Pancho Villa rides again

Bob Moriarty
Archives
Mar 19, 2009

The most important financial meeting in history is scheduled for April 2, 2009 in London when the G20 (and a few) get together for a summit. This is more important than the 1944 Bretton Woods meeting in New Hampshire between 44 of the world's free nations that set up the post war financial system that worked for 25 years.

I hear a lot of mumbling on the web about a "New World Order" but that's one of those terms such as manipulation that everyone uses in different ways. Lots of people somehow believe that governments can get more power than they now have. I don't think so, I think the days of big government and the attached big spending are through. Governments aren't nearly as powerful or as important as they think.

I mean, in the United States we had a dictatorship in all but name under Bush with the Vice President's office taking charge of the illegal assassination squads. I find it interesting as well as hypocritical that a jerk that wasn't even in the military chain of command whose service in uniform consisted of a record of 6 student deferments ("I had better things to do") thinks he has the background to order our highly trained special forces to murder people. He wasn't the most qualified guy in government, he was the least. We had laws against the use of assassinations and they were ignored along with the rest of the Constitution.

Big government is through. The US is probably through. Depending on the outcome of the G20 meeting, we may be a related group of fiefdoms in a year or so. I've long predicted the US dollar will default soon.

There seem to be two clear choices. We form a new rational international monetary system that involves all the main global players or we allow the United States to continue the dollar standard until we go into hyperinflation.

Face it; the financial system is a train going down a 60-degree slope at 90 miles an hour and the throttle is stuck open. We are going to crash. The only issue is how much damage is done and what we do to recover.

How many people other than Jim Sinclair and me do you hear talking about the $683 trillion derivatives market? It's a giant casino where no one knows who owns what or who owes what. Until it's down below $50 trillion and falling we can't even begin to heal. No one with any cents is going to invest in anything until we kill the derivatives dragon.

Banks and hedge funds are still making Credit Default Swap deals just as if they haven't learned anything from the last 21 months of chaos. Our representatives have just figured out that AIG stealing $165 million in bonuses is fraud, even after ignoring Merrill Lynch executives stealing 20 times as much without a murmer.

It will be interesting to see how the Propaganda Media present the April 2 meeting. It is the Gunfight at the OK Corral and what happens or doesn't happen will determine if the economy recovers or we go through a decade of disaster.

Pancho Villa rides again but this time he's running the banking system and owns a hedge fund.

You can still buy an insurance policy.