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Feeding The Monster

Feeding The Monster

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Published by Ian Thorpe

The bank is something more than men, I tell you. It's a monster. Men made it, they breathe profits, they eat the interest on money, but they can't control it. But the monster can't stay the same size, it has to grow, if the monster does not grow it dies and if the monster is to grow it must be fed. (John Steinbeck, The grapes Of Wrath) A look at how we are all being enslaved by the need to keep feeding the monster.

The bank is something more than men, I tell you. It's a monster. Men made it, they breathe profits, they eat the interest on money, but they can't control it. But the monster can't stay the same size, it has to grow, if the monster does not grow it dies and if the monster is to grow it must be fed. (John Steinbeck, The grapes Of Wrath) A look at how we are all being enslaved by the need to keep feeding the monster.

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Categories:Types, Business/Law
Published by: Ian Thorpe on Dec 27, 2012
Copyright:Attribution Non-commercial

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06/26/2014

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Feeding The Monster 
By Ian R Thorpe
The bank is something more than men, I tell you. It's a monster. Men made it, they breathe  profits, they eat the interest on money, but they can't control it. But the monster can't stay the same size, it has to grow, if the monster does not grow it dies and if the monster is to grow it must be fed.  John teinbeck, The grapes !f "rath
The bloke on television was billed as an "independent trader" on the little information strip at the bottom of the screen. He was talking about the latest eurozone rescue plan the one where ta!payers in a dwindling number of solvent countries stump up ever increasing amounts of their hard earned to keep the spendthrift nations afloat for ust a little longer.#hat does an Independent Trader do$ you might well ask. Hard to say with any certainty but something like this sort of stuff%
&ost investors or in the case of us ordinary punters the mangers of pension and investment trusts that hold our savings obtain shares or bonds or other securities in the hope that their value will rise. In the past decade however the markets have been unduly
 
influenced by traders given the rather harmless sounding label short ' sellers. The name suggests vertically challenged people who turn purchases around (uickly for profit when  prices rise rather than holding long term for interest and dividends. )on*t be deceived.Though the term arbitrage sounds a lot more worrying than nice cuddly short selling if arbitrge is )r. +vil short selling is in fact arbitrage*s even more evil kid brother. ,n arbitrageur simultaneously buys and sells stock or bonds in two markets in order to e!ploit a  price difference between the two -though no longer illegal in itself arbitrage relies on insider dealing which is illegal. /hort selling involves borrowing shares from their owner maybe as collateral on a loan having agreed to return those shares to the owner*s account on a fi!ed date. The short seller then sells the items onto an unsuspecting third party effectively  betting that the share value will go down and they will be able to buy more cheaply enough shares to return on the due date pocketing the difference./hort sellers hope their price will fall. They might borrow for instance 01111 shares and sell them for 20 a piece. Then they pray that the value collapses. If they*re in luck and the share price halves they can buy the same number as they sold for 31p each. They return the shares to the broker who lent them and pocket 23111 -minus fees.
The Independent trader*s description of the markets was not as scathing as mine  perhaps but even so was not going down well as he e!plained the cavalier approach financial traders take when gambling with our money if he had been playing a comedy club he would have been booed off as it was his small audience were television presenters and a handful of pundits and chatterati and they ust sat in grim faced silence as he told them things about the plan they did not want to hear. "It*s not going to work" he said "because this problem can*t be solved. The +uro he said was *going to crash*. But when the interviewer asked what he thought might work to save the currency he blinked like the myopic mole in The #ind In The #illows confused by the (uestion... ")on*t ask me I*m a trader" he said. "#e don*t care whether they fi! the economy. 4ur ob is to make money from it." ,nd then he offered us all some free investment advice% "The 0561s depression wasn*t ust about a market crash" he said. "There were some people who were prepared to make money from that crash. I think anyone can do that. It is" he said "an opportunity7". His advice was simple% "be
 
 prepared". This was "not a time" to think that governments would sort things out. "8overnments" he said "don*t rule the world. 8oldman /achs rules the world." #ell he might have meant The Bond &arkets rather than 8oldman /achs it is difficult to see how one bank can rule the world a cartel of bankers maybe but not  ust one. Ironic though that he should mention the 0561s it was then that 9ohn /teinbeck wrote the words% ":The monster has to be fed all the time. It can*t wait. If it isn*t fed it can*t grow. #hen the monster stops growing it dies. It can*t stay one size.; -paraphrased slightly for conte!t from The 8rapes of #rath./teinbeck was talking about the banks that caused the great depression by inflating investment bubbles but he could ust as easily have been talking about the global economy based on perpetual and accelerating growth in 8ross )omestic <roduct that took hold in the 05=1s and eventually led us to the bursting of the debt  bubble and the economic crash of >11? ,s the +uro crisis unfolds on our television screens and in our newspapers it is  beginning to look as though governments do not rule the world nor would they have a clue about how sort out the mess they have blundered into by blindly following the advice of academics @obel prize winning economists who have never left the university campus long enough to hold down a ob in the real world. The impression one gets is that they*re all hoping for a miracle. #e have 4bama telling +uropean leaders that the + A needs "more effective strategy" for dealing with the crisis although his promises to solve ,merica*s debt problem with one wave of his magic  penis have as yet not been realised. Here*s )avid ameron calling for "leadership". Here are pretty much all the world leaders in fact calling for other people to lead. ,s models of leadership go it*s less "be prepared" and more "
DON'T PANIC
7".  @obody in government academia or the media seem to understand what is going on. ,nd yet is it painfully easy. Cifty years of politically correct thinking the soft socialism of the bourgeois left and the tyranny of the weak have undermined traditional values replaced stoicism with sentimentality rewarded failure and  punished success and broken the social and cultural bonds that bind communities. /ocial engineering proects have destroyed social mobility rather than increasing it

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