Wednesday 22 August 2012

GNOME OF ZURICH: FINANCIAL SITUATION CANNOT LAST

Yesterday in my commentary on George Soros SOB I mentioned a desire to learn of the connections between him and the Rothschild crew. I found more than one article actually. Here is the first of several.  

A global day of financial reckoning isn’t far off, says a onetime giant of Swiss private banking.


Hedge fund manager George Soros, chairman of Soros Fund Management LLC, testifies during the House Oversight and Government Reform Committee hearing on the regulation of hedge funds on Capitol Hill. (UPI Photo/Yuri Gripas)  License photo

April 26, 2011
WASHINGTON

Gnomes of Zurich were derogatory caricatures of secretive, greedy, stiff Swiss German bankers, pince-nez aquiver, who ruled over the land of secret numbered accounts for tax dodgers the world over. With the world's best financial intelligence service, they knew their stuff and seldom spoke, even in retirement.
 ..
 
Their Geneva counterparts, in French-speaking Switzerland, were more sophisticated, relaxed in the company of global wheeler-dealers and weren't afraid to speak their minds, albeit off the record. Such was George C. Karlweis, the brain behind Banque Privee, owned by the late Edmond de Rothschild.

His biggest claim to fame:
George Soros 
and the launch of his Quantum Fund in 1969.

An original $100,000 stake in Soros' fund was worth $150 million by 1994. Between 1970 and 2000, the return was 3,365 percent (for 10 consecutive years it did 42.6 percent per year). In 1992, Soros bet billions against the British pound ~ and broke the Bank of England ("Black Wednesday").

So the man behind Soros' original success is worth listening to today ~ unafraid to speak his mind in retirement.

The financial crises that have been blowing up for years are speeding up, Karlweis says, due to expenditure exceeding income, "borrowing hand over fist, even for no good reason, on ever shakier fundamentals."

"Everyone is realizing we have gone too far," he wrote, "The coffers are depleted … the excessive spending of the past has created a huge overhang, and no one knows how new borrowing can be financed."

People who live on their savings, adds Karlweis, "have been fleeced. Their investments yield nothing; chances are they have lost everything."

"Times ahead do not look pretty," he warns.

After turning their countries into Weimar Republics by printing more and more money, says Karlweis, "they will all need a currency commissioner like Hjalmar Schacht (German banker who headed Reichsbank and became early Hitler supporter) to save them from hyperinflation. Let's just hope they don't turn their regimes into Third Reichs in the meantime."

"No one wants to predict the reactions of voters who constantly clamor for more bread and games to forget the looming disappointments that could give rise to black swans," adds the former giant gnome of Geneva.

Bear Stearns got a Triple-A rating shortly before it went under, ditto Fannie Mae. Lehman Brothers made A2 before the shipwreck. The subprime mortgage scandal had gone global in the fall of 2008 as the new chairman of the Fed said "the worst is now behind us." Today, America's credit cards are all maxed out.

"Governments, public corporations, financial institutions, consumers ~ everyone is over their head in debt," says Karlweis. And "a huge part of the blame for the debacle of the past three years lies squarely with the U.S.
By more or less shoving free trade down everyone's throat, America paved the way for globalization. This is what has destroyed jobs and driven down wages in the developed countries, hobbling economic growth and gouging tax revenues."
Karlweis argues "it was a ridiculously low federal funds rate, reduced to 1 percent in the early 2000s by former Fed Chairman Alan Greenspan that opened the floodgates for subprime mortgages and the worst financial disaster ever, in 2007-08.

In 2007, the face value of securities backed by subprime mortgages was estimated at about $1 trillion. Karlweis says the total collateralized debt obligation and mortgages obligations issued "exceeded $7 trillion and the repercussions were devastating."

"Like a disease overrunning a body's already weakened defenses, subprime infected the entire global banking system. There were also many victims among small and medium-sized investors, even outside the United States," Karlweis says he knows fact certain.

"Creative types even invented synthetic versions of subprime, with no underlying portfolio of mortgages, that guaranteed the same yields as the original junk," Karlweis's post-mortem says. "These were earmarked for money managers who wanted to position themselves against subprime debt, namely by selling short to investors who were still lapping it up as a good bet" and this then generated a double commission for the investment bankers.

Where were the risk committees, credit committees and others who should have taken the hour or two needed to read the prospectuses?

"That and an ounce of common sense would have sufficed to see through Wall Street's slicing and packaging antics," he answers.

The bailout of Fannie Mae and Freddie Mac (also triple A before disaster hit) had what Karlweis calls "awesome consequences for America in particular." The national debt leapt by about 50 percent to more than $14 trillion (excluding the debts of other "government-sponsored enterprises"). Next to America's net worth, estimated at $70 trillion, "that was an unsettling level," he argues.

Karlweis laments that
"after a career in finance I look aghast on what has happened since the turn of the 21st century. The conclusion I have come to is that the present financial crisis was caused by, and is one of the most blatant manifestations of, widespread moral decline in our society."
The gnome turned sage says that
"devoid of all common sense and consumed by greed, the big all-service banks led by Wall Street contrived a financial system that was nothing but a house of cards while adopting lending criteria based on equally flimsy mathematical hypotheses. Not that they cared; they unloaded their junk from their balance sheets onto duller players who snapped it up as a cash-flow booster, only to see it all go up in smoke later on."
At a minimum, Karlweis concludes,
"we will need a full reinstatement of the Glass-Steagall Act (repealed in 1999), which made it impossible for a single legal entity to conduct or control all types of financial business."
This means institutions that receive deposits from the public must be clearly prohibited from speculating on their own behalf with the money of their depositors.

2 comments:

  1. The Justice of God: NBCNews.com video: Extended audio: MLK describes Africa trip

    Noor, you are a child of the time of the sixties in the same way I am. You remember it as I do.

    In the last thirty plus years: Bush Sr. was Vice President for 8 years and President for 4 years; his equally corrupt son, Jr., was President for 8 years and now we have had the most corrupt example of an African American as President for 4 years. That alone accounts for 24 years of corruption.

    Here is the what if?

    What if: John F. Kennedy had been President for 8 years and Bobby Kennedy had followed for 8 years with Martin Luther King as Vice President and then MLK as President for 8 years?

    This is just part of what they would have done in those 24 years:

    Stopped the War in Vietnam before it began.

    Removed ALL the Shadow CIA throughout the United States – the Triad of Shadow CIA, KGB and Red Chinese Intelligence; and severely crippled it throughout the world. MI6 be damned. World wide drug dealing would have been crippled to a lingering but sure death. That is why it was easy to enlist the three French Corsican Mafia members (Unione Corse – see Astucia at www.jfkmontreal.com/jfkpage.htm) on orders by their boss by payment on direction of Nahum Goldmann to assassinate John F. Kennedy. These here were all reasons for his assassination and there were more besides, but that is why the Corsicans (later known as the French Connection) took the payment and did the contract to murder John F. Kennedy.

    Get rid of the Federal Reserve. That's right!

    Flat out stopped genocidal Israel and DISMANTLED it. JFK had the plans drawn up by the Joint Chiefs and would have done it the moment they tried what they did in 1967.

    The Peace Corps would have been a true success throughout the world and shown up the United Nations for the fakes they are a long time ago.

    Had a true program for helping the poor and disenfranchised in this country (Bobby) instead of the welfare social programming state of Johnson and others.

    Opposed the subversive Supreme Court and stopped their murder of children by abortion and the whole social engineering agenda they took upon themselves.

    Bobby and MLK would have totally prevented the disintegration of the Black Family and the misuse of valid concerns of Mexican Americans (remember Caesar Chavez was AGAINST opening the borders) to create race war in the United States amongst any number of other evils – including the creation of a huge platform for the CIA's drug dealing done by the destruction of Black and Latino communities in the U.S. The Pacific Rim and the Pacific Islands (which as you know can be fragile in what affects them) would have been protected.

    Stopped Seig Heil JudeNazi Kissinger before he got started. Period. There would have been an end to all the ODESSA Gantlines in South America a long time ago and all the concomitant genocide and death squads and kidnap and torture and drug dealing.

    Martin would have taken up where the martyr Abraham Lincoln left off when the London Freemasons had him assassinated. Then this country would be a model of racial harmony to the world instead of what it is now.

    Pan Europa and Financial Meltdown throughout the World would never have been allowed.

    IsraHell and PNAC wouldn't exist today.

    "'Abraham believed God, and it was accounted to him for righteousness.' And he was called the friend of God." (James 2:23)

    The Devil's minions hate friends of God like Abraham, Martin, and John (and Bobby).

    Abraham Martin and John – YouTube

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  2. Sadly, history is made of "if only's" isn't it?

    ReplyDelete

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