China’s financial war on derivatives contracts for their banks
Max Keiser talks to Stacy Herbert about China reneging derivatives contracts recorded on September 5th 2009 中国= China 孫子= Sun Tzu . 温家宝got the US by the balls . MADE IN CHINA . on EBAY search for Fiat Paper Money and you’ll find the book of RALPH T. FOSTER facinating reading of his research . G20 finance ministers and central bankers have agreed a series of measures to curb excessive bank bonuses, including spreading payments over a number of years, inserting clawback provisions in contracts and forcing financial firms to reveal high earners in annual reports. Meeting in London at a summit chaired by Alistair Darling, the chancellor, the G20 finance ministers instructed the new Financial Stability Board (FSB) to come up with detailed proposals, some of which will be available in time for the G20 meeting in Pittsburgh later this month. They deferred a decision on imposing caps on bank bonuses. Officials said caps on individuals bonuses had been rejected but that the Financial Stability Board would examine whether caps on institutions could be introduced, in line with French demands. . Stimulus to continue, G20 pledges FINANCE ministers of the largest industrial countries vowed to keep their multi-trillion-dollar stimulus efforts in place, but at a meeting in London they failed to agree on any firm limits on the bonuses of bank executives – a sign of the deep rifts that remain between American and European leaders. They did agree on a blueprint to raise capital …
The only ways this can be repaired by cheap labor exploitation is ourselves. Either that or some kind of political realignment between global powers. We have spent most of our money on military and war, was the third and most dangerous option would be war to counter threats our finance Which could lead to very bad results in terms of the nuclear so! China basically has us by the balls! Unless we make cheap products and services for the world market. . . either that or, was DAMN! We fucked!
I think I now fully understand what is really going on! China over years of sweatshop exploitation has robbed us dry of our wealth by making cheap products, and now China is saying “Ha, we own you, so conform to communism” market or you want to be cut off financially from the global! DAMN this makes since! So talk of a North American Union would probably be a result of this. Ponder and discuss. . .
it would be funny if one day China says oh its ok we will lend you 100 billion but you must give that in gold bars not in paper money. lol some people are going to get a heart attack.
2:48 it does not make sense to threaten the U.S. government because they are not in control, Goldman Sachs controls them, so go after them. That is SO true and we have seen China do the same thing. When the U.S. sold Taiwan all those weapons, what did China do? punish the U. S. government? No, that would not make sense. They instead punished U.S. weapons manufacturers because they have way more control, it made more sense to punish them.
Thumbs up, if you are disappointed that the hot girl on the thumbnail is not giving a lecture on derivatives here.
Good luck China. I hope you avoid the terrible fate that we are discovering fascist.
China is not about to eat shit thinking its American steak, they are to smart for that. That is why government wants us to eat all the shit and tell everyone how well it tastes.
Very honest
chinese gold is meltable?
The Chinese knew that all the U.S. bankers started offering derivatives over the couple of years before the crash because those banks KNEW their investments in housing, their significant leveraging on those sectors, would devalue due to rapidly falling resources for construction and over investment in that sector leading ability to rapidly falling to sell that stock on the market at rising prices. Inflation can distort those prices but that just postpone the clearing, hence a BIGGER malinvestment.
Good for China. Derivatives are really fraudulent. But do not be surprised if drums were beat over this. All the wrong people want the money that should belong to the people, and they call the shots in Washington.
I want to sell naked CDS. Man, those bankers are good.
Great video! Glad I found the site!
Thanks for the good info. .
You must make the difference between price discrimination and a market price, most economic textbooks show examples where you have a high price for the product first and then that the price goes down (huge simplification) and as production volume increase. Price discrimination is when the seller decide on the price of the product outside the market prices and charges according to the consumption level of the consumer / buyer. You can read some about this in a good macro economics book.
Price is not discrimination on undenialble reality? Thus, high volume transactions can alter pricing in a market economy. Theft would also factor into the equation. It’s all fairly confusing to me at times. Thanks for your comments.
The most important aspect of a market economy price discrimination is prohibited, it is not prohibited in the sense of having some form of punishment for it but it is no market economy if you have / allow price discrimination. You should be wary of using Wikipedia, the editing on Wikipedia is open to any fool who decide to type something. Usually you get a better understanding from reading a good encyclopaedia at your local library.
I looked up “market economy” on Wiki and I had not realized that it was based system supply & demand That explains a lot. So, what’s left is the distinction between capitalism (as pertaining to a supply & demand economy) and different forms of government. A lot to think about.
All governmental systems have inherent problems with corruption, meritocracy is no different. We have some influences of meritocracy in the world today where you have to have a university degree to even be able to apply for certain jobs. This is naturally used to corrupt the system since you can shape the requirements for a job after the person you want to employ. Considering that you need the right background to be able to go a higher level of education shows how corrupted the system is today.
I think you are fully aware of what a market economy is, I do however think that you confuse capitalism as a prerequisite for a market economy, some governmental systems depend on a certain type of economy to work. Socialism need a planned economy, liberalism need a market economy. Most have a pretty good understand of the world if they just take a few minutes and ask themselves some questions without accepting the answers given by mainstream media.
I guess I do not understand exactly what is market economy. ? As far as meritocracy is concerned, who had that deal going on? And if anyone did, who decided who was what?
It is more complex; USSR was a capitalistic (Cpt) system as what the Tsar Empire. Cpt is an extreme of plutocracy where your capital is all meshed up to form influence. If you look into different types of governance such as meritocracy, monarchy, etc you get a feel for capitalism. You will run into people who say that capitalism is the same as a market economy but this is not, as such is a Cpt system of governance where market econ. is a system to Achieve economic efficiency. Need mo ‘letters = (
So, if I have this straight. . . Capitalism is a free market enterprise, existing alongside of government without government interference, but eventually leads to plutacracy, or governement by a wealthy group. Correct?
Capitalism is a system of governance where the capital and decide you have your influence in society. Capitalism as such can not exist alongside any form of economic system, market economy, planned economy, mixed economy, etc. This is not true to 100%, the capitalistic system will govern the economic system in a way that will benefit them. Hence you will not have a market / planned economy under a capitalistic system in the USSR and private companies you had in the U.S. you have U.S. state companies.
When you get a chance, can you explain further? Capitalism (not the same as FreeMarkets) Capitalism = plutocracyThanks. . .