Iron Sky Teaser 2 - The First Footage

The Paleolithic Painted Cave of Lascaux

Traces of Origin in Philological Sacred Text

Any scholar delving in the labyrinthine traces of sacred texts should be aware of the incongruousness purported in the first two chapters of Genesis, in which the compilation of edited texts have been edited, undeniably by different pens. The Bible, without a doubt, is the most popular knowingly text in the west, so, I decided to begin investigating, since is easier to be  familiarized with the passages, "collated" from the surface of most popular parables  and give the reader a dispassionately dissection of the allegories and parables in Genesis, and ascertain a scientific, logical and brief editorial continuum. The problems with Genesis, as with any other sacred texts, are of chronology, continuity, translation, and what's more, of edition. In grammatical terms, for example, the Hebrews sentence structure was usually paratactic, meaning that the whole sentence was connected with the conjunction " and." Now, by the adopted form of interlacing the sentences we'll speculate that the edition of this text was done maybe a few hundred years anno dominae corresponding to this unorthodox form of uniting sentences. For example, fragments from diverse sources i.e: literal translation of Genesis 1:1-4, " in the beginning God created the heavens and the earth and the earth was formless and void and... the waters and God said, " let it be light," and there was light and..." ancient Hebrews very rarely used subordinates clauses or phrases when their sentences expressed several ideas; for instance, different forms of parallelism were used in the introductory part of Genesis and chiasm. Based on the Greek word x, describing the x literary structure where chiasm is an inverted parallel structure. The complexity of literary structure is - in it-self - proof of manipulation. The reason why it is not notable, is because the form of writing was adopted before by Indian text or combination of texts, which was slowly degenerating as time went by. When one reads the Gita vs the Bible there are great differences in terms of richness of text, more complex combination of creative grammar and no trail of adjunct verses united by multiple ideas. The transgression from one event to the other by nature brings change in its parts, that is indisputable. Same with story and same with language. For example, in Ezequiel, the arrival of the Gods in chariots of fire descending in large clouds, soundless, along with the demonic-like creatures appearing and talking to him, is taken by cultures as a way of communicating certain truth. In the Mahabharata, the incredible nuclear wars brought by the God's and also their ascend to the land threatening the earth-man for not complaying with their commands is also an event translated by their writers, also lost in allegories and other forms of rituals or spectacles.The Greeks glorified and supported events like this in their famous tragedies because we grew a costumed to ask for help needlessly when we couldn't accomplish a hard task, outside the theater. This plot devise was called " Dux Ex Machina" as a last resort to resolve a very unsolvable and complicated story ending; to put it in the words of neoclassical literary critics Corneill and J. Dennis," they are the perfect recipe for a bad play." It is supremely difficult to define a date to the number of civilization, cities, and countries that occupied the enormous latifundiums's of Southwestern Asia, Northeastern Africa, the Celtic Region, and North Africa. And to simply surrender all the question marks in substitution for the apocryphal views in Genesis and the creation of the universe in a measly, six thousand years ante christum is ridiculous. The Epic of Gilgamesh is an ancient poem from ancient Mesopotamia and is among the early known works of literary fiction about a mythological hero. There is some who believe among scholars that the story was a series of stories pre-dating the Sumerians, but unfortunately the additional tablets could not be put to cohesion. The time given by the scientist was two thousand years. It is interesting to know that the older version of the Gilgamesh poem was the only one to yield a significant translation. If we decide to check for all  the chronological history of all known civilizations in the books taught in schools; we find that the chronology is calculated and it's consistent with the parameters set in the Bible and the Pentateuch. And, if, the time frame from the beginning of the old civilization had an erring difference of ten thousand years [off] by speculation perpetrated by some archeologists or historians' or any scientist', history would have to be re-written. However, any conscious and sensitive person wouldn't mind building back our history as long as is based on [true] history, not some fancy, flashy, placated rhetoric spewed by some scientist who's only interest is their self preservation and glory, for the purpose of some commercialization of history. There is absolutely no shame in fixing prior errors done by scientist in pre-history. But, since it is a generality that truth doesn't make space for profitable financial allocation and speculation base on this rare financial commodity known as truth is a gem, everybody pretends to be affiliated with, claims' it as best friend, brothers in arms, swears to die by it, and some even call themselves such, yet no one would bet a dime on it since is commercially dead - ironically, everybody would claim to have it. Truth and lies. Lies, however, is a popular commodity introduced into public offering roughly about the same time the truth was introduced but maintains the populous in a deep and stagnated trance. Politically, lies seem to work faster for its own purpose. Hitler said:" The bigger the lie the more people will believe it." That phrace imbued in the mind of a very frustrated man, accomplished so many good things for Germany at the cost of so many innocent lives. In Genesis, Elohim on Adam: " Behold, I have given you everything which is upon the face of the earth...subdue it," and " have dominion" over all. I doubted very dearly that this is a "God" teaching his son about love; as religion would want us to believe. Perhaps, the cipher for the scripture is not in the general perception indoctrinated by the hierophants but in the empirical analysis of its literary construction, the traces of their origin by means of Linguistics, Archeology, Paleontology and other sciences that can corroborate to factual information not myth, and in the careful juxtaposition of other sacred scriptures' not in the mere verisimilitude of scriptures but underneath that shadowing veil. In terms of place, objects, and man, there can be traces from the pre-cuneiform scripts of Sumeria, Chaldean, the Akkadians's progenitors and Aryan instructors of the former. It is strongly contested that the Akkad tribes of Chaldia, Babylonia, and Assyria were in any way cognate with the Brahmans, of Hindustand; but there are more proofs in favor of this opinion than otherwise. the problem or the advantage, " for others," has been that, the scintilla of evidence from the sacred scribes is not enough to fill in the missing enigma left in a long chain of these texts usurped by " divine governments and religious oligarchies." On another note, if we follow the passage of the Ta biblia la hagia Septuagint; this Greek version of the Old Testament, including the apocrypha, was made for Greek speaking Jews in Egypt, in the 3rd and 4th century. So, with these small glimpses we find hints of etymological findings imbued in the texts that serves us as a point of reference to get an accurate and systematic venue to determine an approximate period down to its origins. Lets start with the first book of the Bible, Genesis, the famous " Garden of Eden." First, the location is not myth at all. " Eden, or the Hebrew Gan-Eden, meaning the park or the Garden of Eden, is an archaic name of the country watered by the Euphrates and its many tributaries, from Asia, Armena to the Erythraian Sea. In the Chaldean Book of Numbers, its location is designated in numerals, and in the cipher Rosicrucian manuscript, left by Count St. Germain is fully described in detail. In the Assyrian tablets it is rendered as gan-dunyas. " Behold," say Elohim of Genesis, " the man is becoming as one of us" the Elohim may be accepted in one sense for Gods or powers, and taken in another one for the Aleim, or priest; the hyrophants initiated into the good and the evil of this world; for there was a college of priest called the Aliem. Instead of becoming a neophyte, and gradually obtaining his esoteric knowledge through a regular initiation, an Adam, or man, uses his faculties of intuition, and prompted by the serpent, woman and Matter, tastes of the tree of knowledge the esoteric or secret doctrine unlawfully. The priest of Hercules, or melkarth, the " Lord " of Eden, all wore coats of skin." The Text says: " And Java Aleim, made for Adam and his wife "Chitonuth." The first Hebrew word, chitun, is the Greek, chiton. It becomes Slavonic word by adoption from the Bible, and means coat, an upper garment. Though containing the same substratum of esoteric truth as every early cosmogony, the Hebrew Scripture wears on its face the marks of its double origin. Its Genesis is purely reminiscence of the Babylonian captivity.
In conclusion, to have an accurate view of events as detailed as the demands and rigor that the scientific community expects, is unrealistic. And realistically, never have been met! One cannot progress on such choke-hold, submit to so much unnatural requirements and expect oxygen to come out. To admit to a set of scientific rules made of political and moral laws, is an obstacle in the growth of science and jeopardizes the future of new technology. The road of science, more and more, if no solution is attained in the community, will make science more irrational and unadaptable to newer and faster discoveries. For example, the ongoing problem with the politics of archeology. In this case lets talk about the accuracy of [time], the age of the Sphix in Giza has been a topic of debate for decades. All rooted because the date on the Bible happens to match the date scientists found through radioisotope carbon - 14. There are many reason why carbon dating is inaccurate that I can mention here but is long and complicated, the main reason is that, for carbon-14 dating to be accurate, the concentrations of carbon-14 and carbon-12 must have remained constant in the atmosphere and that is an impossibility. Nonetheless, the Egyptians according by the glyphs found in the pyramids on Giza and given all the data gathered, and according to the possition of the stars, their time seems that it is correct. They time it thirty eight thousand years ante christum. Also, given new erosion test by john Antony West and his team of scientists whom corroborated aproximately to the date calculated from the walls in the pyramids. And lets face it, Egypt is the first semblance of a super advance civilization and no matter how hard it is for us to admitted, their technology in every sense of the word was greatly superior and way far in advance than ours. My question is, giving the inacuracies and gaps from antiquity, in its timely chronoly certified by our so called archeologists, what is to stop different factions of scientific groups, scholastic communities, and other NPOs to fill in the immense gaps left by history and close the windows of truth in the name of interest and power?
Unfortunately, in this case, the handle of power does not lie in the hand of truth.

THE BEGINNING

A Civilization That Never has Been Decoded or Understood

Egypt has been the fascination of a myriad of philosophers, scholars, conquerors, scientist , and mathematicians as long as we can remember perlustrading in history. All scholars that have had the opportunity to admire the depth of its mysteries, can only be perplex at the majesty of its craftsmanship, the grandeur of its size, and the tergiversation and complexity of its polyhedral geometry. Most archeologist who have dedicated their life to the study - solely - of the great pyramids of Giza, situated on the Giza plateau, near modern day Cairo, on the West bank of the Nile, have succumbed in their search for the simple truth and in a sense had turned to amorphous conclusions that to put it mildly lack credibility on part of the community of archeologists, the theological societies, " the scientific community," and the populous. It seems that the leisure of big offices and secure tenure has turned into a deep, historic  decline of the truth, crippling the most important tool that we have in the scientific field - investigation. This can also be majestically, a degradation of fact through the means of scientific proof, mutating the shapeless, odorless, collorless and unemotional  principle of truth with a quasi-verisimilitude version of it, nullifying the cardinal parallel theories from, passionate and dedicated scientist and ancient adepts, who have shown us, over and over, with countless evidence presented right before our eyes, the truth in a factual form but unfortunately had been rained constantly, with showers of contradiction and disparity by a few in power, who's purpose is not truth but personal gratification. And this evidence could be the Ficinu's "materia prima" of truth needed to ascertain an insight to a completley unknown civilization with a higher knowledge and technical superiority than our modern counterparts. The answer to how and when humanity, as a superior technological society, laid its first steps is an imperative piece of discovery because once we find the incontrovertible evidence, our answer should be one of humility and of serious investigation of how these knowledges were attained. In addition, a new direction in our evolving consciousness and the future molding vehicle of our latter future,depends in our ability to digest responsability. However, sitting on the throne of egosentric philosophies that trail as long as caravans in old tradition base purely in mythic tales with no scientific or impirical substance, can be concider coercive for the growth of science or similar entity (ies) who's porpuse is the persuit of truth. Why, something so destructive 'as the ignorance and gasconade - of man in power', as well as their affinity to ensconce recondite truths -so obvious!... and intently denied them in public, making a mockery of scientific principle and most importantly, keep them from the people, whom after all deserve it, isn't this concider a crime? why is this so different, if not worst? Perhaps we've submitted to much of our trust and surrender our complete responsability to a few " intelligent experts"instead of taking back that reponsability and start doing the thinking ourselfs. Ever since I can remember there has been documentaries, periodicals, magazines, articles, and books, about how the misteries of the construction of the pyramids were solved but at the end of the documentary,  I left more confused than when I started to watch it. Despite the large scad of brilliant minds, experts, and scientist with multiple doctorates that have given "their life" in the pursuit of finding at least some iota of truth behind the building, craftmanship, and the level of knowledge required just to imagine any endeavor the ancients achieved, the results of centuries of discovery about this civilization have been happily pensive. 

On another note, historical records indicate that everything that the greeks and the romans knew in the arts of science, medicine and word, was attributed to the anciant Egiptians. But thanks to the conflagration and the total loss of the written memorials of the secret knowledge of the remotest antiquity of the library of Alexandria and to the Ginus of the glorified Alexander the Great, we shall never know the facts of what was written in those

papyruses. In Numa's books, described by Livy, consisting of tritises upon natural philosophy, were found in his tomb, but they were not allowed to be made known, lest they should reveal the most secret mysteries of the state religion. The senate and the tribune of the people determined that the books themselves should be burned, which was done in public. History repetes itself: knowledge, wisdom, and truth, are very powerful allies being constantly a threat to power and a pestering occlusion of personal interests. So any shread of evidence must be destroyed, because God knows, if the people knew the truth, those in power would perished instantly. Lets not go back that far in time, in May 10, 1933 - An event unseen since the middle ages occurs as German students formerly regarded the finest in the world, gather in Berlin and other German cities to burn books with " unGerman" ideas. Books by Freud, Einstein, Thomas Mann, Jack London, H.G. Wells and many others go off on the blistering flames while the populous does the Nazi salute. I'll quote the Nazy propaganda Minister Joseph Goebbels, as he gives a speech to the students, stating... " ... The era of extreme Jewish intellectualism is now at an end. The breakthrough of the German revolution has again clear the German path... The future German man will be not just a man of books, but a man of character. it is to this end that we want to educate you. As a young person, to already have the courage to face the pitiless glare, to overcome the fear of death, to regain respect for death - this is the task of this young generation. And thus you do well in this midnight hour to commit to the flames of evil spirits of the past. This is a strong, great and symbolic deed - a deed which should document the following for the world to know - Here the intellectual foundation of the November (Democratic) Republic is sinking to the ground but from this wreckage the phoenix of a new spirit will rise..." The speech went on and on with the accompanied of the national anthem and singing of Nazy songs. I hope people see the overt parallel of these two events and see the truth of these apocryphal posters destined to distort and destroy the very substance of which true knowledge and wisdom is made. The German-Jewish poet, Heinrich Heine, had stated, " Where books are burned, human beings are destined to be burned," however, revenge isn't going to aliviate or better yet, evolve our spirits to a better state specially if it is motivated by pure animus. The only way is to dig the truth from that burial place that it has been hidden for so long and show it without fear of death under any kind of absolute despotism. one have to be very persistent and diligent to find the little pieces missing to finish the pussle called truth. 

However, finding the little pieces with hard and diligent work, is the start of a true seeker for knowledge and wisdom. For example, regarding one of the missing pussles, in how the pyramids were build, Sir. William Mathew Flinders Petrie has been one in a few scientists, within the deep sea of endless "true seekers,"  that with suffcient dountlessness and élan to confront the world with the machinig on Giza, made remarkable discoveries, specially in the Egyptian's technology to build the pyramids. Pitrie's discovery have contributed immensely to hard facts regarding the level of technology the ancient Egyptians possessed, which contradicts all axioms purported by the archeological community, i.e.; that the pyramids were build with coper chisels and the igneous rocks were digged and subtracted from the quarry, five hundred miles from the Giza plateau, with a hundred thousand man pulling a rope.  The british archeologist in his book," The Pyramids and Temples of Giza," makes very accurate findings of the level of sophistication, engineering, craftsmanship, and design of the pyramids. Petrie pinpoints accurately, that the tools allege by the egyptologist, were insufficient. One particular observation on the Coffers: it shows indisputable marks prior to being cut, just as our modern techniques are employ by engineers to minimize error - these Egyptians were utilizing the same techniques thousand of years ago - using them as guidelines to avoid any possible error committed by the masons. Another observation was the saw marks left in the granite stones after being sliced. They are unmistakeble signals of machine saw; not only machining but specialized techniques applied to machines that leave certain trails that are incredibly similar to concave, convex and special radii, which was done without splintering the material; what's more, straight saw, and even lathes, have been recognized by Petrie. Today these marks would reflect either the difference in aggregate dimension of a wire saw, with abrazive, or side-to-side movement of the wire, or the wheel that drives the wire: the result of either of these conditions is a series of slight grooves . It is interesting to learn in Petrie's book that the feet rate and either the distance between the variation in length of the saw or the diameter of the  wheels determine the distance between the grooves, which measure approximately 0.0050 inch inside the coffer of the King's chamber. Outside the pyramids are the tubular drillings, also very interesting, because they are the most outstanding and conclusive piece of evidence yet presented to indicate the level of knowledge and superior technology prior or at least in that particular epoch in history. The reason is very peculiar because it pertains to a modern specialized technique called Trepanning, which is left indubitably in the stone. The technique leaves a central core and is an efficient way of hole making and it was evident in the core cast left aside by the masons who oviously had done the technique. " There was a spiraling groove on a core taken out of a hole drilled into a piece of granite which sank 0.100 inch in the circumference of 6 inch, or 1 in 60, a rate of ploughing out the quartz and feltspar," which is astonishing, says Petrie. By Petrie's calculation on the 90 inch grooves left imprinted on the igneous rock cut by the granite jeweled tipped, the approximation of the diameter of the saw was 9 feet - that is astonishing - in modern day machining a 9 feet in diameter saw is unheard-off. 

In conclusion, despite the assumption made by the archeological community regarding, first and foremost, the age of the pyramids, secondly, the building of the pyramids from which can be observed from the moon, the purpose of the King's chamber, and all the perplexing questions that need serious scientific answers -  one thing is clear and that is: the conclusions surmized by the community of archeologist are insufficient and poorly structured in comparison to the required protocol needed to satisfied the hard demands of the scientific method. Thanks to the true and genuine scientific minds, diligent investigators, and tireless spirits like: John Anthony West, Christopher Dunn and Stephen Maher,  just to mention the few unheard-off from the popular wordly recognized " science tally," this tiny number of scientist have a broader point of view rather than the myopic standard brought upon us by the " experts." So, to surmised the process, from this particular discovery alone, the level of technology is far superior to our modern mining and machining capabilities. As a result, the innumerous and ridiculous axioms of traditional theories portrayed by Egyptologists, are contradicted and nullified, just with the monumental works of Petrie's alone. I feel that it is my duty to mention one discovery in particular that would be discussed latter, in depth, on the next article and, if, in the future new technology - rises- to be able to solidify additional proof regarding this discovery, the history of the Egyptian civilization would have to be re-written, the discovery I'm refering is the Giza Power Plant. It is an energy devised, discovered by British Engineer, Christopher Dunn in the 90's and of course dismissed by the community of archeology because it did not adhere to their traditional tenet. However, just reading the few incredible findings of superior technology of the Egyptian and given that the scientific community does not even merit the Egyptians with the discovery of the wheel, I must content that the reasons why a culture, that is so well studied for their monumental marvels and to this day - it is not known or understood - it is incomprehensible that so much effort, study and funding, is needed to keep nurturing the further investigation of a  civilization that by the standards of the community of archeologist is completely understood. I say that recapitulating the amount of investigative work surmount, known or unknown, inside or outside the scientific community, it is a contradiction in terms with the evidence unfolded publicly or behind doors and a slap in the face for the people who need to know the truth of the beginning of this -obviously - highly-intellectual and supreme technological society. But unfortunately, interest and self-preservation of power is more important than truth, scientific principle and logic. How many profound discoveries have been done by brilliant minds for the true benefit of humanity and perished when confronted by the interest inherent to power. To investigate in further detail the works of Petrie and Christopher Dunn, search their works mention above or click on the links on this blog.

ORIGINS: Preface

The work now submitted for public judgement is a work-in-progress investigation of the oldest text available from antiquity to the present. Works that have been band from the public eye to conceled the true identity of our divine human state. The work here is first presented in chronological order, more specifically, in a succession of articles from the Pre-Chaldean Civilization in Egypt to The Modern Civilizations of our Time. The investigation will begin with the city of kimit, where the oldest trace of highest intelligent civilization was found, timed by their people, as far as

Luxor Temple, Egypt

 thirty eight thousand years, Ante Christum, according to the recorded glyphs inside the halls of the pyramid of Cheops. Also, introductory articles from well-credited scientist, philosophers, theosophists and historians from across the earth, to substantiate many incredible accounts of ancient adepts whom possessed technology way ahead of their time. This small piece of historic renaissance is an attempt to wake the wisdom of the ancients and confront it, to the arrogance and ignorance of the scientific and religious community that constantly undermines and demeans knowledge of the old. The demonstration that the superior knowledge transcended throughout time yet unfortunately proceeded unto a steady decline because its great threat to power is an understatement. the work is meant to do justice for the lies and hyperboles spread by interest groups whom solely desire is, to extinguish the truth laid before us and evidently corroborate for their ineptness, vagrancies, arrogance and unwillingness to pursue their oath as scientist. the unforeseeable crime throughout history has been the exaggerations and concealment of written documents and, in present times, the mishandling of integral information. This is incomprehensible and unfathomable in the eyes of history, yet few powerful personages disregard its true origin as charlatany.

This articles is prologue to a future work and are written in the upmost sincerity and explore unprejudiced to any cult, religion, branch of science, social incumbent or any other institution (s) from here to the end of the universe. As Theosophist, H.P. Blavatsky, puts it "... shows neither mercy for enthroned error, nor reverence for usurped authority. It demands for a spoliated past, that credit for its achievements which has been to long withheld. It calls for a restitution of borrowed robes and the vindication of calumniated but glorious reputations."This statement and thousands alike by man of greater acumen from the old, is a vindication that finally the veil of truth that for so long a period has been clouted, is transcending into lucidity. The phases of the evolution of man should be evidence enough, that the mind's growth from the Stone Age to our Present Time , has been of great significance, as to suggest that its future development is beyond measure and and it's uncertain of the practical capabilities so much as in the physical or the mental plain and to have it summarized and understood by simple believes and traditions - totally disregarding the wisdom of our ancient Forefathers whom today  we venerate, study and lift monuments in their name. In the words of our beloved Festus, that the human heart has not yet fully uttered itself, and that we have never attained or understood the full might of its powers.

It is only by: researching the penetralia of sanctuaries, the obduration of scientific and verified data, and the complete destitution of assize, cannons, summons and codes, that act as intermidiaries in the unfortunate business of truth; which blocks it and discomfits it , that the disentanglement of old tradition will commence and true justice and consciousness will overtake. And until we are able to extricate from the emotional kindred of religious doctrine, we will never ascertain a viable and trustworthy source - it will always be corrupted - nature should be, purely, the only meditator in this pursuit. There is always a colossal hazard in the belief of doctrine or religion. It removes self-reliance and self-responsibility, therefore, carrying to another individual. And this anomalous and unnatural. *It is like the old believe that stillness is the present reality of being. When this axiom was still was credible by the Scientific Community and Sectarian Powers, already Heraclitus had demystified it, 530 years, Ante Christum. " ... all things carried with them their opposites, that death was potential in life, that being and not-being were part of every whole: therefore, the only possible real state was the transitional one of, becoming," he said. Evidently, all things positive and all things negative are creating a perpetual motion, in creation, therefore, life is: but the appearance of stillness is a remanent in the physical plane but truthfully an aeonian cycle in the fine matter world - even though we cannot perceive it with the naked eye. And it is not that this notion comes, plainly, from the great minds of the West, therefore, " we should accept it at face value, " but instead, we should investigate further and come to the realization that this and all the knowledge of the universe (s) lies, in nature. because that is where all the great discoveries off all time have been drawn from.  One of the great stone-blocks stifling the air of human kind has been the disbursement of false information or disinformation throughout time, for any reason or every reason: reasons of powers, inherent interest to governmental entities, self-exaltation, unsound reasoning, the egotistic and solipsistic nature of man and its self created beliefs, but mainly, ignorance. As Max Heindle would address it, " Another adopts an attitude of skepticism as soon as he discovers that it contains something which he has not previously read, heard, or originated in his own thought. he probably resent as extremely unjustified the accusation that his mental attitude is the acme of self-satisfaction and intolerance; such is nevertheless the case; and thus, he shuts his mind to any truth which may be possibly hidden in that which he off-hand rejects... both these classes stand in their own light. " Set"ideas render them impervious to rays of truth. "a little child" is the very opposite of his elders in that respect. it is not imbued with an overwhelming sense of superior knowledge, nor does it feel compelled to look wise or to hide its nescience of any subject by a smile or sneer. it is frankly ignorant, unfettered by preconceived opinions and therefore eminently teachable. It takes everything with that beautiful attitude of trust that we have designated " child-like faith," wherein there is not the shadow of a doubt. There the child holds the teaching it receives until proven or disproven."

In our research through the vast documentation pertaining to the stories, of these remarkable human beings whom had attain the power of spiritual forces through  as simple a means, as meditation and fasting, we find and incredible inside to the building blocks of the universe and life. With patience and fervent eyes we've lend to scientific text in the hope to finally decode the perplexing dilemma of " De Prinsipiis Naturae," or " Materia Prima," the source of the building blocks of the universe and life. The empirical evidence has been there in our faces - it always has been. But the burden to submit to a long, lost myth or fable told by antiquity, in a secluded jungle in India, is far greater and it is not sufficient proof to merit exploration, investigation or a mere, fleeting look. It is always the fear of loosing credibility and sometimes  shameful accusation by the very scientist whom considered you ' colleagues ' that end up destroying the truth. In lieu of uniting the fundamental ideas implemented by the sages of history; whom unfortunately ideas we've considered coarse and that would only work in their time; rather we should embrace those ideas  and instead of coming with purged-in-the- moment hypothesis; at least give it the appropriate time to investigate further, and maybe will find that those ideas are the founding answers to the most asked questions in history and that it could mean the coming of a new indoctrinated consciousness, free of materialistic interest and full of naturalistic ideas. So many teachers whom have past the roads of hardship and have left the wonderful remains of marvelous and unparalleled wisdom and still have not been implemented because fear of derision or unpopular beliefs. We most not let the idea of greatness usurp the truth from our labor, for it ends always in misconstrued and self-propelled truth, distorted for our own benefits.

In the early 20th century, scientist and philosophers focus on two axiomatic principles of the time: that nothing is explicable except in terms of its history and that value is independent of history. However, Professor Cohen, refuted these principles as old and in terms of its lineage - was antagonistic, even though appear to dwell together. in conclusion there are many ways to search for truth and the best tool to look, is observation. Any other means always result in ambiguity or disparity. A trial and error method is what it always has worked in any field and is solely the unique tool nature uses to create and evolve. So like the unequivocal tools of nature we most imitate and mimic the true master as many old sages and artist have done in antiquity to perfect and evolved the teenaged mind.

  

THE WORLD FINANCIAL CRISIS UNVEILED

NEW YORK-- The business of creating new finance vehicles like derivatives and structured products has exploded in recent years. At a recent financial conference, there remained a mostly rosy view of such instruments, because their ability to help businesses and investors spread out risk. Lets go back in time and pined down where the accumulated problems began:

                 Kevin Lamarque

Stocks fell sharply Monday as investors try to digest the turmoil on wallstreet.

first, 2001- the explosion of the Internet bubble. Second, 2005-2007, the Federal Reserve lower interest rates from 6.5 to 1 percent. Now, keep in mind that with such low interest rates on mortgages, it is all the market needs to fuel " the boom," in the Real State Market. In ten years, the real price of homes has double in the United States of America. These problems created the beginning of a financially unfounded market. The " American Dream," a dream that curtails the accessibility for small investor, to purchase a second or a third home at significantly lower interest rate would seem to most an unreachable goal and to most North Americans is a blessed dream  and to a few, is the ideal business deal.  Contrastingly, to a banker represents a complex dilemma of rentability, because it doesn't matter how many loans it executes, its income average for selling a low interest rate is, lower. Before this particular paradox, multiple bankers came to the same realization. Then a light bulb went on. they ask themselves, ' lets give more loans with higher risk at a higher interest rate  and, compensate the low margin with an augmented number of operations,' ( thousand loans times less is better than hundred times less) in terms of the first idea (give high-risk credit), bankers decided: to give mortgages to a new type of clients called " The NINJ," the acronym refers in the banking lexicon to clients with no jobs, assets, and income. Yes! people without fix income, unemployed, and no real guarantees. The ingenious plan was to charge the NINJ, with more interest, as precondition, for a high risk loan. what's more, the bankers said,' why not, also take advantage of the Real Sate "boom", ' and use it as security. Even further, they decided to concede mortgage loans at a higher value than the property of the NINJ bought. Which according to the foreseeable Real State Market, the house would be worth twice as much than the amount of the loan . And the economy soaring onto new frontiers brushing away any worries in risk volatility , erased dubt of client non-performance. So if the NINJ lost his job, he'll have no problem finding a new one and timely could pay his debt along the way. It seems that theoretically their plan was full proof.

Lets look at the different types of loans: the Prime Mortgages are those loans with low risk and Subprimes are those with higher risk (or no payment possibilities). In summary, Prime burrowers steered into higher rate loans paying additional interest payments ranging from $ 17,0000 to $43,000 per $100,000 borrowed over the scheduled life of the loan. It doesn't take long for the disparity to become significant: at the four year mark, a time period chosen to reflect average loan life, the difference in costs is a stark: $5,000.

Subprime mortgages are no longer a niche in the market; they have become a significant share of all new mortgages made in North America, making well over 20 percent of all the home loans originated in 2006 and currently representing $1.2 trillion of mortgages currently outstanding. Six million of these are outstanding. eighty percent of 2006 subprime loans were so called 2/28 mortgages, otherwise known as " exploding ARMs", whose interest rates are set to increase from 8%-9%-12% and 13% immediately after the second year, even with interest rates in the economy remaining constant. Even with the recent modest cut in interest rates, subprime borrowers will face a 40% or greater increases in their monthly mortgage payments  once their initial " teaser" rates expire and their fixed interest rates reset into higher-rate variable rates. Similarly, more problematic were the Piggyback Seconds: the most intractable problem is the fact that a third to a of 2006 subprime borrowers took out piggyback seconds mortgages on their home at the same time as they tool out their first mortgage.  Nevertheless, the holder of the second mortgage has no incentive to provide modifications that would free up borrower resources to make payments on the second mortgage. notwithstanding, the holder of the second mortgage has no incentive to support an effective modification, which would likely cause it to face a 100% loss. The holder of the second is better of waiting to see if a borrower can make a few payments before foreclosure. Beyond the inherent economic conflict, dealing with two servicers is a negotiating challenge that most borrowers cannot surmount. 

But the global financial turmoil -- set off by problems with subprime mortgages -- has prompted a backlash in some quarters against such financial engineering. This complete groups of financial planing and integration of particularily high-risk instruments walked fine for a few years like any other seemingly stable foundation would hold. Remember, that all this time, the NINJ's were paying their monthly payments, confident that the price of their homes were going to double. So they proceeded more confidently to buy new cars, made renovation to their home, and took expensive vacations to Europ and the Middle East.

In retrospect to the compensation of lower margin by multiplying the number of operations, since banks started noticing that their funds were depleting, as a consequence of the numerous amounts of simultaneous loans, the solution presents itself in the form of approaching their fellow dumb friends: foreign banks. I mean what's globalization for, right?! Not to beat the globalization cliche to death but globalization has its pros and cons as the reader will experience. It is imperative that the reader pays close attention to this apologue to better understand the number of echelons  that needed to be accomplished from the borrower of instruments to the Investment Banks and/or entities. " A taxi driver named, Charles, deposits in the... Investment Bank of London, his modest monthly savings early in the mourning. The same day in the afternoon, Charles' money can be in Illinois, because there is a bank there which has lend his money to a NINJ. Of course, the poor NINJ from Illinois doesn't know that his money is coming from London and let alone that, that [is] his money deposited in a credible and responsible banking institution. Probably, not even the Bank Manager from the branch Charles opened his account is, aware of the situation. At the most, the Branch Manager only has a vague idea that the money of his clients, is being invested  at some important bank in the United States." I think up to here there is a somewhat clear view of the scenario and any person without extensive financial background can assimilate the small apologue.  However the reader probably suspects that there have being some shift in etiquette by the investment firms.

"The Investment Bank of London has no clue of the inherent risks that it's assuming by the Investment Bank of Illinois, in the US. Until, one day the Branch manager while zipping tea comes across a headline in the local newspaper, disbursing scandalous claims that, ' the US is handing out subprime loans. The poor manager ponders loud inside his head, 'this Americans are crazy'!"

The reader is probably thinking,' don't this guys follow rules, or contract laws that impede them from negligence handling their client's money? well there is, but, the norm or mandate is applied in reference only to the balances of the bank's active and passive accounts. So, if the bank is asking for loans to other banks and are given large amounts of credit, the percentage of their capital actives are declining and automatically is disqualified to adhere in any way to The Norm of Basilea.   for example: Active (liquid, given credit, total x millions) and Passive ( money loaned, capital and reserves, x millions). The Norm of Basilea demands that the banks' capital isn't inferior to a determined percentage of the active. Another brilliant idea has occurred to our bankers: It popped to their heads the advantages of Regurarization of Property: it gives The Investment Bank of Illinois the ability to " package" the loans in -- subprime and prime packages called MBS ( Mortgage Backed Securities), in other words obligation guaranteed mortgages. In summary, were the bank used to have 1000 mortgages loose inside the " credit account given" now has 10 bundles of 100 mortgages each, in which, there will be a good mixture of the two: good ( prime) and bad ( subprime) loans. Logically, like any financial institution, they need to find a way out to sell those bundles. Now, the question the reader should be asking is, ' where does the money go for those bundles?' It goes to the Active, the "banks liquid," which multiply many folds, inversely proportionate to " The Lending Credit Accounts", in which the proportion of capital/credit given, balances-out better and the bank seemingly adheres to The Norm of Basilea. The second question the reader should be asking is, who buys the packages so that the Investment Bank of Illinois, " betters" its balance immediately? The answer is simple. The Investment Bank of Illinois creates filial entities called, " Conduits", there not societies but trust, and as a result they don't need or have the [obligation] to consolidate its balances with the Matrix Bank.  To put it simply, it appears  in the market as two types of entities: The Illinois Investment Bank (with a clean face) and The Chicago Trust Corporation (or whatever name they want to call it), with the following balance: Active (10 bundles mortgage capital) and Passive (what it paid for the bundles).

If any person that worked at the banks from the General Manager to the financial Analyst knew something about it, they would probably feel disappointed. But since they don't, all of them  spend most of the time congratulating each other on their weekly and monthly televised conferences and talk shows with absolutely, no idea of what's going on. third question the reader should be asking is, how the " conduits" get financed? in other words, where do they get the money to buy from the Investment Bank of Illinois those mortgage bundles? From different entities: through credits from other banks and hiring the services of investment banks who can sell the MBS's to, high risk investments Funds, hedge Funds, Insurance Co, Family Trust, etc.

By now the reader can have a well round view of the snow effect and the beginnings of very complex instrument management.  But, more important, is the risk spread passed to the average consumer. However, the phase that the consumer sees, is the increasing profits and lavished broker expenses and media boost. The other phase is the small picture or invented financial structure presented here.  So, any person can be mesmerized by financial promoters and invest their money in US market. 

To be "financially correct", Conduits or MBS's had to astringently qualified by the rating agencies. That is why, foreign politician and regulators are seeking a role in the oversight of  American markets, banks and rating agencies. These rating agencies qualify for function of solvency and liquidity, etc. This qualification read like a school report card: ' this x institution, this state, or this organization can be trusted to lend money without risk." Contrastingly, "be aware of this x institution, state, or this organization, because you might not get your money back."

The rating agencies are cataloged in different levels: AAA ( highest), AA, A, BB, C and D (they are really bad), large banks have a rating of  AA, a medium bank a rating of A.

Rating agencies were supposed to qualify the conduits ( Investment Funds, Trust Funds, etc) and the emissions of the MBS ( Mortgage Backed Securities) with this levels but instead they would give them more sophisticated names to cloud the reality of this bundles. However, the bottom line was that the instrument said the same thing " they were financial crap." This is how investment grade is categorized: to the MBS which represented Prime Mortgages or the less risky ones ( AAA, AA and A), mezzanine, to the intermediate ( BBB and maybe BB), Equity, to high-risk investments, in other words, the subprimes, the ones less likely to pay (the really bad ones and the protagonist of these menageries of fragile and unfounded instruments of this crisis). investments banks put the dirt underneath the rug and distributed  the better bundles or MBS (investment grade) to Conservative investors, obviously at a low interest rate. Other hedge fund managers, higher risk funds, etc., and even more aggressive entities preferred higher rentability or simply-- more risk. The reason being that "traders," managers and directors get their annual revenues in function of obtained rentability. However, we got now the MBS's left-- which are far from bad. The question is, how can they sell these backed securities with such a high rate of risk without anybody noticing? 

well, some of the investment banks were able to get re-qualification from the rating agencies (this is something unheard off in the financial sector) but this will serve to understand a little bit in the coming events. The "re-rating" is an invention to spike the bad MBS's, which consist of, structuralizing them in shelves. The technical term is called, "Tranches." Within the tranches are subdivision given in the financial sector: the  relative good, the regular and the really bad. There is a contractual obligation which defines the payment of those securities, and it goes as follows: " I agree to this contract that if no one pays the bad Tranche or if incurs on default, excluding only if i get revenue from the " regular tranche," and even more from the relative "good tranche," the gains will be cover by the "relative good tranche," in which can be qualified as a AAA rating. Ta-ra!! 

Some specialist start calling this ' financial magic.' In the public eye this is just another mask of new financial genius and easy money. For clients like Charles, this MBS, ordered in tranches was re-baptized CDO (collateralized Debt Obligation). They could off giving it a more exotic name.

 Apparently, despite all the efforts done by the investors, to maximize gains, were not sufficient. so they invent another instrument called CDS (credit default swap). In this case the buyer of CDO's, assumes the risk of losing the CDO that he bought, but if lucky, he would get a higher yield. In other words, the buyer says: " if it fails i loose and if I don't, I charge more interest." Continuing this financial revolution, the creators of this renascence of financial apogee created yet another type of instrument: the synthetic CDO. Most financial analyst and economist are -- still -- trying to decipher them, nonetheless the rentability presented by this instrument were unparalleled-- we are taking about serious gains.  Moreover, those who bought the synthetic CDO's could buy them cheep and with low bank credit. Imagine that the rentability of this high  instruments was such, that attracted long and prosperous companies, with long and impeccable track records. Specially insurance companies that were drooling at the idea of protecting very expensive instruments. Welcome to the party of AIG!!!!!

Please lets stop for a moment and reflect. before I keep rambling all this complex fusion of mathematical and financial jargon, and banking plots and conspiracies, I would like to remind the reader off one thing that might of been forgot on this financial triathlon. That is the fact that all this scenarios I've described is strictly based on the idea that the NINJ will pay their mortgage and that the American Real State Market will keep hovering nice and smoothly. At the beginning of 2007 the price of Real State Began its steady and inevitably decline. Most the NINJ pockets were getting hurt and like gravity, those who had a second and a third home found themselves paying more than the house was actually worth. Logically this people would have to stop paying these mortgages. 

similarly, no one wanted to buy MBS, CDO, CDS, and synthetic CDO's-- and the ones who had them, couldn't sell them. " One day the Branch Manager of the Bank of London called poor Charles to tell him the horrendous news that the money he've saved and invested so vigorously had disappeared."  To put it mildly, in the best of cases their clients had lost 60% of the value of the investment. Now the story broke and every body was trying to explain to Charles about the NINJ cases, about his money in the Bank of Illinois, Chicago Trust Corporation, the CDO, CDS and the synthetic CDO's!!!!!!

Notwithstanding, there is something that no one knows yet: where in hell did all this money go?!! There is a very good reason why this question does not have a definitive answer. Plainly, no one knows where it is. And when I say no one I mean no one. However the situation goes beyond, and since no one nor them knows the amount of crap inside those instruments, (investments banks included) behind back doors every single bank point fingers at each other looking for the villains. The banks won't even look at each other in the face. Although they don't trust each other they need liquidity, so they parked at the shop where all banks visit on time of insolvency -- the Interbank. The institution lends money to other banks or it doesn't or if it does requires the highest interest rate in the world. This interest rate at which they lend is called Euribor (Europe Interbak Offer Rate). Being in a pure state of insolvency, the consequences are: the non-approval of loans and mortgages. Most of what the client can do, is stare at the TV and look at the institution's stock plommeted in hopless stupor. Yet, always there is a benefiting side in the financial side of the coin. Now that the US economy is on the crapper, is the best time to stick it to them.  the Central Bank of Europe porpusely starts rasing their interes rates with the Euribor at 12 months, which is the index of reference of the mortgages, sky rocketting it to an all time high. In Spain, doesn't it look suspicious that mayor banks are turning astronomical profits dispite the global receding economy?!

 Another question that comes to mind is, how are banks broke? Easy. They start selling their stock to enterprices, selling their buildings and make campains so that people like Charles, invest more at better conditions. In Europe banks are offering their clients 4.5%. Incredible right. The ripple effects are felt everywhere and the places that it doesn't -- you can bet something very suspicious is happening. As a result, families in Europe feel daily living constraints, concecuense of high intrest mortgage payments. 

Note to the reader: "please remember to read the small print in this contracts." Borrowers pull their hair back hopping that they have enough money to pay their rent at the end of the month. 

With the down of consumerism, merchant companies buy less from the manufaturers. In this example lets make the raw material: textile (underware).  the manufacturer have no idea what a NINJ is! The only detail it observes is the shortening of orders and logically, as a consequence, orders immediate employee lay-offs. In the financial market this reflects on the unemployment index or non-farm payroll, in percentages. It shows specifically the number of unemployment. Imagine the reflection in the financial maket, first is felt in the pockets of the people, near towns, cities, states and then in markets abroad. 

How long is this going to last? That is a good question with a very vacillating answer, for diferent reasons. why? Because the dimension of the problem is stil unforseable. The numbers range from 500 billion to a trillion dollars and that is an a proximation, the real number could be aproaching two trillion. Also, there is not an exact data of how many people are affected. It is not even known, if, banks, like Charles' , categoricaly rank as AA, with long historical background and existance, stil have valuables in their active accounts. The amazing thing is that, the banks them selves don't know if they have it. Until the execution of mortgages by the NINJ are not done and the foreclosure properties are not sold by the banks ( at whatever price)  we'll never know the exact value of the instruments: MBS, CDO, CDS and the synthetics. meanwhile, no one we'll lend to anybody!!

Some, have qualified this as the " grand Financial Sham." Other had said that the crash of 1929, in comparison with this, is a girl's game in the playing field of a convent for Nuns! A lot of traders perhaps have enriched themselves with the annual bonds and yearly yields all this years. But remember the young French  banker that lost 5 billion to Bank Societe Generale just a few months ago? Where did he invest those funds? How is it that his supiriors didn't noticed? Or did they?

The financial authorities have great responsability upon what has happened here. The Norms of Basilea were design specifically to control this banking system; but they have stimulated the abuse of good financial instruments such as securitization of debts to such extends as to completely obscure and complicate the market enormously-- markets in which pretended to protect. Did you know that the US Investment banks are not regulated under the Federal Reserve in any way shape or form? The directive junctures of the financial entities involved in this mess have greater responsabilities and did not act on behave of the people in this country and probably this cheep skit of theater will banished soon with nothing resolved-- like everything else that happens of importance to the populous. And to make matters worst it probably won't make it to court. " The Investment Bank of london , the bank which Charles solely trusted with the few savings he had; because their investment was maladroit and mishandled in a bad faith; the bank is ultimately responsible for leaving his client homeless."

In conclusion, the great depression was triggered when half the banks closed, the stock market plummeted by 90 percent, and the unemployment reached 25 percent. Since late 1940's, the US has suffered through 10 recessions, with the worst lasting no more than 16 months. Everyone followed by periods of prosperity. It seems that every economic meltdownboils down to two basic inverse proporcional principles: risk and trust. More broadly, it has led to a better understanding of the downside of spreading risk so well-- it can be felt in all corner of the world, unsettleing hedge funds, banks, stock markets as far away as Australia, Thailand and Germany. In effect, reducing risk on a global scale appears to have increased it for some players.  The head of the Council of Economic analysis in France has called complex securities to be scrutnized before banks are authorized to buy them. The crisis exted as far as $ 2.2 trillion on the market "rescue", financing on the day-to-day operations of businesses, as investors wonder wether the underlying assets were sound. " It's amazing how much ignorance and fear are out there," said Kevin Davis, a proffesor of finance at the University of Melboume. The principal Central Banks ( The Central Bank of europe and The Federal Reserve of the US) have injected some liquidity so that the traditional banks can operate. " Any plan that fails to stop foreclosures will ultimately fail to fix the crisis," said michael Calhoun, president of the Center of Responsability Lender. " Wall Street firms and banks caused a massive foreclosures crisis in this country, and this bailout provides no meaningful way to end it. It doesn't stop the epidemic that will continue to drag down property values for everyone. CRL estimates that the subprime foreclosures will cause 40 million homes that happen to be located nearby to lose as much as $ 352 billion in property values over the next few years. "There is nothing in the bailout that will mitigate widespread damage caused by foreclosures," he said. " the bill includes a vague provision that calls for the government to buy mortgages and securities and then try to modify them, but this will have very limited impact. Wall street splintered home loans into complex securities, making it very difficult for the government to fix the resulting scattered pieces of mortgages." It is, as if, Wall street had found the " financial magic" application to cut cocaine into crack, and feeding it to the needing class without caring about the concecuences. Effective approaches were widely available and yet ingnored in the final package-- approaches that imposed real duties on Wall Street and banks and did not cost any tax dollars. These included providing homeowner with the same rights to judicial modification of their home loan that Wall Street have for their debts, a short-term deferral of foreclosures to provide time for negociations with servicers, and requirements that the lenders at the least make an attempt to fix a loan before foreclosing. Wall Street and the banks bloked all these options, while at the same time demanding their own massive bailout. The Federal Reserve and The Department of the Tresury of the US despite the historic slide in the stock market made a $700 billion bailout package that allows the tresury to buy toxic debt from financial institution. So that they can buy mortgages, titles and other instruments--which we now know are, garbage. I would think the idea is to clean the bad wallet and the balances of the banks, investment firms and insurance companies with blemished instruments. The Home Ownership Preservation and Protection Act of  2007. This bill would help stop many abusive lending practices that led to the foreclosure crisis, including abusive prepayment penalties, yield-spread premiums (extra compensation paid to brokers that encorage them to overcharge borrowers), and lack of generally accepted underwriting practices by lenders.  Already a number of states have passed or are actively considering these types of protection to prevent more unesesary forecloseures in the future. A strong federal law would guarantee minimum protections nationwide that would help stop reckless lending practices that became communplace during the subprime heyday. I think this can be put in Latin american terms very easly: what the American government have done is nationalized the loses and privatized the gains.

The Congressional budget office report says that the market drop has erased 20% of the value of Americans' retirement accounts, wiping out an austaunding $ 2 trillion since last year. " This is a financial panic right now," said financial planner Kurt Brouwer of the San Francisco, " and one reason it feels so bad is that everything is going down."Before I finish the conclusion I just wanted to mention a resent speach by Pope Benedict-- talking about the bagavond oportunist." The Pope denounces greed", said the week," the global economic crisis should lead the nations of the world back to religion." Now, isn't this a huge contradiction? It is like avarice calling avarice, greedy. " He who builds only on visible and tangible thigs like success, career and money, builds the house of life on sand," he said. I personally like the mutated part of the sentence, in contrast of what it actually translates on the Bible. " Only God's words are solid reality" of the Catholic church. Vatican City, July 6, 2007.- here is the presentation made in the mourning on the economic report of the Holy See for 2000.  cardinal Sergio Sebastiani, president of the prefecturefor the Economic Affairs of the Holly See, made the presentation at a press conference. " Together with my closest collaborators, I have the pleasure of presenting the Consolidated financial Statement of the Holly See for the physical year 2000", said Cardinal Sergio Sabastiani, president of the Prefecture for the Economic Affairs of the Holy See, made a presentation at a press conference. " Together with my closest collaborators, I have the plesure of presenting the Consolidated Financial Statement of the Holly See for the physical year 2000", said Cardinal Sergio Sebastiani. Being a consolidated financial statement, this represent the sum of all the expenses and the income of the diverse Vatican administartions which enter into the consolidation: the Administartion of the Patrimony of the Apostolic See (APSA) which is the largest; the congregation for the Evangelization of People; the Apostolic Camera; Vatican Radio; Ossevatore Romano-- Vatican Press (incorporated into one with regard to administration); the Vatican Television Center, and the Vatican Publishing House. The Vatican's revenues exeedes the 300 billion mark and it has been for eight years consecutevely.  And these numbers are fact not hyperbole. However, whether the numbers are true and we could guranteed that those are the correct numbers is pure meiosis. 

Today, we are all paying for the negligence, avarice and bad faith of a lot of bankers, supervisors and all the politicians that refused or could't stop the avarice of a few. We now project that almost 2.2 million subprime foreclosure will occur primiraly in late 2008 through the end of 2009, up from our original 1.1 million estimate made in 2006. additionally we estimate that 40.6 million homes in neighborhoods surrounding those foreclosure will sufer price declines averaging over $ 8,667 per home and resulting in a $352 billion total decline in property values. These new projections-- representing only property value declines caused by nearby foreclosures, not other price drops associeted with the slowdown in housing markets-- are based on CRL reasearch combined with data from Mrrill Lynch, Moody's Economy.com and the Mortgage Bankers Association.

Paradox: Henrry " Hank" Paulson and Ben Bernake had asked Congress for additional powers to administrate the crisis! Would YOU trust these people??????

FAV

   

 

  

BEHIND THE CURTAIN OF CHINA'S ECONOMY

 XINJIANG-- Under the dark veil of China's economic boom: a big market bubble or a long progressive decay? Foreign investors and entrepreneurs jump at the high sky-rising "power" and everybody else is following. However, china's record economy is nothing but decrease, rampant corruption, and frantic Chinese theater and an elite with little interest to make things better. Forget reform. China's future will be decay or democracy. The only thing rising above sea level is China's speculation of economic growth. In January, The People's Republic's gross domestic product (GDP) exceeded that of Britain and France making China the world fourth largest economy. Many experts forecast that china's economy will be second to the United States by the year 2020 and surpass it by 

Chinese harvesting rise in the mountains.

2050. As a result of this many business people talk about China's being simultaneously the world's greatest manufacturer and its greatest market. Private equity firms are scouring the middle kingdom for acquisitions. Chinese Internet companies are fetching dot-com-era prices on NASDAQ. Some of the leading financial institutions, including Bank of America, 

City Bank, and HSBC, have bet millions on the country's financial future by acquiring minority stakes in China's State-Owned banks, even though many of them are technically insolvent. Every global automobile industry has opened their plant or is planning to build infrastructure, albeit there is a flooded market and plunging profit margins. Why shouldn't they jump at the bandwagon? China's past two decades has proved pessimistic wrong and not optimistic enough. however, before we start making trips to the library looking for Chinese video cassettes  and talking to our broker about purchasing newly trendy Chinese stock, lets breath for a minute. Upon detail examination, if we track the past of the Chinese market and what the Communist Party has achieved in its own right, we found ourselves not so marveled at what we find. China's economic performing since 1979 is definitely less impressive that of its East Asian neighbors, such as, Japan, south Korea, and Taiwan, during comparable times of growth. Its banking System which cost Beijing a nearly 30 percent of its annual GDP in bailouts, is saddled with non-performing loans it's the most fragile in Asia. There is a particular comparison with neighboring India that rises above all others.  In six major sectors (form autos to telecoms), from 1999 to 2003, Indian companies deliver rates of return in investments that were 80 to 200 percent higher than the Chinese counterparts. Conventional wisdom would suggest that China's reform overlooks countless flaws, that render China's market trajectory misleading, if not right down hazardous. Behind the giant headlines of Chinese rapid growth in the shadows lays thin roots of fundamental frailties in the Chinese Neo-Leninist State. Unlike Maoism, Neo-Leninist practice blends one-party rule and state control of key sectors of the economy with partial market reforms an and end of self-imposed isolation from the world economy. The Maoist States preach egalitarianism  and relied on the loyalty of workers and peasants. The Neo-Leninist State practiced elitism, which draws its power from technocrats, the military, and the police and co-opts new social elites (professionals and privet entrepreneurs) and foreign capital-- all vilified under Maoism. And unfortunately this masks of ideals changes form on its own interest when it needs to furthering Beijing's brand of authoritarian politics widening of mix of crony capitalism, rampant corruption, and spread of inequality. The dream that one day China will lose the shackles and drive itself into a liberalization of its economy and stray to political reform remains to be seen until then is doing it at such of small pace as to suggest that the Communist Party has it on the bottom of its agenda.