The Best Way to Rob a Bank Is to Own One

The idea that "regulation", i.e., 'fair rules for competition' is essential for the successful operation of any complex and dog-eat-dog process should be elementary was dismissed by both our recent Republican and Democratic governments (Adam Smith insisted on this even though he advocated the "invisible hand" doctrine of the market). A bill of goods was sold to the public that boggles the mind.

The line was: complete deregulation will lead to a Darwinian struggle in which the cream will rise to the top and the massive gains will trickle down and stabilize society.

No. The law of the jungle is a constant and history teaches us this.

Click here for an interview with William K. Black.

The Black Hole?

Deep in the article Banks lose $9.2B in derivatives trading in 4Q one finds the following:

The total value of derivatives at commercial banks jumped 14 percent to $200.4 trillion as financial firms changed their operating status to commercial banks after the collapse of Lehman in an effort to stay in business. Among those changing their status were investment banking giants Goldman Sachs Group Inc. and Morgan Stanley.


$220.4 Trillion? And that is just the amount held by commerical banks? To put that into perspective the total global GDP for 2008 was $69.49 Trillion according to the CIA Factbook (scroll down to the section entitled 'Economy World').

Now before one thinks the sky is falling, one should note a key fact is missing from the quotation above--the $200 trillion represents the "notional" value of the derivatives and not the total liability. The actually amount that the banks are on the hook for can be far less than the notional value. For example, last year a $454.5 trillion notional value of over the counter derivitives translated into a $2.3 trillion gross credit exposure (source).

Still, the mere fact that there is in effect an unregulated "shadow" banking system tossing around even notional numbers like this should give one pause until there is a general understanding of what is really at risk here and who the players are.

New World Order--Conspiracy Theory?

Barak Obama's New World Order--Time Magazine

G-20 Shapes New World Order With Lesser Role for U.S., Markets--Bloomberg

G20 ushers in a 'new world order--Globe and Mail

A 'Truly New World Order' Emerges; Global Currency Closer--Le Monde (Translation)

The first bricks in a new world order--Financial Times

Now, of course, this is only significant if the term 'New World Order' is being used by the "conspiricy theorits" and the G-20 in a similar way. It seems that there are at least two significant connections between what the conspiracy theorists were/are predicting will happen and what is being called for by the G-20. (1.) The creation of a global currency, and (2.) the consolidation of all monetary power within one central world bank.

Economic Suicide

Now the looting of the country, uhh... excuse me, "rescue" package (Orwell rolls in his grave) has risen to just about the total GDP of the United States.

Imagine taking out a loan for your entire year's salary and purposely investing it in worthless paper that is literally called "toxic" in the hope that it will one day pay a return. Great deal right? But it gets worse.

One thing the lame stream media tends to forget to mention is that the all of this money has an interest rate attached to it just like any other loan.

And this additional money goes to the banksters.

Wait? Could that be right? We are essentially swiping the Nation's credit card to "bail out" the banksters, and they get to collect an APR on top of it? That's right.

Hmmm... I wonder whose interests are really being protected here? Could it be that all of this talk about "saving jobs", creating jobs, stimulating lending, etc. is a giant distraction?

Could it be the media hype about the AIG bonuses totaling in what used to be considered a substantial amount--millions--is just a way of tugging at the Nation's emotions to distract it from the real issue?

I wonder what is going to happen if and when China dumps the dollar and all of that money comes home to roost?

Oh and by the way, this "financial rescue" (I'm quoting from the above link now) "...works out to $42,105 for every man, woman and child in the U.S."

Mainstream Media Admits "Conspiracy" Theorists Had it Right

Dick Morris and Hannity agree that so-called conspiracy theorist predictions about the leadership of the United Nations and a One World Currency were spot on. In particular, Morris points out that in the draft plans for the G20 meeting control of the dollar is to come under an international European body--the International Monetary Fund.

Predictive Programming

Cobra commander prepares children for the New World Order and the new One World Currency.

How Deep Will the Recession Go?

The optimistic are claiming that the economic downturn could right itself in a year or so. However, this may very well be missing the big picture. If this crisis was engineered, then obviously it was engineered for a purpose. What could that purpose be?

In an article entitled 'Will U.S. financial woes lead to a new world order?' in Haaretz.com a possible explanation as to what that purpose may be is spelled out. (View the complete article here).

The concept of a global elite bringing about a New World Order headed by the United Nations that will usher in a global currency and a one world central bank is a crucial component of a story that has been touted by so-called "conspiracy theorists" for at least a few decades. However, this notion has always been denied by mainstream sources.

Until recently.

From the article:


One possibility is that the United Nations will take on the role of a global government. This theory seems to be supported in a speech by then-president George H. W. Bush before Congress on March 6, 1991, following the expulsion of Iraqi forces from Kuwait.

"...We can see a new world coming into view," said Bush. "A world in which there is the very real prospect of a new world order. In the words of Winston Churchill, a 'world order' in which 'the principles of justice and fair play ... protect the weak against the strong ...' A world where the United Nations, freed from cold war stalemate, is poised to fulfill the historic vision of its founders. A world in which freedom and respect for human rights find a home among all nations."

Until recently, the advent of a global government seemed unrealistic, and reserved for conspiracy theorists. But since the acknowledgement by then-president George W. Bush in September 2008 that the United States is indeed "in the midst of a serious financial crisis", there have been numerous calls for a "new world order" by global leaders and prominent intellectuals.

In January, Henry Kissinger told CNBC reporters that the current world economic crisis is a "great opportunity" for President Barack Obama to help form a "new world order."

British Prime Minister Gordon Brown actually began the call for a new world order before the acknowledgement of the current financial downturn.

Speaking in June 2007, Brown said: "I believe it will be said of this age, the first decades of the 21st century, that out of the greatest restructuring of the global economy, perhaps even greater than the industrial revolution, a new world order was created."

The British leader has continued to press for a new world order since that speech. Even a few weeks ago he declared the need for a "global new deal."

"Britain and America may be separated by the thousands of miles of the Atlantic, but we are united by shared values that can never be broken. And as America stands at its own dawn of hope, I want that hope to be fulfilled through us all coming together to shape the 21st century as the first century of a truly global society."


The scary thing about this becomes evident if one thinks about what conditions would have to be in place before the general public in the United States would accept effective de-nationalization and a world currency.

Again from the article:


So how would a new world order emerge? It seems that the global population would only be willing to accept the implementation of a new world order, in either form, in the event of a major global crisis, such as the complete economic collapse of the United States of America.

The U.S. is at the heart of the global economy because the U.S. dollar is currently the reserve currency of the world. Oil, gold and all major commodities are measured in U.S. dollars. If the U.S. were to collapse in the same way that Iceland and Latvia already have, the whole world would be affected. A new world order would need to be formed that no longer relied on U.S. global hegemony.

Many experts believe that this is not only possible, but likely. According to Professor Willem Buiter, a former member of the Monetary Policy Committee who is now at the London School of Economics, "There will, before long ... be a global dumping of U.S. dollar assets, including U.S. government assets... The past eight years of imperial overstretch, hubris and domestic and international abuse of power on the part of the Bush administration has left the U.S. materially weakened financially, economically, politically and morally."

Other economic gurus agree. Peter Schiff, an American economic commentator and president of the stock brokerage firm Euro Pacific Capital Inc. was mocked by economist Art Laffer, when he accurately predicted, in 2006, that the U.S. housing market "bubble" would burst. Schiff now predicts that gold will climb to $2,000 per ounce in response to the U.S. dollar dropping "like a stone" and losing its status as the global reserve currency.


More:


It is certainly possible, but would be rather difficult to implement. The government of every nation in the world would either have to willingly surrender sovereignty to the United Nations or be forced into doing so by the use of military force. Both options are utterly improbable -unless an unpheaval on a massive scale resulted in a new-found willingness by the big players in the global arena to submit to an international body. (My emphasis).


Finally:


Looking at history, there is only one circumstance under which a very large and diverse population would be willing to accept such a massive override and restructuring of the global order. That circumstance is chaos.

The collapse of the United States of America would certainly create the chaos necessary to justify the formation of a new global reserve currency and ultimately a new world order, with its central power residing in Eurasia.


Those looking forward to a quick upturn may be missing the big picture. "Conspiracy theorists" have a name for the technique they claim the global elite use to engineer large scale social change, namely, the Hegelian Dialectic otherwise known as Problem-Reaction-Solution. That is they engineer the Problem, wait for the predictable Reaction and then offer the predetermined "Solution." If times get rough enough people will beg for anything that puts food back in their mouths and makes the streets safe again.