So why all the confusion about the economy?

Posted March 13, 2009

Very few of us have actually experienced a true depression and fewer of us could even imagine the consequences of food shortages, human suffering and severe joblessness. In summary, global job losses are definitely on the rise, the capital markets have lost trillions of dollars and credit availability appears to be a mystery. The mystery is that governments have nationalized many banking institutions, poured billions of dollars to stabilize the balance sheets of many others and there never seems to be enough money to make the system functional.

In all this chaos currency markets are fluctuating to unknown market forces. Case in point – Canada has been heralded as a beacon of financial conservatism and responsibility – supposedly we have a viable banking system and responsible capital markets. So why has our currency been devalued? Our major trading partner has achieved a near state of market collapse yet their currency is more secure in the foreign exchange markets than ours. Does this make sense – of course not. Who is making these decisions?

This urge for the central banks to print more and more money will have a devastating impact on consumers. This second collapse is not far down the road. Inflation and increased interest rates will rear their ugly head. The urgency to tackle an “economic ill” whose prognosis has forgone the diagnosis and testing stage is incredible. I would like an answer to a simple question. If the capital/money existed, where did it go? Scientifically we can conclude that someone’s loss is someone else’s gain.

The capital markets and their day to day activities can now be defined as legalized gaming. Unfortunately, the bookies occupy Wall Street and Bay Street offices rather than the dirty ally-ways where they truly belong. The capital markets are driven by speculation, algorithms, derivatives, hedge funds, options, futures, FX and so many other instruments that make the predictably of the markets incomprehensible to the average investor. This is the great “dupe”. Why do you think individuals like Madoff exist? They are the instruments of a greater and more sinister activity. Could Madoff have transferred these funds to the U.S. military to support covert military activity, could he have been an instrument of the planned global chaos or was he simply that good - $50 billion simply vanishes without a trace or explanation – I doubt it. Could a man like Warren Buffet, who for over 30 years contributed to the market’s success, casually forfeit 50% of Berkshire Hathaway’s market value without reacting in a timely fashion? I doubt it.

My fellow readers all we have to do is hold our governments and executives legally accountable.  It was not that long ago when $50,000,000 was an acceptable bottom line, today it must be $5,000,000,000 with fewer and fewer employees. We have lost sight of nation state for the sake of shareholder and fund manager wealth. Premier McGuinty recently exonerated himself from any governmental responsibility in the current global crisis – can someone please remind him not to take the credit when things get better. It’s great to see our governments growing? They are hiring on a grand scale at every level of government and for what reason? Let’s hear it for the friends, family and Freemason hiring strategy. It’s in force and growing in popularity. Mayor Miller I believe has about 30 family members working for the City of Toronto.

Thank you,
Joseph Pede