The article was on Marketwatch and you can read it here.
It starts out with:
The debt mountain that brought down some of the world's biggest banks and dragged the international financial system to the brink of disaster has simply shifted to governments.But from then on, it focuses entirely on the debt levels in the hands of governments.
What is desperately missing from EVERYTHING I read about the "credit crises", the "debt crises" the "bailouts" etc. is anything about where all of the "cash" that was "lent" to create all this "debt" went. Wall Street does not "create" money. Lenders lend money based on a fractional reserve system which ultimately "creates" money. However, what really happened over the first decade of this century was the largest wholesale transfer of "cash", "real money" from the legacy banking system, pension funds, 401k's etc. to the unregulated "financial industry" and the pockets of the people who ran / run that industry (which incidentally, after 1999 deregulation included much of the regulated banking industry as well since they were part of larger conglomerate organizations that sought to rape their retail customers with fees that became 1/3 of their profits and steal their savings by transferring their money to the unregulated pyramid schemes and gambling ventures fed by reckless lending) including Private Equity, Hedge Funds and other unregulated financial ventures. Along with the hoarding of cash by countless corporate executives who pull tens of billions of dollars every quarter from both the "publicly traded" companies and those held by "private equity" firms, there was the approximately $5 Trillion in "profits", "bonuses" and "fees" that came out of every transaction over the course of about a decade..
This sum of money came to light in a Bloomberg article I read some weeks ago:
The suits provide a window into the offshore structures and secrecy jurisdictions the world’s richest people use to manage, preserve and conceal their assets. According to Tax Justice Network, a U.K.-based organization that campaigns for transparency in the financial system, wealthy individuals were hiding as much as $32 trillion offshore at the end of 2010. Fewer than 100,000 people own $9.8 trillion of offshore assets, according to research compiled by former McKinsey & Co. economist James Henry.You should read the entire 5 part series. Very good stuff.
Now, I had another thought when reading this series. It seems that from France to England to Singapore and Hong Kong that "governments" are getting fed up with tax evasion while the developed world is mired in debt. Now it is not the fault of the industialists and financiers that so many governments are bankrupt, but they have benefited from the process more than anyone, in fact they are the chief beneficiaries esp as governments seek to keep the bondholders, stockholders and large depositors "whole" while raping the taxpayers (citizens) of their financial futures. So as we enter the next "phase" of crises, from debt, to Syria to the implosion of N. Africa and the Middle East to Pakastan and the inability of bankrupt "democratic" nations to deal with the fallout, the piper must be paid. Technology makes it much easier to track all this cash and now the NSA pretty much has a database of all communications since BEFORE the financial crises, it seems it would not be much effort to root out the cash and say to the holders of these $30 Trillion:
The governments of the world that matter (those industrial nations where all the technology is held irrespective of the slaves that actually produce everything) need to deal with a rapidly disintegrating global stability in order to prevent another wholesale globally destructive war, but we don't have any money. The $30 Trillion held by the industrialist / global rich, spread out amongst the top bankrupt industrial nations, would just about bring us to break even. In order to ensure a future (read future stability and markets to sell to) for humanity without wholesale destruction, we are going to confiscate your cash. We will allow you to keep your productive assets as we will need your productive capacity to wage our campaign to stabilize the planet. So you may loose your current cash, but you will have the capacity to make it all back inside of a generation (15 years +/-). You may not like this, but you have no choice. There simply is nowhere left on earth to hide and we need the money.Mark my words on this one. It is going to happen.
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