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Posts Tagged ‘Goldman Sachs

 

Greece — The One Biggest Lie You Are Being Told By The Media

The Greek referendum gave 61% NO.

If the government had failed to reinstitute the State media and TV, the western media would have done big damage to the outcome with their terror tactics.

The biggest worry of the EU politicians is “How to deal with Spain Podemos movement”.

The quicker EU deal fairly with Greece, the softer the  fall.

If you failed to check the top posts this day July 5, 2015

John Cunningham posted:

Every single mainstream media has the following narrative for the economic crisis in Greece:

the government spent too much money and went broke; the generous banks gave them money, but Greece still can’t pay the bills because it mismanaged the money that was given. It sounds quite reasonable, right?

Except that it is a big fat lie

Not only about Greece, but about other European countries such as Spain, Portugal, Italy and Ireland who are all experiencing various degrees of austerity. It was also the same big, fat lie that was used by banks and corporations to exploit many Latin American, Asian and African countries for many decades.

Greece did not fail on its own. It was made to fail.

In summary, the banks wrecked the Greek government, and then deliberately pushed it into unsustainable debt … while revenue-generating public assets were sold off to oligarchs and international corporations.

The rest of the article is about how and why.

If you are a fan of mafia movies, you know how the mafia would take over a popular restaurant.

First, they would do something to disrupt the business – stage a murder at the restaurant or start a fire.

When the business starts to suffer, the Godfather would generously offer some money as a token of friendship.

In return, Greasy Thumb takes over the restaurant’s accounting, Big Joey is put in charge of procurement, and so on. Needless to say, it’s a journey down a spiral of misery for the owner who will soon be broke and, if lucky, alive.

Now, let’s map the mafia story to international finance in 4 stages.

Stage 1: The first and foremost reason that Greece got into trouble was the “Great Financial Crisis” of 2008 that was the brainchild of Wall Street and international bankers.

If you remember, banks came up with an awesome idea of giving subprime mortgages to anyone who can fog a mirror. They then packaged up all these ticking financial bombs and sold them as “mortgage-backed securities” for a huge profit to various financial entities in countries around the world.

A big enabler of this criminal activity was another branch of the banking system, the group of rating agencies – S&P, Fitch and Moody’s – who gave stellar ratings to these destined-to-fail financial products.

Unscrupulous politicians such as Tony Blair joined Goldman Sachs and peddled these dangerous securities to pension funds and municipalities and countries around Europe. Banks and Wall Street gurus made hundreds of billions of dollars in this scheme.

But this was just Stage 1 of their enormous scam. There was much more profit to be made in the next three stages!

Stage 2 is when the financial time bombs exploded. Commercial and investment banks around the world started collapsing in a matter of weeks. Governments at local and regional level saw their investments and assets evaporate. Chaos everywhere!

Vultures like Goldman Sachs and other big banks profited enormously in 3 ways:

1.  They could buy other banks such as Lehman brothers and Washington Mutual for pennies on the dollar.

2.  Goldman Sachs and insiders such as John Paulson (who recently donated $400 million to Harvard) had made bets that these securities would blow up. Paulson made billions, and the media celebrated his acumen.

(For an analogy, imagine the terrorists betting on 9/11 and profiting from it.)

3.  To scrub salt in the wound, the big banks demanded a bailout from the very citizens whose lives the bankers had ruined! Bankers have chutzpah.

In the U.S., they got hundreds of billions of dollars from the taxpayers and trillions from the Federal Reserve Bank which is nothing but a front group for the bankers.

In Greece, the domestic banks got more than $30 billion of bailout from the Greek people. Let that sink in for a moment – the supposedly irresponsible Greek government had to bail out the hardcore capitalist bankers.

Stage 3 is when the banks force the government to accept massive debts.

For a biology metaphor, consider a virus or a bacteria. All of them have unique strategies to weaken the immune system of the host. One of the proven techniques used by the parasitic international bankers is to downgrade the bonds of a country.

And that’s exactly what the bankers did, starting at the end of 2009. This immediately makes the interest rates (“yields”) on the bonds go up, making it more and more expensive for the country to borrow money or even just roll over the existing bonds.

From 2009 to mid 2010, the yields on 10-year Greek bonds almost tripled!

This cruel financial assault brought the Greek government to its knees, and the banksters won their first debt deal of a whopping 110 billion Euros.

The banks also control the politics of nations.

In 2011, when the Greek prime minister refused to accept a second massive bailout, the banks forced him out of the office and immediately replaced him with the Vice President of ECB (European Central Bank)! No elections needed. Screw democracy. And what would this new guy do? Sign on the dotted line of every paperwork that the bankers bring in.

(By the way, the very next day, the exact same thing happened in Italy where the Prime Minister resigned, only to be replaced by a banker/economist puppet. Ten days later, Spain had a premature election where a “technocrat” banker puppet won the election).

The puppet masters had the best month ever in November 2011.

Few months later, in 2012, the exact bond market manipulation was used when the banksters turned up the Greek bonds’ yields to 50%!

This financial terrorism immediately had the desired effect: The Greek parliament agreed to a second massive bailout, even larger than the first one.

Now, here is another fact that most people don’t understand.

The loans are not just simple loans like you would get from a credit card or a bank. These loans come with very special strings attached that demand privatization of a country’s assets.

If you have seen Godfather III, you would remember Hyman Roth, the investor who was carving up Cuba among his friends. Replace Hyman Roth with Goldman Sachs or IMF (International Monetary Fund) or ECB, and you get the picture.

Stage 4: Now, the rape and humiliation of a nation begin.

For the debt that was forced upon them, Greece had to sell many of its profitable assets to oligarchs and international corporations.

And privatizations are ruthless, involving everything and anything that is profitable.

In Greece, privatization included water, electricity, post offices, airport services, national banks, telecommunication, port authorities (which is huge in a country that is a world leader in shipping) etc.

In addition to that, the banker tyrants also get to dictate every single line item in the government’s budget.

Want to cut military spending? NO! Want to raise tax on the oligarchs or big corporations? NO! Such micro-management is non-existent in any other creditor-debtor relationship.

So what happens after privatization and despotism under bankers?

Of course, the government’s revenue goes down and the debt increases further. How do you “fix” that?

Of course, cut spending! Lay off public workers, cut minimum wage, cut pensions (same as our social security), cut public services, and raise taxes on things that would affect the 99% but not the 1%.

For example, pension has been cut in half and sales tax increase to more than 20%. All these measures have resulted in Greece going through a financial calamity that is worse than the Great Depression of the U.S. in the 1930s.

Of course, the ever-manipulative bankers demand immediate privatization of all media which means that the country now gets photogenic TV anchors who spew propaganda every day and tell the people that crooked and greedy banksters are saviors; and slavery under austerity is so much better than the alternative.

If every Greek person had known the truth about austerity, they wouldn’t have fallen for this.

Same goes for Spain, Italy, Portugal, Ireland and other countries going through austerity.

The sad aspect of all this is that these are not unique strategies. Since World War II, these predatory practices have been used countless times by the IMF and the World Bank in Latin America, Asia, and Africa.

This is the essence of the New World Order — a world owned by a handful of corporations and banks.

So, it’s time for the wonderful people of Greece to rise up like Zeus and say NO (“OXI” in Greece) to the greedy puppet masters, unpatriotic oligarchs, parasitic bankers and corrupt politicians.

Dear Greece, know that the world is praying for you. Vote NO to austerity.

Say YES to freedom, independence, self-government, and democracy. Yes, democracy, the word that was invented by YOU!

P.S. (You can also watch this video where John Perkins – author of “Confessions of an Economic Hit Man” – talks about exploitation of Latin American and Asian countries using the same tools of debt-austerity-privatization. He used to do this for a living!   https://www.youtube.com/watch?v=RVsB07CcSNw )

George W. Bush explains: The financial crisis

“The information and pieces of intelligence I had, the principles that I followed, and the decisions that I took…In a few decades, I hope to be appreciated as a President who kept his promises to protecting his country…A president who took advantage of the influence of America in order to disseminating liberty…Whatever is the verdict of History, I wish I am no longer among the living.” G.W. Bush

I am reading the French version of “George W. Bush: Decisive moments”.  I consider this book an “Official documents”: A President of the USA is not entitled to lie on facts.  It is our duty to mine this document for another set of facts in order to rectify distorted images and impressions.

“In my first budget of 2001, I warned of the two gigantic private societies of Fannie Mae and Freddie Mac.  These two powerful financial institutions, guaranteed by Federal government, have grown to be potential problems:  They expanded outside their initial guidelines of promoting private properties into functioning within speculative funds.  Fannie Mae and Freddie Mac had huge leverage compared to institutions of same size and initial capital: vast amounts of transactions were done with all kinds of investment enterprises, and they were taking huge risks susceptible of carrying decisive repercussions in the financial markets.”

My plan was to reduce taxes. By 1999, taxes represented the highest share in the GNP since WWII.  President Clinton and Congress had agreed to increase discretionary expenses by 16% in 2001. In March 2001, we witnessed a recession and I begged Congress to act quickly on my tax reduction reforms of 1.35 billion.  Tax reform will not take effect until 2003.(See note 1)

Then, the attack on the Twin Tower in 9/11/2001 devastated our economy.  The US lost 500 billion in a single year, an additional one million workers were out of jobs, airliners had no passengers, and tourism dropped 90%.  Whatever budget surpluses we had vanished in thin air.

In 2003, I advanced a project of laws to tighten regulations on Fannie Mae and Freddie Mac, which enjoyed government support.  It turned out that most high level personnel in Fannie Mae and Freddie Mac and the key deciders, were previous government officials and these enterprises had established vast web connections and interests among the Congress and Senate members, particularly with democrats.  For example, Chris Dodd and Barney Franks who declared: “Fannie Mae and Freddie Mac are not facing any financial crisis.”

In the 2005 budget, I iterated my strong warning: “Enterprises and organizations financed by federal governments are viewed by financial enterprises as enjoying strong leverage compared to other private enterprises.  Consequently, any minor error in government supported financial institutions can send devastating waves in the country economy…”

Treasury secretary John Snow worked closely with Senator Richard Selby, president of banking committee, for stricter regulations that would reduce the portfolio of government guaranteed financial institutions.  The democrats in the Senate opposed the reforms.

Investment bank Bear Stearns was facing serious liquidity problems in March 13, 2007:  This financial institution had borrowed $33 for each dollar in capital as leverage to invest in real estates titles. Treasury secretary Hank Paulson, (a former investment banker of Goldman Sachs), found a buyer in JPMorgan Chase on condition that the government extend a loan of 30 billion to purchasing “toxic titles”. JPMorgan Chase purchased Bear Stearns for $2 a share.

By summer 2008, I had demanded the financial regulation reform 17 times.  In July 2008, Congress adopted the reform, but gave the treasury secretary additional power to injecting capitals Fannie Mae and Freddie Mac to maintaining liquidity, if need be. Jim Lockhart realized in August 2008 that Fannie Mae and Freddie Mac were on the verge of bankrapcy.  China and international financial institutions were dead certain that Fannie Mae and Freddie Mac were financially guaranteed by the Federal government.

Treasury secretary Hank Paulson decided to place Fannie Mae and Freddie Mac under direct government supervision.  Paulson said: “We’ll act so swiftly and take them by surprise, Fannie Mae and Freddie Mac won’t have time to say ouf!”  Amazingly, Fannie Mae and Freddie Mac decided not to challenge the decision in court.

On September 2008, Lehman Brothers declared a loss of 4 billion in the last quarter and its stock market dropped from $16 to 3.6.  Bank of America was more interested in acquiring Merrill Lynch, and the British bank of Barclay was faced by a rejection of the British government for the deal.  On Monday Sept. 15, the 158 year-old investment institution closed door.

Question: “Why Lehman was not saved by the government as it did with Bear Stearns?” Plausible answer: Hank Paulson wanted a serious competitor in investment banking to disappear!

“Wall Street gets drunk: It is up to common people to wake up with headaches”

Note 1: Bush claims that tax break on the richest 1% increased from 38.4 to 39.1% (whao), while the poorest 50% of the population enjoyed a reduction from 3.4 to 3.1% (double whao)

Note 2: So far, G.W. Bush keeps the record of worst perpetrator of crimes against humanity in this century: Bush Junior was directly responsible of the death of more than one million Iraqi civilians during his “preemptive war” against a dictator that was no threat to any State anymore.

Can US political system be reformed? (Jan. 12, 2010)

            Detroit voted Barak Obama. The counties of Oakland, Macomb, and Wayne, black, white, lower and middle classes voted Obama.  Ground Zero Detroit lost 70,000 homes to creditors in the last two years; everyday, houses are burned to capture insurance and move to suburbs; from 2 million in 1950 Detroit has shrank to 700,000. The jobless rate is 40% and barely Ford of the “Big Three” is surviving.  Detroit voted Obama for his universal health care project; the now apathetic voters never considered that Obama will send a law that pleases the hysteric Republican Party. They believed than a margin of 8 million votes would make Obama believe that time for serious political decisions are ripe and he was elected to LEAD.  The voters hoped that Obama will urge them to get moving to the Capitol to pass “their health care project”; instead, the republican got on the move to kill any hope for reforms.  If you are out of work then your health insurance is cancelled; you have to seek Luther Keith, pay $20 to see a physician, and then get a working relative to guarantee payment.

            President Obama has to take a stand on three decisions:

            First, every cabinet member and assistant has to read all of Obama speeches.  The members who do not believe that “What I said is what I mean” should be fired on the spot; then Obama can start to delegate responsibly.

            Second, Obama has to re-connect with all the syndicates and organizations and rally most of them to the Democratic Party. Only a unified front of workers and middle classes with a serious new perceived value “health and safety for all” can change the lobbying political system.

            Third, Obama has then to start sending reform laws as he promised his people to do and not what might please the losers in the election.

            In the Senate, if 40 out of 100 veto a law then the discussion can be prolonged indefinitely. Senator Joseph Lieberman vetoed the creation of “public option” for Americans with no health insurance.  Deputy Dennis Kucinich harangued his colleagues in those terms “Are we the Congress of the USA or the administrative council of Goldman Sachs?” President Obama had preached “I didn’t campaign to aid the big bonnets on Wall Street” but he did bail them out with $700 billion. Sure, Goldman Sachs, Citigroup, JP Morgan, UBS, and Morgan Stanley did contribute to Obama’s campaign as they contributed to the other party too. What was the fraction of contributions of these multinationals? Was it worth it to appoint Wall Street lead man Timothy Geithner as Finance Secretary?  Was it worth it to appoint Lawrence Sumners who is the architect of financial deregulations?

            Appointing the enemies to reform programs has nothing of pragmatic; Hillary Clinton is not pragmatic: she loves “Pride and Anger” of late Oriana Fallaci and disseminated the book to all her acquaintances. Obama foreign policies turned out carbon copies of Bush Junior toward the Islamic World.

            The US political system is Not “separation and balance of powers”; this myth has been proven wrong in critical periods.  The US system is a multilayered duplication of levels so that money can enjoy the last word.  How can a President vanquish well entrenched structures and when the opposition is hysteric for being ousted and refuses to submit to rational judgments?  The US multinationals are active free agents ready to falsify and fabricate crisis, instill financial crashes, provoke depressions and then take pleasure profiting from the blood and miseries of the little people.

            Obama has to start taking stands in the interest of the little people who voted him in. Time is running out and compromises with the enemy have proven lethal.  The world is shedding blood, miseries are rampant, and famine is waiting on the corner.

            Obama, your credibility as a leader is being tarnished.  There are no harms trying alternatives but when faced with the inflexibility of your enemies then you should not conciliate; you have to react with vigor and determination as a victor leader and the people will back you up when you ask them to march.  Take responsibility: You won the election and political decisions are yours to deliver on your promises.

More Copper Reserves for China (April 30, 2009)

 

            The price of copper was forecasted to fall 20% this year in this economic recession but it increased 50% instead:  China is willing to pay around $5,000 the ton of copper instead of buying more US Treasury Bonds.  China has purchased 375,000 tons of copper in March and increasing each month. The Chinese Central Bank governor Xiaochuan view the US financial famine to a black hole since the US is about to print more dollars to paying the Chinese State, thus practically devaluing the US currency and reselling the Chinese more hot air.  The Chinese are not about to re-value the Yuan before the US and the European Union restore credibility and confidence in the financial system.

            Among the many industrial usage of copper is the manufacture of hybrid engines in cars that China is putting in its market.  Italy has been promoting hybrid cars for a while and many more gas stations are filling methane gas.  Methane does not emit carbon dioxide.  The driver would start and accelerate on regular gas and then shift into methane combustion.  As a matter of fact, the Green Peace advocates regards the European Union policy of selling carbon dioxides permits to the heavier polluters is not reducing the CO2 in the atmosphere.  For example, Germany has reduced its polluting energy consumption by 15% by relying on Aeolians, solar panels, and biomass; thus, Germany would sell 15% reduction in pollution to Poland and Slovenia that are still relying on coal.

I read in a post the following information: 62% of the World’s copper is used for the production of small denomination coins such as the penny. 84% of small denomination coins are classed by the World’s Governments as missing – it is presumed that members of the public have stashed the coins as savings. On average, each person in the World has stashed $22.34 worth of copper in small denomination coins.

            Goldman Sachs predicts that the GNP of China will surpass Japan by 2010 and the USA before 2030.  India will surpass Japan by 2030 and become third after the USA.  Brazil will be fifth after Japan in 2030.

            China is using its two trillion dollars surplus to accumulating reserves in aluminum, zinc, nickel, titanium, indium and rhodium so that it may resume its industrial acceleration once the current crisis is stabilized. This policy of purchasing minerals instead of US Treasury Bonds is compatible with China recommendation of creating an international banknote indexed on the prices of a basket of raw materials as was proposed by John Maynard Keynes at Bretton Woods in 1944; the “bancor” of Keynes was based then on 30 raw materials.

I suggest in a previous post “The Third World War is Tolling” the folowing: 

“First, the developed States have to agree on another tangible standard (like gold) for currencies.  Gold would not do because the US has abolished it in 1967 because all the gold in the world could not sustain the huge amount of paper dollars circulating or intended to circulate around the world.  The alternative is a basket of depleting minerals that are essentials for manufacturing and production.  The processed minerals do not have to be rare but very essentials for development.  The US can agree to this idea since it has huge reserves in many important minerals.

Second, all the States that can account for at least 3% of all curency circulation should join an “International Money Printing Council” with tight control and monitoring creteria.  Any combined States with over 40% of cash money shares in the global market should have a veto power.

Failing a convincing and sustainable agreement for monetary stability the Third World War is altready in the planning stage as the easiest and quickest way out of that morass.  Only in major wars do printed money with no tangible backing has mythical values.  No, the next region for the war scene is not Iran: no European or US soldiers want to fight in this “cursed region”.  It won’t be Afghanistan: if Afghanistan was worth it then Bush Junior would not have invaded Iraq before stabilizing Afghanistan.  It won’t be North Korea: it is bordering China.  The batlefield will not be in any area bordering Russia.  It won’t be the Congo River zone: no Western soldiers is about to step in this infested and contagious disease plagued region with AIDS consuming 30% of the population. The next world war is in Sudan, this continent/State rich in oil and all kinds of minerals”.

Actually, Sudan is the focus of investment for China in the last two decades.


adonis49

adonis49

adonis49

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