the euro treaties. Current Consequence: Deutsche Bank, which has bought a lot of ABSs and toxic financial securities and has yet to eliminate them with the help of the ECB or the EDF, is a real financial bomb in the heart of Europe.
The US kicked her ass by demanding a fine of nearly $14 billion (85% of its stock value!) for her role in the 2008 housing finance scandal. But her stock price did not wait until that terrible announcement fell: it was divided by three in one year. The bank’s risk assets are estimated at €400 billion – for a balance sheet of €1.500 billion.
The Privilege of the Extraterritoriality of American Law
Here we are, as the reader will have understood, in the face of irony: Obama’s 2016 US government (whose main financial support for his election campaign was Goldman Sachs) has condemned Deutsche Bank for having bought too many ABSs and toxic securities sold by JP MorganChase, Goldman Sachs, and for participating actively in the deepening subprime crisis organized by the EDF and the US private commercial banks.
American law then becomes a weapon to absorb or eliminate competitors from other countries, and that is the privilege of the extraterritoriality of American law, whose European response is always waiting for.
For now (in 2017) the Deutsche Bank financial bomb is fired by the US courts itself, and the fate of private commercial banks and even central banks in southern Europe is not equally resolved, representing other exploding financial bombs.
The world government is strengthening its dominance over Europe.
Here we find the will of the Bilderberg and its affectionate institutions to put Europe under the domination of the world government in an economic position of weakness, poverty and dependency. European wealth has been transferred to the US.
This was the case in the 2010-2011 attacks on the euro by US hedge funds to keep the euro at par with the dollar, a move that failed because of Chinese support for the euro.
The financial crisis since 2006 has not ended up weakening the European economy and its social protection acquired by social struggles, but also by its humanist culture inherited from ancient Egypt and Greece. Europe is not destined to be lost by the World Finance Government and fileane.com, much less than anywhere else
An initial assessment of the crisis
In terms of the initial balance sheet for central banks and commercial banks, the situation is also known.
Quantitative easing programs have been launched by several central banks in major developed countries since the early 2000s: initiated by the Bank of Japan, they were then implemented in the United States, England, and most recently in the eurozone.
The policy rates go to zero
With the start of the financial crisis in 2008, the FED, the US central bank, first lowered its policy rates to zero in early 2009.
It injected about $2.5 trillion between November 2010 and October 2014 to buy back Treasury bonds or mortgages. In short, we are in the presence of a debt spiral whose interest payments are actually paid with the money of a new loan, until the snowball effect turns the spiral into an infernal spiral with ever-increasing and endless debt.
What is more tricky to assess is the purchases of assets by commercial banks and their clients through the Fed’s zero-rate credit (or 0.01% as in 2010).
Zero policy rates favor speculator profits.
What is known is the profits recorded in 2011 during speculation against the euro and the crisis in Greece. When you buy currency at 0.01 percent from the EDF to lend it to Greece at 17 percent, you get a multiplier of 1,700.
It’s obvious that you’re in a position of strength then to buy whatever you want in this country. The lower the credit rate, the more you can borrow to buy. And US banks were the champions of asset purchases after 2008.
« J.P. Morgan’s data shows that the world’s top 50 central banks have reduced rates 672 times since Lehman Brothers collapsed in 2008, a figure that translates into an average interest-rate cut every three days. This has also been associated with asset purchases of $24 trillion»
Source: QE Infinity: Are we heading into the unknown?, CNBC
The razzia that marks the end of the crisis cycle or the beginning of the end, can be dated 2012.
Banks’ purchases of assets are huge. These banks will manage these assets through investment funds that have become the true masters of the global economy. They are the ones who are in the mood to continue the raid.
Illustration with the following chart.
The gross operating surplus (EBE) indicates the profitability of an enterprise’s production system. Knowing the gross operating surplus is essential for any business, because it allows you to compare the duty-free turnover with all the expenses incurred to produce. If EBE is positive, it means that the company sells more than it produces. If, on the other hand, it is negative, the company loses money. If you sell more, there are fewer competitors because they have either been redeemed or eliminated.
But a financial crisis is used to eliminate competitors and to concentrate activity in a market in powerful oligopolies. So American companies have been champions especially since the crisis, and they’re selling cheaper, their EBE is booming.
The American bankers have managed their sub-prime crisis… and it’s not over for them!
We have to stop it and do it!
Here we are at the level of the consequences of the financial crisis:
We have known since the previous financial and economic crises and since the crisis of 1929 that financiers organize these crises to bring down the financial values of real-economy firms and then buy them back at low prices, which constitutes enormous gains when the crisis has gone away.
This graph shows that American financiers who own the private central bank and multinational corporations make huge profits, especially after 2012, once the FED printing press saved commercial banks.
It was not the US real economy firms that achieved this dramatic rise in EBEs. But this wealth has indeed become the property of American firms, and it is they that sell more because they have bought back other firms weakened by the crisis or because other competing firms have disappeared during the crisis.
One of the main purchasers is identified as the FED, which rebukes a lot of assets because, according to it, it is the investment of the same huge sums repaid by commercial banks after their rescue, or else the sums which the FED created with the money printing and which the commercial banks “friends” did not need.
The crisis has once again allowed huge economies of scale.
The crisis has once again enabled huge economies of scale for multinationals and a new and strong concentration of wealth for the wealthiest, especially as stocks rise sharply: 30 percent in 2013. So this graph illustrates the complete success of crisis management for the benefit of financiers.
The takeover of the Alstom Energy group in early November 2015 by General Electric.
General Electric’s takeover of the Alstom Energy group in early November 2015 illustrates that US multinationals have a hand in the real economy.
General Electric is controlled by the Rockefeller family, at least in 1976, and that hasn’t changed. The French group has been weakened from the crisis and is experiencing a problem with its shareholders whose stock prices have been low since the crisis, because its rather independent and French strategy puts it at risk to competitors whose concentration of business has not ceased since the crisis.
Central banks support stock-market prices during the crisis. The stock-market bubble will not burst.
Another well-known intervention by central banks is to support stock prices during the crisis. It is the Casino economy disconnected from the real economy that benefits Anglo-Saxon shareholders and investment funds, including BlackRock.
As long as central banks continue to inject $200 billion a quarter into the system, the stock-market bubble will not burst.
Matt King, Global Credit Strategy Manager at Citigroup, shared this opinion with Bloomberg news agency. As Matt King and his colleagues at Citigroup have calculated, central banks should pump $200 billion a quarter to prevent stock prices from falling by 10%. In 2012, the total amount of liquidity so pumped into the global economy was almost $1 trillion, or nearly $250 billion per quarter. As the Fed and its counterparts announced that they would reduce these policies, it was inevitable that a correction would occur, King explains. Bank of America Merrill Lynch’s strategists, for their part, indicated that a further 10% fall in stock prices could trigger a fourth quantitative easing (QE) by the Fed. That was the case in 2010, when markets had lost 11 percent, and in 2011, when they had collapsed by 16 percent.
Customers’ money can be used to save a commercial bank.
Finally, in order to present the measures decided on from 2015 and which considerably widen the scope of the razzia, in the event of a bank’s bankruptcy and before the state’s aid is involved, especially since the latter are highly indebted, the bank will be able to take a certain amount out of the sums deposited by the clients… and of which it is the owner and we, its customers, mere creditors, we will see it later when we present the mechanisms for the functioning of the full currency.
The logic of these measures is unstoppable from a banker’s point of view: when all of them are in debt and debt repayment needs to be accelerated, especially if this threatens a bank’s survival, the solution starts by transferring savings, albeit by force, between the bank’s customers and reserves.
The level of savings remains very high as everyone tries to preserve a little money to protect themselves against the crisis that is still there. This cake is too tempting not to bite you, especially since it’s already at home... when you’re a banker of course.
Financial policies to weaken the European Union and the Euro zone.
This process 4 is the direct continuation of financial and economic crises
The fourth process which continues the action of the previous one but by targeting it in a specific area, Europe, the first economic power, counting all the countries of that region.
The financial and economic crisis of 1929 in the United States really came to an end only with the development of armaments to prepare for and conduct the Second World War. From 1933 to 1938, Roosevelt’s New Deal had brought some recovery from the economy, but without putting in place a real period of growth.
To emerge definitively and sustainably from the financial crises of 2006 and 2008, in 2022, a decade and a half later, the specter of a world war comes back.
We will see in File 3, the direction of the wars organized by the Anglo-Saxon financial oligarchy, that the Second World War was decided and planned since the victory in 1918 and the Paris conferences. The financial oligarchy was not only the elimination of the two empires that refused a private central bank from New York, but it was also not content with its new position as the world’s first economic power with the arrival of gold from allied European banks to pay for arms purchases, no, it saw more wealth to conquer.
We have known since it selected and then funded the arrival of the Nazis in Germany to wage war against the Soviet Union, these communists who were funded by Rockefeller and Jacob Schiff on behalf of the families of the EDF bankers. The rulers of the Anglo-Saxon oligarchy used their communist opposition to destroy it in order to conquer the wealth of the new Soviet empire.
Except that in December 1941 and January 1942, Moscow was not taken by the German divisions, and after the victory in May 1945, for Europe, these Anglo-Saxon leaders had to settle for the tremendous profits made by the arms and war industries. Very quickly the Iron Curtain fell.
Since the 2010s, Anglo-Saxon leaders have had to revise their plans in view of China’s rise, the prospect of an alliance between communist countries, Russia and China, and the rapid development of Asian countries.
Rapidly and wonderfully rich themselves through one or other financial crisis is no longer enough to bolster America’s threatened economic strength. The aim is to impoverish Europe by transferring its wealth to the North American continent and to the Asian countries closely controlled by the Anglo-Saxon oligarchy. Worse, the abandonment of Europe, the leading economic power when we take the level of the European Union and its twenty-seven countries, must not, if necessary, strengthen Russia’s economic power. To counter this threat, we might as well go to the destruction of the European economy.
Since the first Anglo-Saxon invasion of Britain around 450 AD, the Saxon warlords have slaughtered Christian populations by denying Christian Roman culture and its values, the suppression of slavery, the values of peace, love, wealth sharing, etc. Anglo-Saxon puritans with Cromwell. Here we repeat our comments in the external diagnosis for a new solid currency.
Cromwell will fight the king and the nobles and establish a short-lived Republican dictatorship. He has nothing of an insider in spiritual endeavor, seeking power through economic development and especially trade with the English colonies. For him, slavery is necessary for the development of settlements. In other words, they are predestined to govern the world and especially people predestined to be slaves … a whole program of the most criminal.
We already mentioned it in our first chapter of this essay, Civilization Choice: for nearly a century these puritan leaders have sought to impose and fulfill their eugenic, malthusian will, to save the world and humanity by drastically reducing the population. Some people in this world government are talking openly about a 60-80% reduction. We are here… and in the face of the rise in economic power of the communist countries, Russia and China, India and the Asian countries, this is about all that remains as a maneuver for these Anglo-Saxon puritans and their Anglo-Saxon financial oligarchy. This field of maneuvering is, of course, global and it is no longer simply a question of organizing conventional or even nuclear military wars. We will see in dossier 4 the use of chemical, bacteriological, viral, biological, climatic weapons, which these Anglo-Saxon leaders have already made and which they intend to develop in defense of their » global « government.
Let us follow the chronology of events that took place after 2010, when in principle the 2008 financial crisis could be stopped and eliminated.
the euro crisis and speculation against Europe, autumn 2011
This crisis corresponds to the willingness of Anglo-Saxon financiers to recover from the sub-prime crisis of 2007.
They will choose to attack Europe, especially through its weak point: Greece.
Financing the 2004 Olympic Games had widened the public deficit, but to enter the euro, Goldmann Sachs helped the Greek government hide some debts. Goldmann Sachs has entrusted this secrecy to the principal hedge funds, which are its clients and to whom it entrusts significant sums for hedge funds to earn very important interests and profits. It was during a dinner between the top 5 hedge funds on Wall Street on February 8, 2010, that they took to collusion to decide to attack the euro together by initially speculating on the public debts of the European states, starting with Greece and even attacking the German debt by refusing to buy the German treasury bonds on November 23, 2010 111.
These attacks on the euro benefit the United States and the United Kingdom, two countries that have really gone bankrupt as a result of decades-long neoliberal policies and at the hands of financiers far more than European countries. To avoid the dollar’s collapse, speculation against the euro spreads fear, and investors will seek refuge in American and English banks, which reinforce them and obscure their real difficulties and the economic crisis that is also present in both countries.
To respond to these speculative attacks, Europe is particularly ill-prepared and armed. The FED has just lent billions of dollars to business banks at 0.01 percent, which is like a kind of money printing press, and those banks lend to states at 600 times higher rates so that they can refinance their debts.
The BCE, according to its European regulation, does not have the right to issue currency, but it can easily lend to European states at the same rate of 0.01%. It is the anti-inflation monetary doctrine that some countries, such as Germany, have advanced to refuse to do the same as the US and Wall Street bankers.
so 1) to see the video of the conference which talks about the dinner of 8 February 2010 in New York between the 5 main hedges funds which agreed to lower their speculation against the euro and the public debts of the European countries :
doc 2) Secret agreement of speculators to bet against the Euro
Slovar – Associate blogger | Friday 26 February 2010 at 17:01 | Read 12971 times
It’s Le Figaro who teaches us: « Major hedge fund managers agreed at a low-key dinner in Manhattan to bet big on the euro’s decline, according to the Wall Street Journal on Friday. Among them is the American billionaire George Soros ». But yet?
For example, if George Soros – famous for “blowing up” the Bank of England – decides to put $10 million on a short position on the euro (down bet), he actually speculates with $200 million
But if the exchange rate falls by 10%, as it has in the last three months, George Soros will have earned some EUR 20 million on this trade. Excluding the 10 million which he initially committed, he remains in his pocket some 10 million euros. Rate of return: 100 percent in three months!
Before thinking about the possibility of a return to perfect equality between the euro and the dollar, these financial giants would have bet enormous sums on the euro’s withdrawal. But their enormous weight on international trade may well explain much of the decline in the European currency … /… in the foreign exchange market, called the Forex (for Foreign Exchange) professionals, it is possible to bet a hundred times. It’s the leverage.
In other words, with 10,000 euros, any investor who works on currencies can commit 1,000,000 euros to the market … / … these hedge fund stars are the first to take advantage of successive panics on the country’s public debt, which push Credit Default Swap (insurance contracts that manage the risk of a credit issuer) up, and the euro down. In a word, it’s the jackpot … / …
What has changed in the end since the beginning of the financial crisis that became an economic crisis? For hedge funds (including banks) nothing! But for the people of the European Union countries affected by the crisis: Decline in wages, closure or relocation of factories, unemployment or precariousness (see « 8 million poor people in France… and not finished »), increase in retirement age (see: “EU: a reform of pensions among the 27 needed according to Mr. Barroso “), reduction of social and health benefits, …
And naive as you are, we think that the heads of state and government at the G20 will be violently punching the table and taking decisive steps to counter these “vultures” of global finance!
doc 3) Bankers took over Europe: Goldman Sachs: A grip of power
by Paul Craig Roberts, Globalization.ca, November 27, 2011
On November 25, two days after the failed bid on German government bonds by which Germany was unable to sell 35% of its 10-year bond offers, German Finance Minister Wolfgang Schaeuble said that Germany could retract its demand that private banks that hold the distressed sovereign debt of Greece, Italy, and Spain, must accept part of their rescue package by erasing a portion of the debt.
Under no circumstances do private banks want to lose money and do so
- or by forcing the Greek, Italian and Spanish governments to appreciate the leaps by imposing extreme austerity measures on their citizens,
- or by having the support of the ECB, which will print euro with which they can buy sovereign debt from private banks.
Printing money to compensate for the debt is contrary to the ECB’s charter and particularly frightens Germans who remember hyperinflation in the Weimar Republic period.
Clearly, the German government received the message of the orchestrated failure of this bond bid. As I had written at the time, there is no reason why Germany, with its debt-to-GDP ratio relatively low compared to those of the struggling countries, should not be able to sell its bonds. Roberts talks about Eurobonds). If the value of Germany’s credit is in doubt, how can we think that Germany can save other countries? The evidence that the German bid failed on its bonds was orchestrated comes from Italy’s success two days later.
doc 4) “The policy imposed in Europe by certain governments on the European Central Bank (ECB),
to the extent that it has so far prohibited it from lending euros directly and without interest to countries in difficulty, seems to be incredibly out of place. It is so contrary to the interests of the European Union that one cannot help but see it as one aspect of the global conspiracy of financial interests against peoples.”
The ban on the use of the full currency in France since 1973.
The criticism becomes more virulent when we see that the Banque de France since 1800 is a private bank set up by the Parisian bankers with the blessing of Napoleon Bonaparte. In 1973, the Pompidou government (which worked at Rothschild) banned the Banque de France from issuing money for the French state, which is obliged to finance itself in the markets. In principle, competition in financial markets must bring favorable interest rates. It is the end of the Thirty Glorious and, more precisely, the end of the use of a quasi-Mint Full, the end of « the Treasure Tour » to finance without debt the reconstruction and modernization of France.
Finding: it has been since 1973 that public deficits have risen sharply in France, especially since with Keynesian theories, governments in favor of growth have advocated state intervention in the economy to finance large-scale construction and economic recovery.
Forty years later, this financial crisis is an opportunity to update the entire financial mechanism, which now imposes austerity measures on the grounds that people have lived too long beyond their means! This crisis is far from over unless the social explosion changes the game.
How Michel Rocard Wants to Save the Eurozone
doc 5: By LExpansion.com | Mar 3 Jan 2012 11:05 HNEC
In an op-ed piece at Le Monde, former Prime Minister Michel Rocard and economist Pierre Larrouturou lambasted the difference in the level of interest rates to which banks and governments are financing. And they’re coming up with their solutions to crisis.
“These are incredible numbers,” started Michel Rocard and Pierre Larrouturou in a preamble. In their column for Le Monde, the former prime minister and economist return to the gap between the interest rates of banks that have financed themselves over the last three years at extremely low rates, and those of states that had to finance themselves at prohibitive rates.
To illustrate this difference, Michel Rocard and Pierre Larrouturou are looking at the US Federal Reserve’s (FED) lending to US private banks. Bloomberg recently revealed that the Central Bank has lent $1.2 trillion “at an incredibly low rate of 0.01%,” the two authors say. But at the same time, these banks and all investors in the markets were lending to governments at much higher rates. Rates that could fluctuate from 6% to almost 9%, or “600 times more than banks” – a level that is obviously impossible to maintain in the long run. One of the main victims, Italy, saw its ten-year interest rate rise to more than 7% in November.
Direct consequence: governments must impose draconian austerity measures to restore confidence in markets and reduce the level of these rates. “Assumed by such interest rates, governments are forced to freeze pensions, family allowances or civil servants’ salaries and cut investment, which increases unemployment and will bring us down.
The Fed supported an insolvent banking system and generated huge profits for Wall Street.
Well, the Fed has been doing the same thing for seven years — pouring money into the financial system, while predicting stronger growth. That seems to suggest that the Fed is crazy, but is it?
No, not at all, in fact, FOMC 1 members are extremely brilliant, well-trained professionals with a strong knowledge of the economy and the many subtleties of the financial system. These are smart guys, really smart guys. So maybe they have an unspoken pattern. Maybe that’s why they’re sticking to policies that have failed all of those years.
But then, if they have a behind-thought, what is it? What is their purpose?
The best way to answer this question is to simply follow the money trail. We’ve already seen that QE and zero have done nothing for growth. So the question is: Where have these policies made the most difference?
In the stock market, of course!
Did you know that the Dow Jones Industrials (DJIA) index fell on March 9, 2009 to 6,507 points? On Thursday, September 15, 2016, the Dow Jones finished the day at 18,211 points, nearly three times as much. The same applies to the S&P 500, which slipped to 676 index points in March 2009, but rebounded to 2,147 yesterday afternoon. Then there’s the Nasdaq that did even better, bouncing, after a 1,268-point abyss in 2009, to 5,249, again yesterday.
Now, if stock prices are going up because of healthy economic fundamentals, then that’s just great, because it means that the underlying force of the economy is driving the increase in the value of stocks. But if stock prices go up because the people who are supposed to be the arbiters — the Fed — cheat the system by printing billions of dollars to water the financial markets, so that their crooked buddies can send their kids to Ivy League schools [the establishment cream] and hang out nearby in Lamborghini, then that’s not as great.
When the Fed pumps liquidity directly into the financial system, such liquidity cannot be called monetary stimulus precisely. This is no more a stimulus than if the Fed had put a billion dollars in your nascent young business around Trifouillis-les-Oies. It’s a grant, a gift, a handout. In any case, $3 trillion is a substantial amount, enough to trigger the wick and send stock markets into the stratosphere. What happened. Now don’t get me wrong, stocks have not tripled, because production, income and growth are all soaring to the sound of the buzz. It’s not at all that, in fact, they’re all exceptionally weak.
The stocks are in a stratospheric cloud, because the Fed’s incessant interventions have kept them up, supporting an insolvent banking system and generating giant profits for Wall Street.
Let’s call it the Central Bank’s Great Scam Policy, because that’s what it is. The Fed is simply a apparatchik agency that trades the scales, to make sure that all the spoils go to its vampire masters.
This greatly accelerated class struggle is now a global phenomenon.
That’s how the system works. Here is a bit more background, explained in an article by WSWS [World Socialist Web Site]:
« A new report published by the Swiss bank Credit Suisse estimates that inequality in global wealth continues to rise and has reached a new stage, with the top 1% holding more wealth than the remaining 99.
The total amount of global assets is $250 trillion.
The top 10 percent own 87.7 percent, leaving 12.3 percent of the remaining 90 percent of the population. »
Source: Top 1% own more than half of world’s wealth, World Socialist Web Site
Banking regulation or deregulation
A banking process had been put in place by the Roosevelt government to try to curb the financial crisis of 1929.
We saw it earlier, the Glass-Steagall Act. That is to say, separate the activity of banks between deposits and investments of banks in order to put the banks back into the productive investment circuit and not into the speculation circuit in 1933.
We are back to this desire to separate the activities of commercial banks in 2011 in an attempt to eliminate the financial policies of the Fed and central and commercial banks.
Lyndon LaRouche writes about the looming downfall of the financial system.
The solution exists and is known to financiers as politicians, but its application divides international financial circles. One says « No, let’s start a bailout spree before I leave, because I have this investment to save. You can’t let me down now, you have to bail him out. » The other faction responds « Don’t be foolish, if we give you a bailout again, we’ll all sink ».
« In fact, if we want to get by, this situation requires a Glass-Steagall-equivalent procedure: only the winding up of the toxic debt, the debt that bailouts have created since 2007-2008 as much as the debt that was created before, can save us.
The international system on both sides of the Atlantic is a pile of financial trash; he will never be saved. What is happening now is that they are speculating at an increasing cost in an attempt to save the debts that were previously incurred, when this kind of debt should never be saved!
Cancel the bad debt
« So how do we figure out what needs to be saved and what doesn’t? Valid financial assets must be distinguished from those that are purely speculative, such as Wall Street and the London market, which have no value. The only way to save the economies on both sides of the Atlantic is to write off these worthless debts. We have a procedure in the United States which allows us to escape this, and which would also work for Europe: cancel the bad debt.
« How? Glass-Steagall! It’s an American invention that Europe can take back. The U.S. needs to reinstate Glass-Steagall first, because we already have all the tools and legal understanding to do that. Europe, for its part, does not have that experience but is smart enough, at least some people there, to do so. They will set an example on the United States, if only to save their bottom.
« In the face of this, there are people who say « no, I have claims at stake… you’re going to make me lose some money! It’s my money! » Well it’s not money, it’s worthless currency.
« With Glass-Steagall, we put all the worthless debts in the financial basket, on the side of the business banks – that is, the trash – and we save the other debts linked to real and legitimate investments. So toxic debts are no longer the responsibility of governments; without this public guarantee, these debts will die on their own. The thousands of billions of dollars of debt will be wiped out from this planet, because they are, anyway, false debts from the start! They’re not safe. But if we don’t get rid of that debt, the entire system will collapse and the whole world will descend into a dark age.
« For example, look at the situation in Britain: this internal conflict is breaking out. I’m not going to go into the details now, but that’s a fact. [*] There are some people there who realize that this debt has to be canceled. That is why there is a factional conflict in Britain. And so is the case with the Strauss-Khan case, and also with other cases.
The truth is, none of this is accidental. These results are the direct result of a will, the Fed’s policy. And the Fed is not alone either. This greatly accelerated class struggle is now a global phenomenon. Just look at this delicacy; I found it in a CNBC article:
« J.P. Morgan’s data shows that the world’s top 50 central banks have reduced rates 672 times since Lehman Brothers collapsed in 2008, a figure that translates into an average interest-rate cut every three days. This has also been associated with asset purchases of $24 trillion»
Source: QE Infinity: Are we heading into the unknown?, CNBC
24 trillion dollars!
This is the biggest bank robbery in human history, and what have we learned from it?
Nothing, nothing at all, ball skin, that’s what we got! All of the data is at a glance, and global growth has slowed to a halt. It was as if all the money that was supposed to reinforce the fictional recovery had just evaporated. Poof!
So why haven’t those $24 trillion made more impact? Why is there not more inflation, activity, spending, consumption and growth?
It’s because wherever the global banking cartel has its tentacles, the same austerity and QE policies have been adopted — Japan, United Kingdom, EU, United States, etc.
Everywhere you look, it’s caviar and Dom Pérignon for the investor class, and gruau and food for everybody else. Economies everywhere are gutted, plundered, dug by financial parasites that seek greater gain by cutting wages, reducing benefits and pensions, eviscerating the living standards of the ploughs of ordinary workers, while the big handlers of the money live Riley’s life. Everywhere, you starve the beast to wash the master.
Of course, they were unable to do so because of the blackmail exerted by most European powers; but the principle remains the same.
« But we’re talking about a deliberate will: if a group of nations decides to take the Glass-Steagall approach to order a system that goes bankrupt in its own right, it is possible to get by, but it cannot be done by saving debts without values. They must be canceled. Either you cancel them, or they will annihilate you.
Our job is to save the U.S. economy and to cooperate with countries like Britain, Germany and others that want to save their country rather than these values-free debts. It’s the only way to salvation.
Anyone who opposes Glass-Steagall now, especially in the financial world, is actually demanding that the rest of society commit suicide, of which they themselves will not be spared. Those who oppose Glass-Steagall now can still claim mercy by pleading madness, a category that includes the current President of the United States. All he has to do is leave his job and he will have the mercy he deserves. »
This position of a controversial American politician is based on common sense even though it is hostile to the strategy of the financial oligarchy. European leaders are applying it to Greece by removing half of the Greek debt (as of 27/10/2011).
A political-financial cabal to deregulate finance.
document: The US Treasury accused of selling the world to bankers.
23/08/2013 at 17:04 Philippe Vion-Dury | Journalist
« In the late 1990s, senior US Treasury officials conspired secretly with a small cabin of big business caps to tear up financial regulation around the world. »
A political-financial cabin
This memorandum would thus be nothing less than the genesis of the global financial crisis and the « blood and tears » which have flowed from it.
Dated November 24, 1997, author Timothy F. Geithner wrote to his « boss », US Treasury Assistant Secretary Larry Summers, about the latest WTO deals:
« As we enter the final straight line in the WTO negotiations on trade in services, I think it would be a good idea for you to have a word of it with the CEOs of the major banks and stock companies that have followed the negotiations closely. »
Timothy Geithner then shares the list of the five most powerful CEOs on the planet (then): Bank of America, Goldman Sachs, and JP Morgan are on the board.
The purpose of these telephone interviews: prepare for deregulation — or open Pandora’s box, depending on your point of view.
Act I: break regulation
What they’ve all discussed after, the memo doesn’t say. But Greg Palast explains what comes next as a « global financial coup » to deregulate all banks around the world all at once – and put them under the domination of American vultures.
The first was to break the wall between a deposit-taking bank and an investment bank established by the Glass-Steagall Act of 1933 – and prevent another « Great Depression ». And it’s great: in 1997, the wall is already very porous and exceptions to the rule rain.
The US Treasury, for its part, is a bulwark in any attempt to regulate financial derivatives. In the aftermath, President Clinton will declare that the Glass-Steagall « Act is no longer appropriate ». Two years later, its repeal will mean the beginning of the reign of financial deregulation.
Act II: break borders
Act Two is more delicate and frankly Machiavellian, as the journalist explains:
« Why, then, would American banks be turned into derivatives casinos if money runs away to safer nations? The answer from the top five banks: eliminate bank controls in every nation on the planet – all at once. It was as bright as it was terribly dangerous. »
The US Treasury, which has paid for the banking lobby, has therefore used the negotiations on the new WTO agreement. The General Agreement on Trade in Services (GATS) will be concluded in December 1997, one month after the memo, and will enter into force in 1999.
While the WTO was only considering goods, the GATS is paving the way for trade in financial instruments and assets that will be largely responsible for the current crisis.
Pandora’s box is now wide open:
« Among the famous legalized transactions: Goldman Sachs (Treasury Secretary Rubin was vice president) worked with Greece on a bond swap that ultimately destroyed this nation.
Ecuador, once its banking sector was deregulated and demolished, was ravaged by riots
Argentina had to sell off its oil companies and water supply systems while its teachers were looking for their livelihoods in the garbage. »
Gamers, on the other hand, have not experienced the crisis
For the author, Larry Summer is the » snake « and Geithner is his » « with the task « turning the deals into ram for » bankers. To the fullest of cynicism, he highlights the career path of the various players involved in the maneuver:
Robert Rubin, Treasury Secretary in 1997, led the Citigroup whose creation was allowed by deregulation of finance. While this « financial monstrosity » sunk in 2008 following a 70% drop in his action, Rubin came to the fore with EUR 100 million under his arm;
Larry Summers replaces his mentor Robert Rubin as the head of the United States Treasury under the Clinton administration. He then took over Harvard as an adviser for » « hedge funds and gave talks worth $135,000 for JP Morgan, Goldman Sachs and others, increasing his fortune by some €23 million. In 2009, he became one of Obama’s special advisers and took over the National Economic Council. He is now expected to lead the US Federal Reserve.
Greg Palast, however, relativiszes the importance of the memo:
« Is all this pain and suffering from a single memo? No, of course: the evil was the part itself, played by the bankers’ clique. The memo only reveals their game tactics to defeat and mate. »
Tax evasion, September-October 2021
Document: Le Parisien, by Clémence Bauduin On 4 October 2021 at 3:10 p.m.
Pandora Papers: 5 minutes to understand new tax evasion revelations
The revelations « Pandora Papers»
Just over five years after the revelations « Panama Papers », the International Consortium of Investigative Journalists publishes a new investigation that suggests that illegal financial arrangements are far from gone. Some of them benefit key politicians.
Did you like the Panama Papers or the Paradise Papers? The Pandora Papers still hold many secrets about the financial mantle that would fuel some of the world’s greatest fortunes. The International Consortium of Investigative Journalists (ICIJ) published on Sunday the start of its new work, after reviewing 12 million confidential documents obtained from an anonymous source. These documents reveal countless abuses that benefit some political leaders, among others.
Pandora Papers, what is that?
The Pandora Papers are the 9th survey published by the ICIJ, the main weapons of which were the Swiss Leaks (2015) or the Panama Papers (2016). These new revelations stem from the leak, made possible by an anonymous source, of 12 million documents on the offshore finance world from 1996 to 2020.
A total of 14 firms, specializing in the creation of fictional companies and financial constructions, are pinned. One word comes up very regularly: opacity. A practice set up in credo in the financial centers of certain tax havens, which allows to conceal profits or to launder money while guaranteeing the anonymity of users, « over generations » according to our fellow ICIJ partner Le Monde newspaper.
Czech Republic, Congo, Malta, France, United Kingdom.. Political leaders from more than 90 countries are cited in the revelations of the Pandora Papers. In concrete terms, the ICIJ has 300 public officials, 15 top political figures in office, 35 current and former heads of state, 130 billionaires, and popular stars from the world of song, sport and fashion.
The revelations highlight the alleged practices of a king currently in power, Abdullah II of Jordan, who enjoys nearly fifteen luxury residences in the United Kingdom and the United States obtained through some 30 shell companies, fictional companies based in the British Virgin Islands and Panama.
The list of political leaders also includes seven presidents, such as the Cypriot Nicos Anastasiades, the Congolese Denis Sassou Nguesso or Ecuadorian Guillermo Lasso.
The names of four current prime ministers also emerge from revelations. The Pandora Papers also tell us that Andrej Babis, the current Czech Prime Minister, is the happy owner of 40,000 m² that has not been declared in southern France, or that the current Lebanese Prime Minister Najib Mikati has used a Panamanian company to acquire property in Monaco. In Brazil, the name Paulo Guedes, the current Minister of Economy, is also cited.
Other figures today set back from political life make them speak of themselves. This is the case of former British Prime Minister Tony Blair, who, according to the survey, used an offshore arrangement with his wife Cherie in 2017 to save himself nearly €400,000 in tax on the purchase of a fine London building, thanks to a company based in the British Virgin Islands. The same tax haven would also have been the delight of former Maltese Commissioner and former Minister John Dalli.
While politicians are in good place, world-renowned personalities are featured in the Pandora Papers, such as English singer Elton John, Colombian singer Shakira, former German supermodel Claudia Schiffer, former Formula 1 Canadian pilot Jacques Villeneuve, and Spanish singer Julio Iglesias.
Are there any Frenchmen among the fortunes being sought?
So far, there is little information about the 600 French people who are pinned in the revelations. The name of former Minister Dominique Strauss-Kahn, the main suspect in the Sofitel scandal, is accused in this investigation of having sent several million dollars of consultancy fees to companies through a Moroccan company that is tax-free.
The Pandora Papers also mention « a handful of French politicians, who are often silenced when explaining the raison d’être of their offshore companies » without giving their names so far. It also appears that a right-wing conspiracy « used, according to Le Monde, a Seychellois company to sell » books and miracle pills. The identity of the latter is not yet revealed.
What can be done to these revelations?
In most countries, the Pandora Papers, as dizzying as it may be, are not subject to prosecution. By March 2015, the Panama Papers had given birth to several dozen surveys in France, which had enabled the reinjection of 25 million euros into the traditional circuits of the country’s economy.
These revelations also demonstrate how anti-corruption rhetoric by some leaders is out of touch with reality, and their democratic reach cannot be denied. During the Panama Papers revelations, major protests led to the resignation, among other things, of Icelandic Prime Minister Sigmundur David Gunnlaugsson, whose investigation revealed that he owned a fictional company on his behalf.
The revelations of these international cascading scandals also show that despite the magnitude of the Panama Papers revelations, the world of offshore finance has continued to thrive. « Some firms have not stopped taking over (Mossack Fonseca) » (NDLR), the Panamanian company behind the Panama Papers scandal, by recovering its portfolio of offshore companies », notes Le Monde. Evidence that the latest revelations have yet to serve to eradicate a problem that even international actions alone could not stem.
end of document.
Global earthquake: 11.3 trillion tax evasion, 35 heads of state and 130 billionaires implicated by the « Pandora Papers»
Insubmission, 4 October 2021
Global Tsunami. 11.3 million dollars. That’s the amount of tax evasion. New revelations with the Pandora Papers », the largest investigation ever conducted by the International Consortium of Investigative Journalists (ICIJ).
Over the past few months, 600 journalists from 150 media outlets in 117 countries have scanned 11.9 million documents from 14 firms that specialize in setting up offshore companies. And the result of the survey, published on Sunday, October 3, 2021, is expected to cause a global earthquake: Thirty-five heads of state and 130 billionaires are involved. The total amount of tax evasion is 11.3 trillion: it would take 267 billion, 2.6 percent of that money, to solve global hunger. It would take $5 billion to expand the RSA to 18- to 25-year-olds. While the topic of security is pervasive in the media, let’s talk about crime in 2022.
And yet, the consequences of this global burglary are very concrete: our hospitals are allowing patients to die in the corridors because of poor means. Our caregivers have faced the most devastating health crisis of the century … in garbage bags. Our teachers are teaching classes of 35 students and starting with a salary just above minimum wage. The minimum wage is still frozen, as is the benchmark for civil servants. It’s now estimated that more than 10 million people are living below the poverty line in our country. Our students line up to be able to eat. And so on.
By Pierre Joigneau.
Banking secrecy is dead, long live tax evasion
Myret Zaki, from 2011: Banking secrecy is dead, long live tax evasion
reaction on FB of 5/10/2021
In 2010, this book appeared (written by Myret Zaki). He predicted that offshore trusts would become the tool of choice for tax evasion, after the death of Swiss bank secrecy, and that the US would recover the market of Switzerland’s undeclared customers. That Anglo-Saxon jurisdictions would benefit from the death of bank secrecy — Cayman, or US states like Delaware, Dakota, Wyoming — and capture the lion’s share of undeclared assets through trust, a far more sophisticated tool than bank secrecy.
The #PandoraPapers reveal this word for word and reveal the immense potential for opacity of trusts, which I pointed out in detail in this book 11 years ago. In recent years, it has often been said that no, tax evasion is behind us, and it is perfectly regulated by the OECD.
But, as I predicted, this was not the case, because geopolitics plays a major role. Great powers like the US can allow themselves tax-avoidance practices that look like the 1970s and 1980s, but they are even more opaque, while at the same time denying them to the rest of the world.
As well as jurisdictions controlled by the United Kingdom (Virgin Islands, Cayman) and China (Hong Kong). So I can only repeat the conclusion of the book, which is still valid for 11 years: if embracing tax evasion and money laundering on its soil, without being worried, is indeed a privilege of great powers, and especially of nuclear powers (an assertion that many have failed to swallow, but which is the obvious proof of our state of the world, every day proven by the facts).