Archive for October, 2013

It was announced today that the UK government plans to ask rich Muslims to lend it money

UK issues first Sukuk outside the Muslim world

Reading between the lines; the country is over its head in debt, 900% to GDP by some estimates, and now its time to get Muslims in on the act of bailing the country out – why not exploit as many people as possible, so when interest rates rise, as they inevitably will, and interest (or ‘profit share’ in this case) payments become unbearable, the few within the islamic world that have the funds to buy into this over-rated debt, can loose out, and perhaps go bust, along with the nation and the banks that own its toxic, non-sharia compliant, overpriced, highly risky crap. Why not take out as many players as possible, reset the balance…

Interested in understanding the concept of structuring debt products and the process of securitization? Follow the new LEARN series which will cover some of these matters.

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Welcome to a 4 part series dedicated to teaching readers about the workings of a selection of credit derivative instruments and related aspects of the financial markets

We will be covering the following topics, in an easy to read format, allowing us all to become more aware of the structure and specifics of these popular financial products, featured heavily in media reports leading up to, and subsequent to, the financial crises in 2008; CDO’s, CLO’s, Credit Default Swaps, Securitisation and Asset Backed Securities amongst others

This first part is dedicated to Credit Derivatives – Types and Structures. You can explore the subject areas of Credit Options, Credit Linked Notes, Synthetic CDOs and CDO Structures

LEARN here
CD Types
CDO Structures

Please reply to this post if you found the material of use

UK_Public_Debt2

Globally, many developed nations have buckled under the mountain of national debt that governments have piled up throughout the decades in order to expand the reach of the state, be it for warfare or for welfare.

A number of nations in Europe have been bailed out by the ECB after their debts became too great to service. Spain, Greece, Italy, Portugal and Ireland are still suffering from the repercussions, but Britain may not have escaped the worst of this crisis.

The current government have added more debt to the nations credit bill than any other single parliament in UK history, despite grand claims that it would actually reign in the ballooning budget deficit.

Again, statistics help with the mis-information being pedalled by various media outlets (see my previous post on this issue). Depending on how you measure national debt, and there are of course many interpretations, this nation has a debt to GDP ratio of anywhere between approximately 80% to 900%!

The later number includes not just current government borrowing, but other factors which need to be taken into consideration when trying to understand total indebtedness such as unfunded future liabilities (ie. pensions to be paid to future populations), household debt, company debt, bank debts and the recent bank bailouts

..all of which means, how long is this sustainable? This is the multi-trillion dollar question. Some would reasonably believe that it is more a question of WHEN and not IF.

A popular UK publication, MoneyWeek, recently published an article on this topic which they feel needs to be taken extremely seriously. Read it here or even watch it here;

The End of Britain by dm_4ffe277495b5a

In order to bring some sense of balance to this debate, it is worth noting the comments of a sceptic. Note however, that the fact that this nation has much more debt than it should, or that expenditure/the deficit is not being managed well is not up for question.

Debt Clocks

Posted: October 9, 2013 in Debt, Statistics
Tags: , ,

Time is money…money is time

Qur’an verse 103;

‘By time,
Indeed, mankind is in loss,
Except for those who have believed and done righteous deeds and
advised each other to truth and advised each other to persevere’

Time is ticking……

UK DEBT CLOCK

US DEBT CLOCK

WORLD DEBT CLOCKS

Please make use of this selection of documents on a variety of issues and facts concerning the monetary system

HOW BANKS CREATE MONEY OUT OF NOTHING

Money- Some solutions

Money #1

Money #2

Usury