Thursday, September 27, 2012

Willful Ignorance

Greetings good citizen,

Markets around the globe enjoyed an up day…not that the real economy provided a reason to be cheerful

Truth be told good citizen, the news was dreadful.

Which brings me to the focus of tonight’s post.

I have opined repeatedly that we are in danger of a cascading systemic collapse. I have also, er, ‘opined’ (but I think the evidence backs me up) that our financial system has already collapsed and our current ‘way of life’ is being supported solely on ‘bailouts’…

Which carries with it a prominent degree of danger aside for pumping the real economy full of ‘funny money’.

Most of you don’t consider ‘synthetic derivatives’ as ‘real money’ but they are bought and paid for with very real money…

The thing we haven’t seen is any of these ‘side bets’ canceling one another out.

But CDS trading has tanked because many folks really don’t want to do this kind of high-risk business in a crappy economy. In fact, trading is so meager that right now it’s hard to scrape together enough names to make up a 100-company index.

So what does Wall Street do? Poof! It’s pulling a market from thin air. Markit is adding companies to an index that no bank has written credit default swaps on.

According to the Financial Times :

“Wall Street financial engineers have devised a new way to combat declining trading in the credit derivatives market – they are revamping an index to add financial instruments that do not exist.”

It seems that Markit, along with derivatives traders, is betting by adding CIT Group, Charter Communications and Calpine Corp to the index, banks will be forced to write credit default swaps on these three companies. In other words, Markit is trying to conjure a market to pump up CDX trading by acting like there is one.

This is extremely creepy. What does an index of prices mean when it reflects prices that are not real for financial instruments that do not exist? The situation sounds uncomfortably reminiscent of LIBOR, the interest rate that banks charge each other for loans, which, it was lately discovered, has been rigged by Barclays and other banks.
The ‘co-mingling’ of real money with fake money will throw the true value of money onto doubt.

And what is the first fact you need to know about money?

It is 99.9% made of ‘trust’…when you can no longer ‘trust’ the people who deal in money, the whole system collapses.

Let us return to our basic theorem regarding money, shall we?

If the commodities purchased with money are ‘equal’ (you’d want to say ‘identical' but that leaves room to quibble and we don’t have room for quibbling here.) Then the value of money MUST BE ‘equal’.

This fact alone wipes out the ‘cheaper there’ no matter where it exists.

If money is to have value then that value MUST BE universal!

Which is to point to something we all already know.

The cheaper there is an artificial construct of the people who control money and that construct IS A FRAUD! (Which explains our failed global financial system.)

Next time you see a member of the >One Percent cruising through your neighborhood THROW A FUCKING BRICK THROUGH THEIR WINDSHIELD!

We need a civilization built on trust, not fraud!

So what should we ‘do’ to the fraudsters?

Sadly the problem is a bit more complicated than that.

We can’t hit the reset button and put everything back the way it was before ‘freemarket madness’ dismantled the nation.

Nor will the fraudsters (willingly) hand over control of their ill-gotten gains.

We’s gonna havta fuck ‘em up a little if we want our country back.

But that’s okay, I believe our children’s birthright is worth fighting for, even if we are fighting ‘faux’ Americans.

(Who would rather pocket the benefits and salary they pay YOU by sending the work elsewhere and then re-importing the goods to sell here.)

People like that don’t deserve a place in civil society where the first rule of the land is All Economies Are Local!

NOBODY can live in an economic desert so why are we letting these assholes get away with turning huge swaths of this once prosperous nation into a huge wasteland?

You know what’s wrong and so do I.

The question is how long are we going to put up with this willful ignorance from our politicians?

I say come November we send ‘em a message they won’t soon forget!

Thanks for letting me inside your head,


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