|Derivatives are the Cause of the Depression|
The origin of the crisis lies in deregulated credit derivatives of various types. The proper way to understand derivatives is that they are some form of paper based on paper. Anytime we are more than one step removed from an underlying asset we are dealing with derivatives. The Bank of International Settlements admits that there are around ~$600 trillion in derivatives out there (4). This is more than ten times the entire GDP of the Earth, which is about ~$58 trillion. Other sources indicate that the outstanding amount of derivatives of all types approached ~$1.5 quadrillion, and has now fallen to a mere ~$1 quadrillion (5). A dangerous feature of derivatives is that they are zero sum instruments, in that there is always a winner and a loser. This means that every derivative represents some amount of debt that someone will have to pay at some point in the future, with the notional fulfillment value much higher than the market value of the instrument.
These derivatives are controlled by globalized finance oligarchs based primarily in New York and London. These oligarchs dominate the governments of most western countries, and they have abused their power by making the sole mission of the state that of propping them up. All of the other concerns of the nation states of the world are regarded as secondary to the effort to rehabilitate the cancerous mass of $600 trillion-$1.5 quadrillion of derivatives. The United States cannot recover until Wall Street is stopped and put into receivership by the federal government, and the derivatives are liquidated in bankruptcy proceedings.
|The researchers found that this core group consists of just 147 very tightly knit companies…|
When the team further untangled the web of ownership, it found much of it tracked back to a “super-entity” of 147 even more tightly knit companies – all of their ownership was held by other members of the super-entity – that controlled 40 per cent of the total wealth in the network. “In effect, less than 1 per cent of the companies were able to control 40 per cent of the entire network,” says Glattfelder. Most were financial institutions. The top 20 included Barclays Bank, JPMorgan Chase & Co, and The Goldman Sachs Group.
The following are the top 25 banks and corporations at the heart of this “super-entity”. You will recognize many of the names on the list…
1. Barclays plc
2. Capital Group Companies Inc
3. FMR Corporation
5. State Street Corporation
6. JP Morgan Chase & Co
7. Legal & General Group plc
8. Vanguard Group Inc
9. UBS AG
10. Merrill Lynch & Co Inc
11. Wellington Management Co LLP
12. Deutsche Bank AG
13. Franklin Resources Inc
14. Credit Suisse Group
15. Walton Enterprises LLC
16. Bank of New York Mellon Corp
18. Goldman Sachs Group Inc
19. T Rowe Price Group Inc
20. Legg Mason Inc
21. Morgan Stanley
22. Mitsubishi UFJ Financial Group Inc
23. Northern Trust Corporation
24. Société Générale
25. Bank of America Corporation
The ultra-wealthy elite often hide behind layers and layers of ownership, but the truth is that thanks to interlocking corporate relationships, the elite basically control almost every Fortune 500 corporation.
The amount of power and control that this gives them is hard to describe.
Unfortunately, this same group of people have been running things for a very long time.
|Hylan's most famous words against "the interests" was the following speech, made in 1922, while he was the sitting Mayor of New York City (1917–25):|
'The real menace of our Republic is the invisible government, which like a giant octopus sprawls its slimy legs over our cities, states and nation. To depart from mere generalizations, let me say that at the head of this octopus are the Rockefeller-Standard Oil interests and a small group of powerful banking houses generally referred to as the international bankers. The little coterie of powerful international bankers virtually run the United States government for their own selfish purposes.
‘They practically control both parties, write political platforms, make catspaws of party leaders, use the leading men of private organizations, and resort to every device to place in nomination for high public office only such candidates as will be amenable to the dictates of corrupt big business.
‘These international bankers and Rockefeller-Standard Oil interests control the majority of the newspapers and magazines in this country. They use the columns of these papers to club into submission or drive out of office public officials who refuse to do the bidding of the powerful corrupt cliques which compose the invisible government. It operates under cover of a self-created screen [and] seizes our executive officers, legislative bodies, schools, courts, newspapers and every agency created for the public protection.
This "invisible government," Hylan and others—William Jennings Bryan, Charles Lindbergh Sr. (R-MN)—argued, exercised its control of the US Government through the Federal Reserve.