June , 2010 (EIRNS)—Speaking at the yearly ceremony of the Italian Financial Police, Finance Minister Giulio Tremonti warned against an imminent blowout of the financial system, driven by the derivatives bubble, and called for bringing to an end the creation of derivatives paper. This statement, on the eve of the annual meeting of the G8/G20, gives a small glimpse into the kinds of discussions on the real state of the financial system, which are going on behind the scenes.
"The economy is still threatened by the risk of a dramatic and devastating new financial 'offside,' " Tremonti said, using soccer terminology. "Today, on the markets, the notional value of the 'over the counter' derivatives is equal to 12 times the value of world GDP, exactly the same as before the collapse of banking pyramids in Autumn 2008. The financial mass has grown, and continues to grow disproportionately and for itself, and threatens the real economy, in the imminent and permanent form typical of systemic risk."
The previous day, Tremonti had made similar statements in a forum on the Papal Encyclical Caritas in Veritate, together with Vatican banker Ettore Gotti Tedeschi in Milan. We have lost two years, Tremonti said, because, since the 2008 crisis, "nothing has been done" to bring derivatives under control, as reported by the daily Avvenire. Proposals so far implemented or drafted are "insufficient," unless "we prevent the use of derivatives contracts to anticipate and distribute future wealth." The White House and the EU have recently taken some actions, but we must still "brake the mechanism..."
Bob Chapman's International Forecaster today, 30 June 2010:
...As you are now well aware Fannie and Freddie are going to punish people who have stopped paying their mortgages, who can pay them, and who are paying other bills instead. This leaves lenders with foreclosures and much more inventory than they ever imagined. This additional problem will bring on the double dip that
Wall Street and Washington so fear. As a result of this and other failures we are about to experience the worst economic collapse sine 1348. The stock market is topping out readying itself for its most disastrous fall in history. The fall will be followed by years of depression, all of which has been deliberately created to bring the world economically and financially to its knees in an attempt to bring about world government by Illuminists. Some market analysts understand where the market is headed, but most who do understand, write and talk about the mundane observable trappings and not what the situation is really all about. We have several analysts talking about a market collapse. They do not talk about the real forces behind our misfortune. We recently watched an interview of a man who wrote about the Bush family. His only admission was that they were players in the game controlled by other forces, which he refused to mention. He wouldn’t say what they were up to and who they were. This shows you how terrified writers are who are confronted by the power of the Illuminists.
There are always these lone voices in the wilderness, which at best – some 15% of the populace – listens too. You had better listen this time because it could well cost you not only your assets, but your life, especially when another war is being prepared for you to engage in. Nothing is really as it seems to be and there are no coincidences. You are about to enter a world of chaos from which few will survive unscathed. A world of no banks, no public facilities, no food and rampaging gangs of desperate people. Unemployment of 50% and little law and order. Violence will be rife. This is not a pretty picture, but we have spared you the details. The world had better wake up fast so they’ll be prepared to deal with what is to come. If you were not aware of it the dark side really exists. We also want to remind you that for more than 20 years we have been almost totally right, and we have made some stupendous calls...
We are now entering the next to last phase of our journey. The wanton creation of wealth, inflation and perhaps hyperinflation, which will rob you of your assets. A stealth attack on what you have left by the people who control your government. Such monetary creation is the only way these people can keep the game going. They know it won’t last, but they proceed anyway. For awhile they’ll keep the multitudes at bay with extended unemployment and food stamps, but that will fade in time for lack of financial control, as the system begins to break down....
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