Over the last few years, since the now forgotten Asian tiger's demise, it has been clear that a flood of liquidity was fraudulently generated in those economies. Later events showed other countries to be in a similar bind. The banks were not simply handing out loans to those in the inner cliques of power,they actually were overdrawing their regulative reserves and increasing the money supply for private ends. What was going on was the use of massive IT fraud in corrupt financial institutions, a condition that Mr. Greenspan euphemistically termed systemic problems.

These systemic problems overseas were the result of banking systems in the hands of insider cliques within the power cupolas. One need only look at the Suharto clan to see the effect of such corruption on the Indonesian banking system. This corrupt foreign bank's reserves were monstrously overdrawn by means of fraudulent, digital deposit manufacture using IT banking systems.

Under such a scheme, bank insiders would generate fictitious on-us deposits and record the digital representations within the bank's computer systems. This was only feasible in developing nations where the bank's IT regulatory software infrastructure was poorly defined. The scheme served to build up gigantic sums of money, which was then loaned, ostensibly with real estate collateral, to those in the corrupt cupolas.

This over supply in the local currency was then monetized by means of transferring the liabilities in the captive real estate assets to foreign banks, thereby increasing the money supply in the hard currencies. Under current IMF regulations, such exchanges are transferred to the US $ by means of SDR's. This had the effect of indirectly corrupting the US Federal Reserve Bank, by allowing monetary instruments to be created in private, captive banks overseas.

The same pattern occurred in Russia, where a group of crony tycoons created their own banks and generated gigantic fraudulent deposits, which were then monetized to hard currencies by means of the stock market or foreign debentures. The ensuing devaluation was the result of excess liquidity. To this day, such IT scam-artists are enjoying the fruits of their larceny in posh resorts like Monaco. They have no need to hold up the bank, they simply deposit false digital funds into their bank's systems.

One only needs to see where the assets of these corrupt cliques are parked, to deduce their origin. In Mexico, it is a known fact that Mr. Salinas de Gortari's brother deposited $85,000,000.- a day into Swiss and American accounts. In the Bahamas, there are currently over $600,. Billion of such doubtful deposits. Some were directly generated by the IT Laundromats, others simply multiplied in the ensuing stock market speculation.

What then transpired is only now being realized by those few economists who are not beholden to of the large financial institutions, where the admission of such a problem is anathema. The excess liquidity found it's way into the US stock market, where it bred speculation in non-tangible ventures. This irrational exuberance has not abated, even though many now realize its monstrous impact on the future of the Global Economy. Greed being what it is, it will probably go on until the entire World Financial System is awash with excess US Dollar liquidity. The resulting inflation will make the Weimar Republic hyperinflation seem paltry in comparison.

This massive IT money fraud scheme cries out to be heard, as millions of poor in the world are forced into austerity programs by the IMF, in order to restore a measure of value to their raped currencies. The self defining nature of the US dollar allows the US economy the luxury of riding on this wave of falsehood, while the rest of the World must oblige and earn dollars by exporting what little they have. The jubilee 2000 proposal is truly worthy, when one realizes than it is only by writing off such fluff that sanity can be resorted to the system, before the World becomes a captive of a corrupt cybernetic tiger.

Atlanta, GA
August 7, 1998