Understanding the global financial crisis
First of all, don't worry, everything is under control.
the problem...
How it all happened? What started it all? The explanation doesn’t include all players, well cuz if it does, then it will not be so simple anymore. To cut a long story short, the financial crisis is here because of greedy banks giving out way too many bad loans to people who couldn't afford it. Banks got greedy during the real estate bubble, they thought that home value was going to keep rising and it was going to make everyone rich, especially the banks. How can this be positive for those who know what they are doing? The stock market is down, certain stocks are cheap and that means that if you pick the right stock and get in the right time it can really pay off. Well, someone knew... the US Dollar nosedived against all major currencies such as the EUR (Euro), CAD (Canadian Dollar), AUD (Australian Dollar) and the NZD (New Zealand Dollar) - pushing all those currencies into record highs against the US dollar. With the US dollar losing favour as a global base currency, rumors spread that middle eastern currencies, such as the Saudi Arabian Riyal would unpeg it’s currency from the USD. If this was to happen a massive sell off of the USD would occur, which would push up further high yielding currency’s causing a global currency crisis. As the Chinese Yuan remains artificially low and the EUR soaring, most global markets are being potentially effected by high inflation.
Subprime. A prime borrower is someone who can easily pay off a loan. Subprime borrowers are those who are considered risky borrowers because of reasons like unstable income and poor credit histories, among others. Banks lend to them at higher interest rates to compensate them for the possibility of default. The housing problems in the United States that sparked the current crisis has its roots in the huge number of loans granted to subprime borrowers, who were unable to pay their mortgages when interest rates went up.
Credit default swap (CDS). An insurance-like contract that protects a bond investor in case of default. To simplify the term, let’s say Abu, a friend, wants to borrow money from you. You ask another friend, Tom, to insure that debt (he becomes the swap seller) but then he asks you to pay him P1,000 a year. You agree and become a swap buyer.
Unfortunately, Tom finds that his business is in trouble. Credit rating agencies tell him to raise cash or else his ratings go down. When that happens, he drags you down as well because the debt you invested in is now uninsured. Unfortunately, you also wrote a ton of CDS for another company, and now that company is in trouble, too. You all go down like a stack of cards. That’s why CDS is also at the core of the current crisis.
Recession. Two succeeding quarters of negative economic growth. When this happens, the economy not only grinds to a standstill. It shrinks. The United States is said to be already in a recession, which will cause the global economy to follow.
the solution...
Economic nationalisation. The US government has become a bank. Yes, this is US socialism (socialism for the rich). It's gonna get global. That is "Stage One of a two-stage plan". No stimulus package will bring prosperity to the homeless and jobless. Government transfers trillions (of dollars) to people who, in any sane world, would be behind bars, the purpose being to re-inflate the bubble economy that made them wealthy beyond their dreams, creating a few giant Wall Street-based trusts which will act as the economy’s central planners. Now, the job creation. "People that lost their jobs will be helped." This was the case under Franklin Delano Roosevelt. It took WWII – government-enforced socialism for all – to drag the US out of depression. Let's wage more wars! The answer is "new world order" in response to the international economic crisis, one now in existence, the alternative being “chaos”. The gathering of the most powerful political and economic leaders occurs like clockwork, and any independence shown by mavericks, such as Venezuelan President Hugo Chavez or Iranian President Ahmedinejad, is ruthless attacked and subverted. Kissinger calls for a choice between "an international political regulatory system with the same reach as that of the economic world" and the current global monster. The "chaos" Kissinger fears is really the democratic awakening of the people.
This brings us to the other distortion that has continued to weaken the US economy since the days of Reagan (really, since WWII): the inexorable militarisation of the US economy, spending money on unproductive – indeed destructive – commodities, which only sap the economy’s vitality, providing no general-use infrastructure which can benefit all, no goods which can be consumed or traded except to foreign dictators quelling rebellions. The looming recession about to hit America may be a severe one, whether a recession turns into a full blown depression is disputable. Nevertheless with a connected global economy, a global panic from investors, traders through to banks can cause markets to crash very quickly. The solution must be a global solution. The crisis will be solved by creating one world government that implement a new system. One world currency and RFID chips under your skin. GM crops will solve a food crisis. Americans have been eating GM food for years. GM crops could reduce poverty, and improve food security and profitable agriculture in developing countries. Yes, let's sell them that shit. There is also a solution for energy crisis in "new green technologies" that has been invented many decades ago but now is a good time to introduce them... So, don't worry, everything is cool ;)
how the crisis unfolded (world map)
1 world currency
New Financial Order
RFID chips_ultimate human control
the problem...
How it all happened? What started it all? The explanation doesn’t include all players, well cuz if it does, then it will not be so simple anymore. To cut a long story short, the financial crisis is here because of greedy banks giving out way too many bad loans to people who couldn't afford it. Banks got greedy during the real estate bubble, they thought that home value was going to keep rising and it was going to make everyone rich, especially the banks. How can this be positive for those who know what they are doing? The stock market is down, certain stocks are cheap and that means that if you pick the right stock and get in the right time it can really pay off. Well, someone knew... the US Dollar nosedived against all major currencies such as the EUR (Euro), CAD (Canadian Dollar), AUD (Australian Dollar) and the NZD (New Zealand Dollar) - pushing all those currencies into record highs against the US dollar. With the US dollar losing favour as a global base currency, rumors spread that middle eastern currencies, such as the Saudi Arabian Riyal would unpeg it’s currency from the USD. If this was to happen a massive sell off of the USD would occur, which would push up further high yielding currency’s causing a global currency crisis. As the Chinese Yuan remains artificially low and the EUR soaring, most global markets are being potentially effected by high inflation.
Subprime. A prime borrower is someone who can easily pay off a loan. Subprime borrowers are those who are considered risky borrowers because of reasons like unstable income and poor credit histories, among others. Banks lend to them at higher interest rates to compensate them for the possibility of default. The housing problems in the United States that sparked the current crisis has its roots in the huge number of loans granted to subprime borrowers, who were unable to pay their mortgages when interest rates went up.
Credit default swap (CDS). An insurance-like contract that protects a bond investor in case of default. To simplify the term, let’s say Abu, a friend, wants to borrow money from you. You ask another friend, Tom, to insure that debt (he becomes the swap seller) but then he asks you to pay him P1,000 a year. You agree and become a swap buyer.
Unfortunately, Tom finds that his business is in trouble. Credit rating agencies tell him to raise cash or else his ratings go down. When that happens, he drags you down as well because the debt you invested in is now uninsured. Unfortunately, you also wrote a ton of CDS for another company, and now that company is in trouble, too. You all go down like a stack of cards. That’s why CDS is also at the core of the current crisis.
Recession. Two succeeding quarters of negative economic growth. When this happens, the economy not only grinds to a standstill. It shrinks. The United States is said to be already in a recession, which will cause the global economy to follow.
the solution...
Economic nationalisation. The US government has become a bank. Yes, this is US socialism (socialism for the rich). It's gonna get global. That is "Stage One of a two-stage plan". No stimulus package will bring prosperity to the homeless and jobless. Government transfers trillions (of dollars) to people who, in any sane world, would be behind bars, the purpose being to re-inflate the bubble economy that made them wealthy beyond their dreams, creating a few giant Wall Street-based trusts which will act as the economy’s central planners. Now, the job creation. "People that lost their jobs will be helped." This was the case under Franklin Delano Roosevelt. It took WWII – government-enforced socialism for all – to drag the US out of depression. Let's wage more wars! The answer is "new world order" in response to the international economic crisis, one now in existence, the alternative being “chaos”. The gathering of the most powerful political and economic leaders occurs like clockwork, and any independence shown by mavericks, such as Venezuelan President Hugo Chavez or Iranian President Ahmedinejad, is ruthless attacked and subverted. Kissinger calls for a choice between "an international political regulatory system with the same reach as that of the economic world" and the current global monster. The "chaos" Kissinger fears is really the democratic awakening of the people.
This brings us to the other distortion that has continued to weaken the US economy since the days of Reagan (really, since WWII): the inexorable militarisation of the US economy, spending money on unproductive – indeed destructive – commodities, which only sap the economy’s vitality, providing no general-use infrastructure which can benefit all, no goods which can be consumed or traded except to foreign dictators quelling rebellions. The looming recession about to hit America may be a severe one, whether a recession turns into a full blown depression is disputable. Nevertheless with a connected global economy, a global panic from investors, traders through to banks can cause markets to crash very quickly. The solution must be a global solution. The crisis will be solved by creating one world government that implement a new system. One world currency and RFID chips under your skin. GM crops will solve a food crisis. Americans have been eating GM food for years. GM crops could reduce poverty, and improve food security and profitable agriculture in developing countries. Yes, let's sell them that shit. There is also a solution for energy crisis in "new green technologies" that has been invented many decades ago but now is a good time to introduce them... So, don't worry, everything is cool ;)
how the crisis unfolded (world map)
1 world currency
New Financial Order
RFID chips_ultimate human control
0 comment(s):
Post a Comment