- What are derivatives? Some investors describe them as
"dormant economic weapons of mass destruction". They essentially
are large leveraged bets on top of stocks, bonds and commodities. Money
can be made within months or seconds by betting if a stock will go up,
down or even remain the same. With no credit rating you can place a bet
worth double your account balance. Big time investors get greater leverage
with these instantaneous loans.
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- The New York Times, Oct 8th 2008: "The derivatives
market is $531 trillion, up from $106 trillion in 2002". This market
is setup with odds similar to a racetrack. Trillions are won and lost (transferred)
every second. But unlike a racetrack the big players have ultimate control.
Their trillions can make stocks move. A 4% up swing in a stock can cause
a derivative bet to rise more than 100% in value or vice versa. A low performing
stock that rises only 6% a year could actually have many 3, 6 or 9 percent
swings weekly or monthly (some stocks daily). There are billions to be
made over and over again by the people that control billions and trillions
thus the markets. A grand game approved by the top.
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- The globe's GDP is at $60.1 trillion.
The globe's total financial assets were reported as $167 trillion
in 2006. A few trillion lower today no doubt. The highly volatile derivatives
market is worth noting because it dwarfs the entire world's GDP and total
financial assets combined.
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- Alan Greenspan, the former long-term chairman of the
central bank of the United States, constantly double-spoke over his career.
He made statements that the current unchanged derivatives market is the
best thing since sliced-money and occasionally he gave dire warnings. On
May 9th 2003 the New York Times published the following: "Mr.
Greenspan, as he has done in the past, praised derivatives, saying their
benefits materially outweighed the risks and had insulated the financial
system from the stock market crash and economic downturn." New
York Times, Oct 8th 2008: "Mr. Greenspan warned that derivatives could
amplify crises because they tied together the fortunes of many seemingly
independent institutions. 'The very efficiency that is involved here means
that if a crisis were to occur, that that crisis is transmitted at a far
faster pace and with some greater virulence,' he said." With double-speak
Greenspan can always be "right" in his autobiography. Historians
can choose if he was one of the "experts" giving warnings or
they can put the blame on him. Quite often the qualified "experts"
that helped crash a system are the ones in charge of building the next
system.
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- The $531 trillion dollars derivatives market contains
a mind-boggling amount of high-risk credit in the hands of a small few
that could completely finish off the collapse of the current global economy
(for a new global replacement). New York Times, May 9th 2003: "he
detailed the potential dangers to financial markets if a big derivatives
dealer had to exit the market. In his speech, delivered to the conference
by satellite, Mr. Greenspan said that a single dealer accounts for about
a third of the global market in both interest rate and credit derivatives,
and a few dealers account for more than two-thirds."
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- Playing with people's lives
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- The span between the green-cash haves and have-nots grew
larger under Greenspan. The majority of people around the world rely on
the economy for their livelihoods. But what runs the integrated global
economy? Credit!
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- Greenspan is not one of the minority with trillions of
dollars, and trillions more in credit, tied in derivatives. His work was
benefiting the dominant minority of the market. Those who own the gold
get others to make their rules. If everything runs on money and you own
the money, it's easy to run things.
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- The new financial system is currently being openly discussed,
if not already fully constructed on paper. Have no doubt that the paid
"experts" will be given plenty of corporate and government media
time sprouting how wonderful the new system will be for the ordinary man
while saying enough bad things about the old system to keep us happy or
they might even put the blame on the "greedy public". A few bank
employees (bank managers) have already been scarified in the media. Of
course, the real economic managers, the top bank owners, will create the
new system. The same people that profited from the sheering of the current
system.
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- The trillion dollar banking families of the globe don't
want to end their river of wealth, making easy money from the public, which
means the World Bank and the European Central Bank don't what that either.
The current system would be updated with desired regulations (a better
game for a few) and new banking language that the general public don't
understand, like with any good con. However, not until after some turmoil
as turmoil is needed for large-scale changes to be accepted. As the EU
Commission President, Manuel Barroso, said, "the kind of
occasion where the crisis calls in to question all certainties and minds
are more open to change, these are very special moments." A spokesperson
for the upcoming system, Gordon Brown, said all that the nation
bankrupting bailouts and social chaos are "the difficult birth pangs
of a new global order" and the expert's "task now is nothing
less than making the transition to a new internationalism," reported
by the Daily Mail on Jan 27th 2008. This is what happens when people desire
to be managed.
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- Who runs what?
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- What did Milton Friedman, a Nobel Prize winning economist,
have to say about the track record of the central bank in the United States?
He said, "the Federal Reserve definitely caused the Great depression
by contracting the amount of currency in circulation by one-third from
1929 to 1933." Contracting or inflating the money supply are only
two tools among many utilised by central banks to direct economies.
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- No individual running the European Central Bank are elected
by the public, they are hand picked, and no EU institution has authority
over the decisions of the ECB. The ECB is an independent corporate entity.
Article 106.2 of the EU's 1992 Maastricht treaty states,
"the ECB shall have legal personality". Article 107 says the
ECB and national central banks are totally independent from member state
governments and "any other body" including the EU. It even forbids
"the community of institutions and bodies" and "any government
of a Member State or from any other body" from instructing or advising
the ECB and national central banks. Article 108.2 allows the ECB to publish
or withhold any or all information on decision-making. As we all know,
the ECB have the "EXCLUSIVE right to AUTHORIZE the issue of bank notes
within the Community."
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- Although acquitted, the European Central Bank President, Jean-Claude
Trichet, was on trial with eight others for his part in signing off official
accounts during a time of fraud at one of France's biggest banks (Credit
Lyonnais) which resulted in a ¤31 billion Euro bailout. The
"right" kind of people always seems to get picked for the top.
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- On June 25th 2007 while everyone was happy with the booming
economy the Telegraph published that the Bank for International
Settlements', the ultimate bank of all central banks, 77th annual report
talked of a coming global depression. The people behind this bank don't
have crystal balls. They are the movers and shakers that make things happen.
Great depressions (great for some) create fantastic discounts for those
with credit and bust those "nasty" competitors, especially the
many small family run competitors. Since Sept 2007 billions of national
emergency funds have been injected in to the global financial markets keeping
buyers for the large sellers. Bank stocks lost almost 50% of their value
byDec 2007. The 6 o'clock news did not tell people about the credit crash
until late 2008. Wait until the derivatives bubble in the hands of
a small few pops, then we'll have a brand new global financial architecture
and it certainly won't be good for the people if we allow the crisis creators
to build it.
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- Removal of control over people's livelihoods and lives
is needed for once.
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