Archive for November 25, 2011

Protecting and promoting the UK in a digital world | Cabinet Office.

(this is a hotlink, as headlined in bold, received directly by the interpretOr,  from UK Cabinet Office,  via Twitter 25/11/11)

Big PR number with David Cameron quotes and associated justifications. A press release really, that we’ll try to deconstruct and post on in the not too distant…David Cameron was PR head honcho for Carlton Television and is a Tory. This triumphant announcement mid phone hacking enquiry. NO PROTECTION has been a theme of the evidence thus far…

nanoo, nanoo...

Here’s an extract in the interim:

As part of this action plan Government will:

• Continue to build up in GCHQ and MOD our sovereign UK capability to detect and defeat high-end threats.

More tea, vicar? A Tory PM. Again. And there was even a woyal wedding wecently too. Wonder if this legislation was discussed by David Cameron at last year’s Christmas lunch get together with Brooks, Murdochs, Freuds, car salesmen who present a television franchise via the BBC? What a recipe for food poisoning!

Cameron’s 2010 Christmas lunch with Rebekah Brooks and the Murdochs

Former Seattle Police Chief Norm Stamper on Paramilitary Policing From WTO to Occupy Wall Street.

One only had to watch SBS or ABC news last night (Thurs) to glean further evidence in support of Norm Stamper’s credible and concrete concerns…

…riot police off the leash in the French countryside, ‘paramilitary’ police in Egypt using American made teargas rounds.

Oh…and police across the US going in hard against Occupy. If only it were a ‘bonfire of the vanities’ (Tom Wolfe), with the ‘big? swinging dicks’ of Goldmen Sucks et al being called to account.

As Stamper in interview states…peaceful protest situations should not elicit paramilitary responses.

As flagged by the interpretOr August ’11, Jeff Madrick, Senior Fellow at the Roosevelt Institute and former economic correspondent to the New York Times, has recently published a metaanalysis of the origins, historical contexts and characteristics of financial crises.

Similarities to Eurozone abound, as the following quote reveals:

“Throughout history, financial crises have been generally similar to each other. An asset – land, housing, stocks, bonds and so on – rises in price, financial institutions lend to investors to buy more, and prices are driven to unsustainable levels. When the bubble bursts, investors sell assets to repay their loans, and prices fall further, often in panic.”

(Jeff Madrick, The Age of Greed, Alfred A Knopff, New York 2011)

the interpretOr also reveals that prior to the collapse of Lehman’s in 2008, Wall St had made trillions from trading sub-prime mortgages that were based on a giant ‘Ponzi’ scheme. How this was achieved was attributable to ongoing deregulation of the finance sector, tacitly permitting finance houses such as AIG and Countrywide to trade essentially unsecured mortgages to a rapacious sector – the buy-in, or incentive, was that sub-prime mortgages were subject to very high interest rates – these flimsy, high risk/high yield products were sold in bulk, providing massive, short-term and unsustainable earnings.

The ratings agencies, (see earlier interpretOr posts), S&P, Moody’s and Fitch, rated these bulk packages of very risky, partially unsecured mortgages, without elaborating on their inherent risks, weaknesses and unsustainability. European and other banks around the globe, bought into these toxic tranches and the resultant GFC was and is the outcome.

see also: the interpretOr: ratings agencies are robbing the poor, the sick and the elderly

plus…ratings agency S&P’s $2 trilliOn error and ‘race to the bottom’

Now, we can add to the indictment: Euro crisis, ‘Silvio’ the clown, toxic sovereign debt…debt that was packaged and leveraged by…the same trio of ratings’ agencies. We’re nearly at 2012 and yet these same greedy, moronic, tragically influential  ratings’ agencies are still calling the shots.

In late 2010, a Eurobond dealer broke away from the conformist consensus of his peers and spoke out against the ratings agencies (S&P, Moodys’ and Fitch). This lone voice had made it onto the BBC World Service and clearly stated that the ratings that these agencies had given toxic Greek, Spanish, Italian and Irish sovereign debt were incorrect. He called€™ these government bonds as sub-junk trash. He derided the ratings as being as fetid as the subprime ‘€˜miscalculations’ of 2008 and earlier.

Listeners were not told at the time that these same ratings agencies derive their revenue from the commission that they are paid by the merchant banks and governments that are issuing the bonds that they, the ratings’ agencies, rate.

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