1. Bankers
versus
People
The Future of Democracy

2. S&P index drops by 7.1% on 23rd Sept 2011.
Biggest fall since the crash of Sept 2008

3. $10 Trillion + pumped in
globally to save the ‘Big Banks’

4. NO
http://www.guardian.co.uk/business/2011/jul/
29/us-economic-growth-slows-down-sharply

5. NO

6. So what did it do?

7. It empowered Wall Street Banks and
hedge funds to grab commodities!

8. http://af.reuters.com/article/commoditiesNews/id
AFN1E77A0E820110811

9. http://www.guardian.co.uk/business/2010/n
ov/05/wholesale-food-prices-soar

10. Texas crude rose by 22% and copper by 26%

11. http://www.forbes.com/sites/greatspeculati
ons/2011/07/08/metal-warehousing-pays-
off-for-goldman-sachs/

12. The big question.
Did Fed action help the average citizen?

13. http://uk.reuters.com/article/2011/09/14/uk-
usa-economy-poverty-
idUKTRE78C45220110914

14. Income disparity between Bankers & the rest grew rapidly.

15. The Gini’s disparity index for US rose to
45, much higher than UK 34 or even India
36.8

17. http://blogs.wsj.com/marketbeat/2010/02/01
/are-greek-bonds-the-new-subprime/

18. http://online.wsj.com/article/SB1000142405
2970204479504576634933293244342.html

19. Fed pumped in liquidity
when Banks were sick
When Greece, Spain, Portugal
became sick IMF,ECB squeezed
out liquidity
…… Why ?

20. As a result
http://www.guardian.co.uk/business/2010/j
an/03/credit-crunch-iceland-ireland-greece-
dubai-spain

21. http://www.guardian.co.uk/world/blog/2011
/oct/16/stoical-spanish-soul-hardship

22. •As growth suffered and cash
disappeared from the market, default
looked imminent.
http://www.nytimes.com/roomfordebate/20
11/10/10/is-europe-sliding-into-a-double-
dip-recession

26. ….. And the distress investment specialists like
Wilbur Ross, Mark Mobius and George Soros

32. They downgrade credit rating often
prematurely. Raise borrowing costs
and make debt recycling difficult.
http://www.bbc.co.uk/news/business-
15222803

33. http://www.bloomberg.com/news/2011-02-
01/whitney-municipal-bond-apocalypse-is-
short-on-default-specifics.html

38. Finally they are forced to sell off
assets for repayment.
http://www.guardian.co.uk/business/2010/
mar/04/greece-sell-islands-german-mps

41. •They each have mammoth assets
over $2 Trillion, ten times that of big oil
Exxon, Shell or BP.

42. Joseph Ackerman Deutsche
Bank CEO and ex-boss of IIF
refused haircuts on Greek loan
more than the agreed 21 %. And
Said Banks won’t take haircut for
any other Eurozone economy.
http://www.emergingmarkets.org/Article/2
906503/Banks-rule-out-further-eurozone-
debt-haircuts.html

44. Now that nations struggle
……Bankers do not agree that
it is payback time

45. •Rather, for the Banks the Eurozone crisis
provides opportunities to strengthen their
portfolio by buying into distressed assets.
http://www.time.com/time/business/article
/0,8599,1916998,00.html

47. http://www.irishtimes.com/newspaper/fron
tpage/2011/0912/1224303946844.html

48. It is true that Europe’s democracies have lacked
fiscal discipline, but so have Dexia and Max bank,
BOA and Wells Fargo.

49. Vote and coalition politics have often
made elected leaders of democracies
pamper to populism.

50. Spain, Ireland, Portugal and Italy, all
have missed the EU Maastricht treaty fiscal
deficit targets by a mile.
http://www.guardian.co.uk/business/2011/m
ar/11/eurozone-agree-debt-limit-laws-
bailout-deal

51. Greece deficit surged from 4% to 15%
on discovery of accounting oversight.

52. Since debt was 1.7 times GDP it was not
possible to fix the Greek debt crisis with
short term measures.
.

53. Despite knowing this Greece was put on a
short lease with IMF & ECB making no long
term commitment ..

54. Speculation mounted and Greek debt
rating was repeatedly downgraded.
http://online.wsj.com/article/SB1000142405
. 3111904265504576568693911614726.html

55. Fund squeeze led to successive years of
negative growth making recovery
impossible and default imminent
.

56. So the aged Greek pensioner who paid taxes throughout
her life has been handed down a hair cut of 40% of her
monthly pension to facilitate the repayment of the Banks.
http://online.wsj.com/article/BT-CO-
. 20110919-704332.html

57. Now the IMF, the ECB and IIF the bank
lobby want to manage the economy and
virtually dictate public policy in Greece.
http://www.bbc.co.uk/news/world-europe-
15147855

58. They are not interested that hospital
services and educators in Greece have not
received payment for services since 1 year.
http://www.guardian.co.uk/world/2011/aug/
05/greece-healthcare-brink-catastrophe

59. They are not interested in structural
reforms of the antiquated licensing policy
in Greece that throttles competition.

60. They only want to control the fund
flow and the disinvestment
process, so that prize assets flow their
way.

61. It is obvious that Mr. Papandreou will
not be able to stop that

62. So a big question arises for the
democracies around the world.
http://www.guardian.co.uk/commentisfree/
2010/feb/14/greece-uk-european-union-euro

63. Will Banks takeover control if our
elected leaders fail?
http://www.guardian.co.uk/business/2011/a
ug/11/berlusconis-partners-grow-restive-
over-ecbs-prescription-for-italy

64. If that be so, will the Fed, the ECB, the
IIF and the IMF work for the benefit of
the citizen or only for the Banks?

65. Prophetic words from US President Thomas
Jefferson who said that if private Banks
controlled monetary policy, they would make
the citizen penniless and homeless.

66. References :
Our Blog : Economy to Ecology:
Our goal is to help promote clean, safe and better practices in economy
and ecology worldwide. B
This presentation is based on my 4th October article in business section of
Technorati San Francisco http://bit.ly/oZEaWz and a little more
sustainable.
Kindle Blog Ecothrust ASIN: B0029ZAUAY
For non kinwww.ecothrust.blogspot.com
Our Blog at What Happens If ? Risk Management blog
Economic Times. New Delhi If
http://blogs.economictimes.indiatimes.com/Whathappensif/
Follow us a www.twitter.com/ecothrust
Acknowledgements:
o Google images , flickr photolibrary and other image sources.
For any queries or request for download, mail to Sandip Sen
For Queries contact : sen.sandip@gmail.com

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