Seeking to Hide in Europe !

August 17, 2012

How many medals did NI win for team GB? “In total, Northern Ireland’s Olympians won five medals at London 2012, with Belfast boxers Paddy Barnes and Michael Conlan taking bronze for Team Ireland.”

Congrats to the success of the closing ceremony to the organisers, what a great show? The organisers could have elected to give us a mind numbing and cringing pageant of colonial conquest, kings and queens on stilts, a reenactment of the battle of trafalgar, perhaps a reneactment of the Battle of the Boyne or trench warfare in World War 1 🙂 They didn’t. Instead they concentrated on the contribution of British pop music to world culture drawing upon our shared love of music with no embarrassment issuing from German, Irish, Spanish, Indian audience..

How many medals did NI win for team GB?

Because athletes can elect to represent team GB or team IRE, medal winners in rowing in NI got counted as part of the medal payload of team GB, not team IRE. Confusing isn’t it ? I’ll not bother to interfere with your working out of the finer details.

Its a real mess. Perhaps with the imminent breakup of the euro we could look to rejoining NI and elect to join up with the UK under a new commonwealth agreement? Apoplectic thoughts such as these are not part of our political discourse in the wake of our failed european nirvana foray.

Meanwhile the euro struggles on as a failed, empty shell of a currency. Money seeking a safe haven away from Europe is flowing from Germany and France and bumping up UK’s London property market. The European credit union that begun with shared interest rates close to that of Germany has fallen into chaotic and desperately divergent interest rates across the EU from Germany to Spain, Portugal and Greece from casino 2% interest rates to 7% and beyond. Money rushes to safe havens in sterling and Wall Street banks perhaps look enviously with the view to attacking sterling and redirecting that capital back to the dollar and Wall Street?

The troika in October will consider ameliorating Ireland’s €67 bn debt burden. Here’s the thing, if Ireland is given a haircut, German banks will have to pay for it. Germany will not pay for our profligacy and the Bundestag will ensure the German people will not have to pay out. Who will pay for the debt writedowns of Greece and the other peripherals? You will.

Currently the preferred solution is austerity and the bailout handouts driving up debt burdens and economic slowdowns that ensure the euro ist fertig (the euro is finished). The euro is like a punch drunk boxer being hammered to the ground. Its time to call a halt. Freed from the euro, debt burdens can be written down and local currencies will blossom again. But the banks want their money bank and they will use every device in the austerity chamber of horrors to get it back. With spineless political leadership in Ireland and across Europe, the banks will have their way.

Bank and currency wars continue The Libor interbank financial scandal according to “Martin Wheatley, the Financial Services Authority executive and the head of the panel set up by the government to review the benchmark interest rate, speaks at the launch of a month-long consultation intended to restore confidence in financial markets. He says the inter-bank lending rate, Libor, needs regulating, and says there are a range of options for its reform” could amount to criminal sanctions…What’s really needed is accountability and transparency and independent regulators with powers to investigate and bring financial fraud to justice.

While Barclays has been fined £290m to settle claims that it manipulated the London Interbank Offered Rate (Libor), Standard Chartered shares the London-based bank has survived a New York regulator threat to revoke its banking licence for alleged breaches of US sanctions that it is claimed left the financial system vulnerable to corrupt regimes and weapons and drug dealers.

“The shares rose 3% when the market opened in London, even though the bank agreed to pay a $340m (£220m) penalty – a sum expected to rise once the bank settles with other US authorities investigating the breaches, which allegedly took place between 2001 and 2007.”

IT would appear American regulators are targeting UK banks, are they going easy on US banks. Recall Greg Smith’s resignation letter from Goldman Sach’s:

“What are three quick ways to become a leader? a) Execute on the firm’s “axes,” which is Goldman-speak for persuading your clients to invest in the stocks or other products that we are trying to get rid of because they are not seen as having a lot of potential profit. b) “Hunt Elephants.” In English: get your clients — some of whom are sophisticated, and some of whom aren’t — to trade whatever will bring the biggest profit to Goldman. Call me old-fashioned, but I don’t like selling my clients a product that is wrong for them. c) Find yourself sitting in a seat where your job is to trade any illiquid, opaque product with a three-letter acronym.

Today, many of these leaders display a Goldman Sachs culture quotient of exactly zero percent. I attend derivatives sales meetings where not one single minute is spent asking questions about how we can help clients. It’s purely about how we can make the most possible money off of them. If you were an alien from Mars and sat in on one of these meetings, you would believe that a client’s success or progress was not part of the thought process at all.

It makes me ill how callously people talk about ripping their clients off. Over the last 12 months I have seen five different managing directors refer to their own clients as “muppets,” sometimes over internal e-mail. Even after the S.E.C., Fabulous Fab , Abacus, God’s work , Carl Levin, Vampire Squids ? No humility? I mean, come on. Integrity? It is eroding. I don’t know of any illegal behavior, but will people push the envelope and pitch lucrative and complicated products to clients even if they are not the simplest investments or the ones most directly aligned with the client’s goals? Absolutely. Every day, in fact. ”

“Greg Smith is resigning today as a Goldman Sachs executive director and head of the firm’s United States equity derivatives business in Europe, the Middle East and Africa.”

The world of derivative trading through lack of regulation and oversight is a toxic mess that celebrates rather than punishes blue collar crime. Weeding out the morally bankrupt people and financial services and practices and culture has not even begun in Ireland due to the absence of a proper banking inquiry.

Here is former U.S. Commodity Futures Trading Commission Chair Brooksley Born Brooksley Borne on the lack of progress in implementation of financial reforms since 2008 leading to the emerging mess of Libor, Goldman Sachs too big to fail banks, all benefiting from the corruption and deteriorating financial system:

Greg Smith wrote above: “When the history books are written about Goldman Sachs, they may reflect that the current chief executive officer, Lloyd C. Blankfein, and the president, Gary D. Cohn, lost hold of the firm’s culture on their watch. I truly believe that this decline in the firm’s moral fiber represents the single most serious threat to its long-run survival.”

Here is Blankfein interviewed by Brooksley Born on the subject of financial clearing houses for derivative trading:

Lots of the circa 800 trillion dollar derivative trading most of it over the counter and hidden from view, a repository of financial chips that is the fodder of the financial services industry, underpinned by floating exchange rates and a fiat currency system, has turned economics on its head. Economics is no longer about manufacturing or servicing the needs of the people through commerce and public services, instead economics is the seeding of the financial services industry with taxpayers money, loose regulation.

Here’s an interesting study describing how 40% of Toronto’s population are going down in income status while 20% are going up. This is similarly currently happening across Canada, USA and Europe and even in a more exacerbated way in marginal/poor previously relatively rich regions of Europe with fairer income divides. This is also exacerbated by the socialisation of losses since 2008 in the US and Europe. Austerity falls on the poor to pay for the losses of the rich. Income distribution in the face of cuts in government expenditure on social services and in the service of bailouts to pay interest on unconscionable loan bailouts of bust banks, is widening and becoming skewed in favour of the rich.

A toxic culture of serving the unregulated needs of the financial services industry at the expense of laws of economics that ought to build social programmes improving the fabric of society and the needs of the people, has now been replaced by speculative, casino interests fed by a new political, serf class unwittingly corrupted by this toxic culture. In the West there are no Abraham Lincoln’s willing to take on this new establishment. Propaganda ensures that the words ‘irresponsible’ are labeled onto any Walter Mitty type characters willing to confront the reality of the derivative time bomb underlying financial markets now latterly overlaid by the breakup of the euro.

The real financial chain of unpredictible magnitude represented by derivatives is the real reason the euro is being bolstered by Tim Geithner. Write downs can puncture this market.

Warren Buffet interviewed by Brooksley Born. Buffet can’t see auditing firms able to regulate this market. Derivatives needs to be quarantined and sanitised.

“History records that the money changers have used every form of abuse,
intrigue, deceit, and violent means possible to maintain their control
over governments by controlling the money and its issuence.”-James Madison

The truth is the world’s financial system has become deeply corrupt. Loosening of controls since 1970 with the deregulation of these markets has released a genie in the bottle that threatens world economic growth and stability for all. Financial bubbles and property bubbles set loose by the floatation of the dollar and loose regulation has seen a flight of unregulated capital fed by Wall St through globalisation into other currencies across the world.

The euro, not a true currency but a credit union currency, through deregulation has absorbed through its central bank these large currency flows leveraging the wealth and power of its member countries into a large hedge fund derivative in order to initiate and drive forward the economic well being of Europe. The experiment has failed and like many a dodgy hedge fund built on sand escaping the discipline of a currency based on tangible assets such as gold or sound and conservative economic development, it has been found out to be a ponzi scheme held together with nothing but false propaganda, smoke and mirror.

No doubt by now you are wondering where my links are to video recordings of public depositions and questioning of our leaders of our banking industry with eg Sean Fitzpatrick’s losses of circa €31.6 bn for Anglo, if only to rationalise in some way what Irish taxpayers are paying for. You want to see the banking inquiry chapter and verse interviews of our leading 10 developer loss makers, how they got their loans, the work that was put into their applications.

I’m sorry but due to commercial sensitivities that protect perpetrators at the expense of taxpayers in Ireland, a failed political leadership and circling of the wagons by the Irish Dept of Finance and other shadow insiders, there is no such body of evidence, its been buried well out of sight.

Seeking to hide in Europe, all is hidden out of sight, where the only known agenda in Spain and the other peripherals, is how to keep their losses out of sight. The bigger the losses, the more likely you are to get a bailout loan, to help you hide those losses, a percentage taken off to pay interest to the lenders, keep their profit margins up, taxpayers and future generations ripped off to pay for A ponzi scam.



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