The reason of world financial crisis – part one

financial crysis
financial crysis

Overproduction of the main world currency – US dollar is the main and only reason for landslide crisis of world economy.

Since 1971 when the dollar binding to the gold contents which is provided with gold reserves of the USA was cancelled, dollars began to be printed in unlimited number. Purchasing power of dollar was provided not only GDP of the USA (as it occurs in each normal country), but also GDP of the countries of the whole world. In total nothing, but those states which economies began to provide dollar force never had and have no control of the volume of issue of dollar. This control really has also no U.S. Government. Only U.S. Fed has such rights. The U.S. Federal Reserve (in other words the Central Bank of the USA) is the private organization belonging to 20 private banks of the USA. It is their main business – to print world money. To reach it, current owners of FRS spent much and time – decade, to be exact – centuries, and efforts – here the 1st and 2nd World wars and the Bretton Woods agreements of 1944, etc. and, of course, creation of FRS in 1907.

Thus the group of individuals finally acquired the right to release dollars, to determine the volume, release terms, etc. From 1971 to 2008 the volume of dollar weight in the world grew in tens of times, having surpassed many times over the actual volume of commodity weight in the world.

Such situation was exclusively favorable, first of all, to owners of FRS as private organization, in the second turn – to the USA as to the state. We will tell about benefits of owners of FRS a bit later, and an opportunity in general since 1944, and especially since 1971 is among benefits of the USA, i.e. within 37 last years to live beyond means, i.e. considerably at the expense of other world.

So GDP of the USA makes 20% of world GDP. The truth this figure is not completely true since in the volume of the GDP the United States set off a number of indicators, for example the cost of some kinds of services which other countries in GDP to themselves do not set off. If to count by the general rules, then this indicator will decrease from 20% approximately to 15%. Well it is fine, let there will be 20%. And consume the USA – 40% from annually made in the world. A question for able to think: if someone makes 20% (or 15%?), and consumes 40%, someone has to pay for it?

Really pays, this someone – other world which gives to America the goods in exchange for poor pieces of paper. At the same time there is a huge redistribution of world riches in favor of the USA.

By the way, the more you look at the events in the world, the more you are convinced that nothing is new in this world. In total either was in the history, or it is described in fairy tales. For example, the exchange of real assets for candy wrappers is similar to how for a beads and other rubbish by a total cost 24 dollars Manhattan was bought from Indians. And ability to live at the expense of others and to be at the same time the strongest, was described in the tale of Filippka which sucked juice from other, weaker plants.

My task does not include condemnation of FRS, the United States of America as the states or still somebody. It is not necessary to condemn anybody, it is just necessary to see the world it what it is actually. The truthful picture of the world will allow to understand that it really happens that will occur and that it is possible to make that crisis or did not touch you at all, or would touch as little as possible.

There is a question: and why FRS needed to make dollars more, than it is necessary for normal functioning of world economy?

Really, if all countries which voluntarily “built in” the economies the mechanism of maintenance and ensuring purchasing power of dollar would have the right to exercise control of issue of dollar, then nothing bad would happen to economy of the world. Actual dollar weight would correspond to that actual volume of assets which would have to be provided with dollars.

But in that all counter that if you the individual also have the right to print the dollar provided with economy of the whole world, then, if of course you not the Saint, like Mother Teresa, and bankers of FRS not Saints, then you are simply obliged to begin overproduction of dollar as it gives you fantastic opportunities. For this purpose FRS was also created, everything that the dollar became world currency for this purpose became. Your overproduction of dollar, is yours and only your goods. And the best goods in the world. It surpasses any other types of earning money in profitability. Drugs, prostitution, traffic in arms – simply entertainments of suckers in comparison with an opportunity to let out dollar.

Had this opportunity of FRS, more definitely did not receive, and earned by right.

The huge number of intelligence (the splendid brains), huge number of efforts, money and years of intense work was spent for this right, several crises and couple of world wars for this purpose were organized.

We go further.

Overproduction of dollar is necessary to be enriched (and why it still is necessary?). On this almost virtual money it is possible to buy up not so virtual, very much even real liquid property (the companies, plants, gold, other assets).

The part of money needs to be spent for maintenance of force of the USA. Owners of FRS are a brain. But the brain, even with money, is almost defenseless before a brute force. Therefore the brain needs very strong, but not just strong, but the strongest body in the world. Such body is also the USA. For this reason expense for that the body had the strongest army in the world, the most full people in the world was spared no.

Therefore the additional, not earned by economy the USA, volumes of consumption of goods by the people of the USA were always paid.

By the way, considerable means were spent for providing the “available” credits – consumer, including for housing. I.e. you did not earn anything yet, but you were already given the house, the car, etc. The truth under the obligation to work for repayment of the credit of 30 years. It was possible to pay all this (to issue huge volumes of the credits) only due to poor issue of dollar. At the same time those who “in a subject” (owners of FRS) perfectly knew that it is not necessary to return this money to the consumer in full since there will come the stage of “a controlled collapse” and everything will change, including also the dollar will fail.

But it will be then for now: in the 1970th., in 1980th, 1990th – everything is good, to a controlled collapse still there is time.

By the way, often I hear how many gloat over:

– Hurrah! the Dollar will fall, the economy of the USA will fail and it will be crash of the USA!

It is necessary to understand one – to a brain by and large deeply to spit on a body.

The brain created for itself a body, but it is not cardinally tied with a body, it can create some more bodies. The brain will never lose if one of bodies it is necessary to destroy, or strongly to weaken. Yes the brain only partially is based in the USA, other parts of a brain are in England, France, Italy, etc.

By the way, now the brain instead of one body, will create still bodies – the multipolar world. Russia will be one of new bodies. It is possible that this new body will exist in the form of the Union State of Russia, Belarus, part of Ukraine and, maybe, Kazakhstan.

The fact that strengthening will be carried out and integration of Russia is almost for certain since, to each new pole of the world (body) the brain has certain objective requirements – on population, across the territory, on economy power, on military power. In the forthcoming strengthening of Russia, unfortunately, there is no merit of Russia, but it is a separate subject.

Let’s return to FRS.

That the poor part of issue of dollars did not press on the commodity market and did not lead to devaluation of dollar that will inevitably occur if dollars in the address is much more, than commodity assets in the world, ingenious minds of owners of FRS thought up ways of binding, freezing of considerable part of dollar weight, magnificent by efficiency, in virtual goods.

First of all the stock market was for this purpose used. From usual normal, it was turned substantially virtual. Really, stocks of the enterprises cost money. But the main and almost only investment value of actions in the normal market is defined by profitability of the enterprise, i.e. an opportunity to gain income in a type of the part of profit the enterprise distributed between shareholders. The value of the stock of subjects is higher, than the annual profit on the invested capital is higher. So the situation in normal stock market is.

In virtual stock market the situation will be another. Will explain to you that the profit has insignificant value. 2, 3, 4 or 5% of profit which is earned by corporation and 10, 20 or 50% of this profit of special value distributed between shareholders have no those.

The main thing – the capitalization growth, and, respectively, growth of a stock value. It is important that the cost of your equity stake grew. In it the main income of the investor. Actually, in it the main counter for suckers. Also it is not necessary to be upset that among suckers there were very clever and strong people. Actually we are deceived so as far as ourselves want to be deceived. Unfortunately, this rule universal, works without any exception and extends, including on the cleverest people.

In virtual stock market there is a following:

Here the businessman earned one or several million dollars. He begins to think, where to invest money: for example, to construct new plant. For this purpose it is necessary to think up qualitative production which will be in demand, to find the earth for construction, to construct directly plant, to employ personnel, to train it, to buy raw materials, to make production, to advertize it, to sell, etc. These are big expenses of a personal labor, time, nerves, and profits on the invested money will be as a result drawn interest some. At the same time it is necessary to put work and forces constantly, every day, every month and every year. But here the alternative – “sweet” stock market appears. Nothing should be done. It is only necessary to pay money and the bought equity stakes will annually grow in the price, and, more precisely, to you will annually “draw” 10-15% to the initial price. Any special “head” pain, any special expenses, forces, energy and mind.

Everything is simple and clear how free cheese in the known technical device. Well how here not to be deceived and to begin to trust any economic “gurus” explaining that the main thing not profitability of the enterprise, but growth of market value.

Really, for those who turned stock market in virtual, this actually main since the stock market founded on an assessment of actions proceeding from the valid profitability of the enterprise, can “utilize”, “connect” dollar in volumes in tens of times smaller, than the market based on growth of a market value of the stock. It is rather important for organizers of virtual stock market since the account goes on tens of trillions of dollars.

By the way, options, futures and to that similar share rubbish – from the same performance under the name “virtual stock market”.

Therefore, facilitating itself life, it was favorable to very fairly clever businessmen to be deceived even and to trust in stock market. Actually, in such market the money which is really earned with hard work turned into virtual.

For the same who thought up this counter with stock market except a problem of “procrastination” of dollars, such market at the same time solved also other extremely favorable problems, gave possibilities of huge earnings.

Because if you control the key moments of this market, have considerable means (if you print dollars, with money you have no problems – it is always possible to give itself any size the credits for almost unlimited term), itself you will organize news to which the market will react and itself you define time and an order of giving of these news, then you will earn fantastic money. At the same time, for you this money, unlike suckers too trying to speculate on the Stock Exchange, will be not so virtual and real profitability you will have not 10-15 virtual percent, but real 40, 50, 60,…, 100%. And so from year to year.

The main thing is that you precisely know when you bring down this market, before it having withdrawn the money. For now you buy up from year to year controlling stakes of rather profitable enterprises that when everything fails, very most part of real assets will remain at you in hands.

For other players the stock market is comparable with game in the Russian roulette, only in more rigid option: when from 6 cells in the revolver cylinder it is engaged with cartridges five. It is game too, and in it there will even be won suckers, but them will be very little since results are determined by initial conditions of game.

Really stock market is provided with money only for 1-2%. I.e. only investors will be able to withdraw 1-2% of money without loss since this market virtual and from the moment of its creation it was not provided that investors will be able to leave and remove in large quantities from it at least what they really paid at an entrance. It as bank from which investors decided to take away money. Such bank becomes on a bankruptcy side at once. But, the normal bank has to have assets exceeding it obligations and when the bank lacks cash to return money to clients, for the missing sum the bank is obliged to give means from realization of assets to fulfill obligations to clients. Anyway the bank will return to investors at least 80-90% of money.

And in stock market anything there is no it, here nobody should not nothing to anybody, is going to give nothing and will never give anything. The bottom of stock market is the real stock value determined by real profitability of the enterprise. This cost is tens of times less stock value in the virtual market.

Therefore when say that the USA will direct 700 billion dollars to rescue of stock market, and experts say that it has to be enough – at me it raises a smile.

To save virtual stock market it is necessary to print 100 trillion dollars, on all cost of this market. But if to print them, then the dollar will fail time in 10. Therefore, nobody is going to rescue stock market in such look in what it existed the last decades. It is just physically impossible. It already played a role, carried out tasks which were set for it is not necessary to any more his creators.

Of course, founders of this market people very clever and till a certain moment will show that in the market there is a fight for its rescue, and it sometimes, for several days will grow (by the way, again and again founders of this virtual market since they define time and volumes of growth can earn from it). So in this game of the strangers who won cannot be.

By the way, you never reflected what actually “clever” experts and not less “clever” analysts from screens of TVs speak to you about the reasons of growth or falling of share price or oil quotations?

For example, someone with a clever look says to you on Vesti channel (or on any other western channel) that price of oil grew by $10 for barrel since information that oil reserves in oil storages of the USA appeared on 1 million barrels less was published, than it was expected. Who and in what volume “expected” and why the level of these “expectations” has to be a starting point for an assessment of the published stocks? Nobody tries to answer it, but it is other question from the same performance.

At first about most it 1 million barrels. For the Brent brand it is about 131 thousand tons (roughly – about 2500 railway tanks of oil). Actually it is that volume of oil which the USA consumes in 1 hour. In 2005 in days of the USA consumed about 21 million barrels of oil. Now – about 24 million barrels. 1 million barrels are equal 1/8760 parts from annual consumption of oil by the United States or about 0,012% of annual consumption. In money this one million costs 100 million dollars (at the price of 100 dollars for barrel). And, these 100 million dollars are not lost, they did not get to anywhere, did not disappear. They were just not managed to be taken to oil storages. By the way, not the fact that did not manage to take, and they are not really for the present in storages. It is simple to eat information news to the market. This “the shocking news” causes growth of cost of volume of the oil extracted in a year in the world by 228 billion dollars (10 dollars? 7,6 barrels in ton? 3 billion tons).

You can estimate intellectual qualities of the “experts” explaining to you why price of oil grew by 10 dollars for barrel. Same 99% of any other news of financial experts from stock markets concern. And now you can estimate who and how many earned from this news.

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