Posts Tagged 'financial scam'

Lets make this $134bn story reach 134bn people.

Update1: Stopress!!! Wise owls on StefZ’s site are drawing attention to the possibility this is a scam. Please follow the link below for details…

Update2: Max Keizer gives it a mention here: GERALD CELENTE 1 OF 4 ON THE EDGE WITH MAX KEISER JUNE 19, 2009]


Yes, lets make it viral.

“The Italian financial police had two Japanese caught in the false bottom suitcase billion-dollar bonds”source

The number seems rather too high for me (a proverbial sore thumb) but hey, with a financial system created purely for the purpose of scamming people, who’s to say either way. Thanks to anon on “Stef, famous for 15 Megapizels” for this. 

How? With what?

“We guarantee your savings”

That is the claim by the Irish government, now the German govt and the British govt before when it propped up Northern Crock.

But how can it guarantee it? The Irish government is now in recession. Its treasury is leaking money. It cannot guarantee it. The Irish government is lying. The German government is lying so is the British government (no surprise there!)

There cannot be any guarntee. It’s a psychological scam!

You might argue the respective governments/ treasuries could print what it needs to cover the guarantee. If it prints more money to give you it will depreciate the value of the currency. So your might get your €40,000 in notes, but in real terms it ain’t worth no €40,000. Not only that, everything else you own will be worth less. You will in effect be funding your own guarantee!

Am I wrong?

Let’s call their bluff.

Pull ALL your hard earned money out of these fraudulent institutions, institutions that have helped kill millions upon millions of people across the world. Institutions that if bailed out, will have gotten away with gambling other people money with impunity, only to be able to draw upon YOUR money if their gambling fails.

Take out your money. If they aren’t lying, there’s no problem – yes?.

If they are lying then you’re money is in serious jeopardy anyway so act to protect it!

Examination of financial deritatives – scams included.

It seems likely that the derivatives ‘market’ are a most powerful of the powerful scams entertained by the fraudulent financial system we have today.

Such things would be impossible under an Islamic system of economics.

Essentially, a derivative is a bet/gamble. The bets are categorized according to some familiar recognisable conditions, such as “futures” and “options” etc.

One might think of ‘interest(rate)’ as being the greatest evil and in most respects you’d be right, becasue it is the doorway through which every other bit of dirty trading, such as derivatives, has come. But what makes derivatives so much more dangerous (IMO) is (that the graphic above highlights) is that you can bet upon a bet.  And it doesn’t stop there. You can then go ahead and then bet upon a bet upon a bet, and so on. – This is similiar to what ‘rogue traders’ (incidently, there only rogue when they lose and therefore gain exposure) like Nick Leeson did. You can try and bet away a bad bet, if that one fails you repackage and wrap your lost bet in an even bigger bet. And it’s not just people like Leeson or Societe Generale’s Jerome Kerviel who do it.

“Professional investment may be likened to those newspaper competitions in which the competitors have to pick out the six prettiest faces from a hundred photographs, the prize being awarded to the competitor whose choice most nearly corresponds to the average preferences of the competitors as a whole; so that each competitor has to pick, not the faces which he himself finds the prettiest, but those which he thinks likeliest to catch the fancy of the other competitors, all of whom are looking at the problem from the same point of view.”

“It is not a case of choosing those which, to the best of one’s judgment, are really the prettiest, nor even those which average opinion genuinely thinks the prettiest. We have reached the third degree when we devote our intelligences to anticipating what average opinion expects the average opinion to be. And there are some, I believe, who practise the fourth, fifth and higher degrees.”

Keynes, John Maynard The general theory of employment, interest and money. (London : Macmillan, St. Martin’s Press, 1936. page 156.

Quote taken from:

Bets can be swapped or sold many times over resulting in derivatives being highly complicated, highly interdependent and highly intertwined. If you don’t already, you should by now be having alarm bells going off in your head.

The amount of fictional money that can get tied up is enormous and it’s usually based on virtually nothing. It’s quite similiar to gambling on credit.

Fractional reserve banking is despised by virtually every Joe Soap who (thanks mainly due to the internet) learns about it. Fractional reserve banking involves say, a bank which has $1,000 in its vault being able to  lend out $10,000 or $100,000, that is 1000% or 10,000% respectively the amount it actually has in it’s vault. {example given featuring fractional reserve banking at the 10% or 1% level respectively)

We despise it for a number of reasons, one of which is becasue we have discovered a scam previously hidden from our eyes which we know is fundamentally wrong/corrupt or at the very best, bad practice.

I’m pretty sure that instinctive sence of right & wrong would make us detest financial interest(rates) if we came froma situation whereby it had never been part of out lives, but then suddenly imposiiton of use of interest(rates) is levvied upon us. However, being brought up with interest(rates) as a way of life has clouded our humanistic default hatred of it. And in fact, we are encouraged to engage in it. It’s spun sometimes as being “good”, for example when we chase high interest(rate) savins deposit accounts.

We put our $20,000 in the bank (which it then puts in its vault and then can lend out $200,000 {10% fractional reserve banking} at say 3% as a mortgague for instance, giving an interest payment of 6,000 over 20 years (=$120,000 in interest) plus the capital sum of $200,000, meaning the bank will get paid $320,000 from an initial amount of just $20,000 from you. They might offer you a 15% interest rate on your savings account and so, per year you’d get an extra $3,000. Yet they got $6000 per year, double what they give you, from a loan which they could only offer in the first place becasue you depositied your money with them.

And of course every year they have an extra $3,000 real cash (sadly the mortgague payer can’t pay the loan with conjured up money – but there ins’t anything to stop banks conjuring money!!) which then can go into their vault and become an amount of $30,000 on offer for more loans !!!

& Lets not forget the conditions they impose upon you for using their account. Typically: You can’t withdraw more than a small amount at a time and/or you must maintain a certain amount of savings or end up paying a nasty penalty (giving the banks more real cash to put intheir vaults etc.. etc…) gobbling up YOUR money.

So are these high interest(rate) accounts really “good”?

If you think yes, then you’ve forgotten probably the most painful part about it. Who ultimately pays for your interest? The people who bear the heaviest brunt of this is the most of the 3,000,000,000 people on the planet living on or below the $2 paper dollars a day line (the ‘standard’ of gaguing severy poverty). They pay. So unless you have no heart, surely you can no longer think of interest as good.

{Re: diagram. Some simplification yes, but not bad I feel for 478×533}

Disagree? Perhaps you havent read ‘Confessions of an Economic Hitman’ by John Perkins.

The thing about interest is that it plays a vital role in almost all derivatives, and the people that lose when big powerful companies decide to ‘cash’ in on their derivatives {or hold on to them until they will increase in ‘value’} is naturally enough those LARGE companies and not the majority of people (even in 1st world countries) who aren’t involved in them.

I’ve just started reading Matthias Chang’sThe Shadow Money Lenders” and already in the introduction it’s plain that the scope of the the scam – the derivatives market, is monumental. Cheching out the Apendices, as of Sept 30, 2007, JP Morgan Chase & Co had about $92,000,000,000,000 that’s USD $92 trillion dollars worth of derivatives yet only $1 trillion worth of assets. And this pattern is repeated across the board. Citygroup is next, $39 trillion derivatives, $2.4 trillion assets. This pattern repeats itself for the 25 magacrop institutions presented, giving a total derivative holding of $179 trillion yey only $10 trillion assets.

Almost 18 times the amount of bets and bets of bets (sometimes called hedges) the amount of extra phoney money deeply intertwined across the rotton international banking sector.

Hopefully now the scale of what’s coming is evident. LTMC’s collapse in 1998 simply becasue the Russians defaulted on a bloody loan, was said to have been a whisker away from total collapse of the worlds econony i.e. revelation of the fraud and it’s total disentanglement, {info here and yet more derivatives scam stuff} but since then the market has mushroomed, which to me was the bubble necessary to encapsulate and stave off the milder collapse LTMC would have brought about.

The Future’s bright. The future’s orange.

P.S. and oddly enough, Orange County in the US lost $1.600 million ($1.6 billion) by “trading” derivatives. Wikipedia says of the matter:

“Orange County is a good example of what happens when derivatives are used incorrectly” WikiLobbox.

 Ho Ho! that’s funny! Well even though much money is probably phoney anyway, but in a phoney system, it’s pretty near real!  But the point here is, the characteristic of derivitives is that somewhere, someone will get burned, like all bets, and that’s their characteristic consequence not the accidental misfurtune [punn not intended] as Wikilobbox portrays.


An important message – not quite from my sponsor.

I believe (not surprizingly) in the Islamic system of money which employs principally Gold and Silver, and Food as currency. It’s inflation proof and I believe it hinders hideous wealth accumulation by the few becasue it seems conglomeratization/megacorp/multinationals would be difficult to form/swell under the Islamic system. Maybe I’m wrong, but that’s how I see it so far.

99.99 Gold. Go on get some. You know you want to.

It’s an economic system (and whole life system) I believe to be revealed by God and therefore cannot be bettered by idiotic man. Even if you don’t believe in God, it would be a worthy exercise to study the Islamic principle of money and trade (good and bad) on it’s merits alone.

That means I believe a return to Gold is the only solution and an answer to the horrendous ecomomic cruelty we have in the world today. Most readers of this blog will already know the current system is a scam and a farce.

Should I keep quiet of my belief in Gold, perhaps only encouraging my fellow Muslims to purchase Gold and seek its return as the system of trade? If I was a selfish then perhaps. However, whether you like me or not, love me or loathe me, I’m going to advise you to do all you can to leave this junk fraudulent system behind and purchase Gold, and I really hope you do so.

Here’s a post from one of the “Gold sites” I sometimes visit and get info from. (P.S. I have no tie to that site at all – this isn’t an advert, simply an encouragement to buy Gold and a posible source from where you can get it)

Dear Galmarley user,

At the weekend our global financial crisis took the first step down an ugly new path, with the creditworthiness of America’s two great mortgage brokers, Fannie May and Freddie Mac, being called into question. The US Treasury were forced to issue announcements appearing to guarantee their protection.


If you don’t already know about these two organizations, it’s hard to appreciate the scale of the news. Fannie May and Freddie Mac are the giants of mortgage business in the USA. They stand behind an incredible $5 trillion of mortgage guarantees.


But with US house prices in free-fall their share prices have collapsed; Freddie’s decline last week was from $14.50 to $4.28.

This time last year it stood at $55.

Fannie’s and Freddie’s mortgages are financed mainly by bond issues, and the bonds are sold to the world’s financial organisations.

“The Economist” magazine has for years been commenting on the strangeness of these bonds’ status, because although officially they are NOT government backed, they have been treated by everybody as if they were. 

Their status is now important because their solvency has been called into question both by the markets and by William Poole – until March this year a full member of the US Federal Reserve. Poole is notable for being a lone dissenting voice on the Fed’s Open Market’s Committee. We don’t know if he’s a loose cannon or a beacon of truth.


The protective reaction of the Treasury certainly suggests a national guarantee stands behind Fannie and Freddie. Yet the strangeness of the bonds – their quasi-private status – means they are not on the public accounts. That is wrong.


In accepting responsibility for these liabilities the US government has catapulted its public debts from $10 trillion to $15 trillion.The $100,000 of debt owed by every American family, and borrowed on their behalf by successive US governments since 1980, is the unmentionable whore in the family of US fiscal competence. A 50% increase in it overnight is very, very serious, especially when it is known that the underlying asset backing is already insufficient and is still falling.


Perhaps we are entering a new phase of the dollar collapse, with double-digits for both interest rates and inflation. Bonds look more and more risky.


Very few people have the foresight to buy gold bullion. Those who do are insuring their savings against the awfulness of our current situation, and naturally enough the ‘premium’ for that insurance is rising.


Perhaps you have heard commentators comparing our ugly 2008 economic situation to the 1930s depression, and to the 1970s ‘stagflation’. Well, between 1929 and 1934 bonds and businesses were collapsing everywhere, and gold’s investment purchasing power rose 17 times. Then between 1971 and 1980 it rose 15 times.


So far in this cycle gold has only risen three times from the bottom. With organisations like Fannie and Freddie in trouble that looks like denial. I believe we’re still nearer the bottom than the top of gold.


When you first registered on BullionVault we were quite a bit smaller than we are now. You may remember I offered you a free gram of bullion to allow you a chance to experience owning gold in Zurich. I’m writing to repeat that offer to you. We’re a much bigger organization now. We have 50,000 registered users and 7.5 tonnes of gold bars stored on their behalf in London, New York and Zurich. According to the IMF that’s twice as much gold as Canada’s central bank.


Our business is to make owning gold simple, secure, cost-effective and totally transparent.

 If you’re like most of our clients you’ll want to know exactly what you’re getting into. So here I’ve explained clearly how the BullionVault service makes safer and costs you less:


…when you’re ready you can take the next step here:

do …and you’ll get a free gram of gold bullion when you register. Finally here’s a simple step-by-step guide to walk you through the whole process for acquiring gold bullion in Zurich, Switzerland:


Best regards,

Paul Tustain, Director

Caveat : Please remember that neither I nor anybody else actually knows how serious the economic situation is going to get. I believe gold offers protection, but prices could fall as well as rise.


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