http://maxkeiser.com/2011/08/11/max-keiser-ww Max Keiser is a colourful US economic commentator who has a regular segment on Russia Today.Max gives us lucid insights into how the really powerful financial institutions on this planet use worthless derivatives to attack the economies of small countries.

eg. The US sold toxic derivatives to French banks and are now using them to extract their wealth.Max suggests that credit rating agencies and Wall St act in collusion by using hedge funds, credit default swaps to effect wild market girations.The credit rating agencies downgrade a country or institutions' credit status,causing a sell off of stock,and the vultures of Wall St come in and buy up under valued assets.These institutions have assets far bigger than small countries like Greece,Portugal or even Spain.The worthless dervivative market is expanding because the US Federal Reserve continues to keep interest rates at zero thus feeding the expansion of the bubble.

In some countries they have negative interest rates thus charging people for having money in a bank account.How much more insane can it get?

Notice how our market collapsed and came back quickly.Those who have enormous wealth can inflate or deflate small markets like ours on a whim,for their gain.Our financial system has been taken hostage by a few elites and the results will be catastrophic if we do not become aware.

max predicted 2008
cause thats what he used to do
he knows what he is talking about..and does it fearlessly with a laugh

That's an intriguing claim, Arjay.

>>These institutions have assets far bigger than small countries like Greece,Portugal or even Spain.<<

Which institutions are you referring to?

Arjay

1.
"The US sold toxic derivatives".

Why were they toxic? What made them toxic? Do you mean they overvalued or undervalued the risk in the underlying contract? How do you know?

2.
What makes you think that your preferred policy solution to the contemporary problem of money and credit - a central bank with power to inflate the money supply at the rate of growth of productivity, correct me if I'm wrong - would not do the same thing as is causing the problem?

3.
If the central bank was not independent of politicians, what would stop it from inflating all the time?
And if the central bank was independent of politicians,
a) doesn't that contradict the central tenet of democracy, that the politicians are the people's elected representatives,
b) what would stop it from inflating all the time, or above the rate of growth of productivity?

Peter Hume Q1 The derivatives are toxic because that are not based on real productivty or assets.They have no value and many are linked to bad debts created by the GFC.

Q2 Central Private banks creating money from nothing to equal our individual productivity means that they own it and our govts have to tax us to pay for debt on our own productivity + inflation,This means that the more growth we have,the more debt we incur.

Q3.yes it has happened in the past that Govts who do create money via their Govt owned banks do create inflation but not at the price of paying it back as debt to a few private elites.A proper constitution can limit Govt from creating too much money.

Has the private US Federal Res and the Bank of International Settlements done a great job of fiscal responsibility? They are an absolute disaster.Our Govts for a long time have been controlled by this Central Banking system.This is why they are impotent,broke and cannot nation build.

Which would you prefer? Spain now has a GST of 23% to service debt to private banks who create this debt from nothing and it still not enough.The USA has a debt of almost $15 trillion and they cannot even afford the interest.Would it not be better that the US govt create this money from nothing and the tax payer suffer a depreciation in their currency but not have debt to private banksters? This system is totally insane.Why would anyone let a separate body like Central Banks ,own their productivity and loan it back to them in the form of debt?

Pericles the US Federal Reserve under normal conditions, creates almost one $ trillion pa from nothing an loans it to the US Govt at interest.In the last few yrs they have created many times this an loaned it out to countries/institutions all around the planet.

Goldman Sachs and all the Feds' other cronies are worth $ trillions far more than the GDP of many countries.