Tag: Naomi Prins

110,000 SMALL BUSINESSES HAVE CLOSED, SO FAR – MEANWHILE….

If this doesn’t infuriate you, then you are part of the problem.
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Nomi Prins: Crony Capitalism and Corruption – An Entirely Rigged Political-Financial System

Guest Post by Jesse

 

I think you would do well to watch this video below.

Too big to fail is a seven-year phenomenon created by the most powerful central banks to bolster the largest, most politically connected US and European banks. More than that, it’s a global concern predicated on that handful of private banks controlling too much market share and elite central banks infusing them with boatloads of cheap capital and other aid.

Synthetic bank and market subsidization disguised as ‘monetary policy’ has spawned artificial asset and debt bubbles – everywhere. The most rapacious speculative capital and associated risk flows from these power-players to the least protected, or least regulated, locales.

There is no such thing as isolated ‘Big Bank’ problems. Rather, complex products, risky practices, leverage and co-dependent transactions have contagion ramifications, particularly in emerging markets whose histories are already lined with disproportionate shares of debt, interest rate and currency related travails.

Continue reading “Nomi Prins: Crony Capitalism and Corruption – An Entirely Rigged Political-Financial System”

Nomi Prins: Why the Financial and Political Systems Failed

Guest Post by Jesse
Nomi Prins calls out the policy error deluxe that has been the topic of so much commentary at Le Café over the past few years.
What is perhaps most striking is that this failure is so bipartisan in a time of contentiousness.   It crosses not only parties but professions, from academics to politicians.
As you know I have featured several articles and videos of hers as she introduces her latest book, All the President’s Bankers which is insightful, well-founded and researched, and essential to any understand of what is happening today.
As you know I have ascribed this to the credibility trap.   Insiders never speak ill of insiders, if they which to remain a part of the power elite. This is reinforced in the Ivy League and the halls of power.   And so leaders and potential leaders are hopelessly compromised and entangled in a self-serving system of abuse of power and corruption.
It is part of a general failure of moral conscience and leadership in the country.   It has been or is being repeated in England and other countries in Europe.  It is the reason for the long stagnation of the Japanese economy.
This is a very brief excerpt.  You may read this insightful commentary in its entirety here.
“The recent spike in global political-financial volatility that was temporarily soothed by ECB covered bond buying reveals another crack in the six-year-old throw-money-at-the-banks strategies of politicians and central bankers.
The premise of using banks as credit portals to transport public funds from the government to citizens is as inefficient as it is not happening. The power elite may exude belabored moans about slow growth and rising inequality in speeches and press releases, but they continue to find ways to provide liquidity, sustenance and comfort to financial institutions, not to populations.
The very fact – that without excessive artificial stimulation or the promise of it – more hell breaks loose – is one that government heads neither admit, nor appear to discuss. But the truth is that the global financial system has already failed. Big banks have been propped up, and their capital bases rejuvenated, by various means of external intervention, not their own business models…”

Nomi Prins: All the President’s Bankers

Via Jesse’s Cafe Americain

This is a walk through the twentieth century, and how the United States became, by design, a combination military, industrial, and financial global superpower.  And how the US dollar hegemony was created over a number of political administrations by groups of well connected, powerful families and friends.
It may seem a bit long, but she opens it for questions about the 48 minute mark, so it really is not. Nomi speaks briskly with many fact laden vignettes and scenarios that help to explain how the current system has evolved.
The facts she brings out about the 50’s onwards were sometimes new to me, and absolutely fascinating.   About minute 40 she shows the culmination of this historical process with the Clinton Whitehouse, and begins to describe where we are today, and how it appears that the problem will be insoluble without some major events taking place to change this alliance in power between the financial and the political.
The talk served to solidify some of my own thinking, and removed some of the shadows of doubt that I have had about where things are going and why.
She does is not able to delve into the international ties between the global central Banks, particularly between London and New York.  She instead concentrates on what she might call ‘the Big Six’ of American Banks, which is a large enough subject itself.
I strongly recommend that you listen to it if you are at all interested in this subject.
 Or if you have the time to invest, you may wish to read her book which also sounds very interesting.  I have not done so yet, and I am not sure when I could get to it.
But this video is a very good start, and will probably make you much better informed than 90 percent of the people out there.  Whether that is a good thing or not is another matter.