Global finance: The Shylock model

The ultimate shell game.  They print money out of nothing and hire politicians to borrow it in the name of a nation.  When it defaults, they get real assets in return.

“For over a quarter century we’ve seen the same show staged again and again with little variation. Greece, Argentina, Spain, Italy, Portugal, Brazil, Mexico, Iceland, Ireland, Russia, Asian Tigers… all “stupidly” borrowed too much from private bankers only to  “discover” they couldn’t pay them back.

“Symmetrically, the same group of powerful global Mega-Banks lent too much to those countries only to “discover” they couldn’t recover those loans.  A Comedy of Errors in which governments and bankers are either very stupid or… are they discretely winking at each other as they carve out pound after pound of flesh?

“Bankers and politicians make strange bedfellows.  Invariably, their Comedies of Errors get their linen soiled.  When that happens, bankers know they cannot go banging on the doors of presidential palaces, ministries of finance and parliaments yelling “Pay up, or else!” 

“The farce of “democracy” and “national sovereignty” must be maintained. That’s when banker-controlled “public multilateral agencies” come on stage – IMF, ECB, World Bank – to do the, er… banging!!   After all Greece, you ARE a member of the ECB so you must obey their orders (even if written in German).  And you, Argentina, you ARE a member of the IMF so stop wailing and do your homework!!

“Market Analysts and Rating Agencies are today’s financial witch doctors telling us why stock markets go up and down like a patient’s fever.  Currencies rise, currencies fall in a casino-like roller-coaster; Sovereign Debt Bond Ratings are up-graded or down-graded, all to the tune of the Pied Pipers at S&P, Finch’s and Moody’s, FT and The Wall Street Journal…  And, yes, these oracles of “good” and “bad” are on Mega-banker payrolls.  Whatever they utter is Revealed Truth.  So what if in 2008 they rated AIG, Lehman, Merrill Lynch, Fannie Mae “AA”, even “AAA” until they dissolved into oblivion?

“In perfect sync, they downgrade Greece and Argentina, Spain and Italy, Ireland and Iceland forcing them to pay higher interest to the Mega-bankers” …

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