More Shocking Revelations From Bank of England's Mervyn King

In the aftermath of the provably orchestrated and Shock Doctrine delivered Bankster Bailouts comes the inevitable Disaster Capitalism delivered message of "austerity for you". Well? If you understand Shock Doctrine techniques typically used to get what they want:

Bank of England chief Mervyn King: standard of living to plunge at fastest rate since 1920s

Households face the most dramatic squeeze in living standards since the 1920s, the Governor of the Bank of England warned, as he reacted to the shock disclosure that the economy was shrinking again.

Families will see their disposable income eaten up as they “pay the inevitable price” for the financial crisis, Mervyn King warned.


“The squeeze on living standards is the inevitable price to pay for the financial crisis and subsequent rebalancing of the world and UK economies.”

It is inevitable! There was a shocking disaster and everyone has to pay for it!

Well? The plebes have to pay for it.

Coming from the same guy that the Bush State Department - as evidenced by wikileaks #cablegate - was helping to orchestrate the bailout of the banksters 6 months before Bush finally was ready to deliver the scripted announcement of the "unforeseeable market disaster".

But this austerity moment isn't well planned, in advance, Disaster Capitalism and as a result of this latest phase of that orchestrated Shock Doctrine like delivered disaster either, eh?



Bankers Theft of Our Money Planned Well in Advance

Why is our corporatist media silent on this story in the USA?

Just how far in advance? We have yet to figure that out. 6 Months? At the very least. More? Anything to suggest it was years in advance? This is more Wikileaks news from #cablegate searches and brought to light by the Guardian and modified and cross-posted from ePluribus Media for daily kos readers.

Remember how the Bush administration insisted that every bank had to be bailed out "now, Now, NOW!" in this unforeseen "crisis" or else the entire universe would financially implode?

It seems that must have been the prepared script since there was no sudden crisis that came out of nowhere and that the Bankers were plotting their bailouts at least 6 months in advance and the wikileaks #cablegate show this to be true.

And if the State Department was circulating information on coordinating the bankers bailout 6 months in advance, there can be little to no doubts that Bush used this faux "crisis", shock doctrine style, to help run this extortion scheme:

WikiLeaks cables: Mervyn King plotted banks bailout by four cash-rich nations

Bank of England governor suggested new group of UK, US, Swiss and Japan could facilitate global bailout, cable shows

The Bank of England governor, Mervyn King, was so concerned about the health of the world's banks in March 2008 that he plotted a secret bailout of the system using funds from cash-rich nations, according to a US embassy cable released by WikiLeaks.

Six months before the world financial crisis reached its peak, forcing taxpayers to rescue collapsing financial institutions, King told US officials in London that the UK, US, Switzerland and Japan could jointly enable a multibillion-pound cash injection into global banks, overriding the "dysfunctional" G7 nations.

The leak may allow King to claim that he – rather than Gordon Brown – was one of the brains behind the bailout of the banks, which took place in October 2008.


Just think about that. 6 months in advance the Bush administration's State department was passing around information on co-ordinating the bailouts of these gambling vagrants. And you can be pretty darned sure the Bush Administration knew about this oncoming train wreck long before even this cable given the suspicious timing of what they did to Eliot Spitzer. You don't believe me?

This was only one phase of the bailouts we are talking about in the March cables:

King appeared before the Treasury select committee later in March 2008 and warned MPs that the financial crisis had "moved into a new different phase".

How many phases were before that one?

Yeah, I get that there were phases of theft afterwords, some that are still ongoing but... Think about it.

At this particular "phase" they were already discussing how they were coordinating the unleashing of the bailouts on the masses, so you can be darned certain that the bankers, the State Department and the Bush administration all knew that this was coming long before these reported actions in the cables.

This was a well coordinated theft of our money. Extortion on a world wide scale of this and other nations and all unleashed shock doctrine style. All planned well in advance of the propagandistic "crisis" that was tossed out there to justify it.

We need to get our money back from these shadow bank crime bosses and their other financial industry criminals and put them all behind bars.

 And as for all of these stories of national security threats and the legal circus surrounding Assange?

Aaron Barlow, at ePM wrote about how much of this is nothing but a distraction from the very real information and about how we need to keep the information in perspective. He is correct.

Though the attempts at "cyberwarfare" (how grandiose!) by the group Anonymous look childish and, quite frankly, technologically unsophisticated (clogging up the sites? Is that the best they can do?), the charges against Julian Assange, whether for the leaks or for his sexual transgressions, have led to nothing, so far, but his detention—something that may not last very long. Though he has become the center of a second Wikileaks frenzy (the first being the leaked documents themselves), the Assange story is quite frankly, trumped up—on all sides.

As is the Wikileaks story itself.

Yes, we've now access to information, making a great deal public that its authors would prefer remained private. But nothing has been revealed, I am sure, that all parties directly involved didn't already know. The problem, for any of the principals, is that "everyone" now knows how others (particularly American diplomats) think of them. The world of diplomacy being what it is (filled with its own, private leaks), all sides knew all this stuff anyway—not probably, but certainly, or none of the intelligence services anywhere is worth a plugged nickel.

My response because I agree, in so far as the information our media has actually reported on thus far in the USA. But like all stories of power... This is and will be a lot more of an eye opener if we stop concentrating on the government puppets and their typical spy stories and just follow the damned money:

The Big picture here is not even the "ho hum" information coming from the government documents. Anyone with a lick of common sense would expect the US (and other nations) to be acting this way in their "diplomacy efforts". Especially coming out of the notoriously shady Foggy Bottom and their "spy vs spy" mindset. IMHO, everything now, the mega over reaction, is in the hopes of discrediting wikileaks and shutting them down before the leaks on Bank of America and BP (and other bigger things) hit the nets.

The politicians are just feigning the outrage over these revelations because the "new media" (and wikileaks is just a conduit for transferring this info to the new media) ain't so reliably pliable to the interests of the elite as the traditional media has been proved in shutting down important information for the elite's benefit.

I mean, #cablegate is important and an eye opener into the mindset of the political gamesmanship but my rule of thumb in all things political? Follow the money because that is where the real political power (and rage at wikileaks) is.

Kaupthing was listed on the Iceland Stock Exchange in October 2000, at which point the original owners of the Bank, the savings banks in Iceland, reduced their holdings, and individuals and institutional investors replaced them as shareholders. Kaupthing Bank shares were listed on the Stockholm Stock Exchange (now OMX Nordic Exchange in Stockholm) in 2002.

By 9 October 2008, Kaupthing Bank HF was forced into government receivership - only days after a crisis at Landsbanki placed it into government control. Due to the crisis throughout the Icelandic financial system, all trading in the country's equity markets was suspended on 13 October 2008. On 29 July 2009 Wikileaks exposed a confidential 210 page document listing Kaupthing's exposure to loans ranging from 45 million to 1.25 billion Euros. The leaked presentation revealed the bank had loaned billions of euros to its major shareholders, including a total of €1.43 billion to Exista and subsidiaries which own 23% of the bank.

And that is the kind of who and what that Wikileaks threatens the most.

IOW: We are probably of the same/similar view about some of this carnival sideshow:

But probably for some different reasons because I don't view the diplomats necessarily coming off as "the adults in the room". But they are pretty much doing what we could have figured they were doing without the leaks. Some of the things diplomats are doing is rational and in the interests of all Americans and some of it is only in the interests of their corporate and elite owners, as well. That ain't adult.

They is being pwned and exposed, as well.

Any bets on whether there are similar hypocrisies in Foggy Bottom's own statements and actions - exposing our government and the elite to ridicule for their actions  - like this one:

WikiLeaks memo stirs up central bank controversy in UK

Bank of England chief allegedly expressed concerns about senior politicians.

Vidya Ram

London, Dec. 1

The Governor of the Bank of England is the latest senior figure to face embarrassing revelations from Wikileaks, raising new questions about his political neutrality.

Mr Mervyn King had grave misgivings about the "lack of experience" of Britain's senior-most politicians. In a cable sent by US Ambassador to London, Mr Louis Susman, in mid-February and which formed part of the latest tranche of documents published by The Guardian newspaper, Mr King expressed a number of concerns about Mr David Cameron and Mr George Osborne, then in Opposition.

The two politicians had "not fully grasped the pressures" they would face from pressure groups, as they embarked on a fiscal deficit-reducing program, Mr King said, according to the memo. He also expressed his concern that the two leaders had yet to outline concrete ideas to reduce Britain's massive deficit, and had merely spoken in generalities. "Both Cameron and Osborne have a tendency to think about issues only in terms of politics," he is alleged to have said.

The revelations come at a particularly bad time for Mr King, who is already facing strong criticism for stepping across that notoriously fine line that divides Government and central bank policy, by giving a ringing endorsement to the Conservative Government's spending plans. (Read on...)

And if you think there might be some good examples in #cablegate, do you think our media will report on them when/if they are exposed?

They'll report on the political games... But I doubt they will hit too many of the real stories that involve the real players. That would be too icky for them. lol

And the elites of the world are lashing out at Wikileaks with every weapon at their disposal: The corporate owned media, the governments and their agencies that they own and run lock, stock and barrel.

We need to, as is almost always the case, concentrate on following the money.

We need to start probing all of the Wikileaks documents all over again and with a fresh set of eyes now, concentrating on hunting down any and all mentions of bankers, the Wall Street elite owners of the world, and the typical multinational corporations and other corrupt elites (Wo/Man, I'd love to find the Kochtopus in there!) that we know we are always coming up against and that have clearly and deliberately set out to destroy the economies, the labor movements and even the ecosystems of the world.

We need to unleash all of the resources we have and to do so with all of the urgency of "now, Now, NOW!" and hit back with the full force of an onslaught of unrelenting truth. And we are going to have to start looking back at these known criminals and the unknown and soon-to-be-named criminals and their corrupt practices and begin prosecuting them if we are ever going to have a chance to move forward into the future with any semblance of freedom in any way, shape or form.


This is more a condemnation of the entire system than it is a condemnation of the cogs that keep turning this crap out despite our best efforts.

Yep, it shines a bad light on almost every single politician out there because it shows pretty clearly how they all are working for the elite and against our interests. Against the United States of America's interests.

If we have any hope of getting politicians working for us, ever again?

We have to go after the power behind the power. Relentlessly.

Bearing in mind that at the same time that AIG was frist known to be going under there were parallel things happening around the world letting us know there was nothing isolated nor shockingly revelotory about the tactics and end results of the bailouts. A couple of comments tossed my way that exemplify this:

Northern Rock Bank Nationalized by UK Feb 08.

Back in late 2007 and early 2008 many of our lonely and ill-treated watchers on the economic walls characterized Northern Rock as a dead cannary in the global finance mine.

Most of the village elders scoffed at that time and told us to go back to the fields and quarries and quit troubling them with baseless rumors from the ignorant interneters.  

Once more.  Let us all recite it together:

In matters of this significance, there are no coincidences.

Northern Rock Bank in UK fails and is nationalized by the UK in February of 2008.

The Bank of England governor (and presumably the rest of his international ilk) began planning for global bailout in March of 2008.

From your diary:

The Bank of England governor, Mervyn King, was so concerned about the health of the world's banks in March 2008 that he plotted a secret bailout of the system using funds from cash-rich nations, according to a US embassy cable released by WikiLeaks.

From the the quickest (not necessarily best) source on the timeline of Northern Rock:

On 14 September 2007, during the financial crisis of 2007–2010, the Bank sought and received a liquidity support facility from the Bank of England,[13] following problems in the credit markets caused by the US subprime mortgage financial crisis.

The bank was nationalised at 00:01 on 22 February 2008 as a result of two unsuccessful bids to take over the bank, neither being able to fully commit to repayment of taxpayers' money. In doing so the Government effectively took ownership away from its shareholders, and as of October 2009 without reimbursement. The media also reported cases where some shareholders had their life savings in the shares, which were taken from them.[14][15]

What's worse, is that Northern Rock effectively failed in September of 2007.  So instead of having 6 months to prepare, the global financial system, global financial regulators and soon-to-be-sources-of-bailout nations all had a full year after the iceberg hit until the ship sank.  And with that long a lead time all they could muster for the steerage class was a stirring rendition of "Nearer My God To Thee".

Not days.  Not hours.  Not even months.

They had a blooming year to prepare for this.

And in the meantime, the public was oh-so-gently herded back into the economic slaughter pen while the elite did everything they could to both keep the con game running and simultaneously protect their own already massive individual wealth.

Did they really know a year in advance?  

Here's just one quickly found blog entry from over at Seeking Alpha posted on October 1, 2007.

The thing that struck me about the article wasn’t the bailout of Northern Rock in of itself, but the British Treasury stating that it would give the SAME BAILOUT to any other banks who find themselves in the same position as Northern Rock. That’s right, the British Treasury has effectively stated: "In Britain, we have a system of "Capitalism without Risk". Which begs the question, are they really worried about a much larger problem that goes well beyond Northern Rock, as opposed to this being an isolated incident? Could it be that there is a very real chance of a mortgage/debt precipitated banking crisis in the UK, hence the reason the Govt. is effectively issuing a carte blanche guarantee to the entire banking system? ...

And when in late 2008 I challenged my Congressman, who sits on the banking committee with Barney Frank, and asked him why the reasonable, rational safeguards and regulatory concessions that should have been part of the bailout bill were not included, the response was:  

There just isn't time.  This crisis came at us too unexpectedly and too quickly.  We have to act now to avoid calamity.

Maybe we can get Ron Paul to investigate this.  

If health care is not basic necessity, try living without it.

by Into The Woods


Another couple of things to consider

for context.  The cable in March 2008 was written just after the UK government takeover of the Northern Rock bank in February 2008. (see Wikipedia)

Also, another interesting point on King, as governor of the Bank of England from a piece written in Time Feb 2008 by a former British official:

It is unfortunate, to say the least, that one of the first actions of Britain's present Prime Minister, Gordon Brown, when he became Chancellor of the Exchequer in 1997, was to remove the task of bank supervision from the Bank of England and entrust it to the agency responsible for the regulation of U.K. financial markets — perhaps under the erroneous belief that financial regulation and bank supervision were much the same thing. In fact, they are fundamentally different. In any event, although Northern Rock was pursuing a conspicuously high-risk business strategy, which enabled it to increase its share of the mortgage market very substantially, the new regulator proved to be asleep on the job, and the danger was completely overlooked until crisis overtook the bank last September. As a result, it had to be bailed out by the Bank of England, and an adequate deposit-protection arrangement had to be put in place to remove the threat to the rest of the U.K. banking system.

standingup also suggests looking at this timeline for a broader view of things that were happening.

A lot of the problems in 2007 are documented in this Financial Crisis Timeline from the University of Iowa Center for International Finance and Development.  

Just to be clear how far back I think we need to look to see these austerity actions being gamed and planned out:

Spitzer Whacked For Warning Of Financial Crisis, Bush Fed Targets Taxpayers As Bagholders

Sure, Spitzer should have de-socked before his career-ending indiscretion.  But we should revisit the prophetic message that was lost to the tsunami of Spitzer's scandalization two weeks later.

Predatory Lenders' Partner in Crime: How the Bush Administration Stopped the States From Stepping In to Help Consumers,  Feb. 14, 2008.  Washington Post.  

Several years ago, state attorneys general and others involved in consumer protection began to notice a marked increase in a range of predatory lending practices by mortgage lenders...These and other practices, we noticed, were having a devastating effect on home buyers. In addition, the widespread nature of these practices, if left unchecked, threatened our financial markets.

Spitzer's omen went further to note that not only did the White House do nothing, it embarked on an aggressive and unprecedented campaign to prevent states from protecting their residents from the very problems to which the federal government was turning a blind eye after 50 state Attorneys General and many legislative attempts failed to halt the worst of the predatory lending excesses.  The AGs and their banking superintendents fought the Bush Administration's use of a Civil War era banking provision which established federal preemption of all state predatory lending laws and the new rules which emasculated state consumer protections from national banks.

The Bush administration had long had this issue, bank failures and the faux "mortgage crisis", on their radar and provably was actively working to suppress it from coming out in any way they could as far back as 2005.

Here comes Disaster Capitalism's extra 30 seconds on the clock...

I wonder about the $700B Bush proposal and subsequent events they knew would follow (things like pesky Dems in Congress wanting to add stuff too it). I wonder if there is more, what's coming next... or if that was it. Was that the hail mary or was that just the one that we thought was the last play, before they secretly have another :30 added to the clock as we celebrate and use it to jog into the end zone to their awaiting packs of cheerleaders and lawyers.

Did they get shocked by their own doctrine? In Keithspeak, did the McCain campaign get "BUSHED!"?

Disaster Capitalism in Action
Now is the Time to Resist Wall Street's Shock Doctrine

Naomi Klein

I wrote The Shock Doctrine in the hopes that it would make us all better prepared for the next big shock. Well, that shock has certainly arrived, along with gloves-off attempts to use it to push through radical pro-corporate policies (which of course will further enrich the very players who created the market crisis in the first place...).

Was that it? Was the hail mary something that would only work if the $700B no-limit Texas funeral for the constitution had passed in urgency that first weekend? The what? They spent how much?

And keeping in mind they now want austerity for you and me....

This side note looks even more disgusting to the ever increasing numbers of Americans that are watching their jobs disappear, their benefits get slashed or dropped, and the American way of lif,e in general, getting flushed down the toilet to prop these criminals up:

Just in the wake of a report highlighting Wall Street's narrow, selfish imbecilities, we are treated to the stunning realization that the captains of the sinking liner are today enjoying the all-time record payoff for surviving with massive transfusions. That annual payoff of $135 billion is equiva

I suggest you get into the business of producing and selling gold leafed Rolls Royces and diamond studded toilets... Because the only people that have disposable income right now are the richest of the investment class that are being propped up with government welfare. And you are not really feeling the trickle down on the unemployment line and in the rest of the economy, are you?

Please share this with you politicians IF...

Please share this with your politicians IF they have ever used the words "austerity" or "entitlements":

Poll: Public opposes most spending cuts

A majority of the public opposes most spending cuts, especially cutbacks to education and popular entitlement programs, according to a new poll released Wednesday. The Gallup poll showed that over 60 percent oppose cuts to Medicare, Social Security and education funding.

Especially important if they have ever used those right wing framing words, austerity and entitlemnts, in the same sentence. That should narrow it down to about 98% of the politicians in office today.

And ...

Weep for this nation IF...

You send your politician this information and they still, afterwords, continue to use those two words, austerity and entitlements, with other right wing framing words like "reform" or the real intended consequences of "cuts".

Just don't be shocked when they do try to do this...

No votes yet


Rewritten and modified out the yin yang several times and finally at the time of this comment to expand and clarify this piece. Too many changes to list.