"Prime Minister John Key graduated with a Bachelor of Commerce from Canterbury University. He launched his investment banking career in New Zealand in the mid-1980s, and went on to work in Singapore, London, and Sydney for Merrill Lynch, becoming head of global foreign exchange and European bond and derivative trading. In 1999 Mr Key was invited to join the Foreign Exchange Committee of the Federal Reserve Bank of New York. In 2001, Mr Key returned to New Zealand. He was elected MP for Helensville in 2002, becoming National Party Leader in November 2006, and then Prime Minister following the 2008 General Election."
Saturday, 22 October 2011
PRESS RELEASE: "OPEN LETTER TO NZ PRIME MINISTER JOHN KEY"
21 October 2011
PRESS RELEASE: "OPEN LETTER TO NZ PRIME MINISTER JOHN KEY -
HOW MUCH ARE YOU PERSONALLY RESPONSIBLE FOR THE DERIVATIVES MARKET WHICH PLAYED A CRUCIAL ROLE IN BRINGING DOWN THE GLOBAL ECONOMY"?
Penny Bright - Independent Public Watchdog
Candidate for Epsom
"Dear Prime Minister John Key,
Keith Fitz-Gerald, Chief Investment Strategist, Money Morning, stated the following:
"Four US banks hold a staggering 95.9% of U.S. derivatives: The $600 Trillion Time Bomb That's Set to Explode"
"Do you want to know the real reason banks aren't lending and the PIIGS [Portugal, Ireland, Italy, Greece, Spain] have control of the barnyard in Europe?
It's because risk in the $600 trillion derivatives market isn't evening out. To the contrary, it's growing increasingly concentrated among a select few banks, especially here in the United States.
In 2009, five banks held 80% of derivatives in America. Now, just four banks hold a staggering 95.9% of U.S. derivatives, according to a recent report from the Office of the Currency Comptroller.
Derivatives played a crucial role in bringing down the global economy, so you would think that the world's top policymakers would have reined these things in by now - but they haven't.
Instead of attacking the problem, regulators have let it spiral out of control, and the result is a $600 trillion time bomb called the derivatives market.
Think I'm exaggerating?
The notional value of the world's derivatives actually is estimated at more than $600 trillion. Notional value, of course, is the total value of a leveraged position's assets.
This distinction is necessary because when you're talking about leveraged assets like options and derivatives, a little bit of money can control a disproportionately large position that may be as much as 5, 10, 30, or, in extreme cases, 100 times greater than investments that could be funded only in cash instruments.
The world's gross domestic product (GDP) is only about $65 trillion, or roughly 10.83% of the worldwide value of the global derivatives market, according to The Economist. So there is literally not enough money on the planet to backstop the banks trading these things if they run into trouble."
Isn't it true that you - Prime Minister John Key, were the head of global foreign exchange, and European bond and derivative trading when you worked for Merrill Lynch.
Prime Minister John Key, wouldn't it be fair to describe you as a former Wall Street 'bankster', given that you were a foreign exchange advisor for the privately-owned New York Federal Reserve?
"Part A:
The FXC Members… Past and Present…A Yearbook (listings based on FIRST membership year)
2000
John Carter, Lehman
James Kemp, Citigroup
John Key, Merrill Lynch
Adam Kreysar, UBS Warburg "
Wouldn't it be fair, NZ Prime Minister John Key, to describe you as one of the 1%, against whom protests have sprung up all over the world, starting from the occupation of Wall Street, New York USA - where you used to work?
Isn't it time, Prime Minister John Key, to be a little more honest with the decent Kiwis who are part of the 99% and to stop trying to pretend that you are one of us - when you obviously are not?
Yours sincerely,
Penny Bright
Media Spokesperson
Water Pressure Group
(New Zealand)
Judicially recognised 'Public Watchdog' for water and Auckland regional governance matters.
2010 Auckland Mayoral candidate.
"Anti-corruption campaigner".
Attendee: Australian Public Sector Anti-Corruption Conference 2009
Attendee: Transparency International's 14th IACC 2010
Independent 'Public Watchdog'
Candidate for Epsom
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