Japan’s Nikkei continues to self-destruct as China buys US corporations left and right while the US Wall Street con artists and gangstas revive the dreaded Derivatives Beast playing wild Ponzi gambling games using no capital base and waiting for the Fed to bail them all out again and again and again. Time to snarl and snap about all this! And we seem helpless to stop them. Instead, we are debating sex, abortion, guns and other matters such as the need for FEMA. Oh, by the way, a tornado passed to the north of my home last night. We need FEMA functional.
China continues to invest its trade surplus in the US buying up our corporations just as Germany, Saudi Arabia and Japan have done previously: Stock Rise On Smithfield Hopes Lifts Shuanghui Chairman’s Public Fortune To Nearly $500 Mln – Forbes
Shuanghui International Holdings, Henan Shuanghui’s parent, has agreed to buy Smithfield for $4.7 billion, including the assumption of Smithfield’s net debt. The purchase would be the largest in the U.S. by a mainland Chinese company.
Risky derivatives make return for returns’ sake: the same unregulated ‘Over The Counter ‘ OTC derivative deals continue to grow again thanks to the immense bail out by central banks and the same guys who created the previous mess are still in place and committing the exact same economic crimes they did before…all for ‘return’s sake’. The problem here is, there is no safe investment anymore due to ZIRP lending by central banks during inflationary times.
The Bank of Japan began that business and the US has expanded it greatly. But these same dealers scamming the public with their international derivative OTC games are the ones who demanded a ZIRP bail out. They paid back the money, more or less, but didn’t pay any interest. Which they liked…back then. This ridiculous balloon, the biggest economic scam in the history of civilization, has remained at roughly $633 TRILLION, is now beginning to grow again because it is a Ponzi scheme and these can only grow, if they go stable or fall even slightly, they destroy everything previously made.
This is exactly what happened. When the Ponzi derivative contract gambling game blew up, it was preserved by the central banks who work for the Ponzi scammers, not the public. The public was immediately put into an economic straightjacket to pay for this bail out and it continues to this destructive day. All, while the Wall Street gamblers borrow cheap loans to play dangerous derivative games.
The reforms are fake. They are dawdling on the reforms while Wall Street bagmen and London Whales assail politicians with bags of loot. The corruption in the system is going to kill capitalism for the entire OTC derivatives game is totally anti-capital which is why capital has zero interest value today. Instead, the ‘valuable’ items are these stupid pieces of paper that are script for a ridiculous and obviously rigged gambling operation!
Benoit Petit, the head of the Societe Generale in Paris even has the temerity to openly say, ‘…clients seeking a 5-10% return…need a NON-capital guaranteed product…’ in order to get around the ZIRP problem. I pointed this out a number of years ago back in 2006 and predicted the outcome correctly and stand against this ‘product’ since I began writing about the economy online way back in 1996 when it was first taking off.
These digbats don’t understand why capital is part of capitalism. Without capital returns, no one saves and the US has a terrible savings rate and has this for many years and it is the world’s deepest in debt/highest sovereign debt nation bar none. When the floating fiat currency/free trade/derivatives ZIRP capital game began, the US was hollowed out, our infrastructure sold off to foreign powers or allowed to collapse, entire cities turned into abandoned ruins, a quarter of the population tossed onto the scrap heap and forced into drug dealing to stay alive and of course, foreigners hold half of our currency in FOREX accounts and a huge, huge hunk of our debts.
This has been a total disaster for our country and it continues to bleed us dry. And a corrupt DC could care less.
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