Tag Archives: Derivatives

The privatisation of water is as benign as Lucifer

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Water privatisation is what will be the next bubble if the 1% can help it. Just imagine the planet would die in three days without water and the 1% want control over it. They want to speculate with it and control it and control who or what lives or dies.

San Rafael, California — There hasn’t been much rain this season where I live. Personally, I don’t mind much. I like sunny days, summer weather, dry fairways at San Geronimo. The deer are not very happy, having to spend more time on my street than they’d prefer but they’ve had to come down from the hills a bit looking for food.

Where I live the reservoirs are still mostly full from the last winter’s rain and we will not experience any delays or service interruptions. I pay for water every month, the local water district sends a bill, costs maybe 30 bucks if everybody showers a lot and there are loads of clothes.

Drinking water, all I have to do is open the tap.

I take water for granted, did even during drought years when we recycled water for the garden and to flush toilets. Shower with a friend, the saying went, and we did, although that didn’t really seem to save much water.

Every year about 2 million people, most of them children, die from lack of water, either directly or indirectly through lack of sanitation; that’s twice as many people as the United States killed in Iraq. Estimates of international agencies put the number at 1.1 billion who do not have access to enough water to drink, cook with, or properly bathe.

Water in Marin County is a public utility. There’s a water board elected by the voters and various projects from time to time. For most of my life I was not even aware that water might be a problem for some people, blissfully wrapped in the Bay Area cocoon. What I’d heard seemed to be passing news bulletins. Droughts somewhere, I wasn’t sure. Relief efforts.

I’ve also been ignorant about nearly everything else in the world. I don’t think I really got how deeply evil some corporations were. I didn’t understand how money worked, nor what the World Bank was about, nor the International Monetary Fund. They sounded benign. They are about as benign as Lucifer.

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IAG Australia has bought the solvent bits of AMI Insurance while you are going to pay for the bad bits

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Update: The deal was the result of the AMI, IAG and the Crown negotiating with each other and the Government taking the claims over. What is the distinction between the two and why was this distinction described in the newspaper?

Was that because the Reserve Bank was involved in the negotiations and if so was there a huge conflict of interest with one of the members of the board?

I would be very interested in hearing your opinions about this?

This week the first of the New Zealand bailouts came to pass. IAG Australia bought the still functioning bits of AMI Insurance while you, the tax payer, where dumped with a $ 1.8 billion in bad bits.

That is what it means if the “Government” promises to pay out claims for an insurance company.

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Former US President Bill Clinton information confirms John Key New Zealand Prime Minister played a large part in the Global Financial Crisis.

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From John Key Key and international finance researcher Iain Parker’s site Public credit or Bust!

John Key claims he was long gone from the financial quackery sector when all the international financial deregulation of 1999 or lack of regulating new high risk derivative products occurred that went on to cause the global financial crisis. But the following irrefutable proof from his very mouth and that of the highest sources proves he in-fact played a big part in the global financial crisis that afflicted the globe.

Financial markets: Derivative dilemmas

By Aline van Duyn

Published: August 11 2010 London Financial Times

“In the wake of the recent financial crisis, over-the-counter derivatives have been blamed for increasing systemic risk,” said Federal Reserve Bank of New York staff in a paper earlier this year. “OTC derivatives serve a vital role in financial markets but deficiencies in the market design and infrastructure allowed for misuse of these instruments, exacerbating the recent financial meltdown.”

Derivatives

Bill Clinton admits choosing not to regulate derivatives 1999 caused the Global Financial Crisis.

Jake Tapper ABC interview April 2010

In an interview on This Week with Jake Tapper, President Bill Clinton said he made a mistake listening to Bob Rubin and Larry Summers on derivatives, and said he should have tried to regulate them, despite Republican opposition:

TAPPER: One of the things that President Obama is pushing for is regulation of derivatives, and also with a thing called the Volcker rule, he’s trying to separate commercial banking interests from investment banking interests. These were things that were the opposite policies of Treasury Security Rubin and Summers at that time, do you think in retrospect they gave you bad advice on these issues?

CLINTON: Well, I think on the derivatives – before the Glass-Steagall Act was repealed(1999), it had been breached. There was already a total merger practically of commercial and investment banking, and really the main thing that the Glass-Steagall Act did was to give us some power to regulate it – the repeal. And also to give old fashion traditional banks in all over America the right to take an investment interest if they wanted to forestall bankruptcy. Sadly none of them did that. Mostly it was just the continued blurring of the lines, but only about a third of all the money loaned today is loaned through traditional banking channels and that was well underway before that legislation was signed. So I don’t feel the same way about that.

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On tapes, secret scumbaggery and why John Key should have known better!

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It’s Nov. 2, 1993, and two employees of Bankers Trust Co. are discussing a leveraged derivative deal the bank had recently sold to Proctor & Gamble Co. “They would never know. They would never be able to know how much money was taken out of that,” says one employee, referring to the huge profits the bank stood to make on the transaction. “Never, no way, no way,” replies her colleague. “That’s the beauty of Bankers Trust.” The Bankers trust tapes 1993

To understand John Key’s over the top aggression towards the tape maker and the press who holds it you have to go back in John Key’s murky past. To the year 1995 to be precise. That was the year the bank John Key was working for collapsed and he had to find another job. Lucky for him another bank had a use for his salesman of crappy derivatives qualities and he went on to develop their department of debt but that event must have been traumatic for John Key as it could have meant the loss of his income and the status he craved through wealth! In Fact John Key describes his departure from Bankers trust bank as follows in the July2008 Eugene Bingham’s “Unauthorised biography”: And then all hell broke loose and I said,”Right I’m out of here”!

So what happened in the year 1995 that caused the Bank to collapse?

In short the bank collapsed because its clients lost all trust in the bank and pulled out their fortunes leaving the bank insolvent. But why did they losse all their confidence?

To find out about this you have to go back to 1993 as this was the year the corporate giant Proctor and Gamble started proceedings against Bankers Trust bank, the bank John Key worked for at the time.

Their reason for doing so was the fact that they had started loosing money on a package of derivatives they had been advised to buy by the Bankers trust bank. They alleged that the bank had sold them a product which was so complicated that they had no way to ascertain the validity of the product and that it was in fact fraudulent.

It wasn’t until 1995 that it became clear that the bank would not survive because 6,500 tape recordings were forced out in the open by Proctor & Gamble meaning the bank lost most of it’s customers. So you see for all intends and purposes John Key has lost a job once before due to leaked tapes exposing his bank as a thoroughly fraudulent and corrupt entity.

In fact the banks employees had a word for their scamming ways. That word was ROF which stood for Rip off Factor.

Gordon Duff Connects John Key to the international Money cartel and global shadow banking

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On the Vinny Eastwood show I had the chance to put some questions about Merrill Lynch, John Key and his connection to the international money Mafia to  Gordon Duff. He not only solidly connected John Key to the derivatives trade but also to the international shadow banking world. (More on that later)

Max Keiser, Stacy Herbert on Banksters and how Merrill Lynch got in the Derivatives business

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In 1995 Bankers trust bank in which John Key learned his (derivatives) trade collapsed. It turned out that they had sold dodgy derivatives to Proctor & Gamble and some other big wigs who didn’t take to kindly to being ripped of by their banksters.

Unlucky for the bank some tapes which were made of all conversations were leaked to the press and it turned out that the ripping of was so systemic that they even had a word for it: ROF or Rip Of Factor.

When the bank collapsed in the aftermath of the court case and the loss of confidence the bank suffered John Key was head hunted by Merrill Lynch to help them set up their Bond and Derivatives  department. John describes this moment as follows in the now deleted online pages of his Unauthorised Biography as follows: Then the shit hit the fan and I said,”Right I’m out of here”.

Here is what Financial pundit Max Keiser has to say about the early years (seventies and eighties as the Derivatives trade started as early as that and not as John Key proclaims after he left the banking world) of Merrill Lynch and Derivatives.

Guest Post: Next In Line For Implosion: Pension Plans

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And yes, John Key sold the crap they came up with at Merrill Lynch to pension funds too!

Pension plans are based on 8% annual growth forever. What happens to these plans in a zero-interest rate world as the global economy and stock markets contract?

I’m afraid it’s time for an intervention. I don’t enjoy being the bearer of difficult news, but now that Europe has stumbled drunkenly into the pool and been “rescued,” it’s once again tearfully blubbering that this time it’s all going to change, and a new prime minister in each dysfunctional, insolvent EU nation is going to make the pain and the addiction all go away.

It’s time we face the reality that Europe and the U.S. are full-blown financial alcoholics, addicted to illusion and debt. And what do they turn to as “solutions”? The very sources of their pain: illusory “fixes” and more debt. Have you ever seen a global market as dependent on rumors of “magical fixes” for its “resilience” as this one?

What’s truly remarkable is the psychotic distance between the facts–Europe’s debts are impossible to service, its economy is free-falling into recession, the U.S. is already in recession, China’s real estate bubble has popped and cannot be reinflated– and the heady leap of global markets on every trivial rumor of a magic fix.

Since it runs in our family, I do not use the word “alcoholic” lightly. Those of you who have to deal with alcoholics know the drill: the liquor stashed behind the fridge, as if everyone doesn’t know it’s there; the stumbling into the pool, the humiliating rescue, the tearful promise of change which goes nowhere, and all the rest.

I seriously suspect the entire global economy is alcoholic–not about liquor, but about debt and the impossibility of paying entitlements which expand by 8% a year in an economy which grows by 2% a year at best. In all the millions of words printed about the subprime meltdown, the gutting of the U.S. financial and housing markets and now about Europe’s impossible burden of debt, how often have we seen anyone in the MSM or mainstream financial press confess that “borrowing our way of out of trouble” is not just financially bankrupt but morally bankrupt as well?

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Next In Line for Implosion: Pension Plans   (November 8, 2011)

Pension plans are based on 8% annual growth forever. What happens to these plans in a zero-interest rate world as the global economy and stock markets contract?I’m afraid it’s time for an intervention. I don’t enjoy being the bearer of difficult news, but now that Europe has stumbled drunkenly into the pool and been “rescued,” it’s once again tearfully blubbering that this time it’s all going to change, and a new prime minister in each dysfunctional, insolvent EU nation is going to make the pain and the addiction all go away.

It’s time we face the reality that Europe and the U.S. are full-blown financial alcoholics, addicted to illusion and debt. And what do they turn to as “solutions”? The very sources of their pain: illusory “fixes” and more debt. Have you ever seen a global market as dependent on rumors of “magical fixes” for its “resilience” as this one?

What’s truly remarkable is the psychotic distance between the facts–Europe’s debts are impossible to service, its economy is free-falling into recession, the U.S. is already in recession, China’s real estate bubble has popped and cannot be reinflated– and the heady leap of global markets on every trivial rumor of a magic fix.

Since it runs in our family, I do not use the word “alcoholic” lightly. Those of you who have to deal with alcoholics know the drill: the liquor stashed behind the fridge, as if everyone doesn’t know it’s there; the stumbling into the pool, the humiliating rescue, the tearful promise of change which goes nowhere, and all the rest.

I seriously suspect the entire global economy is alcoholic–not about liquor, but about debt and the impossibility of paying entitlements which expand by 8% a year in an economy which grows by 2% a year at best. In all the millions of words printed about the subprime meltdown, the gutting of the U.S. financial and housing markets and now about Europe’s impossible burden of debt, how often have we seen anyone in the MSM or mainstream financial press confess that “borrowing our way of out of trouble” is not just financially bankrupt but morally bankrupt as well?

John Key confesses to his role in destroying the global economy on breakfast TV

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The problem with Psychopaths is they want to brag about their achievements even if these achievements are damaging and detrimental to many others.

In this regard John Key does not differ from his Wall street mates. In fact he just did except here in New Zealand many don’t know the whole story so it sounded to most Kiwi’s as if John Key could see reason in the Occupy Wall street movement making him look like an understanding democratic leader allowing free speech and demonstrations.

Here is his confession on breakfast TV and below I fill in the blanks:

John Key says about Wall street and the Occupy movement the following:

” If you go all the way back to what’s caused the global financial crisis you can apportion an enormous amount of the blame at the foot steps of Wall street and it ultimately created products that destroyed capital around the world and fitfully (whatever that means) destroyed banks around the world.:

“I mean they sold products that in their heart of hearts they must have known they wouldn’t be repaid for so I can understand that bit….”

and then he goes on about why condemning capitalism is a bad thing and how we should lift  the poor out of their misery and make them more wealthy. (More on that later) Let’s analyse the whole statement about the banking world and it’s destructive products for a bit and connect John Key to all these negative activities shall we?

“If you go all the way back to what’s caused the global financial crisis you can apportion an enormous amount of the blame at the foot steps of Wall street.”

  1. This is correct but it goes back quit a bit further then John Key would let us to believe as he states in the “unauthorised biography” he left long before they created these fraudulent products.One of the first events ever to use the products he speaks of happened in 1987 with the attack of Andrew Krieger on the NZ dollar to which John Key was party as I prove in this article. In his book infectious greed Frank Partnoy identifies the trade made by Andrew Krieger which to this day tops the top ten trades made of all time as the Patient zero trade of what is ending now as the total financial collapse of the global system. It set the tone for John Key’s career as a Derivatives and forex trader.
  2. John Key blames Wall street but what he doesn’t say is that he was a Wall street trader. Here is a link to a speech he made to the New Zealand American friendship association in 2007. In it he clearly states that he had an apartment in New York, lived there a lot of the time and he also tells us he had an office and several employees one of whom dies on 911. In fact he tells us that he worked on Wall street and what’s more he was an advisor in an upon invitation only committee of the New York Federal Reserve.
  3. John Key at the time of the repeal of the Glass Steagall act was the managing director of Debt for Merrill Lynch. Here he talks about the fantastic possibilities of over the counter products, the very ones now destroying the economy, in 1999!

 and it ultimately created products that destroyed capital around the world and fitfully (whatever that means) destroyed banks around the world.

  1. They did but the previous makes it clear that it wasn’t they but we.

“I mean they sold products that in their heart of hearts they must have known they wouldn’t be repaid for so I can understand that bit….”

  1. Here is the bragging (confessing bit coming full to the fore. The question did not ask for this emotional statement. Here he shows us his intimate knowledge of the products he sold and what would inevitable be the outcome and the sentence goes way beyond the scope of the question. It merely asked if he could understand why the demonstrated and the first two sentences would have sufficed but by saying “they must have known in their heart of hearts” he actually admits to not only knowing now that the Wall street antics will destroy the entire system but actually having known that in his heart of hearts he knew that the scam would implode on him and his Wall street bankster mates at the time he was dealing in them. but in saying it out in the open he also shows that he cynically thinks that since Kiwi’s still think of him as a nice guy that they won’t catch on to this what is essentially a bragging psychopathic confession of his role in the whole damn scam.

$ 1.2 Quadrillion in Derivatives: when it blows the economy will truly tank and it's inevitable!

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The financial crisis, which is very much still with us, did not result from accident or miscalculation; neither did it result because of a flaw in Alan Greenspan’s theory, as he told Congress when a feeble effort was made to hold him accountable. It was the intentional result of people motivated by short-term profits who wanted to get theirs and get out. Morgenson and Rosner.

If you took an opinion poll and asked Americans what they considered the biggest threat to the world economy to be, how many of them do you think would give “derivatives” as an answer?  But the truth is that derivatives were at the heart of the financial crisis of 2007 and 2008, and whenever the next financial crisis happens derivatives will undoubtedly play a huge role once again.  So exactly what are “derivatives”?  Well, derivatives are basically financial instruments whose value depends upon or is derived from the price of something else.  A derivative has no underlying value of its own.  It is essentially a side bet.  Today, the world financial system has been turned into a giant casino where bets are made on just about anything you can possibly imagine, and the major Wall Street banks make a ton of money from it.  The system is largely unregulated (the new “Wall Street reform” law will only change this slightly) and it is totally dominated by the big international banks.

Nobody knows for certain how large the worldwide derivatives market is, but most estimates usually put the notional value of the worldwide derivatives market somewhere over a quadrillion dollars.  If that is accurate, that means that the worldwide derivatives market is 20 times larger than the GDP of the entire world.  It is hard to even conceive of 1,000,000,000,000,000 dollars.

Counting at one dollar per second, it would take you 32 million years to count to one quadrillion.

So who controls this unbelievably gigantic financial casino?

Would it surprise you to learn that it is the big international banks that control it?

The New York Times has just published an article entitled “A Secretive Banking Elite Rules Trading in Derivatives“.  Shockingly, the most important newspaper in the United States has exposed the steel-fisted control that the big Wall Street banks exert over the trading of derivatives.  Just consider the following excerpt from the article….

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The Coming Derivatives Crisis That Could Destroy The Entire Global Financial System

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The crisis is not coming it is here right now. $1.4 QUADRILLION in Derivatives are collapsing and the banksters and politicians are running scared.

Most people have no idea that Wall Street has become a gigantic financial casino.  The big Wall Street banks are making tens of billions of dollars a year in the derivatives market, and nobody in the financial community wants the party to end.  The word “derivatives” sounds complicated and technical, but understanding them is really not that hard.  A derivative is essentially a fancy way of saying that a bet has been made.  Originally, these bets were designed to hedge risk, but today the derivatives market has mushroomed into a mountain of speculation unlike anything the world has ever seen before.  Estimates of the notional value of the worldwide derivatives market go from $600 trillion all the way up to $1.5 quadrillion.  Keep in mind that the GDP of the entire world is only somewhere in the neighborhood of $65 trillion.  The danger to the global financial system posed by derivatives is so great that Warren Buffet once called them “financial weapons of mass destruction”.  For now, the financial powers that be are trying to keep the casino rolling, but it is inevitable that at some point this entire mess is going to come crashing down.  When it does, we are going to be facing a derivatives crisis that really could destroy the entire global financial system.

Most people don’t talk much about derivatives because they simply do not understand them.

Perhaps a couple of definitions would be helpful.

The following is how a recent Bloomberg article defined derivatives….

Derivatives are financial instruments used to hedge risks or for speculation. They’re derived from stocks, bonds, loans, currencies and commodities, or linked to specific events such as changes in the weather or interest rates.

The key word there is “speculation”.  Today the folks down on Wall Street are speculating on just about anything that you can imagine.

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