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I wanna talk some serious discussion here, bumpkins.
Now then, none-american British Eurogoof here, so bear with me.
One thing i’ve noticed, throughout the whole entire gamestop saga, is the focus on the likes of Melvin, Citadel, Short Sellers, DFV, Reddit and so forth…
To my knowledge, this bullshit hearing – (which to me, was bullshit – there was literally boomers who probably didn’t know what an iPhone was asking questions of the likes of Vlad and DFV. I hardly saw any young people on this thing), didn’t address a serious potential underlying issue here which can impact on all of the western world.
Enemies of the west.
The current situation has shown that the SEC is a dog with no teeth and a weak bark. The financial institutions budget for the SEC in their activities. If they can make $20mil doing something underhand, and the SEC will fine them $5mil, then that’s a 75% profit ratio. That’s easy money.
The fines are chump change to these institutions.
Before we move on, lets take a quick look at the consequences of financial fraud and CEO’s who go to prison;
Martin Shkreli is probably the most recent one, but i’d argue the media and public backlash against what he did had something to do with it. When you mess with medicine and literally cause people to potentially die, then it’s warranted. If he was doing the exact same fraud with Gourd Futures, he wouldn’t have ever seen the inside of a cell. He was sent to jail in 2018.
After that, i’m struggling. There was a flurry of CEO’s who went to jail from around 2004 to 2009 and that’s it. There was a desire to punish people who comitted fraud and illegal activities on Wall St. It’s no coincidence to me that all these prison sentences were dished out when Enron was still fresh in people’s minds and the Madhoff scandal broke.
Finally, in the last part of my criminal analysis; let’s take a quick look at Lehman Brothers, arguably the biggest financial institution collapse of recent times. Lets not forget, Lehman was the largest bankruptcy filing IN THE HISTORY OF THE UNITED STATES. It also caused a hit on the DOW which was the largest since 9/11. Again, just think about that. The most serious thing to hit the financial markets after thousands of people were murdered by terrorists was the collapse of Lehman.
So, surely, with a screw up of these proportions, everyone went to jail, right? I mean, various reports identified that fraud based practice was used during the decline of Lehman.
So, i’ll list below all the major players in the Lehman collapse and detail the lengthy prison sentences they received as a result of the biggest collapse in us history;
Richard Fuld, Lehman CEO – Kept $480million in bonuses after the collapse, runs Matrix Private Capital, which offers investment advice to “high-net-worth” clients.
Erin Callan, Lehman Chief Financial Officer – Boosted Lehman’s balance sheet by $50 billion using incorrect stats. After leaving Lehman, went to work for Credit Suisse before retiring, age 52.
Ben Bernanke, Chairman of the US Fed Reserve during Lehman collapse – Ignored the impending signs of doom from Lehman, failed to act. He now acts as an advisor to Pimco and guess who else?! Our very own… Citadel LLC
Henry Paulson, US Treasury secretary – Bit of a double edge sword here. He allowed Lehman to collapse, citing that the Government shouldn’t be bailing out big banks when they screw up…. That being said, he revealed his plans and gave advance notice to top investment bankers first before anyone else.
Fred Goodwin – CEO of the Royal Bank Of Scotland – RBS needed a 45bn rescue package from the UK Government due to the Lehman collapse. There’s an interesting story where RBS phoned up a guy called Alistair Darling. Darling was the UK Government Chancellor of the Exchequer (for you yanks, this is basically the guy who runs the finances of the Government in the UK). Darling knew RBS was in trouble and asked them how much money they had left to surive. He wanted to know if they could last 2 or 3 days, which would give him the chance to sort out a bailout. The answer from RBS? – “We have enough money to last 2 or 3 hours” Goodwin received million pound bonuses and a £350k per year pension.
So, you can see the patterns here. Nobody goes to jail.
The point of this history lesson is simple – There is limited deterrent to being ivolved with financial fraud or collapse.
And this brings me onto the main point;
With no deterrent of criminal activity from those operating inside the system, then this is an open door policy to enemies of the west to interfere with financial systems.
This is the whole point of my ‘dd’ (if you can call it that).
Now, lets talk about the big ‘enemies’ of the state, being China, Russia, DPRK and Iran. Listen up, you might learn something here. probably not, but I like writing this stuff.
China – An emerging powerhouse economy. I’ve referenced this in DD before, but if you can watch “The China Hustle” on Netflix, Hulu or Amazon, do it. In short, it details how bullshit chinese companies ‘acquire’ dormant US companies on the NYSE. They then perform a reverse merger, and basically land on the NYSE with zero checks done against them. The fraud was discovered by short sellers who realised bullshit chinese companies worth nothing, were overstating thier value to make huge profits. Business with market caps of 4 or 5 billion were worth a couple of hundred million at best. They compared the SEC filings to the filings they had made with the Chinese govt. Everything they had told to the SEC (who accepted it as truth) was found to be a lie, whereas the companies had told the total truth to the Chinese govt. (Who would have thought it?). Crucially, this practice was discovered in 2008 to 2016. It likely still occurs today. AliBaba is citied as a potential nuclear bomb waiting to go off. Remember the EV fraud suggestions agaisnt Chiense EV companies that hit the likes of Nio, Xpeng and LiAuto a few months ago? That seems to have just died away while prices in Chinese EV’s have been stable or have risen.
Russia – I don’t need to go into too much detail here. We know Papa Putin likes to fuck with the US. Another documentary worth a watch is “The Perfect Weapon”. It talks about how Cyber is the new battleground. Russia literally has ‘troll farms’ in St Petersburg, with the sole purpose of screwing with the US and social media platforms. Its common knowledge that the 2016 election was full of fuckery. This documentary goes into it further, but basically russia has warehouses full of ‘hackers’ (some will likely just be your average troll) spreading FUD all across social media platforms. I’m willing to bet all my current stock, that every time you see a mis-represented video about a US Police shooting, or a news article about BLM riots or whatever, there’s external influence spreading it like wildfire. Why? Because that sort of shit causes people to storm the capitol. Turn the people against their own institutions.. This is literally propaganda school 101.
Iran – Man… iran is PISSED. In the last 10 years, Iran has had 5 top nuclear scientists assassinated. The most recent was done in November, where the mossad literally set up a robotic gun at the side of the road to shoot dead their top nuclear guy. Some reports suggest this has pegged the Iran nuke programme back several years. Now, we don’t need to get bogged down with the politics, but Iran blames Israel (and therefore the US) for these executions. Don’t forget Stuxnet. The computer virus that was placed inside an Iranian nuclear facility that slower caused the centrifuges to destroy themselves. This was probably the starting pistol to cyberwarfare, launched in 2005. Just realise how much hatred Iran has for the US. Don’t forget all the sanctions Iran is under also.
DPRK ? -Awww man, if you thought Iran was pissed, Papa Kim is raging. The breakdown of nuclear talks with trump made it clear to Kim and Co. that the US was never going to lift sanctions without full nuclear shutdown. This is something the NK is never going to do… The worst thing about the failure of the nuclear talks? Kim lost face. He left the NK telling his people that he was going to get this great deal. He was so confident that he would win at this, he allowed images of himself shaking hands with Trump in NK newspapers. He wrote a huge handwritten letter to Trump prior to leaving for the talks. He went full charm offensive. He was so convinced (and tbh, so was I), that he’d get a decent deal and some sanctions lifted. He could then return to his people a hero, who made their lives better. He’d spin it so that he forced the hand of Trump, further cementing his own power. He came back with nothing. You need to realise how crushing this is for a family that needs to maintain an iron grip and remove any doubt that he is “the great leader” of his people.
The DPRK has been under crippling sanctions for years. It’s economy is in total ruins, yet it stays alive? How?!. Cyber, thats how. The NK have become masters of cyber crime. It’s estimated they pull in $1bil per year from crime alone. They sell guns, drugs and illicit items on the black market to bring in some cash. They send out ships to do cargo exchanges with other nations in international waters in the dead of night to get supplies in.
They are very good at this. They have their own dedicated agency (Bureau 121) who’s sole job is to extort as much money as possible to NK using computer based tech/crime. Some reports say they have close to 2000 hackers working for them day and night, and spend 5 years in training. In 2016, these sneaky little basement dwellers tried to steal $1 billion from the Federal Reserve Bank of New York account belonging to Bangladesh Bank, the central bank of Bangladesh. They managed to get away with nearly $100mil because they were found out. Still, $100 mil for a days work is pretty good, no?
So, what’s the point of all of this?
Damn, aint you got it figured out yet?
Meme stocks, lack of regulation, an easy to penetrate financial system, no deterrant, limited security, media frenzy etc etc. It’s a perfect storm.
Look at the fuckery that took place on the first squeeze in January. If the narrative is to be believed, a bunch of rocket emojis and apes nearly brought down institutions and potentially could have triggered a market crash. And there has been zero reprecussions. One conclusion I’ve drawn in the last few months is that the US financial system is weak AF when it comes to regulation. I honestly thought it would be strict, assuming that the big boys never went to jail simply because they were rich. I think there’s far more incompetence in the system than we realise.
So, lets quickly talk about tanks. Ya know, boom boom pew pew.
China’s main battle tank is the ZTZ-99. It’s on a par with the M1. And it costs…. $2.5 million. Each. The Russian T-90 costs the same. The Chengdu J-20 is a Chinese air supremacy fighter built to rival the F-35. Cost, $35 million each (estimated).
For the price of two jets and a handful of tanks, you can play some serious fuckery with the US financial system.
Now, for the sake of a smoothbrain hypothetical stupid argument, let’s just say the chinese put $100million dollars into buy orders for GME on Monday. Just as an example. What impact would that have on the market and price alone. Lets say Korea chucks 10 million in, the Russians throw another $100mil in and the Iranians throw $20 million in.
Because ya know, if there’s one thing I know about Papa Putin, Papa Kim, Papa Xi and Papa Hassan, it’s that they totally love the stock.
Can you imagine the ripple and impact this would have on the market in the short term? Hell, they could even MAKE MONEY from something like this. Oh and the added bonus? When it all goes wrong and trading gets suspended and the SEC actually does something… Who we all gonna blame? Wall St and the US Govt. Are you gonna blame Hassan Rouhani or Putin because your tendies got taken away from you? Of course not.
Now this is a very simplistic idea. Please don’t think for a single second, I’m suggesting that Putin, Kim, Xi and Rouhani all have their secret “Communist Discord” and are all timing their buys on Robinhood for the 9am market open. But what I am saying, is that the meme stock saga has exposed critical chinks in the armor of the US system. This was a system that could only be played by the big banks, the big hedgies and the big financial whales on Wall St. What we’ve seen here is that an army of clowns on Reddit with government stimulus cheques can make markets move. So what can an army of Chinese and Russian expert hackers do with millions of dollars at hand?
The Chinese know that those tank farms of Type 99’s they have are NEVER going to see combat. They are never going to hurt a single American. Those Russian T-90’s are never going further west than the Polish border. Kim knows that he aint EVER gonna launch a nuke anywhere near a single US GI, because the second he does that, 35 minutes later the Kim family Dynasty gets turned to ash.
Tanks, planes, nukes, bombs, soldiers etc are a terrible financial investment. They are a drain. You’re paying through the nose for something that you will never use on your enemy. So why not screw the enemy up financially? The price of 20 tanks can do far more damage to the US economically and politically than those Type 99’s which will be used for training and military ‘exercises’… again.
It’s very much like the old trojan horse situation. Don’t attack the city walls from the outside, you’ll get slaughtered by overwhelming military power. Instead, sneak in and do the damage from the inside.
Meme stocks make great reading, and it’s even better for the enemies of the West when a bunch of kids on Reddit get blamed for it. I said it before and I’ll say it again… It’s a perfect storm.
The only bear argument to this is that maybe a full financial crash in the US is not good for China, as the Chinese economy would go down too, but there’s no reason whatsoever to hold of from chipping away at it and causing little dents here and there.
I really think the west needs to wake up to this. I’m certain the likes of the CIA are well aware of this and all over it. I’m not suggesting Papa Biden will read this post and suddenly go “omg Wall St is fuk” but it’s the people, the business and the regulation systems that are way too slow to realise the potential damage that could be sitting in plain sight. They’re too busy listening to cramer talk about how an army of ‘apes with rocket emojis’ need to be regulated. The entire Wall St market is full of Boomers, all caught up in their own sense of self worth and pride.
Meanwhile, Moscowkid6969 and _x_BeijingRulezzzz_x are lining up to legally siphon your accounts dry.