Image for A Narrative - The Unfolding of the Global Financial Crisis. Part 1 (Update 3)

In 1980 a series of large apparently engineered [1] increases in the global price of oil [2] led to the destabilisation of the global economy, particularly in debt-dependent third world nations.

The resultant inflationary-deflationary spiral (stagflation) ultimately contributed to vulnerability in the US national banking system[3],[4].

Of other notable significance was the issuance of extraordinarily large loans issued by big financial institutions to a very small number of individuals - the Hunt and Saudi royal family[5] - for speculation in commodities.[6] The US-dollar devalued quickly.

This situation prompted the Fed to take drastic action. It implemented a general credit squeeze throughout the domestic economy, which (in turn and along with the then usurious level of interest rates[7]) led to a record quarterly economic decline. Transnational corporations evaded this squeeze, however, through their global back-channel loan operations.

The public were left largely unaware that the Fed’s credit squeeze and experiment with monetarism had actually failed to control the US money supply.

Read the full article, with full links, on EconoSpeak, HERE