When we hear about “the world-wide credit crunch” and when we put the “credit crunch” under the microscope of modern capitalism and economics, we find that it is an Anglo-Saxon world-wide depression. America, The United Kingdom, France, Germany, Australia, Holland, Finland, Spain and Canada, or, in general the so-called First World developed nations are the specific group that is being affected. The Anglo-Saxons or English- speaking Europeans from whom this intangible entity called capitalism has been constructed, are the specific group which have lost the two things that made them to dominate 70% of the world’s economic wealth for the past 70 years since the last global depression. The Anglo-Saxon river of cash, credit and lucrative commerce has run dry. What happened to the golden goose? Is it some new enemy from another world or is it a villainous monster from the Hades preying on the innocent and the weak? It is neither. It is the same centuries-old culprit that has done in the Anglo-Saxon high-tech, computerized sophisticated electronic global financial system. It is the same culprit that has been lurking since the beginning of days and it is still using the same crude means it used in the “dark” ages and the “stone” ages; the culprit is greed.
The term “Anglo-Saxon capitalism” comes from economic analysts Martin Wolf of the Financial Times, who in 2007 assessed that the current crisis is rooted in “A mixture of crony capitalism and gross incompetence has been on display in the core financial markets of New York and London.” Therefore for their trouble the European and English-speaking capitalists have landed in a global “credit crunch”. The proper economic terminology is “liquidity”, or, more specifically a lack of liquidity. Liquidity is the grease that allows the wheels to roll smoothly. Without it the financial markets grind to a halt due to the friction. Once that happens there is a domino effect and starting with the banks, financial markets, businesses and eventually every sector of the economy grinds to a halt. Liquidity is when assets flow freely throughout the entire economy. Assets are cash, credit, goods or services, which when they flow easily they are said to be liquid. However, when they do not flow it is said to be a lack of liquidity. A lack of liquidity in ordinary everyday language is when banks do not lend to each other because they do not trust each other. Why don’t the banks trust the other banks in this current crisis? Because they know what each other is holding on their balance sheets. All across the Anglo-Saxon financial world the banks are holding toxic assets. “Toxic” is Wall Street speak for a worthless financial asset like a so-called subprime mortgage loan with loan-shark interest rates that has gone into default. A so-called subprime mortgage loan with loan-shark interest rates is a loan that these swindlers sold to poor people, poor Black and poor Latino people. How do they know that the other is holding toxic or illiquid assets you may ask; it is because they have been selling each other these very complex derivatives, i.e. Synthetic Collateralized Debt Obligations (CDO’s), Swaps, Over-the counter swaps, First to Default Credit Default Swap, etc. If those are not complex enough for you then there is the Credit Default Swap on Asset Backed Securities , Constant Proportion Debt Obligation (CPDO) , Synthetic Constant Proportion Portfolio Insurance (Synthetic CPPI) or how about the FELINE PRIDE (Flexible Equity-Linked Exchangeable Security Preferred Redeemable Increased Dividend Equity Security). A derivative is a complex financial instrument whereby some greedy swindler has packaged a bunch of high interest loans together or other high-risk assets and then trades them to investors at high interest rates or usury. Don’t worry if you have no idea what derivatives are or if you don’t have the capacity to understanding what they are even if someone told you what they are, because most of the bankers themselves don’t know what the heck they are. One would need an MBA and a high-powered computer program model to break down these complex financial instruments.
The next logical question is why would the bankers and Wall Street and London Avenue financiers buy, sell and trade them then in the first place? Did not they know or foresee that it would bring about the sudden and utter ruin of their great European global financial empire? Well-you see- their judgment and vision was clouded by greed. Did not anyone warn them? Yes,-absolutely they were warned in the clearest of language. Why just listen:
Holy Qur’ān
3:130 O you who believe, devour not usury, doubling and redoubling, and keep your duty to Allah, that you may be successful.
3:131 And guard yourselves against the fire which has been prepared for the disbelievers.
3:132 And obey Allah and the Messenger, that you may be shown mercy.
You see the international bankers, global financiers and in particular the Zionists have been warned for centuries against usury. However, they refused to heed the warning and now usury has come back to bite them in the pants and bite them hard. The Honorable Elijah Muhammad continued the warning. Allah’s Messenger has warned the 10%, the rich Blood-Sucker of the Poor about usury. And now these high class loan-sharks in 3-piece suits and silk ties have brought America, England, Australia and the Anglo-Saxons around the globe into a deep-depression. Let this serve as a warning for us whom profess to be the 5% poor, righteous Teachers who know Who the living God is, that we are to be mindful of our duty; for Allah always makes good on His Promises.
The Anglo-Saxons are in what economists call a “liquidity trap”. A liquidity trap is when the Federal Reserve Banks takes interest rates on money down to near zero in an effort to restore liquidity, but liquidity is yet still frozen. That means that there is nowhere else for them to go, except into a deep depression. Banks don’t lend to banks, and in turn banks don’t lend to businesses. Then businesses contract and lay off workers. Now the workers don’t have money to buy stuff at the businesses or buy food or pay rent or pay car notes. Therefore people starve, homes foreclose, businesses go bankrupt and cars get repossessed. Walla! A global depression. No more houses or cars or American Express Gold Cards. To make a long story short, white folks are broke. A credit-crunch for us Black folks is when we can’t borrow $2 from “mama n’nem” until we get our check because we didn’t back the last $2 we borrowed.
The Feds do not have the tools to restore the liquidity to the markets, because what the banks need is capital to unfreeze the liquidity. Federal Reserve Chairman Bernard Bernanke has given his banker buddies nearly a trillion dollars in an effort to unfreeze the credit crunch; however it has been to no avail. The banks have had to turn to our Arab Muslim brothers to borrow hundreds of billions of dollars in an effort to avoid collapsing. All of their money they spent of their oil addiction they had to borrow it back. Banks must keep a reserve amount of cash on hand either at the bank or in the vault at one of the Federal Reserve Branches in order to pay out deposits to their bank customers. If the millions of banking customers of the so-called Western World knew that most of the biggest, greediest banks are actually insolvent as we write, then there would be a run on the banks and because of the global nature of the banking system there will be an instant global depression which will make 1930 look like child’s play. Most banking customers believe that when they get their bank statement every month that the amount of their money printed on the paper is safely stored in the bank’s vault. Actually no it is not. The bankers take your money and they set it out to usury (interest and investments) in order to double and redouble your money. Most banking customers don’t realize that should there be a run on the bank and should the bank run out of the reserve cash that they are supposed to have on hand, then by law they can use your deposit to pay their customers. In other words, it is first come first serve when there is a run on the bank. Once all of the assets are gone then the bank is bankrupt and there goes your money. A hint to the wise is sufficient enough to say that this might not be the best time to keep your money in a bank.
When you see rich white people in Congress rush to send poor Black people and poor Brown people a $1000 to go out and spend, then you should know that he is in full panic mode and on the brink of collapse. The power that The Federal Reserve Banks lack to restore prosperity is the power that Allah has in abundance:
Holy Qur’ān
2:275 Those who swallow usury cannot arise except as he arises whom the devil prostrates by (his) touch. That is because they say, Trading is only like usury. And Allah has allowed trading and forbidden usury. To whomsoever then the admonition has come from his Lord, and he desists, he shall have what has already passed. And his affair is in the hands of Allah. And whoever returns (to it) — these are the companions of the Fire: therein they will abide.
2:276 Allah will blot out usury, and He causes charity to prosper. And Allah loves not any ungrateful sinner.
2:277 Those who believe and do good deeds and keep up prayer and pay the poor-rate — their reward is with their Lord; and they have no fear, nor shall they grieve.
2:278 O you who believe, keep your duty to Allah and relinquish what remains (due) from usury, if you are believers.
2:279 But if you do (it) not, then be apprised of war from Allah and His Messenger; and if you repent, then you shall have your capital. Wrong not, and you shall not be wronged.
2:280 And if (the debtor) is in straitness, let there be postponement till (he is in) ease. And that you remit (it) as alms is better for you, if you only knew.
2:281 And guard yourselves against a day in which you will be returned to Allah. Then every soul will be paid in full what it has earned, and they will not be wronged.
2:282 O you who believe, when you contract a debt for a fixed time, write it down. And let a scribe write it down between you with fairness; nor should the scribe refuse to write as Allah has taught him, so let him write. And let him who owes the debt dictate, and he should observe his duty to Allah, his Lord, and not diminish anything from it. But if he who owes the debt is unsound in understanding or weak, or (if) he is not able to dictate himself, let his guardian dictate with fairness. And call to witness from among your men two witnesses; but if there are not two men, then one man and two women from among those whom you choose to be witnesses, so that if one of the two errs, the one may remind the other. And the witnesses must not refuse when they are summoned. And be not averse to writing it whether it is small or large along with the time of its falling due. This is more equitable in the sight of Allah and makes testimony surer and the best way to keep away from doubts. But when it is ready merchandise which you give and take among yourselves from hand to hand, there is no blame on you in not writing it down. And have witnesses when you sell one to another. And let no harm be done to the scribe or to the witnesses. And if you do (it), then surely it is a transgression on your part. And keep your duty to Allah. And Allah teaches you. And Allah is Knower of all things.
2:283 And if you are on a journey and you cannot find a scribe, a security may be taken into possession. But if one of you trusts another, then he who is trusted should deliver his trust, and let him keep his duty to Allah, his Lord. And conceal not testimony. And whoever conceals it, his heart is surely sinful. And Allah is Knower of what you do.
2:284 To Allah belongs whatever is in the heavens and whatever is in the earth. And whether you manifest what is in your minds or hide it, Allah will call you to account according to it. So He forgives whom He pleases and chastises whom He pleases. And Allah is Possessor of power over all things.
2:285 The Messenger believes in what has been revealed to him from his Lord, and (so do) the believers. They all believe in Allah and His angels and His Books and His messengers. We make no difference between any of His messengers. And they say: We hear and obey; our Lord, Thy forgiveness (do we crave), and to Thee is the eventual course.
2:286 Allah imposes not on any soul a duty beyond its scope. For it, is that which it earns (of good), and against it that which it works (of evil). Our Lord, punish us not if we forget or make a mistake. Our Lord, do not lay on us a burden as Thou didst lay on those before us. Our Lord, impose not on us (afflictions) which we have not the strength to bear. And pardon us! And grant us protection! And have mercy on us! Thou art our Patron, so grant us victory over the disbelieving people.
