Friday, 19 September 2008

Broken banking system + market manipulations 2008-09-19

Friday 19th September 2008 7:21 pm:
Broken banking system plus market manipulations.
To say that they 'cannot be allowed to fail' defines that they are above the law!

The past week has been a most eventful one in the financial markets, the most eventful since The Great Depression.

1. Lehman Brothers is busted and in Chapter 11 'Bankruptcy Protection'
2. Merrill Lynch had a 'shotgun wedding' takeover by Bank of America.
3. AIG had an 84bn$ rescue from the Federal Reserve courtesy of the unconsulted taxpayer.
4. Lloyds TSB High Street UK Bank bought of HBOS, another UK High Street bank.
5. The USA and UK have banned short selling of stocks, at least the stocks of favoured corporations, i.e. the banks and investment houses.
6. The regulators in the USA raised the margin requirements to punitive levels in gold and silver, to discourage people from investing in gold and silver.

It is a cornucopia of market manipulations and fascistic alliances designed to protect the banking elite at the expense of the public and against anyone who is an ultimate creditor of these organisations (or the equally busted US or UK governments).

Introducing these rules that have not been in force since the 1930s Depression, if ever, has bought some time (a little) by rallying the markets temporarily.

The authorities have ignored the fact that some investment banks have previously made billions by short selling industrial companies and commodities over the past century. Now those very culprits are being protected from astute investors who are betting that these institutions are already bankrupt in all but name. Short selling is a pricing mechsnism. Why should it be banned now? Some investment banks have previously indulged in 'naked short selling' which has always been illegal - but the regulatory authorities turned a blind eye. Some small and middle-sized but strategically important industrial companies have allegedly been more or less financially destroyed by these 'investment' practices - but the law was never enforced upon investment banks profiting from this practice.

They were and are above the law and cannot be allowed to fail. To say that they 'cannot be allowed to fail' defines that they are above the law, i.e. the law is made specifically for their benefit and against the interests of citizens and against the interests of entrepreneurs everywhere.

This is the absolute proof of the fascist business and government model rampant in the USA and the UK. They are now able to be defined correctly as fascist regimes and not democracies, free republics or anything else. Of course, the Iraq war and the immoral occupation of that country was already enough evidence of that. Qui bono?

These most recent actions in the markets have been purely to buy time for a Wall Street rally to enable one last chance for the insiders (and outsiders) to sell those banking stocks, so the elite can move their money away from a system that is almost certainly going to fail systemically very soon. Short selling is banned but selling isn't, so astute investors can liquidate their holdings of banking stocks and walk away. That is unlikely to be banned by law, at least not yet!

It is possible that some of the banks have been short selling their competitors to force them into mergers at extremely disounted prices and the new law was enacted to prevent this kind of vulture behaviour and monopoly formation. That would be the more innocent explanation but it doesn't change the details of the corruption that has gone on and the illiquidity and likely insolvency of the banking system that seems to be getting more exposed for all to see.

So why raise margin requirements on gold and silver now, when gold is still well below its March 2008 high of $1030? There is no innocent explanation for that. It is sheer government and central bank market manipulation to protect the SHORT SELLERS in the precious metals at the same time that no-one is allowed to short sell banking stocks. WHAT IRONY!

As economics expert Jim Sinclair of multi-decade experience implores us to protect ourselves, so we should, by being as far out of the financial system as we can possibly be and removing as many intermediaries between ourselves and our assets as possible. Preferably to remove all intermediaries, which means direct ownership of physical assets that cannot be lost by bankruptcy of financial institutions. This involves coming out of Babylon, as spoken of in Revelation Chapters 17 and 18. The fall of our financial Babylon is at hand. Those two books in the Holy Bible should be read by everyone, religious and athiest, including Richard Dawkins, because they described incredibly accurately 1900 years ago, what is happening today. Our modern Babylon is the Dollar Standard System of banking, usury and theft as practiced by Britain's and America's ruling classes.

Alistair Darling, the UK Chancellor of the Exchequer (that is, Finance Minister) on television last night on the programe 'Newsnight' basically admitted that the takeover by Lloyds TSB (an already merged pairing of banks: Lloyds and TSB) of HBOS (Halifax Bank of Scotland - another company made up of two previously merged banks) broke the rules on Monopolies and mergers (known as anti-trust laws in the USA) but that the consequences of not allowing the merger at this time would have been 'very serious' for the financial system. Serious consequences would have followed and we all know what that means (Saddam certainly found out)!

What can you read from that? HBOS was broke and they were taken over at a fire sale price to conceal the fact that a major UK high street bank was bankrupt, perhaps? This entity wasn't Northern Rock. In years gone by, when I lived in Aberdeen in 1989, the Bank of Scotland used to issue its own currency notes in Scotland! It's not a piddling little ex-building society like Northern Rock was. HBOS was a major institution.

In the end, what conclusion can we draw from all of this? My conclusions are:

1. The entire US/UK financial system is broke, busted, caput.
2. The rescues and manipulations of this last week are quite extreme and they attest to the above.
3. The true state of affairs is being hidden from public view to prevent a panic and runs on all major banks in the Western world.
4. The Fed and the Bank of England know this and the current rescues have been to conceal the truth long enough to reach the upcoming US election (if there is one) before the collapse happens.
5. The collapse is likely to be timed after the presidential election (if there is one) and before the inauguration of the next president (if there is one).
6. During this time, the current leaders will take emergency powers before any handover that may take place.
7. Whoever is in the White House by 20 January 2009 will have dictatorial powers and...
8. We will be in the midst of a second Great Depression by 20 January 2009.
9. The collapse could actually happen sooner because the wheels have already fallen off the wagon.
10. I would not be that surprised if the 2008 US election is postponed, perhaps indefinitely and there could be a fascist dictatorship by year end.

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