Phi Beta Iota: This brilliant analysis cuts deeply to two core points: that a tiny handful of banks have been controlling 90% of the debt and manipulating the destruction of economies — shorting the Euro as well as the US dollar — and that governments have not been acting together. He neglects two fundamentals: the lack of integrity in these same government, most in collusion with the banks against the public; and the lack of integrity — the blatant persistent transnational criminal activities of the banks — of the handful of banks that have brought the world to the brink. Electoral reform is needed to cleanse the governments, and the governments should be taking legal action to destroy the banks and recover the criminally-rooted losses. We totally agree that Europe should default in unison, but we also feel that global criminal action against the specified banks and all of their owners, partners, and senior managers should be taken toward the aim of de-privatizing public goods and confiscating assets back toward the public commonwealths. Put bluntly, it is time we melt Goldman Sachs down and deprive the individual financial criminals of 95% of their wealth that is rooted in deliberate criminal activity against people and nations.
260911 1103
Alessandro Politi
Euro crisis and common sense 1
What does this crisis mean?
In times of emergency clarity of analysis and purpose is of paramount importance, especially when public leadership is so mediocre. In this first piece we will look first at the analysis framework at global level.
Forget about the markets. This is just a misleading shorthand expression that obscures a simple fact. The OECD has observed that, after decades of M&A, during this year 9 major economic actors control beyond 90% of the derivatives market (i.e. CDS, CDO, exchange rate swaps). They are:
- J.P Morgan, Bank of America-Merrill Lynch, Citibank, Goldman Sachs, HSBC USA;
- Deutsche Bank, UBS, Credit Suisse, BNP-Paribas.
This is an oligopolistic market where small stakeholders are just cannon fodder and governments have generally no sufficient financial muscle. These are the entities that make the market and break national financial reputations, economic fundamentals notwithstanding.
