- Oil is discovered in Ghana in early 2000s.
- US Investors lke Kosmos in 2008 were first to invest in developing this oil field with govt. org GNPC
- Unlike in Nigeria, where the oil is owned by Govt, in US it’s the private land owners who get the oil profit
- In Nigeria, Govt officials have looted all oil profits and people have been worse off since the oil discovery 50 yrs back
- Since 2005 militant groups have been sabotaging pipelines in Nigeria
- “Big Men” is Nigerian term for rich people who’ve made their wealth from Oil profits illegally
- in 2008 Oil Summit in Ghana, Norway’s minister gave speech warning them of the Oil Curse whereby the Politicians use the Oil Money for their political gains, and not focus on development and education and also as substitute of Taxation of the Private Investors benefiting from this Oil Money
- In the past Ghana has been a big exporter of Gold, but the country sees only 5% of the Gold Profits due to foreign exploitation and corruption. They feared the same would happen with Oil
- In Nigeria, rich individuals practice “Oil Bunkering” whereby they setup bunkers illegally where they drill oil privately and collect this oil in barges and then move it to Oil Tankers
- They want the people to be impoverished coz then they would worry about their next meal instead of pointing fingers at the wrongdoings of others.
- In 2008 after the change in Govt. in Ghana, Kosmos was hit by investigations coz there deal was the most favorable. This was actually coz they were the first investers and were acquitted in 2008 by US and Ghana Govt, and after a lot of drama and even a possible aquisition by Excon, they renegotiated the deal with the new Ghana govt after 5 yrs.
- Finally in 2013 Kosmos got listed in NYSE and is not worth over $6 billion
- In first extraction year, private investors made $2 billion and Govt made 400 million, but if the money goes to the people is yet to be seen
- Post the dot com burst in 2000, Fed cut interest rates from 6 to 1% to encourage spending
- This obviously led to inflation and created a bubble. Moreover, the Fed was supposed to increase the interest after a short while, which it didn’t do.
- This caused the people, who had no option but to invest the money, to take risks
- Fannie May and Freddie Mac were mortgage financing companies setup by congress to promote home ownership and give loans
- House prices were rising at 10% due to this increased demand in the period of boom
- Every bubble leads to another bubble. First it was DotCom, then Housing and Credit and now the next one will be the collapse of the Govts. due to debt that they accrue by printing money for stimulus and debt spending and interest of existing debt and the bailouts like the $700 billion one during the housing crisis
- The stimulus package was aimed at putting money in the pocket of people so that they spend more and help recover the economy. Programs like cash for old car were introduced.
- All countries did this. Now interest rates are already at 0 and govts are in line to fail.
- The impact on London was due to the cold war b/w London and NY to become the financial center of the world, and consequently London removing regulations.
- London bank like Notthern Rock were affected in 2007, but NY didn’t take notice
- In early 08, Bear Sterns was hit but was Bailed out by Govt. and bought by JP Morgan
- Then came Lehman’s turn in Sept 2008
- Fin Sect flew to NY to meet with all Bank CEOs except Lehman. Barkley’s agreed to divy up Lehman and buy the solid half, but British Govt didn’t agree to it
- So with 60 Billion debt, Lehman declared bankruptcy
- PIMCO California was the most affected
- In the wake of the Lehman collapse, Global Mkts panicked everywhere
- Hank Paulson, the Sect of Finance told Bush that US Economy was on verge of collapse
- Joseph Cassano, head of Fin Products division at AIG London, had insured companies against failure of their business partners. This was illegal in US which is why he had moved to london. This pushed AIG to the brink of bankruptcy.
- Finally Hank had to save AIG with $85 billion of taxpayer money
- Hank and Fed chairman then went to Senate for more money to save the upcoming banks going bust
- He came up with TARP (troubled asset relief program), to buy the banks’s risky assets with taxpayer money so that the banks would resume lending money to people and each other. The Congress turned down this bailout plan
- This made the crisis worse.
- Finally Govt gave them $800 bilion but still over 1 million home foreclosures happened, most in California, and depression like conditions arose.
- Then in Oct 13, 08 another meeting of all CEOs was called by Hank and he proposed that the Govt. would take over the banks by pumping in Tax payer money into them. Each of the 9 banks finally signed and took 10-20 Billion bailout, $250 B in all.
- Public then protested in US against this, to no avail.
- Now in Europe also banks started to fail and France’s Christine Lagard proposred European Rescue Fund but, Germany’s Angela Merkal said that each country would have to clean up their own shit
- The EU was united only in their hatred of the US
- In oct all G20 nations fin ministers and that of World Bank convened at US together to meet Hank and Bush and blamed them for letting Lehman fail, and came up with a recovery plan
- Iceland as a country failed the worst as it had privatized all it’s banks and even went to england and opened branches. The Govt had to takeover all the banks and was on verge of collapse
- British Govt demanded that Iceland banks ensure the safety of british accounts in it’s banks to which Iceland refused. Britain then ceased all Icelandic companies assets in Britain and put it on the terrorist list
- In late 2008, China was hit. Textile plants in China had to close overnight as there is no system of Bankruptcy in China. 15 Million Chinese workers lost their jobs.
- Protests broke out in China and Iceland
- worldwide 30 million jobs were lost
- Iceland Govt was brought down and president resigned on Jan 2009 as it’s debt was $350K/person
- French workers’ unions started protesting as US factories like Caterpelar and Molex started closing down their london offices
- They demanded employment as a fundamental right
- California saw most foreclosures
- Canada and US bailed out GM, Chrysler and other Auto Companies
- Spain and Dubai lost jobs as well, specially immigrant jobs coz the real estate mkt there collapsed
- Dubai was a statewide ponzi scheme aimed at attracting investers who had no plans to shift, but to flip the properties at higher value to real people. It has lost 50% of it’s value
- Fraud in form of Insider Trading etc. was revealed in London and US, but it was hard to prove in court and prosecute
- Banks were betting against their own clients by selling them bad securities/products
- Goldman paid $550 million in fine without admitting to any crime
- Top mind in Britain had this to say to Queen’s Q “Why did nobody see it coming?” : You will never foresee these things as the system is ultimately for anybody to understand. The economy is an extremely complex adaptive system comprising of billions of people and products.
- The drowsiness of SEC was induced by Market Fundamentalism, that investors were smart and info was open and nothing could go wrong
- The banks privatize their profits and globalize their losses…It’s heads we win, tails you loose
- Then in 2010 Greece went bankrupt
- Same real estate bubble are now propping up in China
The first phase, in ancient Egypt, was direct and brutal human compulsion. Human bodies were controlled but the creative productivity of the human mind remained beyond the reach of the whip, and the brand, and the shackles. Slaves remained woefully underproductive and required enormous resources to control.
The second phase was the ‘Roman model’ wherein slaves were granted some capacity for freedom, ingenuity and creativity which raised their productivity. This increased the wealth of Rome – and thus the tax income of the Roman Govenment and with this additional wealth, Rome became – an Empire, destroying the economic freedoms that fed its power and collapsed.
After the collapse of Rome, the feudal model introduced the concept of ‘livestock ownership’and taxation. Instead of being directly owned, peasants farmed land that they could retain as long as they paid off the local Warlords.This model eventually broke down due to the continual subdivision of productive land
and was destroyed during the Enclosure Movement, when land was consolidated and hundreds of thousands of peasants were kicked off their ancestral lands
because new farming techniques made larger farms more productive with fewer people.
The increased productivity of the Later Middle Ages created the excess food required for the expansion of towns and cities which in turn gave rise to the modern Democratic Model of Human Ownership. As displaced peasants flooded into the cities, a huge stock of cheap human capital became available to the rising industrialists..and the ruling class of Human Farmers quickly realised that they could make more money by letting their ‘Livestock’ choose their own occupations. Under the Democratic Model, direct slave ownership has been replaced by the ‘Mafia’ Model. The Mafia rarely owns businesses directly but rather, send thugs around once a month to steal from the business owners. You are now allowed to choose your own occupation which raises your productivity and thus, the taxes you can pay to your masters.
“Value this time in your life, kids”
” ’cause this is the time in your life when you still have your choices”
“and it goes by SO fast!”
“When you’re a teenager, you think you can do anything… and you do!”
“…your 20’s are a blur”
“…30’s, you raise your family, you make a little money…”
“…and you think to yourself… – what happened to my 20’s?”
“…40’s you grow a lil’ pot belly, you grow another chin!”
“…the music starts to get too loud…”
“…one of your old girlfriends from highschool becomes a grandmother…”
“…50’s you’ll have a minor surgery – you’ll call it a ‘procedure'”
” – but it’s a surgery…”
“…60’s you’ll have a major surgery, the music is STILL loud but it doesn’t matter”
“because you can’t hear it anyway!”
“…70’s You and the wife retire to Fort Lauderdale…”
“you start eating dinner at 2 o’clock in the afternoon..”
“you have lunch around 10, breakfast the night before!”
” – then spend most of your time wandering around malls”
“..looking for the ultimate soft yogurt muttering “How come the kids don’t call? -How come the kids don’t call”?”
“In your 80’s you’ll have a major stroke, and you end up babbling to some Jamaican nurse who your wife can’t stand,”
“but who you call ‘Mama’..”
Your few freedoms are preserved because they are profitable to your owners.
The great challenge of the Democratic Model is that increases in wealth and freedom
threaten the ‘Farmers’!
The ruling classes initially profit from a relatively ‘free’ market in capital and labour,
but as their livestock become more used to their freedoms – and growing wealth they begin to question why they need ‘Rulers’ at all…
Ah well… Nobody ever said that Human Farming was easy!
Keeping the Tax Livestock securely in the compunds of the Ruling Classes is a three phase process.
The first is to indoctrinate the young through government “Education”. As the wealth of democratic countries grew, governments schools were universlly inflicted in order to control the thoughts – and souls of the Livestock.
The second phase is to turn citizens against each other through the creation of ‘Dependent Livestock’. It is very difficult to rule human beings directly through force and where it can be achieved, it remains cripplingly underproductive as can be seen in North Korea. Human Beings do not breed well or produce efficiently in direct captivity. Ah, but if Human Beings believe that they are ‘free’, then they will produce much more for their ‘Farmers’.
The best way to maintain this ‘illusion’ of freedom is to put some of the Livestock on the payroll of the Farmer. Those ‘Cows’ that become dependent on the existing hierarchy will then attack any other ‘Cows’ that point out the violence, hypocrisy and immorality of Human ownership.
Freedom is Slavery.. …and Slavery is Freedom.
If you can get the ‘Cows’ to attack each other,
whenever anybody brings up the reality of their situation,
then you don’t have to spend nearly as much controlling them directly.
Those ‘Cows’ who become dependent upon the stolen largess of the ‘Farmer’
will violently oppose any quesioning of the vitrue of human ownership.
…And the intellectual and artistic classes – always and forever dependent upon
the ‘Farmers’, will say to anyone who demands freedom from ownership
“You will harm your fellow Cows”.
The ‘Livestock’ are thus kept enclosed by shifting the moral responsibillity
for the destructiveness of the violent system
to those who demand real freedom.
The third phase is to invent continual external threats so that the frightened
Livestock cling to the protection of the Farmers.
This system of Human Farming is now nearing its end.
The terrible tragedies of modern Western economic systems
has occured, not in spite of, but because of past economic freedoms.
The massive increases in western wealth throughout the 19th Century
resulted from economic freedoms
…and it was this very increase in wealth that fed the size and power of the State.
Whenever the Livestock become exponentially more productive
you get a corresponding increase in in the number of ‘Farmers’
…and their dependants.
The growth of the state is always proportional to the preceeding economic freedoms.
Economic freedoms create wealth…
…and the wealth attracts more thieves and political ‘parasites’
whose greed then destroys the economic freedoms.
In other words, freedom metastasizes the cancer of the State.
The Government that starts off the smallest will always end up the largest.
This is why there can be no viable and sustainable alternative
to a truly free and peaceful society.
A society without political rulers – without human ownership
– without the violence of taxation and statism.
To be truly free, is both very easy – and very hard.
We avoid the horror of our enslavement because it is so painful
to see it directly.
We dance around the endless violence of our dying system
because we fear the attacks
of our fellow Livestock
But we can only be kept in the cages we refuse to see.
To see the farm is to leave it.
- Debt = Money
- The more loans Bank make, the more money they make
- The moment you take out a loan, the Bank borrows money from the Fed and needs to pay interest on it and hence charges interest from you.
- The first banks were made to store gold coins, the first currency. They gave clients IOUs against their gold. This was the first paper money.
- All was good until the banks started to print more IOUs than the gold they had to lend out to other folks.
- This led to more money in the market leading to inflation and hence reduction in the value of everyone’s IOU.
- Then everyone rushed to the Bank to get back their Gold, which is when they found out that Bank didn’t have enough Gold to cover everyone’s IOU
- In the Battle of Waterloo in 1815, The Rothchild (derived from the German rot Schild, meaning “Red Shield“.) bankers from Germany financed both sides of this War b/w French (Napolean) and British
- The Red Shield courier was first to reach London back and said that Napolean had won. The red shield bankers then pretended that England was doomed and started selling their stocks on London Stock Exchange.
- Everyone else followed suit and Stock Mkt. crashed.
- The Red Shield then bought everything back for pennies.
- Since that time, the English have been paying their taxes to the Red Shield private bankers
- Thomas Jefferson tried hard to not let the Rothchild enter US and do the same thing they had done in UK, but VP Aaron Burr still got Central Bank established first for 20 yrs and then Andrew Jackson defeated the banks in 1836
- Then with real money backed with real gold US boomed
- in 1910 there was a secret meeting at JP Morgan’s Georgian estate attended by:
- JP Mongan: Richest Man
- Roeckerfeller: Oil Magnet
- 7 others
- They discussed that people must feel like they run the Banking System. Their plan was to collapse the economy and then show the people that Central Bank (Federal Reserve) was the only way out, and with Woordrow Wilson, the then president being their inside man, they’ll have this system setup.
- They struck on Dec 23 1913 and got the Fed Reserve setup. With Fed being the only authority to print money and then lending it to the banks and govt.at interest, everyone was in debt that needed to be paid back, and so IRS was setup.
- This debt was perpetual coz the more money the Fed printed, the less it was worth, due to inflation.
- Inflation and IRS work hand in hand to make sure you don’t get rich. IRS takes away 30% of your money (Rs 100) and inflation reduces the value (purchasing power) of the 70% you’re left with ie Rs 70.
- In 1963, Kennedy was the last president to fight back with Executive Order 11110, that empowerment the US Treasury to issue money without the Fed, but he was assassinated 6 months later and next president reverted it
Just wondering about why the price of a glass of juice was 700 Rs in Manhattan while the same costs Rs 100 in Mumbai…
Starting with the oranges… The price of orange would obviously be around the same everywhere in the world coz of free trade…
So it boils down to inflation.. With years and years of growth, US had seen salaries rise, and prices rise right with that…
It BIS owns 41% of the assets of 43K companies traded on capital mkts of the world
The bank runs itself and has board of directors composed of 15 governers of abnks around the world
They buy media using BIS Profit