Nutshell economics

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In 1971 The Nixon Administration ended the Roosevelt Bretton Woods System of fixed currency exchanged rates. That then led to taking us off the Gold rate exchange standard. Then the in the money supply was free to grow thru unregulated credit generation. The financial banks to built up a wall of dollars, the exchange rates were floated, leading to the growth of unregulated off-shore hedge funds and derivatives markets. Is is like money which could have gone into infrastructure development which leds to real material capital growth and economic health was drained away into a financial shell game, money was moved around without the creation of new products and the debt on that money built up so that more money needed to be injected by the FED or squeezed out of the working economy to pay for it. Squeezed out thru leveraged buy-outs, dismantling and selling off of a company's parts. The transfer of industrial production to cheap production countries.

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1. leading to: "The Great Depression of the 2010s"

The Great Depression of the 2010s
By Darryl Robert Schoon -------"Economics is not rocket science. Neither is power"
http://www.kitco.com/ind/schoon/may052008.html

GOVERNMENT THE DEVICE BY WHICH THE FEW CONTROL THE MANY

The collapse of financial markets in the first Great Depression led to the US Congress to enact laws that would hopefully insure that such a collapse would never again happen. To that end, in 1933 the Glass-Steagall Act was passed by Congress and signed into law.

Acknowledging the role that investment banks had played in the Great Depression, the passage of the Glass-Steagall Act in 1933 separated investment banking and commercial banking to insure that investment bank speculation would not again destabilize commercial banks as it did during the Great Depression leading to the loss of America’s savings.

What bankers hath joined together let no man put asunder

However, in 1999, the US Congress repealed the Glass-Steagall Act and America was once again vulnerable to the highly leveraged shenanigans of Wall Street. This time, however, it was not only the US but the entire world whose futures were to be bet and lost by Wall Street gamblers.

The globalization of financial markets had spread the dangers of US investment banking to banks, insurance companies, and pension funds around the world. Now, the savings of Europe and Asia as well as the US were to be impacted by the wagers of Wall Street who in the 2000s literally bet the house on the possibility that subprime CDOs were actually worth their AAA ratings.

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Objections are always tolerated by those in power as long as the objections do not rise to the level of action. The objection to central bank credit and influence in our monetary affairs is therefore rhetorical. The influence of private bankers and central banking in our monetary affairs will not change until their influence has run its course - which is now about to happen.

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2. Why Wall St. Needed Credit Default Swaps

Currently, the outstanding notional amount of all credit default swaps is about $45 trillion, more than half of the entire asset base of the global banking system. A natural question is why financial institutions are so interested in them? Why have they created so many of them to make this market so big—and out of control?

http://news.goldseek.com/GoldSeek/1208412360.php