How to kill the virtual money?

Surprise! Pumping billions of $ in the banking system does not cure the system. The banksters have created a huge amount of virtual money by increasing the hypothetical value of real goods (housing) and virtual “banking products”. The only way out is really to kill the virtual money and hit the financial speculators and not the public. In good old days  during the Great Crash 1873 private banks really printed their money. This had the advantage that the owner of the money and the issuer could be identified easily. Today the banksters have created asocial networks where nobody can be blamed for wrongdoing. The idea that a “bad bank” should buy all the virtual money with real taxpayer money is not really a good idea. It would reward the banksters and the financial speculators which have made fortunes in the past by creating the current financial crisis. A study in Germany showed that during the time period between 2002 and 2008 90% of the population have experienced reduced real income and lost money on their savings and assets. However, the richest 10% of the population have significantly increased their income and their assets.  The situation in the US may be even worse.  A good solution could be a “Intelligent Bank” which buys virtual assets for e.g. 10% of its nominal value for a limited time e.g. 1 year.Thus banks would be forced to reevaluate their virtual assets and sort out the “banking products” which have real value. Huge amounts of public money would be needed to kill the “virtual assets”. However, the amount would be much lower than what would be needed to maintain the current system in the future.

Rebuilding the country by reallocation of intellect

The high salaries and boni of the financial industry have attracted many bright people in all countries, resulting in an intellectual drain in engineering, government or education. Tthe “leading” countries in the financial crisis USA und UK   have also taken the hardest hit. Unlike in the dot.com boom in the 90″s (which has also attracted the bright young people) which created at least some new business models and corporations like Amazon, eBay or Google there is no hope that the large amount of skilled people in the financial sector will create new assets for the society. There is even a danger that these people making their living on fraud and illegal business models will apply their “skills” to other industries! The intellectual skills of the nations must be redirected to support the real businesses and the creation of new values in the real industry. In a first step government must reduce the influence of consultants from the banking industry and the associated lawyers. President-eElect Obama seems to take the first steps in this direction.

2009 – the year of the lawyers

The S.E.C. did not punish the malpractices in the U.S. financial industry but was very active to fight foreign companies e.g. Siemens competing with U.S. companies e.g. General Electric for large government controlled investements in the energy and communication sector. Which is traditionally is industry segment where corruption is a common WW marketing instrument. Now Siemens is about to settle the case with S.E.C. for an expected amount of 1 B $. Interesting enough Siemens had to spend also approximately 1 B$ for the lawyers (mostly U.S. based law firms) handling the case.   There seems to exist almost a secret cartel with S.E.C. and various U.S. law firms working together to cash in money from government and companies much like the rating agencies have worked with the banking industry in the past. The financial crisis will create a huge market for lawyers because almost every contract requires special handling according to U.S. law.  Most contracts in the current global financial crash are based on Anglo-Saxon law and produced by lawyers or lawsters in analogy to the word bankster derived from the word gangster.  Thus the WW banking crisis will be followed by a WW law crisis – in god we trust no longer! People outside USA should be very carefull about closing contracts according to US law in the future.

Forget the S.E.C. – watch out for the Russion oligarchs

Bernard Madoff must not be afraid of the S.E.C  or the U.S. procesutors even after after a 50 B $ fraud. The procesutors are rather helpfull for not allowing Mr. Madoff to leave his comfortable NY apartment.He rather should be afraid of a couple Russian oligarchs spending more than 2 B$ on Bernie’s Ponzi enterprise thru Ms Sonja Kohn in Austria. Ms Kohn already decided to hide in a secret place for good reason.   Maybe the S.E.C should hire a few consultants from Russia.

German billionaire Adolf Merckle commits suicide

Adolf Merckle, a German selfmade billionaire ranking #44 in the Forbes Billionaires list, committed suicide on January 6th, 2009 throwinfg himself in front of a train. After wild speculations with buyouts of companies and a recent one billion €  loss on short selling of Volkswagen shares, he was forced to turn over his “imperium” to the banks. Unfortunately he did not run a bank by himself. Thus he could not get government guarantees for his bad loans.

Adolf Merckle was a typical “tough” manager playing tricks on various legal borderlines to acquire a wide various companies which employ nearly 100 000 people. One of his hobbies was to buy forest from the peerage of Germany, running in financial troubles.  In some parts of Southern Germany 40% ofthe forest was owned by Adlof Merckle.  Certainly the crash of his enterprise was a major rason for committing suicide. However, another reason was that none of his four sons was willing to take over the family business  and work in the same “style” as the father. One of his sons dropped out of the family business  and declared only to work for “real” value with his part of the family fortune. Certainly Adolf Merckle found managers willing to work the same style as the company owner finally resulting in the crash of his whole Merckle empire. Although Adolf Merckle’s suicide is probably the most spectucular suicide as a result of the financial crisis it is not the first and probably not the last .  There are other similiar suicides in the finance world e.g. in the UK.  In contrast live seems to be easier in the US. e.g. Bernard Madoff seems to plan a restart with his and his wives family jewels although his fraud caused at least the suicide of Rene-Thierry Magon de Villehucher, a french aristocrat.

.