Global Financial Collapse: What makes it tick?
Published: 06 December, 2011, 19:29
Edited: 08 February, 2012, 14:34
A trader works in front of a board displaying the chart of German share index DAX at the stock exchange in Frankfurt/M., western Germany, on November 2, 2011 (AFP Photo / Daniel Roland)
TAGS: Crisis, Banking, Finance
The mind becomes confused and dismayed when confronted with chaotic situations it can hardly figure out - situations such as today’s Global Financial Woes. Maybe we’re looking too close-up. Let’s take a step back and look again...
Complexity is often engineered into what are basically simple problems by people who benefit from manufactured complications and have the power to control them. When money is involved, the powerful people who benefit from ripping off untold millions of hard workers make sure that their “money machine” will just keep steaming ahead. Take the ongoing Global Financial Crisis.
Firstly, it is not a “crisis” at all: what the world is confronted with today is a full-fledged, irreversible and unsustainable Global Financial Collapse that, if not properly addressed, may bring down the whole global economy with it.
Secondly, this has pushed the Real Economy into a “crisis” from which, if proper measures are taken, it can – and must! – be saved.Because all national economies are basically intact (although many have been badly clobbered!) they can be brought back to health.
Thirdly, the real core of today’s problem is that Finance – that virtual world of banking, fractional lending, usury compound interest, fraudulent derivatives, casino-like speculative “investments” and other parasitic and anti-social activities – has illegitimately risen above the Real Economy which is the world of work, production, manufacturing, effort, toil, sweat and creativity.
In numbers, we see that today Finance has grown to be 20, perhaps 30 times larger than the Real Economy.
First Key Question: HOW AND WHY did that happen?
Easy: all you need to grow Finance is to design a complex, perverse and fraudulent Model that will allow bankers and traders to type in irrational formulae into a Computer Spreadsheet (Spreadsheets never complain: they will compound interest and unsavory profits with no sweat!), so that it churns out “profits” for the few, making them grow and grow and grow. The Real Economy, however, uses WORK as its input, not funny virtual numbers. And work is what runs planet Earth: you need work, talent and effort to build new cars or airplanes or clothes or new homes or roads; work to bake more bread and harvest more food.That’s why the Real Economy can only grow arithmetically, whilst Virtual Finance can grow exponentially… Ah, there’s the rub!
Second Key Question: WHO made that happen?
Global Power Elite international bankers have been doing this openly, knowing few will understand what is actually happening. I mean, was not it former US Federal Reserve Bank governor Alan Greenspan who, during a black-tie Washington DC dinner of the American Enterprise Institute on 5 December 1996, “explained” away such inexplicable growth as being due to “irrational exuberance”? What a solid technical explanation coming from the then No. 1 Central Banker!
This fraudulent but extremely (and illegitimately) strong Money Power minority controlling Finance today have made it grow like a cancerous tumor. Starting in 2008 with the collapses of Bear Stearns, AIG, Merrill Lynch, Lehman Brothers and the bailouts of Goldman Sachs, CitiCorp, HSBC and Bank of America, Finance today seems to have “metastasized” and now threatens to kill parts of the global Real Economy. So… we had better do something about this, and quickly. And “doing something” means more than just fighting on the streets and throwing rocks at the police (although admittedly, that is often a necessary collective first step).
Finance has usurped the upper echelons which do not legitimately belong to it but rather to the Real Economy. It is the Real Economy that must always be on top because that is where True Value is created. Finance, in turn, must always be subordinated to the Real Economy, not the other way around. This means that today’s key problem is that the whole economic-financial-monetary system is upside down… We need to immediately put it right-side-up again!!
Third Key Question: WHERE to start?
It starts with each country taking back their central bank so that it will provide the necessary amount of interest-free money to meet the needs of the Real National Economy, so that all the powerful funny-money bankers can be routed. That means freeing your central bank from global banker control.Former Argentine president Juan Domingo Perón did just that 60 years ago and the Powers That Be bombed him out of power. Muammar Gaddafi did that much more recently, and look at what happened to him….
“Money is a Powerful Lord”, 17th Century Spanish poet Don Francisco de Quevedo y Villegas once said. Four centuries later, nothing new under the sun…
Adrian Salbuchi for RT
Adrian Salbuchi is a political analyst, author, speaker and radio/TV commentator in Argentina. www.asalbuchi.com.ar
The statements, views and opinions expressed in this article are solely those of the author and do not necessarily represent those of RT.
06.12.2011, 19:20
63 comments
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Hi Susan, I like how you mind works. While I personally feel wheat, barley etc. is not a viable source for currency trade, your thinking is on the right tracks. Not only is wheat/barley too much of a commodity to employ in a currency sense, the fact that it is food itself that would become currency is somehow bizzarre, in an indefinable way. Plus, there are countrys that probably don't produce one wheat stalk from border to border, while there are others awash in the grains. This would immediately set up an unbalanced power distribution. (At the same time, one must remember that there was a time that salt was used to pay soldiers and traded as currency. Hance the word, salary.) We musn't forget, that not matter what alternative currency would be created, and what new 'system' we replace this corrupt joke of a model we now operate under, the same people will be there- the same speculative vultures, the same version of the 1%. One does not know light without darkness, hot without cold. It gets down to the the yin and tang in all aspects of existence. Utopia does not exist as we would envision- it can't. I would have to say utopia could exist, but the reason is that there would be no people involved. Swimming in the most elemental sea of thought, it is not our system, our paradigm for economies that are the problem- it's us....people, and the human condition we bring to the table. Gold has worked since the dawn of man. At the rate we're going, gold will be working at the dusk of man as well.
Wheat and barley are not rare enough to be considered precious and equivalent to money as we know it. 'future' trading is pure gambling that may stay with us no matter what is used to back our new currency, unless we overtly or covertly adopt Islamic rules that take care of 'future' trading. Some of our allies have actually adopted many Koranic rules, without fanfares, into their laws over many years. Alternatively, using ethical values as backer of currency is rare enough today. But, being intangible eliminates it from the list. Keep thinking! Anything is better than our current fiat currency with no backing.









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