EFTA01732915

From: Jeffrey Epstein <[email protected]> Sent: Friday, July 31, 2015 4:56 PM To: Noam Chomsky Subject: Re: insight I m back in santa fe. I hope <=div> On Fri, Jul =1, 2015 at 12:25 PM, Noam Chomsky > wrote: Hope so. It seemed to me that h=s analysis — basically repeated by Stiglitz, Krugman, and many oth=r economists — was accurate. Smart guy. You might want=to meet him — I have a few times. But don't talk to him=about UG. I suspect he doesn't know it exists.=/span> Noam From: Jeffrey E. [mailto:[email protected] Sent: Friday, July 31, 2015 5:59 AM To: Noam Chomsky > Subject: Re: insight I hope he understands more about UG and mods=C2 then he does about banking.. Noam, it seems endemic tha= people pontificating with regards finance seem to want to cut the i=testinal tract at a point of their choosing , closely examine their slice and then describe the patient. One mus= follow the money until it returns to its beginning./ =AO where he says its about the german and french banks not tak=ng a write off. yes, that is true. but why do they care? =C2 they care because the system is based on strange accounting. as all banking systems are..C2 " Assets ". are described in common parlance as thin=s you own of value.. your home ,your money, your current and s=metimes future income.. However if you are a bank , its akin to =AO alice in the mirror. -To the banks, "Assets " are loans--= yes, loans to people countries , corps etc . they value their=assets as a calculation of how much they are lent out. not how much =hey have in their bank, so when the bank lends more money, =AO its Assets go up. and then -It can lend more money as =t has more "assets." ? ( its like alice putting her hand on her =ead to measure if she is growing.) If the bank has to a=mit that it lent money to someone that now cant pay it back, that is=only required if the terms of the loan are not met only according to the spe=ificities in contract . the bank must then and only then , declare the ent=ty in default. that is the crux of the issue. most loan =ontracts state that as long as interest is paid, no default needs to be declared. so the bank merely lends the entity more money=, and it gets paid its own money back and records it as interest "??,=C2 and in yours and blythes term get to record profits. it =s a fiction, If you take money from your right pocket , pass it around and it make sure it lands in mleft left pocket and = can say you have made a profit no default needs to be declare=. and you must pay tax on your profits to the govt. all stran=e and part of your first lesson when we next meet. EFTA_R1_00006513 EFTA01732915 On Thu, Jul 30, 2015 at 11:00 PM, Noam Chomsky «= href=' target="_blank"> >=wrote: You say, I guess, Mark Blyth in Forei=n Affairs. https://www.foreignaffairs.com/articles/greece/2015- 07-07/pain-athens?cid=3DnIc-twora-20150709&sp_mid=49066558&sp_rid=Y2hvbXNreUBtaXQuZW=1S0 chttps://www.foreignaffairs.com/articles/greece/2015-07-07/pain-a=hens?cid=nlc-twofa- 201.50709&sp_mid=49066558&sp_rid=Y2hvbXNre=BtaXQuZWR1S0> . Core of the story he tells is this:</=pan> The EFSF (9] was a company the EU set=up in Luxemburg "to preserve financial stability in Europe =99s economic and monetary union" by issuing bonds to the tune of 440 b=llion euro that would generate loans to countries in trouble. So what did =hey do with that funding? They raised bonds to bail Greece's credi=ors—the banks of France and Germany mainly—via loans to Greece. Greece was thus a mere conduit for a bailout. It was not = recipient in any significant way, despite what is constantly repeated in =he media. Of the roughly 230 billion euro disbursed to Greece, it is estim=ted that only 27 billion [10] went toward keeping the Greek state running. Indeed, by 2013 Greece was running=a surplus and did not need such financing. Accordingly, 65 percent of the =oans to Greece went straight through Greece to core banks for interest pay=ents, maturing debt, and for domestic bank recapitalization demanded by the lenders. By another accounting, 90 p=rcent of the "loans to Greece" bypassed Greece entirely [1=]....So if we want to understand why the combined powers of the euro=one can't deal with a problem the size of a U.S. defense contract overrun, it's probably wise to start here and not with co=rupt Greeks [151 or Swabian housewives' (16] financial wisdom. As =ormer Bundesbank Chief Karl Otto Pohl admitted (17], the whole sheban= "was about protecting German banks, but especially the French banks, from debt write-offs."...To fix the problem, som=one in core Europe is going to have to own up to all of the above and admi= that their money wasn't given to lazy Greeks but to already-baile= bankers who, despite a face-value haircut, ended up making a profit on the deal. From: Jeffrey E. [mailto:jeevacation@gmailcom] Sent: Thursday, July 30, 2015 10:09 PM To: Noam Chomsky > Subject: insight http://www.nytimes=com/2015/07/31/business/bailout-money-goes-to-greece-only-to-flow-out- agai=.html?hp&action=click&pgtype=Homepage&module=mini-moth&a=p;region=top-stories-below&WT.nav=top- stories-below <http://www.nytimes.com/2015/07/31/busines=/bailout-money-goes-to-greece-only-to-flow-out- again.html?hp&action==lick&pgtype=Homepage&module=mini-moth&region=top-stories=below&VVT.nav=top-stories- below> please no=e The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for 2 EFTA_R1_00006514 EFTA01732916 the use of the addressee. It is the property of JEE Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to [email protected] <mailto:[email protected]> , and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved please no=e The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of JEE Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to [email protected] <[email protected]> , and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved please =ote The information contained in this communication is confiden=ial, may be attorney-client privileged, may constitute inside informati=n, and is intended only for the use of the addressee. It is the propert= of JEE Unauthorized use, disclosure or copying of this communica=ion or any part thereof is strictly prohibited and may be unlawful. If =ou have received this communication in error, please notify us immediat=ly by return e-mail or by e-mail to [email protected] <mailto:jeevacation@gmail=com> , and destroy this comm=nication and all copies thereof, including all attachments. copyright -=11 rights reserved --047d7ba9803c8ea28c051c2eb03c-- date-last-viewed 0.0 date-received 1438361739 flags 8590195713 remote-id 162121 3 EFTA_R1_00006515 EFTA01732917