Next Wave

Now in the midst of the turmoil related to the US downgrade and as both Italy and Spain are under pressure forcing the EFSF to act decisively were beginning to see also France and Belgium as possible new targets. The ratings institutes of course will dictate this as to when it will happen.

Downgrading France would be the first step and as this then creates great market volatility it opens up for the hedge funds to really go in for the kill. The rating institutes are in fact the storm troops allowing the real big buck to be earned by the highly leveraged hedge funds derivatives actions. The rating institutes are so in bed with the financial sector and only care about their relationship with them. They hear their masters call -now its time to transfer wealth from the people to the few but first lets earn a bundle.

In fact these rating institutes are outright owned in many cases by the Oligarchs. Moody’s as an example is one of Buffets holdings. So there you have it blatant for anyone to see.

The ammo then used by these Hedge funds was in reality given to then during the 70ties, when worldwide and for some very obscure reason the financial markets where "deregulated" allowing for more and more leverage and the creation of new financial instruments such as derivatives.

That’s ammo, we the people very easily and if we really want to, could take back. Again "a problem well stated is a problem half solved" and as long as we allow talking heads, economic "analysts" (that almost exclusively represents the banks) without anyone ever opposing them to define this as "a PIIGS problem" and where they claim austerity, as absurd as it is closing schools, selling of vital parts of the society to private interests, laying of firefighters, closing prisons, reducing benefits and heal care, withdrawing pensions etc, actually is the way to go well then you’re just where these people want you to be.

The underlying problem of it all instead is the deregulation f the financial markets. The financial sector needs first of all downsizing and that where the real austerity needs to be focused at. This lazy, complaisant, greedy and destructive sector allowing for severe miss allocation of recourses needed in society, short term interests, mispricing and outright fraudulent behavior is in fact what needs to be severely cut.

Some people are now starting to wake up of this bad dream and for example Greece has just recently banned short selling. As preventive measures thats then what Italy, Spain and France needs to do asap. And while they’re at it then also ban derivatives and foreign hedge funds in their countrys.

Then it’s also clear more and more banks are getting distressed. BOA , Citigroup, MS if these guys are to survive they need liquidity because they cannot manage on their own. In fact they’re insolvent and have been for a while.

So bottom line more countries getting in distress and more banks and financial institutions under pressure. Now this is in fact worse than what was the case when the first bailout was made. Now we see how well that has played out and how much better off were now because of it.

Unfortunately the powers at be – your Oligarch – wants more stimuli and they are going to get it. Problem is clear EFSF is soon to become exhausted as there is no way they (Germany) will be able to hold up not only Italy and Span but in addition France for any significant amount of time.

Equally clear is that the US, having tried this approach now since 2008 is on a verge of collapse and simply cannot take on more debt, were now entering in to new territory.

We’re now seeing money that could have been used in the real economy go to waste. It’s nothing but outright capital destruction as has been the case beginning with the bailouts 2008.

That’s why the leaders in Davos came up with the number $100 trillion of injection, or perpetual QE, needed to the financial system. Sure that is what you need if your intent is to so save all what’s in fact rotten but isn’t it better to just clear it out once and for all? Clear is that in conjuction to the implementation of the SDR preciuos metals will be demoneytised via severely restricting trading options, limits etc making conficastion a thing of the past. You can have your physical gold as much as you want but it will be useless as there is no way you could trade it.

This is a really great and perfect time for the SDR!
http://intheendwerealldebt.blogspot.com/2011/08/this-is-really-great-and-perfect-time.html

But clear is that the real solution would be to instead clear all bad debts, let insolvent institutions fail and then to counter debt reductions deflationary forces counter strike with real investments in the real economy building real infrastructure, improve schooling and heal care.

Even if from an economists perspective it may be good business to burn down the forest, plant fast growing grains, deplete all natural recourses and then get out of there it doesn’t make it a viable model. That approach surely is nothing but insane as the real, actual costs are staggering. Oddly enough we have allowed for a thinking called economics where all the real cost simply doesent show up on the balanse sheet. That analogy then is exactly the same in regards of a country. Even if hedge funds can gain short term and huge profits it doesn’t justify the fact the result is less education, less healthcare, less salary, more taxes etc. Add to that the facts that it is immoral.

Now is the time to stop this blatant up your face oppression. Reregulate the financial sector, put the rating institutes people behind bars for the crimes they committed in regards of the subprime rating, put GS in jail for cooking the books in Greece etc, ban naked shorts selling immediately as well as the use of derivatives.

RIG-anomics. GOP Ignores Ronald Reagan's Trickle-Down Economics Failures
http://www.youtube.com/watch?v=63LrW-0Cv2M