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 31 Aug 12Islamic organizations in Russia The first official Islamic organization in Russia appeared in 1788, when by decree of Catherine II was created by the Orenburg Mohammedan Spiritual Assembly, engaged in the construction of mosques and marital affairs. However, after the revolution of a mosque in 1917, as the Orthodox Church, were closed, and the clergy was subjected to repression. Many Muslim organizations formed in Central Asia and the North Caucasus during the Great Patriotic War were split during the "perestroika" (1980-1990). In 1994 was created by the Supreme Coordinating Center of Spiritual Administration of Muslims of Russia (DUMR private commercial enterprise), which lasted four years and in 1998 joined the newly formed Council of Muftis of Russia. On the territory of European Russia and Siberia after the collapse of the Soviet Union announced the creation of new autonomous organizations. In 1996 the First Congress of the leaders of the Muslim Board of Russia, where it was decided to set up the Council of Muftis of Russia. A year later the organization was established Spiritual Board of Muslims of the Asian part of Russia. In 1998, the Conference North spiritual offices in Nazran, it was decided to establish the Higher Coordination Centre of North Caucasus Muslims, some of whose members initially included, also a member of the Council of Muftis of Russia. However, because of the differences, was forced to leave. In 2009-2010, decided to join forces to achieve unity of Russian Muslims and strengthen the traditional Islamic religious principles of the Muslim nation. However, by the great success it has not resulted. To date, the Russian equivalent approved two Muslim organizations that claim to the national character: TsDUM (Central Muslim Spiritual Board of Russia) and CMP (Council of Muftis of Russia). Each of them combines a number of relatively independent of the Spiritual Board of Muslims, based on the principle of administrative division. Beyo
