It was a 54-page Goldman Sachs report sent to their institutional clients on August 16th which argued that as much as $1 trillion in capital may be needed to shore up European banks; that small businesses in the U.S., a past driver of job production, are still languishing; and that China’s growth may not be sustainable. The report also included detailed information about European financial institutions and pointed language about the depth of the problems in Europe, the U.S. and China saying:
Here we go again…solving a debt problem with more debt has not solved the underlying problem. …Can the US continue to depreciate the world’s base currency?
As noted by the WSJ: The report comes as Goldman and its major rivals vie for banking and advisory business from the same European nations whose fortunes it is counseling clients to bet against. On Wednesday, Goldman and two other major banks hosted a presentation in London in which the Spanish economics secretary, Jose Manuel Campa, planned to outline Spain’s fiscal austerity measures and pitch Spain’s case to investors, according to an invitation seen by The Wall Street Journal. Goldman has a leading position among banks in facilitating sales of Spanish sovereign debt.
Goldman says in bold letters at the top of the report that other Goldman traders, or "Goldman Sachs personnel," may already have acted on the material in the report. Isn’t that special?
So nothing has really changed since the sub-prime crisis, has it? GS and the other Banksters create a crisis, then offer to "help" the countries in crisis by getting them into very expensive, very risky deals which they themselves bet will fail and, of course, we know how it ends – GS or one of their lackeys with downgrade the paper, cause a crash and GS will get rich while millions will suffer – Now THAT’s Capitalism!
Charles Hugh Smith wrote an excellent article yesterday that makes Karl Marx look more like Nostradamus as he essentially predicted everything that is happening right now as Capitalism moves into it’s "End Stage." It’s a great read but let’s skip to the end as we’re already there where Smith summarizes Marx, saying:
The fourth and final strategy was to exploit speculation’s ability to create phantom
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