see http://www.tarpley.net
Webster Tarpley says that the large corporate banks lead by George Soros are using hedgefunds to attack the indebted Greek economy.Greece is seen as the weakest link amongst the PIGS and this would could cause a domino effect of weakening the Euro and thus strengthening those who hold assests in $ US.

The Greek Govt and others have responded by stopping the trading of Govt Bonds via hedge funds.ie they cannot use the levage of their phoney money to futher devalue assets of the Greek Govt.

The whole system will eventually collapse,since tax payers have been forced to bail out non-productive derivatives at the expense of real productivity and real jobs.They have no idea how these hedge funds ,credit default swaps and other derivatives are woven into the real economy.Some say the phoney money is worth $150 trillion world wide.It is about time we put the phonies into bankruptcy and let the real economy grow.

When are all our political leaders going to stand up to these bullies
who caused the GFC in the first place and now want us to pay a second time for their greed?

Arjay
I don't think there are any politicians who understand it. They are pretty much all steeped in Keynesianism, so they believe in all the tenets that are causing the problem in the first place.

I Will never understand why I answer you arjay.
or will I ever understand you.
But I do understand why Greece has these problems.
They spend like drunken fools money they do not have.
And fear the actions they just have to take to start fixing their troubles.
Are you aware arjay government employees retire on full pensions at a very early age.
And the pressure put on all political party's to continue such madness has far more to do with this crisis than your conspiracy's.

This is the year that the $ US will collapse.They cannot go on creating monopoly money to bail out their failed hedge funds.Do the analogy Belly.What happens in a game of monopoly when the bank is allowed to create as much money as it wants? The price of properties will skyrocket.They actually need a new game that includes derivatives and rents that are not fixed.Then you will understand.

The private banks who presently own the US Federal Reserve are;
Rothschilds of London and Berlin
Lazard Bros of Paris
Israel Moses Seif of Italy
Kuhn Loeb & Warburg of Germany
Lehman Bros,Goldman Sachs
Rothschilds controlled Rockerfeller of NY.

These Banks own & create the money for the USA and Europe.They have power beyond your imagination.Just imagine this Belly.The $ US has lost 96% of it's value since 1913 at the inception of the Fed.This means that they have increased the amount of money by 25 times above pop increases and production.Why cannot you Belly create money from nothing? Yes,you would be arrested for counterfeiting.They call it monetary policy.The creation of money should be in the control of sovereign Govts,after all money only represents people's productivity.It has no intrinsic worth.It does not belong to private banks.

This why our taxes are so high and all countries are in so much debt.We don't have money for infrastructure/medical since we do not create our own credit.Look at the system before you place blame on individual Govts.

So what these banks have done is to create massive amounts of cash making them rich enough to buy into the best shares and create the massive bubbles we see on wall Street.They have fingers in all the keys shares like energy,minerals,medical,arms manufacturing etc.Rupert Murdoch would not dare cross them since he is a very small player.

If we have $150 trillion in worthless derivatives ie 150 times our GDP,this means an enormous economic collapse if we do not do the right thing.

So choose Belly,economic armageddon with the real possiblity of a world war,or real productivity,jobs and peace.

Arjay, on subjects such as this I always find your musings well worth the read - thanks.

I won't contribute though, I don't know enough about it - I hope others will.

Arjay

"The creation of money should be in the control of sovereign Govts,after all money only represents people's productivity."

I think your chain of reasoning is correct, right down to but excluding your conclusion.

Even if money only represents people's productivity, whatever that's supposed to mean, that is not a reason for it to be controlled by sovereign governments. If what you say is true, and money represents people's productivity, then to vest it in government, is to say in effect, that government should have a monopoly power of controlling, and of debauching, the productivity of the people, which is what we are witnessing now.

It is precisely control by sovereign governments that has caused this problem by enabling sovereign governments to delegate the power to a privileged monopoly. The privileged monopoly – the Fed– got it from a privileged monopoly – sovereign governments.

Money is a market phenomenon. It arises out of the market, owing to the defects of barter. Contrary to popular myth, money cannot be in theory, and never was in history, a creation of government. (The reason we know is because it would have required government, on the day of its creation, to have stipulated the price of everything in relation to the price of everything else.)

Government control of money always piggy-backs on, or rather hijacks, a pre-existing medium of exchange. It always confers a privilege of creating new money, which has myriad destructive effects. Ethically and economically, it is not different from a licence to counterfeit. It transfers wealth, secretly and silently, from the productive class to the parasitic class. It causes inflation, which in turn, causes the so-called ‘trade cycle’ of greedy boom and depressing bust. It misrepresents the time preference of the mass of consumers. It distorts the entire capital structure towards instant grat, debt, and speculation, and away from delayed grat, work, and savings.

cont.