One way to create a monopoly in a market is to rig the requirements to enter the market. The mechanisms of fiat money – let’s just call it ‘virtual cash’, since it isn’t based on any objective standard of value any more – and the high frequency trading processes described below, enabling ‘frontrunning’ of the market, have nearly finished the process of converting the global financial system into a casino. Chips (bets and debts) are the only true currency left at this level, underlying commodity value is almost besides the point, and the house is all in.
Flashback: Derivatives rear their ugly head again: Leveraged ETFs outed | Record quarterly profits and bonuses: Goldman Sachs makes out like a bandit on taxpayer’s dime | Goldman-Sachs: Pilfered trading code could be used to ‘manipulate markets’ | Taibbi: NYSE ends transparency to protect Goldman Sachs | Goldman Sachs: The Great American Bubble Machine | Which Banks Will Rule? | Geithner Said to Have Prevailed on the Bailout | Goldman-Sachs Alumni Hold Reins of Financial System | Court Grants Big Banks Immunity from Lawsuits over Derivatives Losses | What Really Killed Bear Stearns? | Soros points out regulated markets fail to operate on market fundamentals, calls for more regulation | Competition study calls for lowered barriers to foreign ownership, bank mergers | Massive overhaul urged on foreign investment in airlines, media, and banks | Bilderberg Seeks Bank Centralization Agenda
Julian Delasantellis, Asia Times
August 5, 2009
 |
| All your base are belong to us. |
Just for the moment, let’s pretend that James Cameron’s 1984 The Terminator was being made for the first time today, and, instead of the evil robots emerging from the fatally misguided foundries of Cyberdyne Systems, they came from the dark laboratories of Goldman Sachs. [Ed. Note: There are better sci-fi metaphors to mine when it comes to Time Lords that want unlimited rule.]
From out of the future, a warrior is sent back in time to warn the present.
“You still don’t get it, do you? They’ll find your money!! That’s what they do! That’s all they do! You can’t stop them! They’ll wait for you! They’ll reach down into your bank account and tear its f*&^*^g balance out!”
“Now just wait one cotton-picking moment!” I hear many of you saying. A few weeks ago, in my review of Matt Taibbi’s Rolling Stone-published anti-Goldman Sachs screed, I demurred, advancing an argument that, although Goldman certainly proudly wielded the sharpest elbows in investment banking, they were not the eternal center of a global nefarious conspiracy of plutocrats that has been making the lives of average people miserable since the 1920s. (See Goldman good but not that bad, Asia Times Online, June 9, 2009).
(more…)