INTERVIEW LIVE AT 8PM 21/06/17
I have mentioned this blogger before so it’s time for a proper introduction to the man and his work. For my blog post tomorrow I hope to live stream an interview with the man himself and hopefully get him blogging again. I am going to focus on a collection he did called Liars Lexicon an essential guide to bank jargon and how they use it against us. David recently stood as the Green Party candidate in Scarborough. I won’t dwell on the politics just his writing. We need more voices like this.
Repo – Liar’s Lexicon
Volatility – Volatility – the market god, slayer of nations
Toxic assets – Toxic assets – a taste
Losing money – Losing money: how to do it
Debt laundering – Debt Laundering and theft
Leverage – Cash, Debt and the magic of Leverage
Short Selling – Short Selling – end game guide
Speculation – Specualtion and Bubbles
Securitization – Securitization – The Undead heart of the Shadow banking machine – Part 1
The Undead Heart – part 2
The Undead Heart – part 3
Inflation – Inflation deflation
Mark to Market – Liar’s Lexicon – Mark to Market
That’s a formidable reading list I know but a great introduction given the events today and Barclays, over to Shaun Richards at NotASayYesMan blog.
Barclays PLC and four former executives have been charged with conspiracy to commit fraud and the provision of unlawful financial assistance. The Serious Fraud Office charges come at the end of a five-year investigation and relate to the bank’s fundraising at the height of 2008’s financial crisis. Former chief executive John Varley is one of the four ex-staff who will face Westminster magistrates on 3 July.
He goes on to comment on a note of caution “Firstly let me welcome the news that there will be a trial although the conviction record of the Serious Fraud Office is not good. The problem is that this has taken around nine years about something ( £7 billion raised from Qatar ) which frankly looked to have dubious elements when it took place. What you might call slooooooooooooow progress of justice.”
The case against Barclays has been put into this excellent graphic by the BBC.
The first thing you need to know is that when banks lend money, they create the money, it is not already there it is new money spent into the economy. The second thing you need to remember is that the banks were in serious trouble in 2008 and nobody knew the true extent of the Great Financial Crisis or who was solvent, the whole, entire system was frozen. Barclays refused a government bailout and turned to Qatari investors instead insisting they needed no state help. FlipChartRick explains well exactly where the power lies in the UK so HSBC and Barclays refused to enter a national UK bail out as happened in America. They basically told the UK to get stuffed.
So, following the BBC illustration, Barclays lent £2.3 billion to the Qatari investors who could easily have either leveraged (see GolemXiv for meaning) the money to raise the total £12 billion, used it as collateral to raise a loan from the Qatari State or used its own sovereign wealth fund. The £322 million pocket change was for advisory services to sweeten the deal and damn good work if you can get it. Far be it for me to imply that this deal was bent, of course, but it stank to high heaven at the time and still stinks now.
I’ll update this blog tomorrow with full details of the interview.
**I am still debugging this site after a hack, would you please click contact or comment below if adverts appear, thank you.
You can also follow me on Twitter for futher details.