THROUGH THE FINANCIAL LOOKING GLASS… PART TWO

THROUGH THE FINANCIAL LOOKING GLASS… PART TWO

Yesterday, you'll recall, I blogged about the financial "musical chairs" game that's going on with respect to negative interest rate bearing bonds and other securities. I hinted that there was possibly more to the story, and today I want to expand on yesterday's high octane speculation, by adding a bit more to it courtesy of this article shared by G.B.:

Deutsche Bank to Replace 18000 Workers with Robots

Now, before you start worrying about walking into your neighborhood Deutsche Bank to cash a check or make a deposit and being confronted with a robot for a teller, relax. Besides, if you're a Deutsche Bank customer or client, you should be worried already, robots have nothing to do with it. But as I said, relax, you're not going to be transacting with a robot at the teller's window. Far from it:

Mark Matthews, head of operations for Deutsche's corporate and investment bank, told Financial News that machine learning algorthms 'massively increased productivity' and "redistribute capacity.'

The London-based news organization said that Deutsche is pushing to 'automate large parts of its back-office' via a new strategy called 'Operations 4.0,' as part of its $6.6 billion savings initiative over the next three years.

And then comes the end of the Zero Hedge article, which forms the context for my high octane speculation today:

Why stop at 18,000? Please consider my 8 step proposal to get rid of everybody.

Just Fire Everybody

1. Who needs proprietary equity traders? Fire them all. Machines do all the trading anyway.

2. Who needs stock analysts? Let computers determine the "Strong Buys."

3. Who needs credit analysts? Computers already do the scoring.

4. Derivatives? What a mess. Unwind them all and stay away. Fire everyone involved.

5. Real Estate Appraisls? That's what Zillow's for.

6. Credit cards processing? Outsource 100% of it.

7. Statement processing? Outsource that too.

8. Loans? Let computers decide which loans to make. Then keep none of them. Instead, securitize 100% of them.

An appalling list to be sure, but one in line with my oft-stated problem with algorithmic trading, and the financial capitalism sector's growing reliance upon it: as more and more  is done by machine, the markets, and finance in general, no longer reflects a human activity; if humans are not involved in risk assessment, cost-benefit analysis, loan-making, or securities or commodities trading, then prices themselves cease to function as a valid indicator of value... to humans.

But of course, those algorithms are all programmed by... humans, and thus they become the primary and principle means of market manipulation. \

And that brings me to today's high octane speculation, and to yesterday's game of "financial musical chairs." Recall that yesterday I pointed out an article that stated that all the trading in negative interest rate securities is a game of musical chairs, these instruments being nothing but "trading instruments" that one does not want to hold on to: one does not want to be the custodian of those instruments when the music stops. I pointed out that because of this, it's yet another financial scam invented by the financial crony crapitalism sector as a wealth-stealing device, a technique.

But I left the question of "who's controlling the music?" hanging in the air. If you're planning another theft of trillions of dollars, and more "bail ins", it's probably a good idea to have a patsy. Enter the roboticized, mechanized, computerized financial sector: it wasn't us, it was those danged machines, it was a flash crash, it was a flaw in the system, a fluke in the program, our good old friend, the glitch ex machina.

Or to put my high octane speculation "country simple" (I am, after all, just a hack from South Dakota), it appears to me now that the move to algorithmic trading that began in the 1980s, may have had a very long term goal in view, a deliberate design, from the outset: namely, to provide cover and "plausible deniability" when the biggest theft of all was staged. And that phrase, "plausible deniability" also suggests that the biggest baddest guys may not even be the banksters, but even more deeply embedded parasitical ticks in the financial system. (Maybe that's why the parasites are so determined to take everyone's guns.)

See you on the flip side...

 

17 thoughts on “THROUGH THE FINANCIAL LOOKING GLASS… PART TWO”

  1. It is worth thinking about the “financial looking glass” from a different perspective. This is Miles Mathis talking about ‘peculiarities’ of WWII, from a who really runs the show angle :
    http://mileswmathis.com/meuse.pdf (p.16)
    “It was all coordinated, from way above the head of Hitler. Hitler was just an actor-front for those running Germany and the war. And who was that? The same family running England, the US, France, Italy, Denmark, Belgium, Spain, Sweden, Russia, etc. In other words, the family of King George VI. George was just a front for his family, sort of like Bill Gates or George Bush is for his: they put their dopiest scion forward, to keep you off the scent.

    But King George VI, unlike Hitler, was taking orders from a close relative. Some aged grandfather, High Admiral of the Phoenician Navy, was running this whole thing from some ivory tower, though I can’t tell you who he was or where the tower was. These things are kept well hidden from those such as you and me. All we know is that he was from the ancient lines of Stuart/Levy/Kohen/Komnene/Stanley/Murray, or whatever respelling or restatement of that name that may exist in the shadows. As such, he was some hidden great-uncle or something of King George and Albert Lebrun and Franklin Roosevelt and Victor Emmanuel and Gustav V, etc., etc.

    He was the great spider at the center of this web, spinning all these events for maximum chaos and maximum profit – as his successor still is.”

    If the above is true, then the strings are being pulled at a very high (and ancient line) level. Mathis only (publicly) goes as far back as the ‘elites’ coming out of the Greater Levant region, whom he refers to as the predecessors of the Phoenicians. These elites then colonized westward through the Mediterranean and outward into at least the Atlantic coast of Spain and Africa. (This is why Mathis refers to them as the Phoenician ‘Navy’.)

    Of course, from within a Gizar perspective, it is but a small step further back in time to note where the Anunnaki centers of power were…

    1. Robert Barricklow

      I second Dana Thomas.
      Thanks for the link Goshawks.
      Love your analyses and the reference to the Gizar perspective.

      It brought to my mind the current vast changes being brought about under the umbrella of digitization/automation?

      At the level your speaking of, are they adept at how this technology will really shape the near future?

      At a deeper level, does this future rhyme with another in the distant past?

      1. Thanks, Dana and Robert. It is sooo easy to get lost in the details that I periodically remind myself to look for the man/men/entities behind the Curtain. From the Gizar perspective, “they” have had long enough to integrate into the system that they have become The System. It will be interesting to find out if they are ancient on-world or ancient off-world, and how much AI ‘baggage’ they brought with them…

  2. Robert Barricklow

    Thing is the algorithms/software are not secure.
    Hacked? Stolen? Changed? U-Name-It?

    Also, can they be put on the stand to testify?
    So they examine the code; and, according to many so-called experts, they can’t decipher their language when they communicate[by design?].

    Besides, they’ve pretty much written the laws to precisely avoid any future prosecutions. If a hole opens up, they pass laws ex-post-facto.

    Corruption has thus become personified into law.

  3. yes, blame the invisible machine is better than the magic formula for large loans to poor people that was the excuse for GFC2008.
    (aside: I am now not so sure that Hitler took the guns away… after reading this first hand account from a person who fled them. 28pp
    https://archive.org/details/UnderTwoFlagsByHeinzWeichardt
    p9
    “My guns were registered in the name of my (Jewish) mother, who had contributed the money for their original purchase, because I was only fifteen years old and could not own firearms until I reached maturity (21 yrs). After Hitler came to power, nothing was changed in the existing gun regulations;
    nobody had to turn in the registered guns–period. My mother still had them on the day of her immigration to the US(May 1941) and gave them to a friend of mine because importation of firearms was prohibited under US law.
    The laxness with which the existing firearm laws were enforced was clearly demonstrated in the days after the Reichstag fire, when most people feared an imminent Communist uprising. Suddenly untold numbers of veterans or members of patriotic organizations were seen walking around, proudly displaying their wartime military Mausers or Parabellums strapped to their sometimes paunchy bellies.
    After a while, after the Communist threat had been eliminated, they were politely reminded that carrying of firearms in public was against the law” “

  4. Time to start taxing the robots. I give it 5 to 7 years, a decade max.

    And of course there’s one thing in this world which is NEVER taxed, and that’s “securities” trading.

  5. My thought is that it is CLOs (collateralized loan obligations) which will bring the world economy to its knees. Apparently, the entities (word used deliberately) behind the banksters plan to use the same modus operandi as they used with CDOs (collateralized debt obligations) . A description of CLOs is here:
    https://gizadeathstar.com/2019/11/through-the-financial-looking-glass-part-one/#comment-93590

    Regarding the impact of CDOs, see The Trillion Dollar Meltdown: Easy Money, High Rollers, and the Great Credit Crash by Charles R. Morris. He writes on p.146:
    https://www.amazon.com/gp/customer-reviews/R2XTLG0YE9LMTI/
    “Consider: Financial markets built an investment paradigm that applied high leverage to long-term illiquid instruments. Then compounded the danger by funding those instruments in the short-term debt markets. Then doubled the bet again by building the base portfolios from unusually risky securities, like subprime mortgages and leveraged loans. Then, finally, embraced a class of credit derivatives that ensured the swift propagation of any local collapse through the whole system. If a band of brainy terrorists had been hired to destroy Western finance, they could hardly have designed a more efficient assault.”

    It is the last ‘property’ that makes CDOs (and CLOs) so dangerous . CDOs (and CLOs) are ‘neutral’ as long as the economy is ticking-along. However, as soon as you hit some contraction, CDOs (and CLOs) become a negative ‘force multiplier’. The individual banks do not know the exposure of any other bank to CDOs (and CLOs), and so an individual bank’s solvency (in a bankruptcy sense) when losses begin to outpace gains in a crisis. This is guaranteed to ‘freeze up’ bank-to-bank transfers, and hence the financial system.

    Currently, Deutsche Bank appears to be an epicenter of a ‘freeze up’ of this nature; a future Lehman Brothers as it were. They are already hemorrhaging money, even in ‘neutral’ times. So when CDOs (and CLOs) become massive net losers in a contraction, they are ‘gone’. And then, the whole system freezes up…

    This time, the entities behind the banksters probably intend for the crash to be sooo bad that a new ‘structure’ is needed. Look for the Problem->Reaction->Solution aspects, at that point…

  6. The was a episode of Dr. Who when Tom Baker was the doctor the robot paid for crimes of its human creators by having to be destroyed. If our shadow masters make a grab for our guns they will prove they’re idiots if I were them I go for the food and water and make weapons cheap and available using this society hyper-individualism serve my purpose we be too busy turning our neighbors into food to bother dealing with our evil elites.

  7. If money is concentrated in just a few interests, and we know those interests play a different and dishonest game – why then do we fight each other like mad starving rats for the crumbs?

    A.I. was touted forty years ago as a gift to mankind, it would provide relief from monotonous labor and slave like existences. We would work at most four days a week, and have time to pursue the more luxurious experiences life has to offer. While some of that may be true, A.I. has taken rape, pillage, and plunder to a whole new level. Greed, vanity, and the willingness to do whatever it takes to make your team win (no matter how inhumane it might be) wins the day.

  8. Robert Barricklow

    Nothing new under the sun.
    When I was in the car business
    we used the computer as the fall guy/it’s the computer.

    So this was planned from the get go.
    The bail-ins written after the planned 2007/8 crash.
    From 1980s Savings & Loans on, they have written news laws of protection/exploitation[escape clauses].

    Yep.
    Perhaps, like in 9/11; there are deeper players?

  9. The oldest most continuous mafia on the planet pulled the biggest heist on the planet when they convinced us to accept and covet their worthless paper as legal tender. They always planned if they succeeded to print as much as needed to buy up everything of value. By doing so they hoped to turn us all into their debt slaves and property. They have succeeded!

  10. plausible deniability….real example, went to Bank used ATM to make cash deposit. Machine jammed after scanning some of the bills, slot cover closed and received screen notice “unable to continue”. That’s it. Gave me a deposit slip for bills counted, shorting the balance not counted.
    No other instructions on how to settle this transaction.
    Since after business hours could not go into bank office.
    Went next day when office open, explained what happened, was asked how much shorted, not really knowing gave an estimated figure. Received a letter in the Mail acknowledging my claim and notification of a temporary deposit of the estimated shortage until the exact amount could be determined after an audit was completed on that ATM. Told four to six weeks to resolve. About a month later received another letter confirming temporary deposit amount was now permanent. They obviously didn’t know and neither did I the exact amount. It was less than $1,000 so evidently not worth the investigation or the logarithm said so after the claim was filed.

  11. Devil says, that you owe him a lot of nothing.

    Devil says, that you can pay with your soul.

    Devil says, that unsettled debt is paid in hell fire.

    Devil is trickster.

    GRAIN OF GOD

    Meadow was first
    in east slopes besown sedges,
    until love over wave
    went prosperous after rain.
    Thus the hard ones,
    by that way, refuge settled.

    SPROUT OF GOD

    Plant dwells in fishes’ EAR,
    and yet it always
    does FODDER’s unfold,
    upon beautiful land,
    over thrown with water,
    praising daily work.

    A classical riddle, in wordplay of dual meanings:
    – EAR means both sea and ear (of corn).
    – FODDER means both grass and sheath.

    Drawing sword, from the vegetative seed stone, becomes conclusion to the Rune poem, defining the rightful king, versed in poetic metaphors.

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