ODDS AND ENDS ON THE WEST’S MELTDOWNJuly 29, 2011
It's been quite a week, needless to say...Norway being bombed, Greek economic meltdown, the usual noise from the banksters that Greece needs more bailout money, Murdoch's News Corp caught hacking everybody... and hovering in the background is China. So let's start here:
Let's read that crucial passage again:"The origin of the crisis lies in deregulated credit derivatives of various types. The proper way to understand derivatives is that they are some form of paper based on paper. Anytime we are more than one step removed from an underlying asset we are dealing with derivatives. The Bank of International Settlements admits that there are around ~$600 trillion in derivatives out there (4). This is more than ten times the entire GDP of the Earth, which is about ~$58 trillion. Other sources indicate that the outstanding amount of derivatives of all types approached ~$1.5 quadrillion, and has now fallen to a mere ~$1 quadrillion (5). A dangerous feature of derivatives is that they are zero sum instruments, in that there is always a winner and a loser. This means that every derivative represents some amount of debt that someone will have to pay at some point in the future, with the notional fulfillment value much higher than the market value of the instrument.
"These derivatives are controlled by globalized finance oligarchs based primarily in New York and London. These oligarchs dominate the governments of most western countries, and they have abused their power by making the sole mission of the state that of propping them up. All of the other concerns of the nation states of the world are regarded as secondary to the effort to rehabilitate the cancerous mass of $600 trillion-$1.5 quadrillion of derivatives. The United States cannot recover until Wall Street is stopped and put into receivership by the federal government, and the derivatives are liquidated in bankruptcy proceedings."
Note that this article is saying substantially what I've been saying ever since the crisis began: you're witnessing the meltdown of the Anglo-American banking elite, who are now propping themselves up solely by military adventurism, their last substantial export, and in the process, are undermining the West's strategic position as more and more nations realize the predatory status of the USA and its client states, and more and more nations turn increasingly to China and Russia.
If that sounds impossible, consider Norway. When the bomb exploded, it did so on a national holiday in Norway, when there were few people in the office that was bombed. Yet, we're being told it's "terrorism". Or was it simply yet another message to a Norway that (1) announced its intentions to pull out of the "NATO" adventure in Libya, (2) voted to freeze a $42,000,000 payment to Greece (mere pocket change in a world awash in $1.5 quadrillion in derivatives), (3) supports statehood for Palestine, and, (4) let's not forget, is not a member of the European Union. Now, I always thought terrorists were all about killing as many people and breaking as many things as possible. Or was Norway's problem that it simply wasn't going along with the predators? Looks that way to me.
As for the other nations looking increasingly to China, Russia, India, Brazil (the so-called BRIC nations), can one really blame them? As for the USA, here it's politics and spinning as usual, with Dummycrooks and Republithugs pointing the fingers of blame at each other, while the real causes- clearly exposed in the linked article above - are simply ignored.