From 2001 through November 2009 (note the date -- a full year after Lehman) Goldman created financial instruments to hide European government debt, for example through currency trades or by pushing debt into the future. But not only did Goldman and other financial firms help and encourage Greece to take on more debt, they also brokered credit default swaps on Greece's debt-making income on bets that Greece would default. No doubt they also took positions as the financial conditions deteriorated-betting on default and driving up CDS spreads.
But it gets even worse: An article by the German newspaper, Handelsblatt, ("Die Fieberkurve der griechischen Schuldenkrise", Feb. 20, 2010) strongly indicates that AIG, everybody's favorite poster boy for financial deviancy, may have been the party which sold the credit default swaps on Greece (English translation here).
Generally, speaking, these CDSs lead to credit downgrades by ratings agencies, which drive spreads higher. In other words, Wall Street, led here by Goldman and AIG, helped to create the debt, then helped to create the hysteria about possible defaults. As CDS prices rise and Greece's credit rating collapses, the interest rate it must pay on bonds rises-fueling a death spiral because it cannot cut spending or raise taxes sufficiently to reduce its deficit.
Having been bailed out by the Obama Administration, Wall Street firms are already eyeing other victims (and for allowing these kinds of activities to continue, the US Treasury remains indirectly complicit, another good reason why one shouldn't expect any action coming out of Washington). Since the economic collapse is causing all Euronations to run larger budget deficits and at the same time is raising CDS prices and interest rates, it is easy to pick off nation after nation. This will not stop with Greece, so it is in the interest of Euroland to stop the vampires now.
With Washington unlikely to do anything to constrain Goldman, it looks like the European Union, which is launching a major audit, just might banish the bank from dealing in government debt. The problem is that CDS markets are essentially unregulated so such a ban will not prevent Wall Street from bringing down more countries-because they do not have to hold debt in order to bet against it using CDSs. These kinds of derivatives have already brought down an entire continent -- Asia -- in the late 1990s , and yet authorities are still standing by and basically doing nothing when CDSs are being used again to speculatively attack Euroland. The absence of sanctions last year, when we had a chance to deal with this problem once and for all, has simply induced even more outrageous and fundamentally anti-social behavior. It has pitted neighbor against neighbor -- with, for example, Germany and Greece lobbing insults at one another (Greece has requested reparations for WWII damages; Germany has complained about subsidizing what it perceives to be excessive social spending in Greece).
Of course, as far as Greece goes, the claim now is that these types of off balance sheet transactions in which Goldman and others engaged were not strictly "illegal" under EU law. But these are precisely the kinds of "shadow banking transactions" that almost brought down the global financial system 18 months ago. Literally a year after the Lehman bankruptcy -- MONTHS after Goldman itself was saved from total ruin, it was again engaging in these kinds of deals.
And it wasn't exactly a low-level functionary or "rogue trader" who was carrying out these transactions on behalf of Goldman. Gary Cohn is Lloyd "We're doing God's work" Blankfein's number 2 man. So it's hard to believe that St. Lloyd did not sanction the activities as well in advance of collecting his "modest" $9m bonus for last year's work.
Muslim Academy on 30 Dec 12In the midst of fast-moving events in Syria and in the shadows of tyranny, oppression, lethality and massacres practiced by the Syrian regime, the Nation of Islam has been stabbed once again. Another waterfall of Muslim blood has been shed without any humanity. These stabs have been hurting the Muslim nation often and raise many questions about our disbanding and enemy's plots and plans from all sides. In the past weeks, Muslim advocates have been exposed to a gruesome massacre after being attacked by a Buddhist group that killed many Muslims. The media have posted terrible images of the victims of this massacre. The Myanmar government turned a blind eye, and it seems that they agree with the criminal killers. Things did not stop at this massacre but transcended to burn homes and farms of a large number of Muslims and killed dozens by fire. All this happened with the help of police junta Buddhism. On July 10, 2012 a curfew was imposed on villages that was inhabited by the Muslim minority, then the Buddhist groups covered by the Myanmar government started a campaign of ethnic cleansing and religious preference that killed 100 Muslims and injured about 300 people and burned nearly a thousand homes. Also, in this awful campaign they have been targeting scientists, doctors and intellectuals. Away from these events and tension, the main thing that everyone knows is that the Muslims there have been suffering for decades from the oppression and persecution of Buddhists via systematic violations. The group of Buddhists are committed against the Muslims there at different intervals, and force displacement, removal of citizenship, and the sophistication in the torture and "ethnic cleansing." Unjust arrests and the demolition of mosques and Islamic schools have deprived Muslims from the lowest human rights.
