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opinion, political

The Motives Behind the Financial Crisis

This post is related to a blog post by Forrester’s Founder George Colony. In ‘Best Explanation of the Financial Mess’ he relates to the article by Niall Ferguson in Vanity Fair: ‘Wall Street Lays Another Egg.’

I am in broad agreement with the explanations but I propose in my comment and in this post that we need to look deeper yet.

Yes, Hyman Minsky, Milton Friedman, Thomas Sowell and a few others should be reread at this time. Ferguson is right that bad debt was used to PRINT MONEY, much like the national banks use loans to secure the value of the currency rather than the gold standard that was abandoned long ago. That was visible for quite a while. If you look up my writing for the last four to five years I have been predicting this mess. I don’t need to say now that I was right, but it proves that the situation was VISIBLE and PREDICTABLE to a non-economist outsider like me. Why then was it ignored by governments? Does that not make you wonder? I certainly do, but the surprising and quite incredible willingness of the governments to step in and ‘SAVE’ the banks puts it all into perspective. Are you aware that in the last three months half of the largest European banks have been practically nationalized – or are now under like government influence ?

In my 2003 novel ‘Deity’ I wrote about the coming financial meltdown as well as the over-regulation by governments that would follow. Conspiracy theories aside, I do believe that there was a willingness to let the debt situation culminate because a crash would put the right political message in citizen’s head: Capitalism does not work! Why were all EU governments rooting for Barack Obama? Because he is black? I guess not. Not being a respected economist, these ideas obviously cannot be mine. I found them in Friedman’s and Sowell’s writing. ‘Capitalism and Freedom’ as well as ‘The Vision of the Annointed’ create the understanding as to not why the crisis happened, but why it was allowed to happen by governments.

Maybe you think that I am overreacting, but just ask yourself: Could it be that the European Union is on the way to become the new – then Communist – Russia? EU citizens are certainly more supervised and spied upon than USSR citizens ever were. Yes, we have no restrictions to travel but the government knows quite well where you went, what you did there, who you talked to, how much money you spent, and certainly wants to know where you earned that money and if you paid taxes. If you are a business owner however, then you are restricted to leave. Well actually, you can move to another country but 25% of your wealth will be confiscated if you do (in most EU countries)!

Here’s a little more to digest: The German State Police has paid a convicted criminal 4 to 6 million Euro for 1100 stolen data records from a Lichtenstein trust management company. It then gave this criminal a new identity, because some of the records are most likely Mafia or drug related. One of the data records showed that the CEO of Deutsche Post Klaus Zumwinkel had a trust fund in Lichtenstein. That in itself is not illegal, but apparently not all money that he took out had been declared as taxable income. Before there was a concivtion or a even a trial, Zumwinkel was forced to hand over the trust fund to the authorities as otherwise he would have been arrested and held without bail until he did.

Question: Does that sound like a democracy to you or like the former Russia?

Still wondering if I am a conspiracy buff? Do you know that the ministers of the EU government are called commissaries and that the EU Chairman (sic) is not elected by EU citizens but by the EU parliament? Are you aware that the new EU Constitution overrules member state constitutions and that hardly any of the member states gave their citizens the right to vote over its acceptance? Their constitutions were simply taken away!

Has any of that anything to do with the financial crisis? There is a fair chance that it does as otherwise it is strange that it happened. Our politicians are either incredibly inept and stupid – which would be frightening – or there is another hidden agenda that should be even more frightening.

Don’t just accept this crisis as a ‘Black Swan’ … you need to look deeper than just the surface. let me close by stating that I am VERY MUCH in favor of a European Union. I always was. But when we voted for it, it was supposed to be FEDERATION of loosely coupled, but closely cooperating independent entities. That apparently was just the marketing pitch. Germany and France have bigger buns in the oven …

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About Max J. Pucher

I am the founder and Chief Technology Officer of ISIS Papyrus Software, a medium size software company specializing in communications and process management. I wrote several books and hold a number of patents. My quest is to bring common sense to IT, mostly by focusing in human quality issues rather than cost saving, outsourcing and automation. I am also Chief Architect at VIPorbit software which provides mobile relationship management.

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© 2007-11 Max J. Pucher

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Max J. Pucher

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