SHORTING THE EMPIRE

SHORTING THE EMPIRE – Sorosing the Empire Bond Market 

[Limiting markets to ensure government sovereignty] 

Now, we just got thru reading an article at (www.project-syndicate.org), written by Robert Skidelsky, a member of the British House of Lords, is Professor Emeritus of Political Economy at Warwick University, entitled Democracy or Finance? The basic idea of the thing was in our opinion is when is to much Democracy in the economic system to much Democracy, there should be limits placed upon the free market boundaries to ensure that the bakers dozen is just that a dozen, and there are no fingers on the measurement scales of weights and measures, limiting markets to ensure government sovereignty. The Professor used as example George Soros and his Shorting of British Bonds, that made George a Billionaire at the cost of the British economy, and may now well be done too the American-Israeli Military Industrial Complex – the [EMPIRE]. What Shorting means in economics is the tactic of betting against an asset with borrowed money in the expectation of making a profit when its value goes down, sell short of a due date of maturity, before it comes due. We had to sort of [KISS] Keep It Simple Stupid, the Professors version and add and combine from other sources, to be able to make sense of it all but it goes like this.  

[Writing call or put options contracts]   

A speculator can a short position [called a short]  a government by borrowing its debt from a bond broker in the form of bonds, commodities, currency, or securities, at its current market price, betting with the full expectations and hope of selling it later at a lower price and pocketing the difference. For example: Peter looks at the bond market one day and looking at things, and having an educated gut feeling figures the value of American-Israeli Military Industrial Complex – the [EMPIRE] bonds will fall in value, called a [bearish view] so Peter in [2012] immediately borrows [10M] ten-million worth of [0.91] per share face value [EMPIRE] savings bonds, with a maturity date of [2017], from Paul a bond broker, under a contact agreement known as a [writing call or put  options contract], the contract gives/entitles Paul, the right but not the obligation to buy from or sell assets in the form of  specific bonds, commodities, currency, or securities, to Peter at their current market price for a specified amount of interest due at a specified call date, the deal being that Peter must eventually return the borrowed stock to Paul, in [6] six-months, but with the face value and interest it would have gotten over the entire period if held to maturity, that's [5%] annually, for each year of the [5] five years bond maturity time, or for a profit of [2.5%/ 250K] Two-hundred fifty thousand which is owed by Peter to Paul in not [5] years but [6] six months.  

[Voilà – a successful "short" trade] 

Peter immediately sells the entire [10M] in [EMPIRE] bonds on the open market, at [0.91] per share, Peter get [9.1M] ninety-one million (0.91 face value per stock x 10M million amount held). And Peter is Fortunate and the value of the [EMPIRE] stock does fall in value, before Peter must pay Paul what is owed, in [6] months, the chickens have come home to roost the full extent of the [EMPIRES] fiscal problems are clear, their broke in over their heads in debt they can't repay, and is clear to the global community,  When the [6] six-months has passed and Peter is to repay Paul the [10M] ten- million in face-value of [EMPIRE] bonds plus the interest, the bond is trading at only around [0.72] per face value, so Peter goes to the open market where Peter buys back only [10M] ten-million in [0.72] face value stock, and pocket the difference in pure profit, sold at [0.91] repurchased at [0.72], a cool [1.65M];

[9.1M – 7.2M] = [1.9M] profit before interest

[1.9M – 0.25M] = [1.65M] profit after interest as per Peters agreement with Paul.

 Voilà – a successful "short" trade, to quote Professor Robert Skidelsky, and the point is that if its been done once and worked with the same conditions in effect, it should and will work again, only this time its yet another [EMPIRE] not the British Empire, but the American-Israeli Military Industrial Complex – the [EMPIRES] turn for a Sorosing. 

HERCULE TRIATHLON SAVINIEN