Sunday, March 04, 2012

Wall Street Looters And Captured Federal Reserve Face Of On Physical Commodities At Expense Of Humanity

As we have discussed countless times over the last half dozen years, commodities are in a massive bubble driven by Wall Street corruption.  How did we ever get to the point where firms backed by taxpayer money to keep our deposits safe were hoarding physical commodities to corner markets in gold, silver, food, natural gas, industrial metals and to manipulate oil markets?   Obviously the oil market is too large to corner but they have manipulated its price and commodities to the tune of bilking societies of untold hundreds of billions or trillions of dollars over the last decade.  And, every Marching Moron in the financial system has told their clients, including pensions, at one time or another to buy commodities.  Essentially, they have been telling their clients to tax, loot and even murder some of the most impoverished people in the world that had no choice between living and dying because of the commodities bubble. 

Why are we having this discussion?  Financial firms should be banned from commodities markets.  That includes acting as a hedging firm for clients.  Because, as we found out with Enron, it was their deregulated gambling in energy markets that created incredible volatility that then forced nonfinancial users of energy to hire Enron to act as a hedging firm.  In other words, Enron created demand for their services using fraud and corruption to manipulate prices.  Wall Street is doing the same thing today but on a massive scale by forcing nonfinancial firms to hedge commodities that then artificially drives the demand for financial derivatives.  A demand they are creating by manipulating commodities markets.  This is one of the greatest crimes against humanity of the last one hundred years and the captured press and politicians remain silent.  Wall Street is Enron multiplied by millions.  Literally.  Wall Street has been caught red-handed time and time again over the last decade and yet nothing was every done to stop these crimes.  That’s because they aren’t illegal.  Because our laws have been gutted courtesy of Wall Street lobbyists.  Enron executives went to prison.  Wall Street?  They were bailed out by taxpayers and then used that money to pay bonuses.   

People who think food or commodities prices are rising due to inflation are deluding themselves.  Just as they deluded themselves as to why Internet stocks were rising into 2000 and house prices were rising into 2006.   They were rising due to corruption and manipulation in financial markets that created temporary and unsustainable pricing aberrations.  ie, Too much demand for financial instruments.  Not underlying economic demand.  Wall Street uses the manipulation of law to create bubbles.   They need bubbles to create environments where massive looting is possible.  Both the Internet and housing bubbles ended in collapse.  So too will China (Just as much a manifestation of Wall Street as the internet bubble.  Something no one seems to get.), farm land, commodities and eventually Wall Street itself.    Wall Street earnings are a mirage based on endless looting.  

Wall Street serves absolutely no purpose to our society.  It serves itself.    We’ll see if the Federal Reserve actually stops Wall Street’s looting in commodities or if a bust will force Wall Street’s departure as happened with their mortgage fraud crisis.

End the insanity.  Title link here.

posted by TimingLogic at 10:08 AM

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