On Greece’s bancrupcy, JP Morgan’s loss and those pesky Derivatives Johnny “Derivatives” Key and Bill “Double Dipton” English invested in.

Warren Buffet once famously called Derivatives a financial weapon of mass destruction but that hasn’t stopped the out of control banking sector to build a bubble worth $500 trillion to 1.5 Quadrillion and since the profits were privatised while the losses were socialised there has been no risk for the banksters.

So if you have a Derivatives trader/City of London/Wall street banker turned Prime minister and his Minister of finances has unlimited Authority to borrow and invest you can bet your bottom dollar that borrowing and betting investing is what they will do. Especially when they can do so without  governmental oversight.

With NZ in hock for $ 112 billion dollar which is about 1 years worth of GDP (correct me if I’m wrong) here are some pointers to what might will inevitably happen when the derivatives bubble will start to unwind.

Let’s begin with Greece. Greece’s government allowed another group of bankers to advise them on their finances and then the bankers started to bet against the country to bankrupt it  and now the population is losing everything they had and they will soon literally be starving.

Not only that; those who bought their bonds in the hopes of earning tons of interest to be paid by the starving population will find that when the Greek leave the system (as there is no other way) those bonds will be worth ziltch.

One such trader is JP Morgan (Chase) (which opened an investment bank for rich customers here in NZ in October 2007 and seems to b) and to date they may have lost $ 4oo BILLION on their Greek investment alone and that is just the beginning.

When these traders who have all hedged their bets with the too big to fail banks such as BofA which itself is exposed to $ 77 trillion in unsound derivatives want to cash in on their CDO’s  (Collateral debt obligations) the banks who sold them those will collapse because there is no way any bank can even begin to pay on the trillions they owe and if that happens NZ will find overnight that “movement in the derivatives market” (Also known as losing at the pokies) will have wiped of most of the value of the derivatives John Key and Bill English invested in while we the population will still be obliged to pay the money John Key and Bill English borrowed without oversight of our elected representatives.

And unless we arrest these two for fraud, malfeasance, treason and criminal recklessness like they did in Iceland we are in for a whole lot of pain because John Key has just enslaved this country forever to the 1% unless we  get rid of the the reserve bank system and go back to government issued public credit and kick the privately owned banks out. It really is that simple. 

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6 thoughts on “On Greece’s bancrupcy, JP Morgan’s loss and those pesky Derivatives Johnny “Derivatives” Key and Bill “Double Dipton” English invested in.

  1. i wonder when our media is going to nz ers what this clown is doing to our country and our money this government is not working in our best interests.they need to go.not to mention all the other dirty deals.my anger has been mounting ,with the media,the other political parties,for not telling what really is going on,not to mention the clueless people of this country that voted for a right wing government,and seem to think this guy is great,SICK.

  2. Wow, you really are in a bizarre separate reality.

    (Travellerev: Perhaps, but on this blog you are definitely the idjit)

    • Contrarian… from what point of reference do you make that statement? On global financial matters, Ev’s blogging of the scam, John Key’s relationship to it and NZ’s position in it is second to none. She’s in good company with the likes of Max Keiser, Steve Keen, Reggie Middleton, Tyler Durden (ZeroHedge), Nomi Prins, Jim Rickards and Matt Taibbi, to name just a few, who are all highly respected financial commentators, and who have been calling out the banks and the principal actors on their shennigans for a long time.

      If anyone is in a bizarre separate reality it is the people of NZ who continue to bury their heads and believe that our Prime Minister and his crew are really looking out for their interests. I’m assuming you are one of them.

      I guess if you’re one of the extremely wealthy few, this Government is looking out for your interests, but for many NZers the reality is quite different. While things may not be as bad as countries like Greece, Ireland or Spain, we are going backwards so fast the thousands of people voting with their feet to Australia look as though their moonwalking. For some it’s already so bad it’s way more than just a case of poor life choices. Life’s dealing to them in sledgehammer blows. This is not the country I was born and raised in. We were much better than this. But with John Key at the helm, his history on Wall St and in the City of London and his part in the GFC, the whole thing stinks.

    • The good news is that his money is gone before he can say “oh Shit” when the shit hits the fan. Remember Lehman and all those people who basically got kicked out of the building the day it went down? That’s what’s going to happen to his shares too.

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