Hypo-Super-Crash Triggers Derivative Beast Feast

[Joanne98]

October 5, 2008

Elaine Meinel Supkis


The entire G7 banking system is now collapsing rapidly in all places. Germany, for example, made the exact same mistakes the US and UK made. This is because all of the G7 nations followed the same goofy banking liberalization rules that removed all controls, limits and other restrictions. On top of this, the entire system was leveraged via the amazing, long 0% interest regime run by G7 buddy banking partner, Japan. The creation of derivative variations that exploited gaps and flaws in the trading/lending systems has not only not eliminated risk, it make risk 100% destructive. And worse of all, astute people studying this problem knew this would happen several years ago! So let us examine the latest collapse of a major lending outfit that fed the Derivatives Beast in hopes that it would protect them from risk!


European Union Leaders Stop Short of Regional Plan on Bailouts

(Bloomberg) -- European leaders pledged to bail out their own nations' banks while stopping short of a regional rescue effort to deal with the global credit crisis.

At a summit in Paris yesterday, leaders of France, Germany, Britain, Italy, Luxembourg, the European Central Bank and the European Commission agreed to ease accounting rules, seek tougher financial regulations and weaken enforcement of competition and budget laws.

``Each government will act according to its own methods and its own means but in a coordinated manner with the other European states,'' French President Nicolas Sarkozy, who called the meeting, told reporters.



This news is very important. It clearly shows that in a crisis, the European Union is not a union at all but will instantly scatter and run for shelter. This includes betraying each other, stabbing each other in the back and in general, acting like Europeans have acted for the last 2,000 years since the fall of the Roman Empire. The sole thing binding Europe is the NATO/US/UK ties. This allowed the market consortium to grow under the shadow of the global empire.


The US is the protector of this consortium and as it fails, they all fail with the US. The inability to form a true united front is plainly obvious in this banking crisis. Europe used the Basel based Bank of International Settlements which was set up by Europe during the Great Depression. It was launched in 1930 in response to Germany's rising refusal to pay reparations for WWI. The BIS system was a total failure when Germany simply declared war on its financial creditors. But after WWII, it was useful for pulling all the former European empires and their satellite allies out of total economic ruin. This was done because Russian-inspired revolutionaries would take over all of Europe if nothing was done to restart the pre-WWI status quo.


Now that the latest imperial umbrella is hit by lightning and rain is pouring through all the holes, the European Union is falling into disunity. This will only worsen as the stronger industrial powers cut off the weaker economies which will then struggle to attach themselves even harder to the US empire. Which is rapidly going bankrupt and can't afford to take on even more client nations that seek to suck up as much money and economic advantages as possible.

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