Monday, January 25, 2016




Imagine that you lend $1,000 to your neighbour, so that he can start a small bank.

Your neighbour foolishly lends $500 to a Russian, who plans to start a business clearing gutters.

Before the Russian pays back any money, he announces that his business has gone bust, and he disappears off to Israel.

Should you lend your neighbour's bank some more money?

According to Washington's Blog:

1. "Fraud was one of the main causes of the Great Depression and the Great Recession, but nothing has been done to rein in fraud today.

"And governments have virtually made it official policy not to prosecute fraud."

2. "The government also chose to artificially prop up asset prices … while letting the Main Street economy tank.

3. "And the trillions in central bank money never really made into the real economy, but were handed under the table to the fatcats.

"For example:

"The Fed threw money at .several billionaires and tens of multi-millionaires', including:

"Billionaire businessman H. Wayne Huizenga, 

"Billionaire Michael Dell of Dell computer

"Billionaire hedge fund manager John Paulson

"Billionaire private equity honcho J. Christopher Flowers 

"And the wife of Morgan Stanley CEO John Mack."


According to Washington's Blog:

"The Fed also bailed out wealthy corporations, including:

"Hedge funds, 



"The Fed has been bailing out foreign banks … more than Main Street or the American people.

"The foreign banks bailed out by the Fed include:

"Gaddafi's Libyan bank

"The Arab Banking Corp. of Bahrain

"The Banks of Bavaria, Korea and Mexico

4. "Bad government policy has created the worst inequality on record … and inequality is an economy-killer.

5. Professor Michael Hudson - Distinguished Research Professor of Economics at the University of Missouri, Kansas City, and economic advisor to governments worldwide - told Washington's Blog:

"The debts were left in place in 2008 instead of being written down."

Economics professor Steve Keen says: We'll have "a never-ending depression unless we repudiate the debt, which never should have been extended in the first place".

More here: Washington's Blog

Expect bankruptcies, says William White, the chairman of the OECD's review committee and former chief economist of the Bank for International Settlements (BIS).

World facing 'wave of epic debt defaults,' says economist who predicted Lehman crash

The Nobel laureate in economics Robert Shiller says that the US financial bubble is ready to burst. 

Jobs are disappearing.

Major Companies Announce Job Cuts across Europe.

In 2014, a study by the European Union's Institute for Security Studies called for using military force to put down troublesome workers.

"Draconian security policies are being imposed across Europe."

The excuse is the 'war on terror.'

Why are stock markets in trouble?

"The world's wealthiest 62 people own as much as the poorest half of the planet's population."

"The richest 1% now own as much as everyone else put together."

The rich are good at dodging tax. At least £5 trillion is hidden in tax havens.

Even charity shops are closing down!


Obama's so-called 'employment miracle' involves:

A great number of temporary and low-wage jobs.

A large number of people outside the workforce.

Almost no rise in wages.

"It has left much of the US labour force more insecure and poorer than it was when Obama took office. 

"That's a big reason why consumption has grown far less than the headline rate of job formation."

Storm clouds gather again as Obama prepares to leave - - By Liam Halligan

"Almost a third of teachers in Birmingham and the West Midlands are bringing food to school to feed hungry pupils or giving them cash from their own pockets to buy meals.

"A quarter of 800 teachers polled in the region said some children were so hungry in class that they were falling asleep at their desks."

Note that government debt has been rising in the USA and UK.

"Investor fears that the bloated sovereign (government) debt market is beginning to pose risks to the world economy."

The debt of cities, local authorities and state companies is 'backed by the government'.

State companies include: Mexican state-controlled oil company Pemex, government-backed Export Credit Bank of Turkey, the city of Paris, Sri Lankan Airlines and Germany's development bank KfW.

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