From the same folks that produced the video I previously posted on energy, the economy and and the environment. Here is another one on our contemporary monetary system and how Money is created and manipulated by the banks. It seems to be pretty good and follows what I have heard and read so far about the monetary system from Warren Mosler. It’s pretty long so you might just want to bookmark this link for later. If not here it is.
And the nice thing is he also give some good ideas for how to begin to cut the strangle hold the banks have on the economy. However he does not pull any punches and does say it won’t be easy.
Here is a link to a sequel. It’s a little over an hour long and gives a much better explanation of what is going on now and how and why it has become a crisis.
The chaos generated by George Papandreou‘s mere proposal to put Greece’s participation in the deal to a referendum exposed the fragility of the European plan and the lack of confidence it enjoys in markets.
A top European official warned that Athens could be left to go bankrupt if it went through with the vote and experts said the broader eurozone deal — which hopes to protect larger countries like Italy — could collapse.
Ultimately, Greece could leave the euro union, causing massive financial havoc and pushing the global economy back into recession.
That prospect could be enough to keep the referendum from happening — Papandreou’s government could collapse before the proposal goes through, having lost huge amounts of support from its own party.
After a grueling seven-hour Cabinet meeting, Papandreou’s ministers expressed “total support” for his referendum proposal and said the vote would be held “as soon as possible,” government spokesman Ilias Mossialos said early Wednesday.
The referendum proposal piled more pressure on an already creaking deal that was facing scrutiny from markets that found details wanting.
But Papandreou’s government still faces a confidence vote and if the government falls, all bets are off. And Greece may not even get it’s bail out loans it it goes ahead with the vote. Read the rest of this entry →
A week after the BBC exploded Alessio Rastani to the stage, it has just done it all over again. In an interview with IMF advisor Robert Shapiro, the bailout expert has pretty much said what, once again, is on everyone’s mind: “If they can not address [the financial crisis] in a credible way I believe within perhaps 2 to 3 weeks we will have a meltdown in sovereign debt which will produce a meltdown across the European banking system. We are not just talking about a relatively small Belgian bank, we are talking about the largest banks in the world, the largest banks in Germany, the largest banks in France, that will spread to the United Kingdom, it will spread everywhere because the global financial system is so interconnected. All those banks are counterparties to every significant bank in the United States, and in Britain, and in Japan, and around the world. This would be a crisis that would be in my view more serrious than the crisis in 2008…. What we don’t know the state of credit default swaps held by banks against sovereign debt and against European banks, nor do we know the state of CDS held by British banks, nor are we certain of how certain the exposure of British banks is to the Ireland sovereign debt problems.”
The problem is that there are few – if any – of the population of Europe or Briton or US that is willing to have their respective governments pump any more money into these banks.
Despite all the happy talk coming from Washington and Wall Street and Berlin, we could very well have a financial melt down – world wide – the like of which has not ever been seen.
But no, Morgan Stanley does, or so they swear an unlimited number of times each day. And they say not to worry about anything because, you see, it is not like they have any upside in telling anyone the truth. Which is why for everyone hung up on the latest rumor of a plan about a plan about a plan spread by a newspaper whose very viability is tied in with that of the banks that pay for its advertising revenue, we have one thing to ask: “show us the actual plan please.” Because it is easy to say “recapitalize” this, and “bad bank” that. In practice, it is next to impossible. So yes, ladies and gentlemen, enjoy this brief relief rally driven by the fact that China is offline for the week and that the persistent source of overnight selling on Chinese “hard/crash landing” concerns has been gone simply due to an extended national holiday. Well, that holiday is coming to an end.
I know everyone is busy with the Wall Street protests going on everywhere, I do think this bares shifting ones attention to.
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