World financial conspiracy: Are the Governments guilty by default?

April 27th, 2009 by admin | Filed under UK Bank Accounts, UK Banks, World Banks, conspiracy theory.

Not even the most fertile of imaginations could sit down and concoct a theory that the current global quagmire that the World finds itself in is part of a predetermined and conceived conspiracy conjured up by some fiendish and faceless financial guru who is now sitting in some hidden underground hiding place is counting his trillions. After all, even Bernard Madoff got caught in the end, and he only stole around $50 billion dollars.

Yet there are guilty parties in this mess and they are the leaders of the governments of the free World who ware only too aware that the world debt situation was veering rapidly out of control, yet sat back and did very little about it. And when you think about it, why should they. At the same time as the World’s assets were appreciating in value every year by around five percent, and banks and businesses were making vast profits on which they were paying company taxes and the white and blue collar workers had never had it so good, both spending money that they never really had as well as paying income tax on their earnings and value added tax on everything they bought, the situation as far as tax revenues for these governments was as high and as comfortable as it could possibly be.

And there les the crunch for even the most unsophisticated of economists will tell you that such a unnaturally long running seam of global prosperity is unnatural and could not have been maintained for as long as it had done by natural means, and had to end in tears. Which it certainly did. Governments throughout the Western World have had no option whatsoever but to press gang taxpayer’s money to prevent the US and UK banking system from totally collapsing, taking with them the hard earning savings of a relatively broad cross section of the population who are totally innocent of any wrong doing. Now the UK government, as evidenced in the last budget, have imposed on their citizens a period of austerity that is estimated to last for up to ten years.

So who can be called to task for this catastrophe? Some say they banks. However they are only doing what comes to them naturally. That is to soak up as much profit as they can and usually from the man in the street. This is the typical consumer who had neither the means nor more importantly the personal discipline to avoid the temptations of “buy today and pay tomorrow even if you don’t have it” mentality. These unfortunates generated trillions of dollars in paper profit for the banking system, which were worth considerably less than the paper they were printed on. But who knew, and even worse, who cared enough to put a stop to it before the damage to the very framework of our financial systems slewed totally out of control.

The banks certainly didn’t want to put a stop to the madness, as they were earning tremendous profits, on which they paid out generous dividends to their shareholders, who in turn authorized disproportionately high performance bonuses to bank officials. All of it in cash.

So where are these profits and bonuses now? Certainly not being returned to the now seriously ailing banks in an uncharacteristic fit of compassion and embarrassment. Instead probably stuck away in a bank account in another country, and probably one famous for its chocolate.

So who is to blame? If you haven’t guessed already, the answer is the Governments of the World. They are guilty by default for sitting back and letting it happen. They should have intervened in 2004 and 2005 when it was becoming obvious to all and sundry that this financial wheel of fortune was already being artificially driven. And what price should these people have to pay? There place in history should be forever tarnished for the role they played in this debacle. And don’t let anyone ever tell you that they were taken by surprise.