April 29, 2010

POWER WATCH: TICK, TICK, TICK...

... and who's setting the timer on the bomb? As discussed earlier, and as everybody with about half a brain should have noticed over a year ago, it's the ratings agencies. Standard & Poors set down the ratings for Portugal and Spain in the past 48 hours. Remember, kids? These are the same people who sold you unsuspecting investors those giant bundles of shit called real estate derivates with a triple A rating for years...

... knowing they were shit!

Now, here's what I wonder. Yes, Portugal and Spain belong to the PIGS (Portgual, Ireland, Italy, Greece, Spain) states, and there are certainly problems with these states. But the point that is always made is the debt.

The debt in ratio to the gross domestic product (remember, class, when we talked about that? The BIP, we call it in Germany?) That shows, according to the same ratings agencies who either couldn't get their heads out of their collective asses during the biggest scam of the 21st century that led to the 2008 collapse or were in on said scame, that shows how stable a country's economy is. That is the magical number, class. The ratio of debt vs the gross national product.

Now let's look at the one of Portugal.

Their debt is 9.4 percent against the GDP. Bad? Yes.

Spain's debt is 11.2 percent against the GDP. Worse? Yes.

However, nothing in these numbers has changed dramatically between January and the past 48 hours. Nothing. And yet, within those 48 hours things turned from Danger! Danger! Will Robinson! to This is the fucking end of the world!

And again, we ask, Cui Bono?

Who benefits?

Want to look at a few countries and their debt vs. their GDP?

Hm?

Can you guess which they are?

UK: 11,5 percent vs. the GDP
US: 10,64 percent vs. the GDP

In other words, these two countries belong to the worst offenders in the global market, if we were to judge all things equally.

Guess which two countries still enjoy a full AAA rating by all ratings agencies?

That's right, kids. Because we are not judging equally.

If we were, then the AAA ratings of the US and the UK would go poof... right about now.

Because all the ratings agencies are Anglo-Saxon corporate-owned entitites. Because somebody over there is playing the market. Playing the field. Pssst. They are called GS. You know what that stands for, right? Somebody over there, with the help of some incredibly retarded media figureheads, usually working at Fox and CNBC and other "financial market cable channels" is in phase two of the biggest theft of the 21st century. And you cannot do that if your own countries are downgraded. Then you can no longer get your own free money at zero interest from the Fed.... and you need that money to play the field.

Because, have you noticed when these downgrades of all the European countries happened?

When the markets knew that the European Union would pay whatever the cost to bail their membership states out, because they were...

... and everybody say it with me, they were too big too fail.

Within that exact 48 hour window, the dominoes started falling.

Just as predicted. By not only me, but a whole group of others. 18 months ago. When nobody was listening.

And credit costs went through the roof.

Easy to snap them up with borrowed money from the Fed at zero percent interest, isn't it? Because you know, you are certain that the European union will have to come up with the money, countries like Germany will bond countries like Greece and Spain and Protugal with their so far impeccable credit rating...

.. because countries like Germany don't have that money readily available either, but hell, we can get fresh credit from...

... Who? Who? That's right, kids, from the banks at a lower interest rate.

So the banks can make double the money! Lending the bailout money to countries like Germany to serve the interests that you own on countries like Greece.

Pocket the fucking difference!

And even better than that, your own bank – having loaned the money from the Fed at zero percent interest, doesn't even have to pay anything on "creating that investment".

Brilliant! Morally reprehensible, of course! But... not illegal!

Because the same politicians who rant and rave on television against the lazy Greeks have done nothing, I repeat, nothing to make these practices illegal.

We are 18 months away from "we need to regulate Wall Street".

And perhaps the Chocolate Messiah is able to get his "reform" bill through Congress, perhaps not, but just as with health care "reform", you can't help but have the feeling that this "reform" will yet be another corporate blow job.

That is not capitalism.

That is organized crime.

It should prosecuted as such.