Global Financial Fraud – Conspiracy Theory or Reality?

I Tweeted the Web site End Financial Fraud today after taking some time to review it. I’m always reluctance to promote sites that seem to hype a crisis and assemble massive numbers of statistics and facts that justify their point of view.

But I have to admit this site in the short time I have spent reviewing it, appears to be the genuine article. If someone can tell me different I welcome it. You need to decide for yourself.

It is only by questioned everything that we can hopefully find the truth about the financial manipulation that is going on all around us.

I personally do believe there is massive market manipulation, government interventions in stock markets, distortions and half truths in government statistics, corporate lying and fraud. It’s almost become standard business practice around the world and is sanctioned by most governments. (Enron was the exception because it must have upset those in power)

There have been far to many revelations about the “bad” things done by corporations and governments to ignore. There is systemic corruption at all levels in financial markets and in government.

With respect if you believe the FED, the Treasury and the White House, we are in serious trouble. (The same goes for my own government in Australia).

Much of the governments’ lies and deceit is supposedly done for our own good. Governments justify their propaganda on the basis they do not want to alarm the people. So deals are done in back rooms between governments and business “too big to fail” which end up with tax-payer bailouts and multimillion dollar handouts to businesses and their favoured employees. Even as many people affected by this shenanigans lose their job, their home, their family and even their lives.

There is no way right now Baby Boomers can ever hope to invest with confidence for the long term. Yes, I know the stock markets appear to becoming bullish yet again. And yes you can make money in this market especially if you had gone in at the March lows. (Remember this may be a good time to sell down any existing stock holdings though).

But if you had used Stop Loss orders it is almost certain you would have lost money before making some in the last month or so, purely due to the massive volatility. From everything I am reading this rally is on low volume and is dominated by algorithmic trading from the the likes of Goldman Sachs and J P Morgan.

There is no way this can be considered an investors market. Trade it as a speculator all you want. But use money you can afford to lose. With the speed of trading today, a bear market may drop the market 10% or more in a single day and that will be considered “normal”.

I think it far better to protect your nest egg money as best you can right now and spend some time educating yourself and becoming knowledgeable about what is going on. Financially things need to settle down too. Only then can you ever hope to make the right decisions about future investments and be able to find financial people you can trust with your nest egg.

“Change You can Believe In” was President Obama’s election mantra. Without getting political here I have to say the massive changes now taking place in America are going to reverberate around the world. The boldness of the changes being planned and in process are giving other governments courage to do similar things.

The downside is no one knows what is going to be the result of all these massive changes. So it makes it hard to invest in anything.

Say you decide to put a whole bunch of spare cash into your retirement fund. Then the next day the government decides it can manage that money better than you can and grabs your nest egg telling you they will give you a small pension for life. Wouldn’t you be mad as hell even though you had no idea your government was going to steal your nest egg.

It won’t happen you say. Well ask the Argentineans where their nest eggs are now. In the Argentinean treasury, or they were for a short time until the government decided it needed the money to pay its debts.

In Australia they are now talking about forcing self-funded retirees to put 30% of their nest egg into annuities. In the US similar things are being spoken of. All for the good of you and your retirement. This could be the beginning of the end of self funded retirement.

Other changes to take place are financial regulations around the world. Governments  want to regulate to stop the bust half-cycle. Why would they want to stop the boom half-cycle? They get massive tax revenue from that and can party in Davos once again.

If the windfall tax revenues they were getting from the recent financial boom didn’t alert them to a problem, what makes you think any more regulations will stop the next one? These windfall taxes were hard to miss.

If the US decides to re-invent their health care system the financial hit their economy will take could definitely send the rest of whole world into a financial and economic dark age.

We do not know the longer term effects of supposedly simple stuff like the “cash for clunkers” either. On the surface it appears to make sense. If people are not buying cars, give them other people’s money to buy them. 🙂

But this plan completely destroys the market for autos wherever it is implemented. Markets take years to create and just like the eco system need to be protected so they can function competitively. Any imbalance needs to work through the system and can have serious problems.

Taking 250,000 perfectly good second-hand cars out of the market and crushing them is a huge destabilising event, makes no rational sense and has to have consequences. We’ll find out soon enough.

The Stimulus packages all over the world are distorting the labour markets too.

In Australia there has been a boom in house insulation work. Any home owner can get up to $1,600 worth of insulation work done on his house. Funny how many houses now require exactly $1,600 to complete the work that took less than $1,000 before the insulation give-away.

There is a massive redistribution of wealth going on right now through stock market manipulation, government and “business to big to fail” deals, government handouts through the stimulus packages, wage and salary controls and money printed by the FEDs and distributed all over the world over to prop up financially strapped countries. Money is “sloshing” around the world trying to find a home.

Until all this money settles down any “investments” should be seriously questioned.

Anyway read the articles on the End Financial Fraud Web Site, join the site if you find it of value and add your comments below.

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