The links between Franco and Hitler began early in the Spanish Civil War. In July 1936, after the election of a leftist government, a group of right-wing officers in a coup launched. However, it was possible, many officers remained loyal to the Republic. The rebels were left in control of a little over one third of Spain, and none of industrial towns. Spanish colony in northern Morocco was now crucial. The Moroccan colonial troops are military power only serious thing in Spain. Commissioned by Franco, they were cut off from the continent, was for the small fleet of the Spanish State.

Franco immediately sent an urgent request for help in the airlift to Hitler. The German dictator sent transport planes to Spain Moroccan army crossed the Straits of Gibraltar, where they consolidated power in the south of Spain, and began in Madrid in March ferry. Position without the Moroccan troops had been the rebels would be much lower, and the coup had even been beaten. For Hitler, the decision marks his overseas adventure first.

Three years of bloody civil war in which Hitler and Mussolini provided substantial assistance in both equipment and fighters, the Franco followed. The elected government refused aid from France or England, turned to the only power that would help the Soviet Union. Stalin provided the Republic with the main military aid, while his “advisors”, has many characteristics of his reign of terror in Russia founded. But in the end, in April 1939, the republic was defeated.

Why Hitler aid Franco? In part geopolitics, he welcomed the establishment of another right-wing authoritarian regime of right to the limit of his greatest enemy, France. But he also Spain as a testing ground for the German armed forces, especially its air force, which was bombed Guernica in 1937 – the first time a European city destroyed by carpet bombing.

Franco is currently working on establishing his rule throughout Spain. He led a coalition of forces, army, linked many of its officers in the old monarchy, the Catholic Church and the fascist Falange party. There were tensions between the Falange and the monarchists, but first, the Phalange had the upper hand.

Franco’s victory came as tensions rose Europe – the outbreak of the Second World War was months. At that time, Spain and Germany have been very close. The German forces took pride of place on the victory of Franco in Madrid in March during the summer. Franco himself at this stage greatly admired Hitler. He held a picture of the Fuhrer, Mussolini and the Pope, on his desk. German advisers were visible in the army, police and the press. Heinrich Himmler visited Spain and was surprised by the violence against opponents of the Franco regime.

In September 1939 began World War II. First Spain, like Italy, have remained neutral. Then in June 1940, Hitler’s crushing and unexpected victory over France. Britain was alone, and he seemed on the verge of defeat. At this moment, Mussolini declared war in the hope that it will kill and enjoy the peace treaty. Franco had similar ideas, but do not go that far. Spain has been declared as “non-belligerency” and not as neutral, and Franco had the opportunity to conquer and annex to Tangiers in Morocco, the first under international control. He also wrote to Hitler, expressed in terms roundabout, a desire to join the victory of fascism. Franco dreamed of by the French culture of Morocco and parts of the Democratic People’s Republic of Algeria in a peace treaty. But this time, Hitler was not interested, he knew that Spain, ravaged by civil war, could provide military aid and some believed he did not need.

Until the fall of 1940, however, the situation had turned around 180 degrees. Hitler’s Luftwaffe had been defeated at the Battle of Britain, and Great Britain is obviously far from complete. Here is a decisive factor in Spain, the powerful British Navy. Britain has used its ships to the blockade of Spanish ports and the amount of essential materials, including fuel in the United States followed their lead in limiting exports helped Franco. Franco was the son of a naval officer, he knew the power of the British naval blockade and a full case of war, Spanish lace, could already at subsistence level, in an uproar. But Hitler wanted Franco in war, so he used to Gibraltar.

The two dictators gathered at the border between Spain and France, in October 1940. Franco, Hitler asked to go to war, Franco said he asked for, but in return for the French colonial territory and a huge amount of supplies one, complete a British blockade. Hitler took the Vichy regime in France, always friendly and would not tell a part of the French Empire. He was also able to meet the stringent requirements of Franco for the provision of food and fuel. Hitler left the session with promises vague and insubstantial Franco, and said that in any such negotiations, he would have preferred to return three teeth pulled.

It seems that the issue was the provision of crucial importance, Franco knew he needed them when he declared war. It may not have realized that too little fuel in Germany or in areas that had defeated Hitler, but agriculture in rich countries like France, food production is already down in a dive. Another aspect that makes it prudent that many pro-monarchists were English, Great Britain were substantial bribes to senior monarchists opposed to Spain entering the war.

This was the end of any prospect in Spain are on the side of Hitler. Franco not only supported the invasion of Russia in 1941, but has organized thousands of volunteers serving on the Eastern Front. But at the end of 1942, with Russia and a strong opposition from the United States in the war, it was clear that Germany would lose. Franco moves now so characteristic crab to a diplomatic post, where he saw “two wars” – a crusade against Russian communism, he argues, and Germany, the war with the forces of democracy, where neutrality increasingly pro Allies. But it was pragmatism, not principle, the situation. When the Anglo-American forces occupied the French North Africa in Operation Torch, Spain has offered no resistance and may have supported the Allies with intelligence.

In 1944, when the Allies occupied France and occupied Europe, with nerves breathtaking, Churchill wrote to provide support to democratic forces victorious in the future struggle against communism. Churchill, who had looked in the early years of the war to overthrow Franco, took the bait and argued against many older Americans, the Franco regime should be left. That’s what happened. The images of Hitler and Mussolini, Franco disappeared inside, and although the Spanish press controlled mourned the death of Hitler in 1945, Spain has joined the West during the Cold War, and remained under the authoritarian regime of Franco for the next thirty years. The Falange was an important element of the scheme until the end, although decreased over the years, given its importance.

A related issue has generated debate over the years, Franco’s attitude toward the Holocaust. Like Mussolini, Franco’s fascism is not anti-Semitism as an important component of their ideology. But during the civil war and years of reign of Hitler – until 1942 – as Franco, Mussolini enjoyed a vicious anti-Semitic rhetoric against the Nazis. In practice, however, Jews who tried to flee occupied France to Spain could be in the Portuguese ports of the cross, even if they snatched on the road. Franco also intervened to give asylum to Jewish Sephardic, of Spanish origin, who lived in Greece and elsewhere, were murdered by the Nazis. Spain’s fascist Franco regarded as a “nation” and not as a race. However, anyone who opposed the Spanish government, especially in its early years, was a fate as brutal as those who resisted the Nazis in Europe.

Well, what went wrong? Who is responsible? Well, it was really a very fundamental change in philosophy. It all started at the turn of the century. He was) a new school of thought of germs Wuntian psychology of Germany (Wilhelm WUNT father of modern psychology. Materialist philosophy is finally and completely contrary to the original meaning of the word psychology – Study and teaching the human soul.

The new idea was that humans are not spiritual beings, but we were all animals and just the way you understand human behavior by comparing our animals. If you know how a rat can understand you behave behaved like a man. So, this philosophy has been implemented gradually in each university, beginning at the turn of the century. It was behaviorism, and the default philosophy was taught in colleges of 1960 for all teachers in training as a teacher. The philosophy of education was conditional and did not understand, had explained how Noah Webster. A date direct coincidence with the statistics of the failure of American education.

The collapse of communism in Europe and Asia led to the emergence of a new middle class in these areas. With an operating profit increased and access to bank credit Flushed its members, a wave of unbridled consumption (particularly imported goods triggered), and with a mountain of increasing savings, they have traveled the globe for assets to invest their capital, from football to stocks and bonds.

The excess of savings, and led the unequal expansion of international trade to serious imbalances in capital flows and the distortion of price signals. This has encouraged speculation leveraged and arbitration, and try to diversify investment risks. The first led to extreme volatility and lack of transparency in this and the collapse of confidence among market players and agents.

The recent collapse in world stock markets – from Hong Kong to New York – generated another round of discussions semipternal central banks should abrupt adjustment in asset prices – such as stocks or real estate – as they do Examining changes in price indices for consumption? Are asset bubbles indeed inflationary and deflationary their break?

Central bankers meet it is difficult to tell a bubble until it bursts and that market intervention lead that is intended to prevent weapons. There is not enough historical data, reference, they move students who otherwise objectionable. This is disingenuous. Ponzi and pyramid schemes are an integral part of Western civilization since at least the middle of the Renaissance.

Assets grew in “asset stocks”. The houses built in the 19th century century still serve their purpose. The amount of new facilities over time is created, inevitably neglected in comparison to shares of the same class assets accumulated over decades and sometimes centuries. This is why asset prices are not anchored – they are only vaguely related to their production or even to their replacement value.

Bubbles are not the exclusive domain of stock exchanges and shares. “Real” assets include land and property, for construction machinery and other tangible assets. “Financial” assets include anything that stores value and can serve as a medium of exchange – from cash collateral. Even tulip bulbs will do.

In 1634, in what was later called “Tulipmania”, tulip bulbs were traded on a specific market in Amsterdam, the scene of a rabid speculative frenzy. Some tulip bulbs rare black has changed hands for the price of a large manor. For four years, it seemed, the fever, that enthusiasm would last forever. But the bubble burst in 1637. In a case of a less than the price of tulip bulbs has been reduced by 96%!

Is unique, Tulipmania was not an organized scam with an identifiable group of decision makers, which she directed and controlled. It has also been explicitly promised to investors regarding guaranteed future profits. The hysteria was evenly distributed and fed on itself. Subsequent investment fiddles were different, however.

Modern differs involve a large number of victims. Their size and ubiquitous sometimes threaten the national economy and the structure of society and cause serious political and social repercussions.

There are two types of bubbles.

Bubbles in the first category are executed or fanned by financial intermediaries such as banks or brokerage houses. They consist of “pumping” the price of an asset or asset class. These assets Stocks, currencies, securities and other financial instruments – or even savings accounts. To be a supernatural promise creates economies of artificially inflate the “price”, or “value” is a savings account.

More than one fifth of the population in Israel in 1983, participated in a banking scandal of Albanian proportions. It was a classic pyramid scheme. All banks, except one, promised to gullible investors, rising incomes banks hold shares traded.

These explicit and incredible promises were contained in the prospectus of the takeover of banks and won the implicit acquiescence and collaboration of successive Israeli governments. The banks will deposit their capital, retained earnings and funds illegally acquired by offshore subsidiaries shadow to try to keep their promises and unhealthy. Everyone knew what was happening and all concerned. It took 7 years. The prices of certain shares of 1-2 percent per day.

On October 6, 1983, broke the whole banking sector in Israel. Faced with mounting problems that threaten the government had to compensate shareholders. They offered to develop a program to repurchase shares for shares in 9 years. The cost of this plan was estimated at 6 billion dollars – almost 15 per cent of annual GDP of Israel. Indirect damage is unknown.

Greed and vulnerable investors are attracted to investment scams with the promise of incredibly high profits or interest. The organizers use the money to pay assigned by the new investors of the old order and establish a credible reputation. Charles Ponzi perpetrated many such schemes in 1919-1925 in Boston and later the real estate market in Florida in the United States. Thus, an effect “snowball”.

In Macedonia, a savings bank named TAT erupted in 1997, erasing the economy of an entire major city, Bitola. After much controversy and recriminations – many politicians seem to have benefited from the fraud have – the government faces elections in September, recently decided, despite the dictates of the IMF to offer meager compensation to affected investors . TAT was only one of the few similar cases. Similar scandals have occurred in Russia and Bulgaria in the 1990s.

Third of the impoverished population of Albania was cast into poverty by the collapse of a series of investment plans to leverage nationally in 1997. Inept policy and financial crisis management led Albania to the brink of disintegration and civil war. Rioters attacked police stations and army barracks and hundreds of thousands of weapons expropriated.

Islam prohibits its followers charging interest on borrowed money – like Judaism. To circumvent this onerous decree set up, entrepreneurs and religious figures in Egypt and Pakistan, “Islamic banks”. These institutions pay no interest on deposits nor demand interest from borrowers. Instead of this, applicants are partners in the banks – largely fictitious – profits. Customers will be charged for – no less fictitious losses -. Some Islamic banks have become accustomed, with Sky High “profit”. They have the path of other, less pious, pyramid schemes. They have melted and the economies and political institutions dragged with them.

By definition, pyramid schemes are doomed to failure. The number of new “investors” – and the new currency, they are available to the organizers of the pyramid – is limited. When funding ran out, and the old investors can no longer be paid, panic. In a classic “run on the bank”, everyone attempts to draw his money simultaneously. Even healthy banks – a distant relative of pyramid schemes – not so overwhelmed with panic. Some of the money is invested long term, or lent. Few financial institutions keep more than 10 percent of their deposits in cash reserves on call.

Various studies have shown that warned investors in pyramid schemes realize their dubious nature and stand by the collapse of other contemporary fraud. But they repeated the promise that they could withdraw their money at will ( “liquidity”) and in the meantime, given the attractive returns on it ( “capital gains”, “interest”, “Profit” ) wavered.

People know they are more likely to lose all or a portion of their money in time. But they convince themselves that they can outwit the organizers of the pyramid, that disbursements will offset the earnings or interest, before the inevitable collapse of more than sufficient for the loss of their money. Many believe they are successful, the extraction of their original investment at the time – mostly useless and superstitious – “warning signs”.

While the speculative rash lasts justify a variety of experts, analysts and researchers aim. The new economy is “free from” old rules and archaic modes of thought. “Productivity has increased and has become steeper, but sustainable, trend line. Information technology is as revolutionary as electricity. No, more than electricity. The stock valuations are reasonable. The Dow is about 33,000. People want to believe that these goals, “disinterested” analysis “experts”.

Investments by households are only one of the engines of this first kind of asset bubbles. A lot of money in pyramid schemes and stock exchange booms is laundered distribute the fruits of illicit pursuits. The laundering of tax evaded money or the proceeds of criminal activity took place mainly sell drugs through normal banking channels. The money changed hands a few times to obscure its trail and the identity of the true owner.

Many offshore banks manage shady investment rounds. They argue that two books. The government is ready “or” cooked “at the disposal of the authorities – the tax administration, banking supervision, deposit insurance, law enforcement and the Securities and Exchange Commission. Regarded as a true record in the second inaccessible, set of files.

This second set of accounts reflects reality: who deposited how much, when and under what conditions – and who borrowed what, when and under what conditions. These arrangements are so stealthy and convoluted that sometimes even the shareholders of the bank lose track of their activities and ignore reality. Unscrupulous management and staff sometimes exploited the situation. Embezzlement, abuse of authority, mysterious trades, misuse of funds are more widespread than acknowledged.

The thunderous collapse of the Bank of Credit and Commerce International (BCCI) in London in 1991 showed that for most of the decade, managers and employees of this institution were stealing the darkness and the diversion of 10 billion U.S. dollars. Department of Supervision of the Bank of England failed to spot the rot now. The applicants – were partially offset – by the principal shareholder of the bank, an Arab sheikh. History repeated itself with Nick Leeson and provided devastating illicit trade, and the venerable old Barings Bank in 1995.

The combination of black money, poor financial controls, shady bank accounts and shredded documents, making an accurate representation of cash flows and damages in such cases is still possible. It is impossible to say what were the contributions of drug barons, American off-shore companies, or European and Japanese tax refractories – channeled precisely through such institutions – the Wall Street boom of recent years.

But there is another – perhaps the most pernicious – type of speculative bubble. If financial institutions to lend to the unworthy, but the good political relations with friends, family and members of influential politicians – they often end up fostering a bubble. South Korean chaebols, Japanese keiretsu, as well as US-based U.S. companies have frequently used these cheap funds to their shares or to invest in real estate, driving prices artificially high in both markets.

In addition, despite decades of bitter experiences – from Mexico in 1982 for Asia in 1997 and Russia in 1998 – financial institutions continue to examine ways. They act like stocks in conformity with “lending trends”. The portion of assets with the highest returns in the shortest possible time Garner. In this regard, they are not very different from investors in the schemes of investment pyramid.