By
R.T.Hansen, June 2009
It is perculiar, that it is the satire that comes closest to reality. More about that later, but you can start of with Andy Borowitz (here).
Bubblemaking
Even if the big 5, the world’s largest five investment banks, wouldn't have pissed their future away over the course of
the
last
15 years, it wouldn’t change the fact of how underwriting and
stock brokering essentially is an advanced betting system made to look
like a systematic “fountain” of “effective” capital allocation. Bollux.
It’s religious of course. The theory is not unlike the fictive idea of
a “democracy” that never really takes place, apart from in the minds of
people, constantly racing after arguments to get closer
to “more” free market capitalism.
In the last 15 years the financial industry never saw more "free market
capitalism" WORKING than ever before. Nor for that matter “democracy”.
Any one who believes still in the “future” of modern capitalism are
delirious. For anyone not having registered it we just had a “sound
economy” on the verge of global bankruptcy and martial law.
The irony is that even if the big 5, hadn't been pissing their own
future away, a whole system of taking companies into equity markets is
fraudulent. Very few people know how it’s actually done and fewer
decipher this as what it is. Because if enough “economists” and
“experts” talk about it like they know something maybe people will not
see that the whole thing is a pyramid game.
Could I be right about this. Yes I could.
(Even Greenspan, Bernake and a whole lot of other folk, included the
financial press basically haven’t got a clue what they are dealing
with. I mean look at the facts here. All were yelling how good it was
until the water was pouring into their cabins?)
The Magic Money Making of Underwriting
It works like this. Say a company is being taken IPO. The investment bank , lets say big daddy’o of them all Goldman Sachs, calls up its friends (the funds and the pension banks) and they all know that with GS mass behind any turdy firm with cooked books, even shit is going to float downstream for a while. GS creams off a nice slice of the pie of underwriting (10-30%) depending on the upside. That stuff has been going on since the start of Wall Street but with the mergers (and greed) of the post-modern era the effectiveness of the scam reached new soaring heights. The “grabbing the falling water melon effect” is possible because there are 5 big underwriters left with mass. And if you’re on top, you’re the priest in charge of the golden pyramid. All without regulation in the name of the capital efficiency of the post-modern era. The dotcom economy is by far the best example, and price/earnings ratios are still completely ridiculous by any (intelligent) standards. New tech as well as old blue chip firms. It’s a overblow system of virtual capitalizations of past wars, profiteering, sacking of 3rd world economies. A system built on the air of a rotting corpse. Completely out of touch with reality. Underwriting is a bit like having the monopoly of selling overpriced candy to rich kids who aren't allowed to buy their sugar dose in the stores. Everyone working in the finance industry with a minimum of integrity (a rare commodity) knows that. But you aren’t talking about it before you get sacked. Most of the CEO’s of the big 5 know where the Titanic is headed, or they are perhaps subconsciously feeling the direction – that’s why they are trying to establish stuffed mattresses and a continuous revenue stream from US, and essentially the worlds, taxpayers and workers etc. Its so obviously a shit in the face of people but also incredibly unintelligent. If there even was a metaphor of sawing the branch, you and the rest of the boys are sitting on, this is it. Almost like they're down to an investment window of one years rape take-all-whats-left-in-the-store-riot. But hang on for a minute - this is not even the best part.
A Search for the Endless in the Finite - Achilles and the Turtle
Wait
for the blow of the real bubble blow in a not
so far future. Fractional banking. A system few people realize the
true, indecent nature of how the mechanics eventually, inevitably play
out.
It is a system of virtual money out of proportions with the actual
physical economy. A system of credit defaults swaps and other
derivatives, futures, hedges or, to put it precisely, bets (a bookie
operation of about 1000 trillion USD worldwide after the BIS reporting of
2008). By comparison the US economy lies near the 14
trillion
dollar mark. Get that for a comparison.
Talk about a bubble.
After the deflationary pressure ceases in the next 1-2 years, inflation
is highly likely going to blow the ass of the Titanic into space and
make everyone reach for what remotely assimilates a lifebelt. This time
even with a world currency the plague infested corpse is not going to
be saved, even though they plow one gazillion tubes into it.
The question of course is, how, how in God’s name was it all possible?
How could governments, “intelligent” people in the finance industry,
academia, politics just piss the future of the grandchildren away, just
like that?
Simple answer. 
Ego.
There is a point in Jason Reitman’s Thank
You For Smoking
where lead lobbyist for the tobacco industry Nick Naylor has to explain
why he is “doing it”. His answer is not surprisingly
what-could-be-the-motto-of the post-modern capitalist (or any other
hard working clerk integrated into the global economy) “I got a
mortgage to pay”.Pure greed and ego brought the world economy where it
is now on a virtual edge of a total collapse. Not just
depression or people out of job. It’s more like Escape from New York mixed with 28 days later.
Crops have just to fail once, worldwide, to produce the biggest
catastrophe in the history of the Earth. And why shouldn’t it – it has
done so repeatedly in every period in every history of mankind. The
only thing that man hasn’t changed is his ability to prepare for
something, just like that.
Ego believes that it’s kind of God in charge of the store.
But let’s just say everything stays in place. Nothing big happens. No
natural catastrophes, epidemics etc.
The mind bending insight is that the modern paper-economy is a kind of
symbolic structure over the "real" economy - which is plain
manufacturing, services, transportation etc.
In fact the idea of "effective capital allocation" in capitalism is,
frankly, a scam.
But, it’s a scam with a profound irony of enormous proportions.
By design into any economy working with virtual money (what is called
fiat money), fractional banking and principal interest comes with an
automatic demise in the structural dimension holding it upright.
It is perculiar, that it is the satire that comes closest to reality. More about that later, but you can start of with Andy Borowitz (here).
Bubblemaking
Even if the big 5, the world’s largest five investment banks, wouldn't have pissed their future away over the course of
the
last
15 years, it wouldn’t change the fact of how underwriting and
stock brokering essentially is an advanced betting system made to look
like a systematic “fountain” of “effective” capital allocation. Bollux.
It’s religious of course. The theory is not unlike the fictive idea of
a “democracy” that never really takes place, apart from in the minds of
people, constantly racing after arguments to get closer
to “more” free market capitalism.
In the last 15 years the financial industry never saw more "free market
capitalism" WORKING than ever before. Nor for that matter “democracy”.
Any one who believes still in the “future” of modern capitalism are
delirious. For anyone not having registered it we just had a “sound
economy” on the verge of global bankruptcy and martial law.
The irony is that even if the big 5, hadn't been pissing their own
future away, a whole system of taking companies into equity markets is
fraudulent. Very few people know how it’s actually done and fewer
decipher this as what it is. Because if enough “economists” and
“experts” talk about it like they know something maybe people will not
see that the whole thing is a pyramid game.
Could I be right about this. Yes I could.
(Even Greenspan, Bernake and a whole lot of other folk, included the
financial press basically haven’t got a clue what they are dealing
with. I mean look at the facts here. All were yelling how good it was
until the water was pouring into their cabins?) 
The Magic Money Making of UnderwritingIt works like this. Say a company is being taken IPO. The investment bank , lets say big daddy’o of them all Goldman Sachs, calls up its friends (the funds and the pension banks) and they all know that with GS mass behind any turdy firm with cooked books, even shit is going to float downstream for a while. GS creams off a nice slice of the pie of underwriting (10-30%) depending on the upside. That stuff has been going on since the start of Wall Street but with the mergers (and greed) of the post-modern era the effectiveness of the scam reached new soaring heights. The “grabbing the falling water melon effect” is possible because there are 5 big underwriters left with mass. And if you’re on top, you’re the priest in charge of the golden pyramid. All without regulation in the name of the capital efficiency of the post-modern era. The dotcom economy is by far the best example, and price/earnings ratios are still completely ridiculous by any (intelligent) standards. New tech as well as old blue chip firms. It’s a overblow system of virtual capitalizations of past wars, profiteering, sacking of 3rd world economies. A system built on the air of a rotting corpse. Completely out of touch with reality. Underwriting is a bit like having the monopoly of selling overpriced candy to rich kids who aren't allowed to buy their sugar dose in the stores. Everyone working in the finance industry with a minimum of integrity (a rare commodity) knows that. But you aren’t talking about it before you get sacked. Most of the CEO’s of the big 5 know where the Titanic is headed, or they are perhaps subconsciously feeling the direction – that’s why they are trying to establish stuffed mattresses and a continuous revenue stream from US, and essentially the worlds, taxpayers and workers etc. Its so obviously a shit in the face of people but also incredibly unintelligent. If there even was a metaphor of sawing the branch, you and the rest of the boys are sitting on, this is it. Almost like they're down to an investment window of one years rape take-all-whats-left-in-the-store-riot. But hang on for a minute - this is not even the best part.
A Search for the Endless in the Finite - Achilles and the Turtle
Wait
for the blow of the real bubble blow in a not
so far future. Fractional banking. A system few people realize the
true, indecent nature of how the mechanics eventually, inevitably play
out.
It is a system of virtual money out of proportions with the actual
physical economy. A system of credit defaults swaps and other
derivatives, futures, hedges or, to put it precisely, bets (a bookie
operation of about 1000 trillion USD worldwide after the BIS reporting of
2008). By comparison the US economy lies near the 14
trillion
dollar mark. Get that for a comparison.
Talk about a bubble.
After the deflationary pressure ceases in the next 1-2 years, inflation
is highly likely going to blow the ass of the Titanic into space and
make everyone reach for what remotely assimilates a lifebelt. This time
even with a world currency the plague infested corpse is not going to
be saved, even though they plow one gazillion tubes into it.
The question of course is, how, how in God’s name was it all possible?
How could governments, “intelligent” people in the finance industry,
academia, politics just piss the future of the grandchildren away, just
like that?
Simple answer. 
Ego.
There is a point in Jason Reitman’s Thank
You For Smoking
where lead lobbyist for the tobacco industry Nick Naylor has to explain
why he is “doing it”. His answer is not surprisingly
what-could-be-the-motto-of the post-modern capitalist (or any other
hard working clerk integrated into the global economy) “I got a
mortgage to pay”.Pure greed and ego brought the world economy where it
is now on a virtual edge of a total collapse. Not just
depression or people out of job. It’s more like Escape from New York mixed with 28 days later.
Crops have just to fail once, worldwide, to produce the biggest
catastrophe in the history of the Earth. And why shouldn’t it – it has
done so repeatedly in every period in every history of mankind. The
only thing that man hasn’t changed is his ability to prepare for
something, just like that.
Ego believes that it’s kind of God in charge of the store.
But let’s just say everything stays in place. Nothing big happens. No
natural catastrophes, epidemics etc.
The mind bending insight is that the modern paper-economy is a kind of
symbolic structure over the "real" economy - which is plain
manufacturing, services, transportation etc.
In fact the idea of "effective capital allocation" in capitalism is,
frankly, a scam.
But, it’s a scam with a profound irony of enormous proportions.
By design into any economy working with virtual money (what is called
fiat money), fractional banking and principal interest comes with an
automatic demise in the structural dimension holding it upright.| |
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What is the REAL driver of free time, health, social equality, prosperity etc? It is something like as little taxation as possible, technological innovation and effective utilization of resources etc. That actually has little to do with modern capitalism. "Capitalism", or markets, were around a long time. People traded goods 10,000 years ago. Most of the important inventions of the modern era (Watt’s steam engine, Faradays’s electricity, Tesla’s alternating current, Edison’s wire, Bell’s telephone, Fleming’s penicillin, and so forth) weren’t made by capital assisted research departments or government subsidiaries but simply frantic inventors of genius who couldn’t help coming up with stuff that would benefit mankind. They were building on scientific and technological knowledge done before. The key to effective resource utility is political distribution and application of power (not wealth), not in particular “regulation”, which is a much more narrow definition of the sphere of the state. For example in the ancient India if a king was deemed wise, he would stay out of the general business of society, but assuring that no one like the aristocracy would get too powerful, grab monopolies, do unfair trading etc. He would make sure that no-one starved and became uneducated through taxation and create the preconditions for a coherent community. But the sense of integrity and community were left up to people. No doubt this was before the idea of western enlightenment of course and its “government by the citizens”.
The
best example of the reality of modern capitalism and its "ethics" is
how modern corporations administer laws globally. Though there are
standards, codes of conduct, human rights and so forth, lastly what it
comes down to, for any modern corporation, is delivering a staggering
profit. Responsible COC (Code of Conduct) only comes as a empty
marketing phenomena to fend of the changed needs of the costumers who
are looking for empty slogans to go with products.
It is NOT the purpose of a multinational or any other business in this
age to be nice to people and make sure that they are being paid well
for the resources of the lands of their forefathers. So the modern
corporation breaks laws if it can get away with it. Interpretation is
above accountability.
When money is God, the more audacity, the more profit, as the
philosophy goes in that world.
We have to look at modern capitalism and call it to its real name: The
worse and cheaper you make something, the more you can sell to
somebody. Free market capitalism is this indecency, but it comes with
an opposite need for a constant buying. Advertising and the marketing
of the "new and updated" (but moreorless the same) exactly produces the
need for the constant buying experience.
Surprisingly actually people even wanted the pseudo experience. The
more frequent they could buy something, the better. Shopping as a
surrogate religion.
Participating in modern capitalism one inevitably, but effectively turn
the world into shit. Garbage production: Take furniture. Any person
with a little brain power, rational thinking etc would opt for a good
investment, solid, durable, classic stuff that the grandchildren could
inherit. Just like grandma. Yet IKEA is one of the worlds largest
companies. Why? Because people crave shit. Make anything self-destruct
slightly after the warranty is out and they will hoard in and get more
buying experiences .. because its so “cheap”.
The list continues, as Steven Colbert indicates, the Prescott Group
makes crops that make you sick, AND the medicine that makes you go
well. Dummies guide to modern capital.
Now, the moronic argument of always drawing up the "only-alternate"
possibility to this shit yielding exploration of empty space, as the
catastrophic linear planning economy of communism, is equivalent of the
quak of the wild west selling opium water at 100 dollar a bottle
promising a sure death if you aren’t buying his medicine.
Lastly, America is built on Coca- cola spirit who, not to forget, began
with mixing cocaine in its refreshing drinks for better living. Good
for business..
Basically
any
economy works of people making houses, making food and someone
making clothing.
Andy Warhol said it better than any when visiting Rome: Half of the
population got nothing to do because all the housing already has been
built. That’s it for you there on a silver platter. We’re still eating,
building, consuming, shitting the same stuff out. A little more
gadgets, idiotic medicine and entertainment (and for the medium wealthy
Romans, excuse me, Americans, a few more Mexican servants). But
essentially the economy is exactly the same.
The “growth” indicator just shows that an economy moves more money and
goods through as in consumption, not that an economy is more prosperous
in terms of actual resources. In fact nowadays in most parts of the
world (excluded over middle class America to this point) both parents
have to work (like crazy) to keep a household going (unless youre in
finance or one of the other “blessed” industries). Back in the days not
too long ago, it was enough to just have one working. How exactly does
that work with the stats that are pooped out each year by statistic
services, that are so rosy you would think were government subsidized?
It just doesn’t ad up.
Think for a moment on the people working in the finance industry, NYC,
London city etc – what do they handle? They handle debt exchanges,
expectations about nothing, nothing as symbolic paper: Money.
Now this sounds like some lunatic idea, but it’s not even mysterious.
Nor is it “symbolic” or metaphorical. Literally what was last centuries
belief in some subjective God as an image, is today the belief that the
paper we have between our hands, money, is actually worth something.
It’s not. It's paper.
The only reason why we believe in the value of money, is because this
paper participates in a worldwide system of “magic”: A dollar can buy
you a soda anywhere in the world, a guy will sell his house to you for
digits in a bank etc.
Though one could speculate if this was not the case since the Egyptians
started building pyramids for the dead, money in the 20th century, the
century of ego, is not only God, it’s a kind a magic substance, not
there, but mediating every relation between people (almost):
Controlling sex, power, religion, the outcome of wars (as before),
politics and so on. It even controls your most immediate relations to
people.
So in order to stick to my primary argument, the virtual economy
collapses when the people skimming off interests of the virtual debt,
have to start printing a lot more money to keep up their system of
pyramid economy.
Think about it again – it’s a finite physical economy. But unlimited
amount of virtual digits.
Who’s controlling the printer? A few people who also own most of the
banks.
The
problems that people in top of the banking pyramids have, is simply
that they have to transfer increasingly more and more money into the
pyramid economy - after they added the whole possible population of the
Earth (that happened with the Chinese and Russians also jumped on the
oil-dollar band wagon buying worthless treasury bonds at least .. until
now).
When the pyramid game runs out of new participants it HAS TO START
ADDING THE MONEY it self. And when it does that every one realizes that
their money are slowly becoming worthless.
It is called hyperinflation.
Eventually Achilles will catch up with the turtle.
A world held up by a hot air balloon about to fall to the ground. But:
Don’t despair – it’s filled with flowers...
(working on the real deal about the monetary system as a full fledged
vortex movement)
Cartoons by Matt Davis, Pat Oliphat
all copyright to them and God..
some notes on the the vortex economic meltdown (this is no prophesy its
just easy calculable, projected logics)Here an incomplete list that I highly recommend to check out. This meltdown bears likenance to a vortex, the mother of all repeated patterns in the Universe. It is a synchronistic movement of interrelations if there ever was one. One could speculate that it is not randomly that we are seeing the greatest depression or financial meltdowns of the history slowly unfold: without any references to marxism here or historic theory, it is really the precondition for a "new age".
ARTICLES
Matt Taibbi On Goldman Sachs' Big Scam (link to videos) ..Any attempt to construct a narrative around all the former Goldmanites in influential positions quickly becomes an absurd and pointless exercise, like trying to make a list of everything. What you need to know is the big picture: If America is circling the drain, Goldman Sachs has found a way to be that drain — an extremely unfortunate loophole in the system of Western democratic capitalism, which never foresaw that in a society governed passively by free markets and free elections, organized greed always defeats disorganized democracy." (whole article)
Bubble Economy 2.0: The Financial Recovery Plan from Hell by Michael Hudson (link)
"..Today’s economic collapse is the direct result of their planning philosophy. It actually was taught as “wealth creation” and still is, as supposedly more productive than the public regulation and oversight so detested by Wall Street and its Chicago School aficionados. The financial powerhouses created by this “free market” philosophy span the entire FIRE sector – finance, insurance and real estate, “financializing” housing and commercial property markets in ways guaranteed to make money by creating and selling debt. Mr. Obama’s advisors are precisely those of the Clinton Administration who supported trustification of the FIRE sector. This is the broad deregulatory medium in which today’s bad-debt disaster has been able to spread so much more rapidly than at any time since the 1920s." "..We don’t need to fix the Wall Street disease; we can bypass the whole problem and create a new, healthy, parallel system. A network of public banks (federal and state) could create “credit” just as private banks do now. This credit could be extended at low interest rates to consumers and at very low interest to local governments, drastically reducing the cost of public projects by reducing the cost of funding them.
" Financial Times, "The fiscal black hole in the US" by Maverecon: Willem Buiter (link)
"...US budgetary prospects are dire, disastrous even. Without a major permanent fiscal tightening, starting as soon as cyclical considerations permit, and preferably sooner, the country is headed straight for a build up of public debt that will either have to be inflated away or that will be ‘resolved’ through sovereign default." “Dark Inflation” to Stalk the
Global Economy in 2012 – is the Force with you? By Andrew White. (link)
.. what if this “black hole” got large enough that it operated like a black hole in space; what if this hole or phenomena became so massive that it operated like dark matter: an equal, or sometimes larger force, to that which we experience in this universe, that potentially balances or causes havoc by behaving as a massive weight counterbalancing behavior here?
It’s Finished, by John LanchesterLondon Review of Books v 31 (link).
On how and why the bank system of England also is slowly failing completely, and the absurdity of covering a private debt hole to benefit a very few with future taxpayer money. "..In other words, Royal Bank of Scotland had its origins in a failed speculation, a bail-out, and a financial crash so big it helped destroy Scotland’s status as a separate nation. Fast-forward 300 years, and RBS is today, by the size of its assets, not just a big bank, and not just one of the biggest companies in Europe. The RBS, by asset size, is the biggest company in the world
ARTICLES ABOUT THE BOND DITCH
June 11, Cryptogon reports as the first on the 134 bn "forged" US Bond smugglery
June 14, (The Market ticker) The Saga Of The Bearer Bonds
If Treasury has been surreptitiously issuing bonds to, say, Japan, as a means of financing deficits that someone didn't want reported over the last, oh, say 10 or 20 years, then the following is about to occur: (a shitstorm)
June 20, (Telegraph) Is this the death of the dollar?
After two smugglers were stopped last week with what at first appeared to be $134bn in US state bonds, the tension and paranoia surrounding the fate of the dollar hit a new high.
June 21, (The Money Ticker) The Bond Saga: It Gets More Odd
Jun 22nd, 2009 (The Money Ticker) The Bearer Bond Saga Gets Even Fishier
Why would anyone go to the trouble of forging $134 billion worth of bearer bonds in the first place? Why such a big amount? One theory seems to be that the Mafia was going to use the bonds to open up credit lines in a bank. But what bank demands a $134 billion guarantee? And surely any bank would go to the trouble to check the authenticity of the bonds before opening any credit lines.
June 14, (Eric deCarbonnel updated) Everything suggests that the American bonds seized at Chiasso are real
1) IF one of the two Japanese arrested in Chiasso was really the brother of Toshiro Muto, until recently vice governor of the Bank of Japan, then he might have had the access to the real bonds necessary for forgery.
2) There is enough evidence to suggesting these bonds are real
14 July, Dollarcallapse.com
The idea that we’ll wake up one day to discover that the international monetary system has been “reset” and that our dollar/euro/yen savings have taken a huge hit (while the local currency value of our gold and silver soar) reminds me of an exchange in The Virgin’s Lover, by Philippa Gregory
Complexly inversed illusions of nature caused by a paradoxical effect (link)
Universal Vortical Singularity is imbued with a paradoxical nature that all its creations are inherent with this paradoxical characteristic; the universe is paradoxical. Through knowing the paradoxical effect of Universal Vortical Singularity, it enlightens on how nature does wonders in a complexly inversed manner. This paradoxical effect causes natural phenomena affected by unisonal vortex to be intermingled with optical illusions in their perceptions under delusions and therefore have always rendered as wonders under different circumstances, in cognitive paradoxes with complexly inversed illusions that are counterintuitive, mysterious, confusing and misleading
VIDEOS “The Gig Is Up" Gary Fielder, presents " Money, the Federal Reserve and You". Live from Wolfe Hall at The University of Colorado School of Law, on December 4, 2008, Mr. Fielder, a criminal and constitutional lawyer from Denver, Colorado, presents a power point and video presentation on the creation of money with an historical analysis of our current banking system (link).