Jim Rogers: US debtonation doomed, Asia owns future

http://www.youtube.com/watch?feature=player_embedded&v=RXr_Umid8Rc

October 2008 this is what Jim Rogers said:

We Are Facing an 'Inflation Holocaust': Jim Rogers
http://www.cnbc.com/id/27097823/We_Are_Facing_an_Inflation_Holocaust_Jim_Rogers

and then what in fact the issue was and still is is not related to liquidity in stead its all about solvency:

Are the banks solvent? Part of a talk by David Malone, author of The Debt Generation
http://www.youtube.com/watch?v=PD0YCSNdo8w&feature=channel_video_title

So how do they get away with it?

The banks' big lie - Part of a talk by David Malone, author of The Debt Generation
http://www.youtube.com/watch?v=Jy9yluyizGo&feature=related

Then this is not all about housing, subprime etc. In fact the real issue is related to the completely unregulated and without any insight extremely leveraged shadowing banking system i.o the derivatives market.- How big is is? Its in fact a $ 600 trillion market. Today hold up simply by clever accounting. The real underlying value simply isent there.

What do you mean "no underlying value"? Do you think they are just trading paper? In fact yes this is what the derivatives market has developed to. What started as a way for commodity producers to reduce future risk e.g. due to miss harvest, droughts, heavy rainfall etc has then spread in to basically all aspects of live. This is now the reason bank do not have to care if a loan ever will be paid back as they have learned to via the derivatives markets to transfer all the risk of possible bad loans via what in fact is a fake insurance.

Then to complicate all of this further what used to be trading of paper backed up via an underlying asset has now developed in to a trading of a paper, based on a paper based on a paper that’s then based on some kind of underlying assed. At least - that’s what all involve believe. But as long as your able to transfer the risk to someone else your fine.

At the end of the day the derivatives market or shadow banking system now is worth then times the value of everything on this entire globe. Now clearly that sure is a red light. This system will crash. Its not about if but all about when. In the meanwhile and in order to prepare for this the people in the know, the people instigating this have been and are very busy transferring wealth from the taxpayers allowing capitalist to prompt up their balance sheets at the same time as this toxic, completely worthless junk is transferred to the taxpayer. Then the people in the know are able to short the hell of the countries again and the via so called austerity measures transferring real wealth e.g. your electricity, water company and even the actual gold hold at the central bank to themselves.

Next bubble: $600 trillion?
Cities, states, universities could sink from monster derivatives meltdown
Read more: Next bubble: $600 trillion? http://www.wnd.com/?pageId=143057#ixzz1U2vnXXaj

Seems Summers as well as Geitner are the real masters of destruction. Listen to Jim Puplavas interview with William Engdah I posted just som days back and hear how they managed to make a mess also of the trading related to agriculture.

The Green Revolution and the Destruction of the Family Farm
http://intheendwerealldebt.blogspot.com/2011/07/green-revolution-and-destruction-of.html

And now the finacial markets are all in for making the same kind of system related to the worlds water supply. Just imagine, there seems to be no end to this. In fact were looking at a deliberate apprach and by now its all clear as can be:

Citigroup Predict Water
Wi expect to see a globally integrated market for fresh water within 25 to 30 years. Once the spot markets for water are integrated, futures markets and other derivative water-based financial instruments - puts, calls, swaps - both exchange-traded and OTC will follow. There will be different grades and types of fresh water, just the way we have light sweet and heavy sour crude oil today. Water as an asset class will, in my view, become eventually the single most important physical-commodity based asset class, dwarfing oil, copper, agricultural commodities and precious metals."ll Be Bigger Than Oil
http://www.oilvoice.com/n/Citigroup_Predict_Water_Will_Be_Bigger_Than_Oil/5854839c9.aspx

Island sure did the right thing
http://intheendwerealldebt.blogspot.com/2011/08/icelands-loud-no.html

Then we also need to: Take away the power from the financial markets by implementing real oversight and true regulation in that sector. Make derivates and extensive leverage as well as naked short selling illegal. Build real protection between tax payer money and the financial sectors constant attempt to transfer all risks from their sector to the taxpayers. Make a legal separation between investment banking and savings banks, never allow any of these to merge at any time. Take away the banks power to create money. Don’t allow any participant in that sector to become too big to fail. At all times protect savers and peoples purchasing power.