Finance casinos,cheaters and false truths

These days we read and hear treat Chinese bubble the collapse of European stock exchanges with a description of the facts unless there is a possible key to try to understand what is all this apparent and continuous financial turmoil, this finance seems to be getting over the mountains Russian to follow unpredictable paths although it continues to support its rationality which is now only part of the mythology. So we should start looking at the bags as they are and not for what they are in the imagination of many.
The bags are today a huge casino where most of the bets are not covered, the stock market has been transformed into a casino by speculation that buys and sells all the time; the "trading" at high frequency has become an e-commerce based on mathematical models that make the decisions.
The markets for some time, no longer look to the long term but are made by investors operating in the short term and at the end of the day they have already sold everything in a frantic game of exchanges in which the dealer to adjust the game is not the apparent rationality Roulette has long no longer exists; financial markets do not exist as an entity but there are aseptic men in those markets operate according mindsets and cultural well-defined; to understand the markets you need to understand the design of the croupier who leads the game and the course of the bags alone do not tell the truth but hiding.
The currency-finance has been brought on to the real economy in a completely unnatural and not to his service in this way finance operates in an out of the real and only making use of mathematical and quantitative instruments helped make believe its rationality whose basic hypothesis, the absolute rationality, is totally asymmetrical with the facts and the emotional nature of man; This finance is part of the mythology. Finance rational that operates in the financial markets is at the service of personal interests and hegemonic but quite far from the common good.
The consequences are the concentration of wealth, a devastating inequality, moral degradation, poverty, unemployment, exploitation of labor ... in short, everything contrary to the intentions of rebirth made at the end of the war. The rules laid down at Bretton Woods in 1945 of currency convertibility in gold - gold exchange standard - the IMF to provide monetary stability and the Universal Declaration of Human Rights in 1948 to provide social stability to a new world lasted only twenty years precipitar for us, then, into the abyss of liquidity, "a devastating greed liquidity" wrote Keynes and the social unrest of the "bellum omnium contra omnes" that always responds to the ancestral human greed.
All because the new home of the world has been built on a socio-cultural model already then to collapse and the involvement of socio-economic restructuring has not eradicated the cultural roots that gave birth to the horrors of two world wars and the ghosts they are sprouted as the bad fruits. "Beware of false prophets, which come to you in sheep's clothing but inwardly are ravenous wolves! By their fruits ye shall know them ..So every good tree bears good fruit and every bad tree bears bad fruit; A good tree can not bear bad fruit, nor can a bad tree bear good fruit. Every tree that does not bear good fruit is cut down and thrown into the fire. By their fruits ye shall know them "(Matthew, 7, 15-20).
In fact, after the abandonment of the gold standard of the dollar from gold, $ 28 each gram of gold, declared unilaterally by Nixon in 1971 - the creditors of the uses not trusting the dollar just wanted gold emptying its reserves - the currency has taken a His unnatural value is no longer tied to any real good and then could be printed without limit becoming an infinite money supply and as such can not be measured, which, however, is used to add value to the finished goods in which we live and work; It did imposed but to highlight completely illogical. From that moment the long wave cycle and financial bubbles has increasingly standing up, stretching and moving away from reality to live in his astral and rational but asymmetrically to the finiteness of our daily lives.
The real estate prices are not in line with the financial values ​​of the exchanges where endless future bets determines the prices today; if the value of a company or an asset grew by 15% in one day what could have happened in reality to justify that variation so important? They failed competitors or playing on emotion in a market considered entirely rational? What to know her that he did not know the day before? So rational that maybe in two days evaporates like a bubble? We are in a monetary infinite as there are countless financial instruments that are used to manipulate the actual values; we think of derivatives, now thirty times the world GDP and hand made in 5 banks, if they can make billions every day maybe in two operators who sell and buy each other the same thing - gold, dollars, raw materials, rubles, € .-, the balance between the two are zero but the market keeps a 'surge in the variations in "futures" contracts, the future and serve to determine the prices of today.
It 'very likely that this will be around a lot of finance made of nothing and no real counterparts, so the game takes place on currencies subject to speculative financial transactions to create or take advantage of problems as in the case of the yuan and the ruble before . How much of this collapse is true that depends on real factors and how much depends on the speculation? How much is the dollar, the yuan, the ruble and the euro and as ever in front of a money supply infinite gold that is the point of reference has always been the value of a currency is so undervalued?
China and Russia are countries that in recent years have bought more gold and their real riches are the natural ones; Russia has a vast amount of raw materials yet December 15, 2014 the ruble collapsed in one day 20%. The capitalization of US stocks, the Stock Exchange capitalization is a multiple of what it was in the crisis of 29, but then were listed manufacturing companies today are just many financial companies, funds, face-book, companies in the electronics industry like Apple that does not produce a single piece in the US but everything is outsourced; Use the GDP to 23% is made from paper and yet the dollar remains a strong currency, 70% of the derivatives is done to support the price of the dollar.
In countries blacklist monetary deposits are a multiple of world GDP but are inaccessible to those who would try to bring order to a coin passing of control. The supranational monetary order that has a power that no other democratic rights.
Perhaps the Chinese and ii Russians are preparing for next year to make their currencies convertible into gold and devaluation, partly justified, is part of that plan that if implemented some serious problems to speculative finance would ultimately create it; The gold derivatives made by investment banks are all a short or very short term to cover themselves from the mountains of derivatives made to keep down the value of the precious metal.
Perhaps it would be good that we begin to deal with reality and not with the manufacturers of dreams and cotton candy and it is also the only way to bring speculative finance under an order which respects people and society. Undoubtedly this danger is perceived, given the reactions of finance, the Wall Street gurus who see questioned their hegemonic model begin to say with finality that the Chinese model is finished (their does not?), To think that that model supported with massive purchases of Treasury bonds TB-uses - the debt of the US, a country ranked third in the world for inequality lived for too long a slave of finance that has gnawed.
Even Lawrence Summers had recently recommended to his country "does not outsource more and return to the real economy" denying exactly what was said at the beginning of the century when in 10 years was outsourced 45 percent of the manufacturing in honor of " create shareholder value "mantra created and promoted by the most prestigious American universities. But rebuilding manufacturing fell to 11% of GDP is very difficult with 300 million people who provide jobs.
Finance has moved and is moving with the logic of the Locust desertifying the real economy to further the goal of accumulation in the short term that pushes a hyper productivity of inputs including labor and to the overconsumption; the surplus resulting ends up in the coffers of black-listed countries but producing countries there is nothing left but despair and sorrow; now becomes an immense colony of "lemurs" running striven to throw himself into the abyss. "There's only one problem, one for the world: to give men a spiritual meaning, spiritual restlessness ... You can not live refrigerators, budgets, policy, crossword (cellular, of finance, nothing of consumption for its own sake, we would say today). We can no longer. You can not live without poetry, without heat or love "(Antoine de Saint Exupery, the last letter written to friends July 21, 1944, would be published in" Le Figaro "after the war).
Fabrizio Pezzani: Professor of Planning and Control Bocconi University.Google translation