It only rings hollow on the extortion end if you’re the “winner” of a rigged bet and an entire continent on the losing end says “Fuck you!”

But what else would you expect the Madison Avenue inspired behaviorist camp to say? They are like James Earl Jones in the cult classic Conan the Barbarian, in effect saying:

I am the well spring, from which you flow. When I am gone, you will have never been. What would your world be, without me? My son …

And we all remember Conan’s response to that, as he shook off the hypnotic spell of his mystifier. Likewise, should Europe actually act to decapitate the Ponzi Paper Pushers of the naked swap, their fantasy of a global banker’s dictatorship will die as well. Papandreao is perfectly correct in saying that naked swaps may play the same role for countries as naked shorts did in the Lehman take down.

Hello, can you say NAKED? This is unregulated default insurance against monetized collateral you don’t own. It’s crooks getting rich off speculators, using financial Voodoo and con artist slight of hand. And yet … here are the shameless words of the “mind foggers”, each with my real world translation:

“You need to get the U.S. on board, otherwise the effect will be minimal because trading will simply move elsewhere”
Translation: If we can use the ”Too Big to Fail” clout of Wall Street to convince Europe it actually needs us, we can play upon the human greed factor by threatening that white collar crime will simply flee to where it can still be practiced (problem is, if common sense and decency somehow catch on where might that be–Hell?).

How about this jewel from ”Spimn” Geithner:
It’s too hard to distinguish what is a legitimate hedge that has some economic value from what people might just feel is a speculative bet on some future outcome.
Translation: We put a lot of effort into hiding the fact that naked swaps are patterned upon illegal gambling bets made on debts that the swap holder has no real tangible investment in, and by God that means any swap is a legitimate hedge–anyway, that’s my story and I’m stickin’ to it…

And the insanity rambles on and on to the point that translating further becomes meaningless. But one thing’s for certain. It takes two to Tango, and likewise, it only takes one European Union to start a viral movement, world-wide, to repudiate the sovereign naked swap scheme.

If real policy makers don’t buy this Jedi mind-control crap and actually ban them, the whole derivative house of cards could unravel–but in a good way. That is:  just don’t honor these rigged bets, as derivative expert Janet Tavokoli recommends (and I might add here that claiming currency movements among soveregn default contracts as justification to demand payment in gold is the biggest scam of all).

And to think what the EU might have started. We know what the BIS position is, but funny there’s no quote from the European Central Bank. If there’s anything more behind this EU threat than hollow chest thumping , you can bet that the ECB will come to the rescue of the Rothschild-centered Inter-Alpha group right on cue–in fact, they probably have a standard derivative contract already written for that bet, trading on the market as you read these very words.

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