Tuesday, 25 May 2010

The Banksters

John Mangun
Outside The Box
Business Mirror
http://www.businessmirror.com.ph/index.php?option=com_content&view=article&id=25591:the-banksters-&catid=28:opinion&Itemid=64

The past two weeks have shown the absolute chaos in the global financial markets, the rampant speculation and manipulation of those markets, and the complete inability and helpless incompetence of sovereign national governments to do anything about it.

Read this from the president of one of those governments about the financial institutions and banks: “Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the (Central) Bank to speculate. When you won, you divided the profits amongst yourselves, and when you lost, you charged it to the Bank. Beyond question this great and powerful institution has been actively engaged in attempting to influence the elections of the public officers by means of its money. You are a den of vipers and thieves.”

The problem is that those words were spoken by US President Andrew Jackson in 1832 and nothing has changed since then.

The record of the last two weeks:

The European Union (EU) and the US put up $1 trillion to support the euro and guarantee the sovereign debt of Greece and others. The gangsters in suits, the “Banksters” sell all the debt they can at a premium government-supported price and then sell the euro to levels that threaten the EU itself while pocketing a nice portion of that $1 trillion.

Western stock markets react somewhat favorably to the bailout and then are sold down when the financial press, in the hands of the Banksters, paint more gloom and doom, saying primarily that $1 trillion may not be enough. The Banksters’ greed is unlimited.

The price of gold, which trading is dominated by the public buying and holding physical gold, not by the Banksters who hate gold, rises to historic levels as a flight to currency safety and to other hard assets takes place to protect hard-earned wealth.

The Banksters made billions selling European government debt and the euro, forcing EU government-debt interest rates to rise, prompting the Banksters to buy back in, for an even higher profit on that debt.

Last week the US and German governments passed laws to help curtail the speculation in an attempt to bring some order back to the financial markets and protect the wealth of the hundreds of millions of ordinary citizens who have a portion of their wealth in the stock markets and whose economies depend on stable and fairly valued currencies.

In retaliation, the Banksters sell paper gold on the commodity futures exchanges, not physical gold which they do not own, driving down the price of gold and raising the price of the euro which they had bought at much lower prices when they drove the euro down during the previous week. On one day last week, 66 tons of “paper gold” were sold in one day, one of the largest changes in history. Driving the price of gold down also makes the US dollar go up, the same dollar that they bought the week before when they sold the euro.

The Banksters profited on the euro, the dollar, and European government debt at the same time that tens of millions across the West are jobless, losing their homes, many facing financial ruin, and looking at a bleaker future. A den of vipers and thieves.

Further, to show their power, they “paper sell” the western stock markets again devastating the portfolios of individual small investors who actually invest and do not speculate for the short term. Hundreds of billions of dollars of small investor wealth disappeared as the Banksters put the profits in their pockets.

In order to keep the masses from rioting in the streets, the Bankster-controlled financial press still keeps talking about the wonderful economic recovery in the US. While the public sees their wealth evaporate and their economies deteriorate, they are being fed the lies that everything is really “all good.”

Every American knows that the US economy is driven by consumer spending. So, remarkably, with every retail-spending report there is no bad news. The lie is that as long as retail spending is going up even slightly, the economy is recovering. Except, the US government keeps extending jobless benefits and cash handouts paid with more debt, since there is no job creation. By extending unemployment benefits, it has temporarily maintained consumption, although at historically low levels, for millions of people.

Although every American knows people who have been out of work for a long time and cannot find a job, the official unemployment numbers stay at single digit. Why? Change the official definition of unemployment. If the same measure was used today as was used during the Clinton administration, the official unemployment rate would be 22 percent. But that would cause real panic—something the Banksters cannot afford.

However, after having said all of this, this drunken orgy of financial chaos will come to an end. Both fortunately and unfortunately, it must come to end as it always has in the past as the Banksters, the financial vampires, suck the last drop of blood before the victim becomes useless to them.

This soon-to-come end is fortunate because global markets and economies will once again begin to rebuild. It is unfortunate because the human cost will be enormous as the economies and markets lie in rubble, nearly destroyed by the Banksters and the incompetent governments which they own.

And the Philippines? Where are the world’s best-performing stock markets? Southeast Asia, including the Philippines. Which countries are showing sustained growth through the turmoil? The Philippines and countries like the Philippines. Which countries have a continuing positive balance of payments? The Philippines and countries like the Philippines. Which countries are showing current- account surpluses? The Philippines and countries like the Philippines.

And once again, and maybe forever. Buy the peso. Buy the PSE. Oh, and buy local property. We are going to see another boom here as the local outsourcing business is exploding and overseas Filipinos come home to retire.

E-mail comments to mangun@gmail.com. PSE stock-market information and technical analysis tools provided by CitisecOnline.com Inc.

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