THREE CHEERS FOR ICELAND!!
ICELAND
STANDS UP TO THE BANKERS
AND THE
SPECULATORS ON WALL STREET!
"The Prime Minister of Iceland, Geir Haarde,
sent shivers through the global financial system when he asserted that
Iceland can not, and will
not pay the foreign liabilities of its banking sector and
that the interests of Iceland will have
first priority."
"Yesterday,
Haarde told a press conference: ' The point is
this. The total indebtedness is such that there is no way that the
Icelandic population can take responsibility for
the debt these private companies have incurred. It
happens everyday in bankruptcies, that some are burnt.' "
THREE CHEERS FOR ICELAND!!
First the Dow crashes 900+ points. Then,
last week the Dow rose AFTER the Feds GAVE the banks BILLIONS and
BILLIONS of *OUR* dollars *AND*
began printing a Trillion *MORE* dollars!
/////////// Source of Trillion
More Dollars Statement below:
////////////
RESCUE SQUAD
BERNANKE, COX & GEITHNER
FIGHT FIRES
October 7, 2008
"Pulling the trigger first was Bernanke, who
traders say has
essentially cut interest rates - without
officially lowering the
Fed's target rate - by
announcing it will flood the economy with
nearly $1 trillion more in cash yesterday before the
markets
opened. "
/////////// Source of Trillion
More Dollars Statement Above:
////////////
THAT printing and then dumping a
TRILLION MORE DOLLARS into the economy will RAISE
the Inflation Rate! Which means that the money in your pocket
AUTOMATICALLY became worth less overnight!!!
Right now, as I write this, the Dow is back down
700+ points and headed for the basement!
FINALLY!
A country - ICELAND - has stood up to these low
life, thieving scum criminals in the banking system, on
Wall Street and in "our" U.S. Government.
Thursday evening update on the
global financial
collapse
Posted:
10/10/2008 - 09:46 AM
Author: Bill Lindo
Panic has engulfed the financial world as stock market
after stock market fell day after day for the past seven days. Today
the U.S. Dow Jones industrials fell some 678.91 points (down nearly
40% for this year) dragging down bank shares, auto manufacturers
(General Motors’ valuation is now below 1929) and even Exxon
Mobil.
Yesterday, according to the Telegraph, even Queen
Elizabeth II of Britain was worried. “Prime Minister,” she said.
“One’s money is invested in Coutts. Is it safe? My parents,
grandparents, even Queen Victoria put their savings in Coutts. Prime
Minister, one’s bank is now part of the Royal Bank of
Scotland.”
The Prime Minister of Iceland, Geir Haarde,
sent shivers through the global financial system when he asserted
that Iceland can
not, and will not pay the foreign liabilities of its banking
sector and that the interests of Iceland will have first
priority.
Yesterday, Haarde told a press conference: “The
point is this. The total indebtedness is such that there is no way
that the Icelandic population can take responsibility for the debt these private companies have
incurred. It happens everyday in bankruptcies, that some
are burnt.”
British PM Gordon Brown calls Iceland’s
behavior “totally unacceptable” and warned of legal action to recover
the US $ 1.74 billion loss in Iceland, especially after the Icelandic
government this week passed this week emergency legislation to deal
with the banking collapse. Unlike the British or
U.S. plans, this was not a bank “rescue” plan but legislation that
gave the government the authority to seize any bank or financial
company, put it through a bankruptcy or other procedure that would put the interests of the Icelandic
nation over that of the banks.
Next door to us,
Mexico’s peso lost 24% of its value against the US dollar, making its
imports of wheat, corn, beans, milk, and rice 24% more expensive. The
Peasant Association reported yesterday that remittances for the month
of September fell 29.6%, causing panic in Mexico. Remittances from the
U.S. are Mexico’s second highest earner of foreign exchange.
On the other side of the world, the financial meltdown
that started on Wall Street is now hurting farmers in Siberia,
threatening a Russian agricultural revival that the United Nations
says is needed to help avert a world food shortage. Cash-strapped
Russian banks have cut funding to a sector already reeling from
plummeting grain prices and soaring borrowing costs. The collapse of
the Russian stock market has closed off the other main money source
for Russian agricultural companies, which produce nine percent of the
world’s wheat.
The speculators are not fools. The
efforts of US Treasury Secretary Henry Paulson and his Plunge
Protection Team are being overwhelmed, as the largest volume of
financial bets in world history crushes their bailout efforts, which
are unprecedented in scope, but are nevertheless puny in comparison to
the “tumor” they are trying to save.
Driving all of this
is the global “casino” known as the derivatives markets, a market
which dwarfs the world’s mortgage, bond and stock markets - combined.
While mortgages, stocks and bonds are measured in the trillions of
dollars, the derivatives market is measured in quadrillions, or
thousands of trillions of dollars. Today the
Derivative Association said that the size of the over-the-counter
market is about $ 675
trillion. Putting a number to the size of the
derivatives market is virtually impossible, but putting a number to
the value of the derivatives market is easy — zero!
Derivatives were the great financial innovation of the
Greenspan era, in which casino-style bets on the price movements of
currencies, bonds and stocks replaced the ownership of those items as
a way to make money. The bets thus placed soon far outstripped the
levels of the markets upon which they were nominally based, as
derivatives became the prime source of “profit” for the financial
markets. That these “profits” were entirely fictitious, a fancy form
of casino-floor betting chips (securitization) , was considered
irrelevant as long as the market was growing and the “funny money” was
pouring in. Last year August, however, the global financial system
died, sealing the doom of the derivatives game.
Today,
the collapse of the derivatives market is crushing the international
financial system, as the speculators fight to save the fictitious
“profits” through the largest bail-out attempt in history.
According to the most recent data for June 30, 2008
released today by the Office of the Comptroller of the Currency, the
three largest American bank holding companies, JP Morgan Chase, Bank
of America and Citicorp, had current outstanding derivatives contracts
totaling $179.4 trillion dollars.
The three banks combined have total assets of
just under $5.6 trillion!
Now do you see
why the bail-out is not working? And can not work — there isn’t enough
money in the world to cover all these virtual bets, and the efforts by
the central banks to print that money, is fuelling a hyperinflationary
bomb which will wipe out not only the remnants of the global financial
system, but also the governments, national economies and the means of
existence for most of the world’s population. Hyperinflation will
destroy the value of the US dollar itself, wiping out pensions,
savings, bank accounts, stock portfolios, and all other monetary
values, bankrupting households, businesses and governments, leaving
all the nation-states destroyed, and, effectively, no longer
nation-states.
It is essential that the
bailout of the derivatives bubble be stopped immediately. All
derivatives trades should be declared null and void, and wiped off the
books of the speculators. Any financial instrument containing a
derivative should also be declared null and void, and wiped off the
books. This unregulated, insanely leveraged casino should be shut
down, and all claims arising from derivatives bets nullified, as
Iceland has done.
