Illegal things happen….

Here is a rough transcription of the presentation for people who are hard of hearing. Apologies for the lack of grammar, I am working to improve the automated transcriptions -
the greeting is a we start with an article from the Guardian: UK focus and a cat has just joined me so this can be to have a string presentation tenet At it Leopold Kerr 150 years ago that the gigantic global system would grow until it imploded we should have listened so can we say that this economic collapse is a crisis of bigness I don’t think the article really than justifies that but I’m Paul this one paragraph from the article drawing from history Kerr demonstrated then, demonstrated that when people have too much power under any system or non-they abuse it the task therefore was to limit the amount of power that any individual or organisation or government could get its hands on the solution to the world’s problems was not more unity but more division the world should be broken up into small states roughly equivalent in size and power which would be able to limit the growth and thus the domination of anyone unit small states and small economies were more flexible and more able to weather economic storms less capable of waging the serious wars and more accountable to their people not only that but they were more creative on a whistle top whistle stop tour of mediaeval and early modern Europe the breakdown of nations the book that co-wrote does a brilliant job of persuading the reader that many of the glories of Western culture from cathedrals to great art to scientific innovations where the product of small states is quite a lot in their isn’t the really harm I think we will go to our small smaller are bite-size pieces of the world this global economy I think will break up our know I will news I was good to go on one track I go to another track on this arm demonstrated that when people have too much power under any system they abuse it I thought I think it could be a strange quirk that and I’ll be listening to quite a lot about such skins new book about Pres Obama and how it would be possible using occurs thinking there that America has been so dominant in the world since the Second World War and the president is not arm omnipotent as we’ve certainly seen out with Obama’s performance but is capable of actually exercising an awful lot of executive power but what we have in America is basically a corrupt system where corporations well anybody that can via the arm via money can buy influence over the president is the which the short-term or the president’s advisers all present team or anybody Congress Sennett basically the the power is bought and in a way if we think about it on curs arm our way of thinking here and this is been inadvertently a decent way of breaking up what could be either the present power or a clique of top senators power or whatever it might be because basically it’s anybody with money that can buy the power so arm it’s an ever shifting and her feast not a good way saying it would dishonour me that it it was capable if it was just political power to be and the line and are to establish itself as as as a real powerbase but it hasn’t because it’s just bought into bits yes no sorry okay moving on Tuesday kiddie arm this is more for Australia than anybody else because what Doug shorters done here in this chart is got the NASDAQ up to its maximum in green the Shanghai Composite are at its maximum in red and the Australian all ordinaries Shem share index in blue and his noted that the NASDAQ and the Shanghai fell basically down to the 60% 1000 days after their maximum at the red and the Green down the bottom right and the Australian all ordinaries is only 40% down the implication is that any time soon the all ordinaries will go down and join the NASDAQ and the Shanghai so well why should it arm but the way things are going the world I am I wouldn’t be surprised if are not in the next few days but before 1250 days up that the Australian ordinaries does in fact go down to -60% okay like a dog back to his vomit or whatever the expression is horrible expression is now six weeks to save the Eurozone excuse me but I just got I have come up from my moustache and tickling inside Manolo is beginning to know that wraparound roadmap that what I’m this right there might have been nothing concrete from the IMF meeting in Washington over the weekend but the outline of a plan to rescue the Eurozone and its banks was sketched out there would be a haircut or write-down of Greek sovereign debt of 50% the country would also stay in the Eurozone is a plan to recapitalise Europe’s banks and of course the Greek banks will be heavily in their because they hold most of the Greek debt of course and most intriguingly a proposal to increase the size of the €440 billion European financial stability facility by linking up with the ECB one proposal is that the EF SF will backstop 20% of any losses that the ECB make solid purchases to provide some to point to trillion dollars of firepower now that’s a lot of ammo easier said than done of course uncritically it boils down to whether Germany and EU law allow the ECB to effectively finance budgets and at the basics of it never got a plan their that are is to a certain extent feasible but it is for the moment horrendously against the law and another summation of this the Telegraph reports that a plan emerged over the weekend between Eurozone and global leaders to increase the size of the EF SF the Eurozone’s bailout fund to 2,000,000,000,000 Euro possibly using leveraged scheme through the ECB it is thought that the increase fund would act as a backstop to allow for a Greek default possibly involving a 50% write-down of Greek debt and a recapitalisation of European banks although the Greek government still insists it will not default her though some media reports claim that a deal could be announced within days German finance Minister Wolfgang Schaal Blake seemed last night to reject the proposal saying the don’t come to grips with zero economies deliver dredging by having governments aren’t central banks following little early even more money at them you simply cannot fight fire with fire strengthening to savour our finance Minister as in what a lot of people seem to admit in their spare time to be the truth yen is why do men Bundesbank president called the plan dangerous path while the Secretary-General of the junior coalition coalition partners FTP Christian Lintner called on the German Chancellor angular Merkel to rule out going quickly Setzer are normal changes to the walls forcing EF SF visor back door and the boss man of the hour their homes go iced water is the the constitutional their songs dear RH something like that anyway the Constitutional Court the fellas with in the undergoes the girls and their with stupid red Managing around Wearing Silly Silly Hats Are and He’s Come out in an Interview Saying Pitfalls Your but in German Is Criminal for A Lot Of Strain on These People Arm and I Feel Very Sorry for Germany That They so Much Want to Now Go by the Rule of Law but the Rule of Law Has Got to Be Changed to Save the World of Finish with Two Charts Are This Is the Masterly Treaties Arm Growth and Stability Pact the Three and 60 Housing You Want a Deficits No More Than 3% of Your GDP and Then When Those Deficits Add up They Then Not to Add up to More Than 60% of Your GDP When the Total This One Is Government Deficits As a Percentage of GDP across the European Higher Community Are As As a Whole and They Were Not Far off the the 3% Lot A Lot Of Times below It but Getting Them Back above It All the Way until the Crisis Hit in 2008 and You Can See Now the Averages Round about 6 1/2% over Double What It Should Be and the Government Debts As a Percentage of GDP What Always over the 60 since Are since the Beginning and Now You Can See That Horrible Neck up Where It’s Gone from Our 67.5% of Debtors a Percentage of GDP at the Start of the Crisis to over 85 and Rising Now Growth and Stability Pact Written in Black-And-White in the Maastricht Treaty to Law Simmer by