Joined: 30 Jul 2006 Posts: 6060 Location: East London
Posted: Sat Oct 19, 2013 7:09 pm Post subject:
Short money video:
Are Big Banks safe?
The truth about the FDIC:
It's insurance - and insurance has loopholes
The FDIC guarantees your bank deposit right?
No, not quite.
The FDIC "insures" them.
What happens when an insurance company goes broke?
You don't get paid.
It's that darn simple, but most people don't realize that.
But the government will come to the rescue if the FDIC fund gets tapped out, right?
Maybe, maybe not.
It depends on the size of the problem - and the problem is very, very, very large. (Did I say "very.)
http://www.realecontv.com/videos/banking-malfeasance/are-big-banks-saf e.html _________________ 'And he (the devil) said to him: To thee will I give all this power, and the glory of them; for to me they are delivered, and to whom I will, I give them'. Luke IV 5-7.
'BILL BLACK, ASSOC. PROF. ECONOMICS AND LAW, UMKT: Thank you.
DESVARIEUX: So, Bill, let's pick it up from where we left off. Can you please tell us about the New York Fed? What is their role? And how to assess their performance in recent years?
BLACK: Well, the New York Fed is of course supposed to regulate most of the largest bank holding companies in America, and it has been a complete catastrophic failure. It has zero success stories in dealing with the upcoming crisis. And, of course, it was run by Timothy Geithner during all of the key years. And I've gone back through his speeches, all of his speeches in that capacity as president of the Federal Reserve Bank of New York, and he raised absolutely no warnings about the coming crisis and took absolutely no effective actions to deal with it.
In addition, viewers can look at the Financial Crisis Inquiry Commission report, which they can get for free, and they can look at the broader materials, and one of them is a white paper by the former top regulator/supervisor at the Fed, whose name is Richard Spillenkothen. And Spillenkothen says expressly that the conflict of interest in the regional Feds, which are owned by the banks, that the examiners they employ are supposed to regulate and which are run by boards of directors, which are dominated by the banks that they're supposed to regulate, well, Spillenkothen says this doesn't work in practice, that consistently the supervisory response in these regional banks has been far too weak. And that's quite a powerful statement, because the supervisory response of the Washington apparatus of the board of governors of the Federal Reserve was incredibly weak under Greenspan and Bernanke, which is what it's been under for 25 years. And if the regional banks were noticeably worse than the national headquarters was, that is pretty much the definition of pathetic...' _________________ 'And he (the devil) said to him: To thee will I give all this power, and the glory of them; for to me they are delivered, and to whom I will, I give them'. Luke IV 5-7.
Last edited by outsider on Mon Dec 01, 2014 6:44 pm; edited 1 time in total
Stunning Chart: Today’s Stock Market is Eerily Reminiscent of 1929
By Mac Slavo | SHTFPlan | December 5, 2013
With the Holiday shopping season off to a slow start according to preliminary retail sales numbers and with the stock market sitting near all time highs, one can’t help but wonder what will happen when investors realize the economy isn’t really doing as well as we’ve been told by the experts.
Joined: 25 Jul 2005 Posts: 18335 Location: St. Pauls, Bristol, England
Posted: Mon Jan 27, 2014 10:50 pm Post subject:
GEAB N°81 is available! 2014 –World political chaos, statistical « smog », risk that the financial planet explodes… But solutions for the future continue to emerge
Historians, who usually consider that the 19th century runs from 1815 (Waterloo) to 1914 (the First World War) would certainly define the 20th century by the period 1914-2014, ending with the year in which the old system dies whilst a new one emerges. In this New Year 2014 welcome, then, to the 21st century!
We have symbolised 2013 as “the first steps in a chaotic world after” (1).
A year which was in effect the new century’s zero year and at the end of which solutions were emerging from all sides. At the beginning of 2014 the spotlight is henceforth on the Eurozone, China, Russia and the BRICS where the tools to shape the “world afterwards” are being designed with incredible rapidity: the “world before” is handing over to “the world afterwards”.
Nevertheless, there is a permanent risk of an explosion from the overheated financial planet driven by the incredible US imbalances… unresolved or little resolved. And the current transition period, certainly hopeful, is highly dangerous nevertheless. One danger is the statistical “smog” (2) which will probably characterise the year: first, the US economic and financial indices have lost any sense of direction by dint of being manipulated in order to hide the catastrophic reality; and second, the emerging world’s tools of statistical transparency aren’t sufficiently reliable to properly throw light on the reality. A collapse of visibility ongoing for several years on the one hand, the beginning of an organised transparency which the world economy needs to plan strategies on the other, in 2014 we are on statistical understanding’s trough of the wave. And that won’t be without its consequences.
Layout of the full article:
1. STATISTICAL « SMOG »
2. THE RISE IN INTEREST RATES AND THE COLLAPSE OF US REAL ESTATE
3. THE END OF STOCK EXCHANGE EUPHORIA?
4. POLITICAL CHAOS
5. 2014, THE CLEAR BEGINNING OF THE END OF THE OIL ERA
6. SOLUTIONS ARE ON THE MARCH
This public announcement contains sections 1&2.
STATISTICAL « SMOG »
The current period is particularly difficult to analyse. Central bank liquidity injections have hardly any historical equivalent and act insidiously like morphine; the stock exchanges move inversely proportional to countries health; finance and derivatives are completely out of control; the West and the US in particular are trying to hide their disastrous situation through benchmark signals which no longer say anything (like the unemployment numbers)… We have already analysed this “statistical fog” in the GEAB N° 73: the old world’s compasses are broken.
Markets bottle-fed by the Fed and not wanting to abandon the Dollar paradigm as long as there is any blood left to suck is largely responsible for this blindness. But just as the frog in boiling water doesn’t feel the temperature rise until it’s too late, having broken the thermometer is certainly convenient for maintaining the illusion but raises a suicidal trend: if the exit is already difficult to find in broad daylight, it will be impossible in the dark. As we have already said, the Eurozone has been fortunate to have been in full daylight for several years thanks to the “Euro crisis” and isn’t hiding its difficulties with a lorry load of liquidity (3), luck which isn’t benefiting the United States which is going blindfold to the precipice as we will see.
Change in major central bank balance sheets since August 2008, in percent. Source : Merk Investments
At the moment, one eye is blind and, sadly, the other can’t yet see. That part of the world which has emerged, the BRICS especially and China in particular, have only just started to build a statistical apparatus adapted to their international ambitions. Moreover, a number of Western addictions have been adopted by these countries, like the use of debt and deregulated finance, which pose new dangers. Thus China has begun to concern itself with its local government indebtedness, its “local government financing vehicles” (4) and its “shadow banking” of which no one has any idea of the size absent any reliable statistics (5). This shadow banking is both essential to finance small businesses and local communities and is uncontrollable at the moment… Hence Beijing’s acceleration to clearly see and get to regulate this sector, evidenced by the recent statistical work carried out here by the National Audit Office, where greater transparency has been demanded from Chinese banks, or as another example, the five-year prohibition on local authorities to build new government buildings with “shadow” financing (6). But despite these efforts at transparency which will quickly bear fruit, because the international situation needs a clear view, a few more years are necessary to have a reliable statistical apparatus in this country. Without counting that the Chinese government still needs areas of shadow for some time yet: one can’t switch on the lights without first having done the housework!
So, it’s with great caution that leaders must advance along a difficult path along which the absence of reliable indices prevents a proper understanding of the situation. Any anticipation/forecast/planning is, of course, much more difficult. However, if the emerging countries have extremely powerful dynamics that allow them some differences, mistakes can lead to dramatic consequences for the others. That’s why the Fed is doing a remarkable balancing job and up until now this tightrope walker has been talented enough to keep the country on the wire… so long as there is still a wire.
'It transpired last week that of the 43-odd tonnes per annum the Bundesbank expects to be returned from the New York Fed, only 5 tonnes arrived in 2013.
Furthermore, of the 373.7 tonnes stored with the Banque de France, only 32 tonnes was delivered. This is little more than a morning’s delivery in the London market, so it is hard to swallow the Bundesbank’s excuses about logistics.
The burning question is why is it so difficult to get its gold back?
The most logical answer is that the Bundesbank’s gold is long gone, but without hard evidence this can only be conjecture. One would have thought that the New York Fed would have at least come up with closer to 40 tonnes if only to stop the rumour mill running.
There may be a risk that without clarification over the status of Germany’s gold at the New York Fed other central banks using the Fed or even the Bank of England’s storage facilities might decide to buy gold in the market, just in case. If that happens, bearing in mind that it is too early to think this is a real possibility, bullion prices could go much higher, given the lack of physical bullion available.
Anyway, after a slow start to the week, with the gold price drifting back to find support at the 50-day moving average, gold began to go sharply better yesterday before the London morning fix. Soon there was a story circulating via Reuters that Sonia Ghandi has asked the Indian government to ease up on gold import restrictions. No doubt this has something to do with mid-year elections, and if so there is the prospect of the government relenting on gold import restrictions to appease the voters.
These stories no doubt contributed to a more positive tone for gold, which seems to be overcoming the confines of the 50-day moving average as shown in the chart below...'
Germany was denied the right to even visually inspect their gold by the Federal Reserve! There must be some patriotic Germans who just won't kow-tow to the NWO theft of not just their gold, but of their sovereignty.
There are a few Brits who are also aware and blazingly angry about what is being put across.
Even France was able to come up with more of Germany's gold than the US!! (But far less than the Germans had asked for!!). _________________ 'And he (the devil) said to him: To thee will I give all this power, and the glory of them; for to me they are delivered, and to whom I will, I give them'. Luke IV 5-7.
Joined: 25 Jul 2005 Posts: 18335 Location: St. Pauls, Bristol, England
Posted: Sat Feb 01, 2014 9:16 am Post subject:
£1 trillion timebombs RBS must defuse
By Ian Fraser
Published: Sunday Herald - Date: 3 November 2013
http://www.ianfraser.org/1-trillion-timebombs-rbs-must-defuse/
It will not be broken up … but the future is far from plain sailing. By Ian Fraser
Ross McEwan: new RBS boss says bank's recovery vital for UK economy - videoRoss McEwan had a baptism of fire on Friday when he made his first set-piece announcement as chief executive of Royal Bank of Scotland. There were a few shreds of good news, including that the Treasury has decided against breaking up RBS into a “bad bank” and a “good bank”, and the fact that RBS had managed to lift its core tier-1 capital ratio – a measure of financial strength – to 11.6% from 9.1%. Rather than breaking up RBS, the Treasury decided the Edinburgh-based institution in which it owns an 81% stake is to create an “internal bad bank” – essentially a re-brand of its existing “non-core” division – to house £38 billion of toxic loans, and that these have been earmarked for accelerated run-off over the next two years.
Much of the rest of Friday’s announcement was negative. McEwan – who ran RBS’s retail banking arm for a year before becoming its chief executive – said the new internal bad bank meant RBS would have to take some £4.5bn in impairment charges in the fourth quarter of 2013, implying a full-year loss. He also said that RBS had made a loss of £634 million in the third quarter. And an independent review into the bank’s small business lending led by Sir Andrew Large confirmed what was widely suspected: that the bank’s approach to small business lending is dysfunctional, and that it must do better. What was not so obvious from Friday’s string of announcements, however, was that a number of enormous landmines continue to lurk just under the surface of the bank’s Fred Goodwin-ordered blue-and-amber carpets. Here is a selection of these unexploded bombs – the litigation risks and legacy issues that McEwan still needs to try and defuse.
UK: PPI mis-selling - Estimated liability: £2.65 billion
RBS has set aside £2.65 billion in provisions to cover the cost of compensating customers to whom it mis-sold payment protection insurance (PPI). This often redundant product was highly lucrative for the banks but was useless to many of the people who bought it. The bank now has 1,800 staff working full-time on PPI redress. It threw an additional £250 million into the compensation pot on Friday.
UK: Rights issue class action - Liability: up to £13 billion
The bank is fighting the UK’s largest ever class action case in the High Court. The suit comes from 13,000 RBS investors who allege that the bank duped them into putting £12.3 billion into a rights issue in April 2008. On 30 July, the RBoS Shareholders Action Group was ordered to amalgamate its £4.3 billion claim with those of two other investor groups. A QC’s opinion last year found that asset-management firms that bought into the rights issues that fail to participate in the action could risk being sued by investors. The bank said: “RBS considers its has substantial and credible legal and factual defences to these claims.”
UK: Card and identity protection insurance - Estimated liability: £200 million (based on RBS’s market share)
The bank misled customers into buying insurance for their credit cards and identity theft insurance from London-based Card Protection Plan. On 22 August, the FCA declared that CPP and RBS, alongside 12 other banks and credit card issuers, had agreed to a £1.3 billion compensation scheme.
UK and Ireland: IT meltdown - Estimated liability: up to £300 million
On 19 June 2012, RBS suffered one of the worst IT meltdowns in banking history, with millions of customers locked out of their accounts for days and customer transactions going awry. The bank has promised to reimburse customers for any losses they suffered and paid out £175 million in 2012. The incident is also the subject of regulatory inquiries in both the UK and Ireland, and RBS may also face claims for damages through the courts.
UK: “Systemic abuse” in restructuring and recovery - Estimated liability: up to £5 billion
Allegations of “systemic institutionalised fraud” in RBS’s recovery and restructuring division (West Register and Global Restructuring Group) are being investigated by a number of civil and criminal UK authorities. Lawrence Tomlinson, chairman of Leeds-based LNT Group and entrepreneur-in-residence at the Department for Business Innovation and Skills, alleges: “This is a massive scandal. It’s about the bank creating situations that put people into a corner where it can hit them with outrageous fees and transformed into zombie companies.” He is providing 300-400 case studies to business secretary Vince Cable.
UK: Interest rate swaps mis-selling - Liability: up to £1.5 billion (if FCA fines RBS)
In February, RBS booked a £750 million provision to cover compensation for small businesses to which it mis-sold interest-rated hedging products, a figure that experts believe may be too low. After initially denying it had done anything wrong, the bank now says it will provide “fair and reasonable redress” to eligible customers under a redress scheme agreed with the FCA. Speaking on the BBC’s Panorama last month, FCA chief executive Martin Wheatley warned the regulator may also fine banks involved in the scandal.
EU: Credit default swaps anti-competitive behaviour - Estimated liability: unknown
EU cartel-busters are investigating RBS’s role in the credit default swap (CDS) market and handed the bank a statement of objections in July. The EC has raised concerns that a number of banks, plus data provider Markit and industry group the International Swaps and Derivatives Association may have jointly blocked exchanges from entering the CDS market. RBS said: “At this stage, the RBS group cannot estimate reliably what effect the outcome of the investigation may have on the group, which may be material.”
Singapore: Benchmark rigging - Estimated liability: £500 million-£600 million
RBS was one of 20 banks penalised by the Monetary Authority of Singapore in June for rigging Sibor (the Singapore Interbank Offered Rate) and other benchmarks between 2007 and 2011. RBS has set aside additional statutory reserves with MAS of Singapore $1 billion-$1.2bn (£500 million-£600m) and has been forced to improve its systems and controls in Singapore.
US: SEC “Wells” notice for defective residential mortgage-backed securities - Estimated liability: unknown
The US Securities and Exchange Commission slapped a “Wells” notice on RBS on 28 March, giving notice of its intention to sue. The suit relates to allegedly faulty mortgage-backed securities dating from 2007. The SEC started its probe in September 2010, when it asked RBS for information concerning residential mortgage-backed securities underwritten by US subsidiaries of RBS in the period September 2006 to July 2007.
US: Defective mortgage bond issuance - Estimated liability: $4 billion-$6 billion
RBS, through Greenwich Capital, sold $32 billion of allegedly defective mortgage-backed securities to American state-owned mortgage giants Fannie Mae and Freddie Mac. Now the Federal Housing Finance Agency (FHFA) is suing RBS over these the bonds. The FHFA alleges that RBS routinely breached mortgage-lending rules and bullied surveyors into inflating property valuations. Overall, RBS is being sued for $91bn of mortgage-backed securities and has been named as defendant in 45 lawsuits related to mortgage-backed securities.
US: Weak anti-money-laundering controls - Estimated liability: up to $1.5 billion
On 27 July 2011, RBS was hit with a cease-and-desist order by the US Federal Reserve over violations of money-laundering laws. This required RBS to improve risk management and compliance to ensure does not get used as “washing machine” for the laundering of funds for countries subject to US economic blockade, such as Iran. RBS is “continuing to co-operate” with inquiries led by the Department of Justice and has “conducted disciplinary proceedings against a number of employees”.
US: Mortgages – loan repurchases and indemnities - Estimated liabilities: $750 million
When bundling mortgages into mortgage-backed securities, the bank’s M&IB arm (formerly GBM) and Citizens asked issuers of the underlying mortgages to provide certain warranties. In instances where issuers refused, M&IB tended to issue the “representations and warranties” itself. In such cases, the bank is liable to repurchase the bonds or else “indemnify certain parties against losses”. Between early 2009 and June 2013, RBS received $741 million in repurchase demands, which it is striving to resist. The bank said: “The volume of repurchase demands is increasing and is expected to continue to increase.”
US: Credit default swaps anti-competitive behaviour - Estimated liability: unknown
In May and August 2013, RBS and other banks were sued in anti-trust class action suits filed in courts in Illinois and New York state. The complaints allege that RBS broke competition law in the market for credit default swaps, driving up bid-offer spreads. The bank admits the cases could lead to “investigatory or other action being taken by governmental and regulatory authorities” and could have a “material adverse effect” on RBS group.
US: Other allegedly faulty securitisations - Estimated liability: unknown
In January 2011, the SEC launched a formal inquiry into inadequate documentation relating to RBS’s US mortgage securitisations. This followed subpoenas in 2007 of several players in the US securitisation industry, focusing on information underwriters obtained from independent firms that performed due diligence on underlying loans. RBS gave relevant documentation to the New York attorney general in 2008. RBS said: “The investigation is ongoing and the RBS Group continues to provide the requested information.”
Global: Libor - Estimated liability: RBS already fined £390 million; the ultimate cost could be as high as £80 billion
On 6 February, the US Department of Justice and the Commodity Futures Trading Commission (CFTC) and the UK’s Financial Services Authority fined RBS $612m (£390m) fine for rigging Libor, the benchmark interbank interest rate. Other banks and brokers penalised for similar offences include Barclays, UBS and Rabobank. RBS faces further penalties from the EU and Canadian Competition Bureau, plus civil claims from US investors, the most recent of which came from mortgage giant Fannie Mae last Thursday. Analyst Sandy Chen has said if there was just 0.05% mispricing in interbank rates over four years – less than the 0.4% some class action lawsuits allege – RBS faces possible damages of £80bn.
Global: ISDAfix - Estimated liability: unknown
Multiple agencies and regulators around the world are investigating RBS for possible rigging of IDSAfix, a benchmark used in the interest rate swaps market. America’s CFTC is examining about one million emails and phone call recordings related to the alleged manipulation, involving traders from RBS and more than ten other global banks and brokerages.
Global: FX market rigging - Estimated liability: unknown
On Thursday it emerged that two of RBS’s currency traders have been suspended as part of an inquiry by global regulators into suspected manipulation of foreign exchange markets. The regulators, which include the UK Financial Conduct Authority, America’s FBI and Switzerland’s FINMA suspect that global banks including RBS colluded to manipulate exchange rates in the global, $5.3 trillion a day, foreign exchange markets. RBS has provided the FCA with e-chats that a former senior RBS dealer – Richard “Dick” Usher who left the bank in 2010 – had with traders at other banks. The traders’ group was variously known as “The Bandits” and “The Cartel”.
Ross McEwan will address the Business in Parliament conference in the Scottish Parliament on November 21-22
Ian Fraser’s book Shredded: The Rise And Fall Of The Royal Bank Of Scotland is published by Birlinn on 6 March 2014. Price £20. This article was first published in the Sunday Herald on 3 November 2013 _________________ www.lawyerscommitteefor9-11inquiry.org www.rethink911.org www.patriotsquestion911.com www.actorsandartistsfor911truth.org www.mediafor911truth.org www.pilotsfor911truth.org www.mp911truth.org www.ae911truth.org www.rl911truth.org www.stj911.org www.v911t.org www.thisweek.org.uk www.abolishwar.org.uk www.elementary.org.uk www.radio4all.net/index.php/contributor/2149 http://utangente.free.fr/2003/media2003.pdf
"The maintenance of secrets acts like a psychic poison which alienates the possessor from the community" Carl Jung
https://37.220.108.147/members/www.bilderberg.org/phpBB2/
Two veterans of the stock market reported record results today but both warned investors to stand by for shocks
Lord Rothschild, whose RIT Capital Partners looks after £2.1 billion of his family’s and other long-term investors’ money, said: “With the world recovery still fragile and reliant to a large extent on policy support, it is not hard to envisage markets having to deal with shocks in the coming year.”
Michael Dobson, chief executive of Schroders, which manages £263 billion for institutional and retail investors, said he expects equities to return between 6 per cent and 8 per cent this year after a stonking run last year.
"We don’t expect as strong an equity market as in 2013. There is still macro uncertainty around Ukraine, Syria, China and Japan and the continued [reining in] of quantitative easing. But equities remain our preferred asset class and there are even signs that emerging markets may have been sold off too much."
Schroders reported a 41 per cent profit rise to £508 million, reflecting its takeover of Cazenove Capital and a US fixed-income fund manager last year, as well as a big leap in performance fees. These hit £80 million, with 68 per cent of its funds outperforming their benchmarks or rivals.
Assets under management increased by just over £50 billion, with net inflows of £9.4 billion coming almost equally from institutions and intermediaries.
The dividend for the year has been hiked by 35 per cent to 58p a share, which was well above analysts’ forecasts. The shares jumped by 150p, or 6 per cent, to an all-time high of 2740p.
Shares in RIT Capital Partners also rose sharply, gaining 17p to 1305p. The investment fund’s net asset value rose 193p a share to 1384p last year and produced a return of 18.6 per cent.
Rothschild said: “As market conditions have become more volatile, I am increasingly satisfied with the progress which your company made ... Our 2013 performance combined appropriate levels of caution with a significant participation in stock market increases. We did not forsake our focus on long-term growth and for this our shareholders have rewarded us with their loyalty.”
Time to draft the Bilderbergers, give 'em 6 weeks Basic Training, and point 'em in the direction of Moscow! Meanwhile, we can all practise 'Duck & Cover'.
'...Russia has just dropped another bombshell, announcing not only the de-coupling of its trade from the dollar, but also that its hydrocarbon trade will in the future be carried out in rubles and local currencies of its trading partners – no longer in dollars – see Voice of Russia
Russia’s trade in hydrocarbons amounts to about a trillion dollars per year. Other countries, especially the BRICS and BRCIS-associates (BRICSA) may soon follow suit and join forces with Russia, abandoning the ‘petro-dollar’ as trading unit for oil and gas. This could amount to tens of trillions in loss for demand of petro-dollars per year (US GDP about 17 trillion dollars – December 2013) – leaving an important dent in the US economy would be an understatement.
Added to this is the declaration today by Russia’s Press TV – China will re-open the old Silk Road as a new trading route linking Germany, Russia and China, allowing to connect and develop new markets along the road, especially in Central Asia, where this new project will bring economic and political stability, and in Western China provinces,where “New Areas” of development will be created. The first one will be the Lanzhou New Area in China’s Northwestern Gansu Province, one of China’s poorest regions.
“During his visit to Duisburg, Chinese President Xi Jinping made a master stroke of economic diplomacy that runs directly counter to the Washington neo-conservative faction’s effort to bring a new confrontation between NATO and Russia.” (press TV, April 6, 2014)
“Using the role of Duisburg as the world’s largest inland harbor, an historic transportation hub of Europe and of Germany’s Ruhr steel industry center, he proposed that Germany and China cooperate on building a new “economic Silk Road” linking China and Europe. The implications for economic growth across Eurasia are staggering.”
Curiously, western media have so far been oblivious to both events. It seems like a desire to extending the falsehood of our western illusion and arrogance – as long as the silence will bear....'
Even more reason to push for the good 'ole 'Bradbury Pound'! _________________ 'And he (the devil) said to him: To thee will I give all this power, and the glory of them; for to me they are delivered, and to whom I will, I give them'. Luke IV 5-7.
Gas, oil and defense products for rubles. This is what Russian monopolists think to do on the world market. The initiative came from the head of VTB Bank, Andrei Kostin. According to him, the move to switch to payments in a different currency will strike a blow on the dollar system. The question is whether other market participants, in particular in the oil and gas field, are going to agree to such terms.
Russian bankers and big business, in light of recent threats from the West, may break the dollar peg of the world market. The initiative from the head of VTB looks too ambitious, but this is only an impression at first glance. There are Russian experts who believe that abandoning the dollar settlement in exports of gas and oil products, as well as the products of Russian defense enterprises, is quite simple. In this case, the omnipotent dollar system may incur losses. Thus, according to the Federal Service for Military-Technical Cooperation of Russia, as of the results of 2013, the volume of deliveries of Russian military equipment amounted to 15.7 billion dollars. By early 2014, the order backlog reached $40 billion. That is, the demand on the products of the Russian defense industry has been growing. Yet, most payments are made in dollars, which means that the American system benefits from the Russian trade. Now that the U.S. introduces sanctions against Russia, wouldn't it be logical for Russia to abandon the widespread support of the American national currency?
"I think that this is a kind of a good initiative that tomorrow nobody will be able to realize, - chief editor of Arms Export magazine, Andrei Frolov, shared his opinion with Pravda.Ru. - There are contracts with a long term of execution, and if contracts are executed in dollars, it is highly unlikely that they would agree to recalculate them in rubles. It would be possible, though, if Russian rubles were used in trade with the CIS countries. If this lesson is successful, it would then be possible to apply it to foreign countries."
At the same time, according to experts, the process to switch to another currency may take years, even if Russian partners agree to take it up. The case in the oil and gas sector is even more interesting, which, as the head of VTB Andrei Kostin believes, should also be decoupled from the dollar. Of course, a game change on the market of "black gold" will allow Russia to give the US currency a punch. The US dollar has been strongly connected to the petrodollar system since the end of the last century. Gazpromneft already considers a possibility to replace dollars with euros in export transactions. The head of the company, Alexander Dyukov, said that 95 percent of buyers of Russian raw materials agree with the proposal, RBC reports. Of course, such a decision will not be made in the next few days, as it will cause quite big difficulties. Yet, if the US continues to press Russia with sanctions, the Russian big business will be forced to take such crucial measures. Will the buyers of Russian oil and gas companies agree to accept such conditions?
"Other players will somehow have to adapt to the seller, because there is no other place where they could buy fuel from,- leading expert of the Union of Oil and Gas Producers of Russia, Rustam Tankan told Pravda.Ru. - We have the following situation. Our main customers have been trying to get rid of us as suppliers for half a century already. European states decided 50 years ago to buy not more than one-third of energy carriers. It was at the time of the USSR, but now it's Russia, and Europe wants to get rid of these supplies. They have done everything that could be done to refuse from Russian deliveries??. Today, they do anything that can be done immediately, so consumers - those who buy Russian oil and gas - are forced to do it. They buy it not because there is a wide choice for them - they have nowhere to go. In this situation, if we want to pay in rubles or even yuans - they only want to buy. I do not think that the consumers of our gas and oil will have some problems from paying us Russian rubles or other currencies."
Gazprom currently analyzes the possibility of using the ruble more actively in its payments with foreign buyers. Although, according to Rustam Tankaev, the move to refuse from dollar settlements in exporting resources can not cause significant damage to the dollar system (because the share of Russian money in the turnover of funds on the global oil and gas market is not too large), there will surely be benefits received from it, especially for the Russian ruble. Ruble settlements would increase the liquidity of the ruble, the expert believes.
Elizaveta Polskaya
Pravda.Ru
From: Simon Fairlie <chapter7@tlio.org.uk>
Sadam Hussein's bid to ditch the petro-dollar was allegedly a main reason for the US invasion of Iraq.
wow!!! The more extreme social commenters on youtube have been speaking about this for a while now, I never actually thought it would happen. Could be very interesting to see how this all pans out. We may be about to live in some very interesting times...
China will re-open the old Silk Road as a new trading route linking Germany, Russia and China
By Peter Koenig
April 08, 2014 "ICH" - Russia has just dropped another bombshell, announcing not only the de-coupling of its trade from the dollar, but also that its hydrocarbon trade will in the future be carried out in rubles and local currencies of its trading partners – no longer in dollars – see Voice of Russia
Russia’s trade in hydrocarbons amounts to about a trillion dollars per year. Other countries, especially the BRICS and BRCIS-associates (BRICSA) may soon follow suit and join forces with Russia, abandoning the ‘petro-dollar’ as trading unit for oil and gas. This could amount to tens of trillions in loss for demand of petro-dollars per year (US GDP about 17 trillion dollars – December 2013) – leaving an important dent in the US economy would be an understatement.
Added to this is the declaration today by Russia’s Press TV – China will re-open the old Silk Road as a new trading route linking Germany, Russia and China, allowing to connect and develop new markets along the road, especially in Central Asia, where this new project will bring economic and political stability, and in Western China provinces,where “New Areas” of development will be created. The first one will be the Lanzhou New Area in China’s Northwestern Gansu Province, one of China’s poorest regions.
“During his visit to Duisburg, Chinese President Xi Jinping made a master stroke of economic diplomacy that runs directly counter to the Washington neo-conservative faction’s effort to bring a new confrontation between NATO and Russia.” (press TV, April 6, 2014)
“Using the role of Duisburg as the world’s largest inland harbor, an historic transportation hub of Europe and of Germany’s Ruhr steel industry center, he proposed that Germany and China cooperate on building a new “economic Silk Road” linking China and Europe. The implications for economic growth across Eurasia are staggering.”
Curiously, western media have so far been oblivious to both events. It seems like a desire to extending the falsehood of our western illusion and arrogance – as long as the silence will bear.
Germany, the economic driver of Europe – the world’s fourth largest economy (US$ 3.6 trillion GDP) – on the western end of the new trading axis, will be like a giant magnet, attracting other European trading partners of Germany’s to the New Silk Road. What looks like a future gain for Russia and China, also bringing about security and stability, would be a lethal loss for Washington.
In addition, the BRICS are preparing to launch a new currency – composed by a basket of their local currencies – to be used for international trading, as well as for a new reserve currency, replacing the rather worthless debt ridden dollar – a welcome feat for the world.
Along with the new BRICS(A) currency will come a new international payment settlement system, replacing the SWIFT and IBAN exchanges, thereby breaking the hegemony of the infamous privately owned currency and gold manipulator, the Bank for International Settlement (BIS) in Basle, Switzerland – also called the central bank of all central banks.
To be sure – the BIS is a privately owned for profit institution, was created in the early 1930’s, in the midst of the big economic melt-down of the 20th Century. The BIS was formed precisely for that purpose – to control the world’s monetary system, along with the also privately owned FED and the Wall Street Banksters – the epitome of private unregulated ownership.
The BIS is known to hold at least half a dozen secret meetings per year, attended by the world’s elite, deciding the fate of countries and entire populations. Their demise would be another welcome new development.
As the new trading road and monetary system will take hold, other countries and nations, so far in the claws of US dependence, will flock to the ‘new system’, gradually isolating Washington’s military industrial economy (sic) and its NATO killing machine.
Die Pride and Envie; Flesh, take the poor's advice.
Covetousnesse be gon: Come, Truth and Love arise.
Patience take the Crown; throw Anger out of dores:
Cast out Hypocrisie and Lust, which follows whores:
Then England sit in rest; Thy sorrows will have end;
Thy Sons will live in peace, and each will be a friend.
http://www.bilderberg.org/land/gift.htm
'..
Massive credit collapses that erase very large sums of notional wealth and impact the global economy are hardly a new phenomenon . . . but one thing that has never happened as a result of any of them is the sort of self-feeding, irrevocable plunge into the abyss that current fast-crash theories require.
The reason for this is that credit is merely one way by which a society manages the distribution of goods and services. . . . A credit collapse . . . doesn’t make the energy, raw materials, and labor vanish into some fiscal equivalent of a black hole; they’re all still there, in whatever quantities they were before the credit collapse, and all that’s needed is some new way to allocate them to the production of goods and services.
This, in turn, governments promptly provide. In 1933, for example, faced with the most severe credit collapse in American history, Franklin Roosevelt temporarily nationalized the entire US banking system, seized nearly all the privately held gold in the country, unilaterally changed the national debt from “payable in gold” to “payable in Federal Reserve notes” (which amounted to a technical default), and launched a series of other emergency measures. The credit collapse came to a screeching halt, famously, in less than a hundred days. Other nations facing the same crisis took equally drastic measures, with similar results. . . .
Faced with a severe crisis, governments can slap on wage and price controls, freeze currency exchanges, impose rationing, raise trade barriers, default on their debts, nationalize whole industries, issue new currencies, allocate goods and services by fiat, and impose martial law to make sure the new economic rules are followed to the letter, if necessary, at gunpoint. Again, these aren’t theoretical possibilities; every one of them has actually been used by more than one government faced by a major economic crisis in the last century and a half.
That historical review is grounds for optimism, but confiscation of assets and enforcement at gunpoint are still not the most desirable outcomes. Better would be to have an alternative system in place and ready to implement before the boom drops.
The Better Mousetrap
North Dakota has established an effective alternative model that other states might do well to emulate. In 1919, the state legislature pulled its funds out of Wall Street banks and put them into the state’s own publicly-owned bank, establishing financial sovereignty for the state. The Bank of North Dakota has not only protected the state’s financial interests but has been a moneymaker for it ever since...'
TIME FOR THE RETURN OF THE BRADBURY!!! _________________ 'And he (the devil) said to him: To thee will I give all this power, and the glory of them; for to me they are delivered, and to whom I will, I give them'. Luke IV 5-7.
@BlacklistedNews:
Nirvana: Stocks Have Reached a Permanently High Plateau
http://t.co/HnGzWwSamu
_________________ --
'Suppression of truth, human spirit and the holy chord of justice never works long-term. Something the suppressors never get.' David Southwell
http://aangirfan.blogspot.com http://aanirfan.blogspot.com
Martin Van Creveld: Let me quote General Moshe Dayan: "Israel must be like a mad dog, too dangerous to bother."
Martin Van Creveld: I'll quote Henry Kissinger: "In campaigns like this the antiterror forces lose, because they don't win, and the rebels win by not losing."
'New data released this week on the German economy has intensified fears that Europe's euro zone is slipping into its third recession in six years and may have entered a downward deflationary spiral of the type that led to the Great Depression of the 1930s.
According to the IFO Business Climate Index for October, German business confidence has fallen to its lowest point since August of 2012. The October survey showed confidence falling to 103.2 this month as compared to 104.7 for September. The new reading was lower than economists' forecast of 104.3. It was the sixth straight monthly decline.
The dismal business confidence figure follows a series of reports showing that Europe's biggest economy is contracting. German industrial production fell 4 percent between July and August. Factory orders and exports in August the saw their steepest plunge since 2009. The country's gross domestic product shrank in the April-June quarter. Its inflation rate is just 0.8 percent, far below the target set by the Bundesbank and the European Central Bank (ECB).
Earlier this month, the German government cut its 2014 economic growth forecast to 1.2 percent from 1.8 percent, and its 2015 projection to 1.3 percent from 2 percent. Following the release of the new IFO report on Monday, Germany's Chamber of Commerce slashed its growth forecast for 2015 to 0.8 percent.
“The outlook for the German economy deteriorated once again,” said IFO President Hans-Werner Sinn in a news release. Joerg Kraemer, chief economist at Commerzbank AG in Frankfurt, was quoted by Bloomberg News as saying, “The latest numbers from the industrial sector are very worrisome. The third quarter was probably worse than expected. The economy may have stagnated at best.”
Germany, the industrial powerhouse of Europe, was supposed to be the engine that would pull the continent out of its economic malaise. Instead, its highly export-dependent economy is being undermined by a global slowdown in demand, including from China, its third largest market, the so-called “emerging economies” such as Brazil, and the rest of Europe. The government’s own policies—economic sanctions against Russia over the Ukraine crisis, war in the Middle East, and relentless austerity throughout Europe—are contributing to Germany’s slump.
Germany’s downturn is part of a general crisis in the 18-nation euro zone. Growth in the region came to halt in the second quarter and its overall inflation rate, at 0.3 percent, is hovering on the edge of outright deflation.
These conditions prevail despite massive infusions of cash into the financial markets by the central banks of the US, Europe and Japan. The ECB, in a desperate attempt to stave off outright deflation, has slashed its benchmark interest rate to 0.05 percent and launched a modified version of the US Federal Reserve’s “quantitative easing” program, under which the central bank essentially prints money to buy bonds.
In an another sign of the worsening crisis, the Swedish central bank on Tuesday unexpectedly cut its benchmark interest rate to zero. The Riksbank also slashed its growth projection for 2015.
Sweden, which has the highest unemployment rate in Scandinavia, has seen falling prices in 16 of the past 24 months. The country’s inflation rate has remained below the Riksbank’s 2 percent target for almost three years. After a year of zero inflation in 2013, the Riksbank has predicted a minus 0.2 percent inflation rate this year.
The current (October 25-31) issue of the British Economist magazine focuses on the deflationary crisis in Europe and its disastrous global implications. In a lead editorial headlined “The world’s biggest economic problem: Deflation in the euro zone is all too close and extremely dangerous,” the magazine notes that Europe’s slump is part of a global tendency. It cites the fact that China is now growing more slowly than at any time since 2009.
To back up its warnings on the danger of a deflationary spiral—in which falling prices create a vicious cycle of bankruptcies and layoffs leading to more bankruptcies and layoffs—the Economist notes that inflation rates are well below central bank targets in the US and China as well as Europe. Of the 46 countries whose central banks target inflation, the magazine writes, 30 are below their target.
In Europe itself, prices are falling in eight countries. In Italy, Spain and Greece, inflation is below zero.
The Economist goes on to note that the International Monetary Fund has estimated the odds of deflation in the euro zone, defined as two quarters of falling prices in a 12-month span, at 30 percent for the coming year.
“As debt burdens soar from Italy to Greece,” writes the magazine, “investors will take fright, populist politicians will gain ground, and—sooner rather than later—the euro will collapse.”...' _________________ 'And he (the devil) said to him: To thee will I give all this power, and the glory of them; for to me they are delivered, and to whom I will, I give them'. Luke IV 5-7.
'..BLACK: So Joseph Fichera is a head of a Wall Street advisory firm. And he's one of the sometimes good guys, that is, for example, warned about auction rate securities as a dangerous scam and criticized major investment banks for derivatives that they've sold to cities. So he's easily in the top 10 percent of the distribution of Wall Street CEOs. But even he--and that's sort of the point--has just come out on November 6 and said, we're treating Wall Street too harshly.
Now, Wall Street, as we've talked about, has zero convictions of any of the senior officers who actually led the fraud epidemics that caused the crisis. But that's not sufficiently weak for Fichera. He says that the Securities and Exchange Commission should not have the power to remove an investment bank's license to sell securities, for example, just because it's committed a massive fraud. Instead, frauds should have a schedule of points, like the Department of Motor Vehicles has in many states. And so for one active appraisal fraud that could actually be thousands of acts, maybe you'd get four points. And over the course of six years, if you've got--he doesn't give the number, but maybe 16 points, then and only then could your license be removed.
So this is the idea that fraud is really just like driving without your seatbelt. You know, there's no moral element at all to defrauding other people of tens of billions of dollars, and that you actually have a right if you're in finance (but only if you're in finance) to a certain number of felonies before anything can happen seriously. And he explicitly says that the Securities and Exchange Commission should have no power to remove your license if you've only committed one series of felonies. And remember, this series of felonies could be 10,000 people that you defrauded or indeed millions of people that you defrauded. But like every dog gets its bite, every corporation that issue securities would get its massive fraud. And if it didn't get caught again within the next six years, well, then, like DMV, your points would be eliminated and you could commit your new fraud with impunity.
On top of that, he says, well, you know, we really have to believe in this too-big-to-jail and too-big-to-sanction stuff for the Securities and Exchange Commission, 'cause he says that there's a real contradiction between the principles of financial regulation and the principles of justice. In other words, if we want to insist on justice, we're going to have bad regulation, because we're going [to sanction] big firms, and then those firms will fail, and therefore we'll have financial crises. And so the answer is to leave the frauds in power, and not only to not prosecute them, but to make it very, very hard to take any serious enforcement action against them as well.
PERIES: Bill, is Fichera serious? Is this being taken seriously, such as a proposal?
BLACK: He is absolutely dead-on serious. And as I said, he's actually within the valley of the morally blind, the one-eyed king type of thing. He's not one of the worst people in Wall Street by a very long margin. And this tells you how deep the rot is in Wall Street, that somebody that is, as I said, certainly in the best 10 percent of Wall Street CEOs has such an absurd proposal in mind.
Your viewers who know the old Roman maxim in Latin Fiat justitia ruat caelum, "let justice be done, though the heavens fall", now, that might sound naive, but the best way to keep the heavens from falling is to insist on justice, particularly when the people who are trying to escape accountability are immensely wealthy and politically powerful. So the best way to destroy a financial system is to leave the frauds in charge. That is going to produce what we call a Gresham's dynamic, in which bad ethics drives good ethics out of the marketplace.
And he, Fichera, actually admits that the repeal of Glass-Steagall, which separated commercial investment banking, was a disaster, and he admits that moving away from what was the rule for hundreds of years, that things like investment banks were owned as partnerships and you had as a general partner what's called joint and several liability--that remains means you're responsible for all the debts of the company, whether you caused them and not. And, of course, under that system, you as a partner in one of these investment banks had an overwhelming incentive to police your fellow partners and making sure that they didn't screw up and take advantage of people, and you had an enormous incentive not to make new partners who didn't have the highest level of integrity, because when they screwed up, again, you could lose your entire wealth....' _________________ 'And he (the devil) said to him: To thee will I give all this power, and the glory of them; for to me they are delivered, and to whom I will, I give them'. Luke IV 5-7.
'...Very few people understand what Putin is doing at the moment. And almost no one understands what he will do in the future.
No matter how strange it may seem, but right now, Putin is selling Russian oil and gas only for physical gold.
Putin is not shouting about it all over the world. And of course, he still accepts US dollars as an intermediate means of payment. But he immediately exchanges all these dollars obtained from the sale of oil and gas for physical gold!
To understand this, it is enough to look at the dynamics of growth of gold reserves of Russia and to compare this data with foreign exchange earnings of the RF coming from the sale of oil and gas over the same period.
Moreover, in the third quarter the purchases by Russia of physical gold are at an all-time high, record levels. In the third quarter of this year, Russia had purchased an incredible amount of gold in the amount of 55 tons. It’s more than all the central banks of all countries of the world combined (according to official data)!
In total, the central banks of all countries of the world have purchased 93 tons of the precious metal in the third quarter of 2014. It was the 15th consecutive quarter of net purchases of gold by Central banks. Of the 93 tonnes of gold purchases by central banks around the world during this period, the staggering volume of purchases – of 55 tons – belongs to Russia.
Not so long ago, British scientists have successfully come to the same conclusion, as was published in the Conclusion of the U.S. Geological survey a few years ago. Namely: Europe will not be able to survive without energy supply from Russia. Translated from English to any other language in the world it means: “The world will not be able to survive if oil and gas from Russia is subtracted from the global balance of energy supply”.
Thus, the Western world, built on the hegemony of the petrodollar, is in a catastrophic situation. In which it cannot survive without oil and gas supplies from Russia. And Russia is now ready to sell its oil and gas to the West only in exchange for physical gold! The twist of Putin’s game is that the mechanism for the sale of Russian energy to the West only for gold now works regardless of whether the West agrees to pay for Russian oil and gas with its artificially cheap gold, or not.
Because Russia, having a regular flow of dollars from the sale of oil and gas, in any case, will be able to convert them to gold with current gold prices, depressed by all means by the West. That is, at the price of gold, which had been artificially and meticulously lowered by the Fed and ESF many times, against artificially inflated purchasing power of the dollar through market manipulation.
Interesting fact: the suppression of gold prices by the special department of US Government – ESF (Exchange Stabilization Fund) – with the aim of stabilizing the dollar has been made into a law in the United States.
In the financial world it is accepted as a given that gold is an antidollar.
◾In 1971, US President Richard Nixon closed the ‘gold window’, ending the free exchange of dollars for gold, guaranteed by the US in 1944 at Bretton Woods.
◾In 2014, Russian President Vladimir Putin has reopened the ‘gold window’, without asking Washington’s permission.
Right now the West spends much of its efforts and resources to suppress the prices of gold and oil. Thereby, on the one hand to distort the existing economic reality in favor of the US dollar and on the other hand, to destroy the Russian economy, refusing to play the role of obedient vassal of the West.
Today assets such as gold and oil look proportionally weakened and excessively undervalued against the US dollar. It is a consequence of the enormous economic effort on the part of the West.
And now Putin sells Russian energy resources in exchange for these US dollars, artificially propped by the efforts of the West. With which he immediately buys gold, artificially devalued against the U.S. dollar by the efforts of the West itself!
There is another interesting element in Putin’s game. It’s Russian uranium. Every sixth light bulb in the USA depends on its supply. Which Russia sells to the US too, for dollars.
Thus, in exchange for Russian oil, gas and uranium, the West pays Russia with dollars, purchasing power of which is artificially inflated against oil and gold by the efforts of the West. But Putin uses these dollars only to withdraw physical gold from the West in exchange, for the price denominated in US dollars, artificially lowered by the same West.
This truly brilliant economic combination by Putin puts the West led by the United States in a position of a snake, aggressively and diligently devouring its own tail.
The idea of this economic golden trap for the West, probably originated not from Putin himself. Most likely it was the idea of Putin’s Advisor for Economic Affairs – doctor Sergey Glazyev. Otherwise why seemingly not involved in business bureaucrat Glazyev, along with many Russian businessmen, was personally included by Washington on the sanction list? The idea of an economist, doctor Glazyev was brilliantly executed by Putin, with full endorsement from his Chinese colleague – XI Jinping....' _________________ 'And he (the devil) said to him: To thee will I give all this power, and the glory of them; for to me they are delivered, and to whom I will, I give them'. Luke IV 5-7.
Joined: 30 Jul 2006 Posts: 6060 Location: East London
Posted: Thu Dec 04, 2014 3:05 pm Post subject:
British 'Justice' system: Bankster's £3m Fraud - community service; man steals food to eat - six weeks in jail (plus eight weeks activated from previous offence):
'Russia and China: The Dawning of a New Monetary System
“ICH”, “Global Research”. – The statement by Chinese Foreign Minister Wang Yi on 22 December 2014: “If the Russian side needs it, we will provide necessary assistance within our capacity" – is a clear testimony that Russia and China have entered into an economic alliance which will be stronger than the incessant ruble and petrol devaluation manipulations by Washington, aided by the European puppets.
China, leading member of the BRICS, is lining up the bloc of the BRICS and that of the SCO – and their currencies – to support Russia in need.
Currency swaps between Russia (ruble) and China (yuan) for an initial US$ 25 billion equivalent have already been implemented, to allow direct transactions between the two countries. Similar swaps are under way between China and Russia with other countries, primarily the BRICS and the SCO (Shanghai Cooperation Organization) members – including the soon to become new members – Iran, Pakistan, India (also a BRICS member) and Mongolia – and possibly in some not too distant future also strategically located NATO member Turkey.
In other words, a large junk of hydrocarbons will as of immediately no longer be traded in US (petro) dollars, but in rubles and yuans and their partners respective local currencies. This will reduce worldwide demand for the petro dollar.
The US is able to maintain pressure on other currencies, currently the ruble, only as long as the petro dollar remains the major world reserve currency. This is the main reason why Washington gets away with a seven-fold indebted dollar (i.e. total outstanding and uncovered commitments are currently more than 7 times higher than the US GDP (US$ 17.6 trillion, 2014 est. – vs. US$ 128 trillion of unmet obligations); making the US worldwide the most indebted country – by far.
Once the demand for the (petro) dollar fades – as hydrocarbons are no longer dealt in dollars – the value of the dollar will decline and at worst may result in hyperinflation in the dollar economies, including those closely linked to the US economy.
In the meantime, Russia has nothing to fear, since the ruble is really not traded anywhere, except sold by western central banks to go along with Washington’s criminal scheme of attempting to destroy the Russian economy by flooding an imaginary ‘market’ with the Russian currency – which they will not achieve.
The Russian central bank is basically not interfering. Why? – Because Russia eventually will need rubles for its new trading alliance – and will buy the rubles back from the flooded market at rock-bottom prices, for artificially boosted dollars and euros and other western linked currencies. In a future Russia-China based monetary system these currencies would at least initially be of secondary or tertiary importance.
Letting the ruble ‘collapse’ is a superb strategy by the Maestro Chess player, Vladimir Putin. Western investors in Russian shares, mainly but not exclusively of hydrocarbon corporations, dropped also. Western investors became afraid and released their shares on the market – Russia’s treasury bought them back at low market prices, increasing their value instantly and – and on top of it Russia reaped the dividends of the newly Russian owned shares. According to a Spiegel Online article, Russia made at least 20 billion dollars’ worth of profit with this little gambit alone, plus she repatriated about 30% of foreign-held Russian petroleum shares.
Russia has foreign exchange reserves of close to half a trillion dollars equivalent, more than two times the rubles in circulation. Russia’s economy shows a pristine balance sheet with only about 15% debt to GDP, whereas the EU’s debt-GDP ratio is close to 100%.
Here comes the link to the US-Saudi manipulated oil price. It just fell to below US$ 50 / barrel, less than half of what it was in June 2014 (US$ 105 – WTI Crude). This criminal act of attempting to destroy sovereign nations’ economies is foremost directed at Russia, but is also meant to ‘punishes’ other non-aligned oil producers, like Venezuela and Iran. ‘Aligned’ oil producers’ suffering might be written off by the empire as collateral damage.
But not only. That’s perhaps where Obama miscalculated by shooting his own foot. At these prices domestic unemployment will soar especially in petrol producing states, like Texas and North Dakota. Hardest hit will be Texas. Last week, JPMorgan Chief Economist Michael Feroli, predicted, "We think Texas will, at the least, have a rough 2015 ahead, and is at risk of slipping into a regional recession."
According to Zero Hedge, the US hydrocarbon industry and its nationwide ramification produce almost US$ 1.2 trillion of GDP (7%) and generates more than 9.3 million well-paying permanent jobs throughout the nation. Most affected by the free fall of petrol prices will be the higher cost shale production – the new source that gave the impetus to the oil renaissance 5 years ago. Texas and North Dakota will be the main losers, in terms of job losses and recession. But repercussions will be felt countrywide, as almost all industries are linked to hydrocarbon energy.
Obama may feel that the hike in unemployment may be a small collateral price to pay for ruining other economies around the world. Besides, overall the US economy may profit from lower prices – letting the rich get richer and the poor – well, we know that.
However, there is another element that Obama’s and his cronies’ shortsightedness did not foresee. The petro-dollar is highly dependent on trading hydrocarbons in dollars – following the 40-year old agreement with the Saudis as head of OPEC in turn for US military security and protection. This alone, the constant demand for US dollars by all nations who needed to trade hydrocarbons, propelled the dollar into a ‘permanent’ reserve currency – allowing Washington to print dollars at will and to become a financial hegemon.
No longer. These times are gone. Washington’s evil attempt to destroy all those who ‘are not with us’, catalyzed the transition. More than a year ago, Russia started selling her hydrocarbons in rubles and local currencies of her trading partners, like China and other BRICS countries. Today Russia is selling her hydrocarbon in gold – yes, in physical gold. The west did not count with the quick analytical thinking of Mr. Putin’s. He will accept artificially inflated dollars and then immediately exchange them for gold, thereby increasing Russia’s gold reserves dramatically. Already today, the ruble is backed by gold – a reality the west with its casino currencies is quiet about.
By artificially boosting the value of the dollar against the Euro and lowering the price of gold, the FED and its Wall Street mobsters intend to make the dollar more attractive, say, as the euro which, after all its MSM propagated economic mediocrity, is backed by a much more solid and stable economy than is that of the United States; especially in view of its huge potential to be able to deal with the east – Russia and the Xi Jinping’s announced new economic Silk Road, all the way from Frankfurt to Shanghai. – But this would be Europe’s call; a sovereign call by a sovereign union and by new leaders with backbone and common sense.
This is still an open decision. Although, it looks like – or should logically appear – that Europe is waking up. Even the most stubborn stooges of Washington are gradually seeing the light. Hungary and Poland, historically not great friends of Russia, are wondering whether they might not be better off with the east, rather than licking Obama’s boots. German business is angry about Merkel’s obsessiveness with Washington imposed ‘sanctions’. They see Russia as the trading partner of the future, as it has been until Washington didn’t succeed in Ukraine – today an almost hopeless but still murderous basket case – and wanted to crush Vladimir Putin and his country. Even the spine and brainless Hollande is responding to France’s business – ‘sanctions’ – enough is enough.
Where does that leave Washington? – One move away from checkmate. Washington’s criminal attempt to destroy Russia’s economy has been largely irrelevant and self-destructive. In the meantime and as Russia’s gold reserves increase, Russia has established an alternative SWIFT system. It is currently being tested internally but could go global within a few months – so that any country wanting to avoid the corrupt dollar casino scheme could use the new system for international monetary exchanges.
That combined with ever more countries willing and daring to trade their hydrocarbons in their own currencies or currencies other than the dollar, will further lower demand on the petro-dollar. In addition, under their economic alliance, Russia and China may soon launch a new currency, a basket of currencies that could be joined by other nations ready and willing to abandon the fraudulent western fiat scheme. Immediate candidates would be the other BRICS and the countries of the SCO.
The system could function in the same way as did the Euro at the beginning – as a basket of currencies each valued according to some key indicators of its national economy. – Initially the new monetary system might be gold based – as opposed to the current fiat money with no backing whatsoever. In the long run, however, gold is not a stable or sustainable back-up for any currency. The intrinsic value of gold is only its industrial worth, currently less than 20% of its use. The combined economic output of the nations behind the joint currency – to a lesser degree the numerical growth oriented GDP, but rather social indicators such as public health, standard of education and environmental concerns, capacity of conflict resolution, of living in peace and harmony – might be more indicative of the strength of a sovereign’s currency than just gold or a straight GDP.
Such a new monetary system may soon cover 25% to one third of the world economy, thereby becoming fully autonomous. The petro-dollar would further lose its stature as world reserve. Ten years ago 90% of world reserves consisted of dollar-nominated securities. Today that ratio has shrunk to a mere 60%, as currencies like the Yuan is rapidly gaining ground as reserve money, especially in Asia. Even Australia has recently declared it will increase its Yuan holding.
The drop of the dollar as the world’s major reserve currency is Washington’s biggest nightmare, and has been for the last 15-20 years, when first Iran and then Iraq (Iraq’s oil for food program) and Venezuela threatened to sell their hydrocarbon in Euros. At that time this economically strategic move was not so much meant as an affront to the US, but rather a measure of security for their own economies, as worldwide trust in the US dollar was waning then and now.
This is considered one of the major reasons for the 2003 US invasion of Iraq – securing the petro dollar as trading currency – and the ensuing war, to take over all of Iraq’s hydrocarbon wells – and privatize them. It was also the key reason for Washington’s false flag accusation of Iran’s plans for manufacturing nuclear weapons. In the meantime this has been proven umpteen times as a lie, including by the 16 major US intelligent agencies.
Washington’s relentless aggression on Russia is of course part of the PNAC (Plan for a New American Century), to achieve full world hegemony, but at the same time Washington is desperate not to lose its dollar supremacy. The US is in a terminal quagmire. There is no way out. Washington is acting like a wild beast in its last throbs of live. The empire may be capable of destroying the world – including itself – just so that nobody may survive outside of the self-appointed Masters of the Universe.
The emergence of a new ‘eastern’, dollar detached monetary scheme is therefore becoming increasingly urgent. One might ask, why hasn’t it happened before?
The reasons’ might be manifold. The key players’ – Russia and China – banking and exchange infrastructure might not have been ready. But more likely, to reduce to the extent possible the collateral economic damage a new monetary system may entail to the rest of the world. After all, fair trading among sovereign nations is a noble objective for global peace.'
Peter Koenig is an economist and geopolitical analyst. He is also a former World Bank staff and worked extensively around the world in the fields of environment and water resources. He writes regularly for Global Research, ICH, RT, Sputnik News, the Voice of Russia / Ria Novosti, TeleSur, The Vineyard of The Saker Blog, and other internet sites. He is the author of Implosion – An Economic Thriller about War, Environmental Destruction and Corporate Greed – fiction based on facts and on 30 years of World Bank experience around the globe _________________ 'And he (the devil) said to him: To thee will I give all this power, and the glory of them; for to me they are delivered, and to whom I will, I give them'. Luke IV 5-7.
Published on Jan 20, 2015
Gray State: The Rise (Rough Cut) Directed by David Crowley
I have chosen to release this RAW UNCUT version of Gray State: The Rise to insure versions of this movie reach the public, although this version is from nearly a year ago, you can get an idea, of the direction of the documentary. Any Questions?
(This was the documentary David Crowley was working on when he supposedly killed his wife, 5 year old child and himself. Friends, family and co-workers have said they do not believe it. That he was a great person, with a promising career and an extremely happy homelife. They believe he was murdered.)
_________________ 'Come and see the violence inherent in the system.
Help, help, I'm being repressed!'
“The more you tighten your grip, the more Star Systems will slip through your fingers.”
Joined: 30 Jul 2006 Posts: 6060 Location: East London
Posted: Tue Feb 10, 2015 1:19 pm Post subject:
Pettifor's Prediction: Economic guardians dramatically failing - new crisis around the corner: https://www.youtube.com/watch?v=ggmPwOTutR8&feature=em-uploademail _________________ 'And he (the devil) said to him: To thee will I give all this power, and the glory of them; for to me they are delivered, and to whom I will, I give them'. Luke IV 5-7.
Joined: 30 Jul 2006 Posts: 6060 Location: East London
Posted: Tue Feb 10, 2015 1:23 pm Post subject:
EDIT
Added a functioning video in here of this CROWLEY film BUT It's peppered throughout with loosely coded symbols & signs
Chequerboard here there & everywhere
Most interviewees wearing BLACK only
DEAD dark side giveaway if you ask ME!
(Tony)
Published on Jan 20, 2015
Gray State: The Rise (Rough Cut) Directed by David Crowley
I have chosen to release this RAW UNCUT version of Gray State: The Rise to insure versions of this movie reach the public, although this version is from nearly a year ago, you can get an idea, of the direction of the documentary. Any Questions?
Gone from that link; it's still on here:
Gray State The Rise Rough Cut Directed by David Crowley:
http://vimeo.com/117361113
(This was the documentary David Crowley was working on when he supposedly killed his wife, 5 year old child and himself. Friends, family and co-workers have said they do not believe it. That he was a great person, with a promising career and an extremely happy homelife. They believe he was murdered.)
_________________ 'And he (the devil) said to him: To thee will I give all this power, and the glory of them; for to me they are delivered, and to whom I will, I give them'. Luke IV 5-7.
Joined: 25 Jul 2005 Posts: 18335 Location: St. Pauls, Bristol, England
Posted: Fri May 08, 2015 9:34 pm Post subject:
2015 – The global crash won’t happen
http://geab.eu/en/2015-the-global-crash-wont-happen-2/
We could have also headed our article : “No, the inflating of the Chinese stock exchanges isn’t a bubble”. The Shanghai stock exchange’s exuberant 100% increase in one year is certainly frightening, but it reflects a real dynamic (or rather a correction) of the country’s economic development. One really has to wonder how real money (Chinese savings) invested in real needs (infrastructure, social systems, decontamination, Silk Road…) could create a bubble.
Our team wants to pick up on the inconsistency that there is of being afraid of the financial centres’ gain in value in the obvious economic development zones like China whilst, for years, the whole world must marvel at the Western stock exchanges’ numbers, in particular in the US, in complete contradiction to the economic fundamentals of the areas concerned. Yes, the US stock exchange is in a full bubble (as well as, to a lesser extent, Japan and Europe). But the freeing up of the emerging nations’ dynamics, equipping themselves with infrastructure tools according to the size of their revenue streams, is on the point of absorbing all these bubbles to finance business development on a scale never seen before. The global crash won’t happen therefore because “planet finance” has only just been born.
Sub-parts of this article :
Chinese stock market : a well-prepared opening
Silk Road : China has just launched a global New Deal
The BRIICS and BAII are releasing the power of emerging economies
From globalization to globality: the plumbing problem has been solved !
An open but not wide open world
Towards a Western crash… or not
Our team has decided to make public the part of the Perspectives section named ” From globalization to globality: the plumbing problem has been solved !”
From globalization to globality: the plumbing problem has been solved !
It’s only up to the West to grasp this great opportunity. On one side there is the insurmountable mountain of US problems : an economy which is going into recession once again[1], insecurity which is reaching its highest[2], the poorest 80%’s incomes which have already been falling for the last two years[3], a never-ending drought in California, the spectre of a new government shutdown in November[4] with the possibility of payment default into the bargain, an overheating stock market[5], etc.
On the other side, there are the BRIICS’ promising prospects in a rationale of global collaboration.
Our readers well know how worried we were last year over the risk of the West shutting down on itself. Over the last three months we have again picked up the thread of our anticipations over the emergence of a multi-polar world, the challenges laid down by its organization, the obstacles in the way of its implementation and the pitfalls to its development as well. With the Iranian agreement, the world has suddenly become exciting again… because the problems on display are just so many challenges to rise to and no longer death threats. The solutions exist.
These problems are numerous : there is the damage of the global systemic crisis to repair as much as structural problems to resolve together. But the machine has been restarted and for the first time in history it’s global. This passing from a Western to a global world has in the end caused plumbing problems especially : a single currency resting on a small national US economy, financial markets not adapted to the size of money flows, international institutions unable to incorporate the new global realities… Whilst the BRICS have rolled up their sleeves and created the conditions to reinvent a multi-monetary international monetary system, truly global financial markets (through innovations such as connecting their two financial centres of Shanghai and Hong Kong[6], not to mention the Yuan direct settlement network which now spans the globe), multi-polar or global banks like the BRICS bank or the brand-new Asian Infrastructure Investment Bank, to which the European countries, after having frowned at the BRICS Bank, are now rushing at the Chinese invitation (London first, then Paris, Rome and Berlin)[7]… to the extent that the US, after having “scolded” the Europeans for their enthusiasm[8], finds itself obliged to show a certain willingness to cooperate[9].
Even Israel, which has been courted by the AIIB, coincidently during the negotiations with Iran, decided to apply[10].
All this engineering lacked the field of application. The Silk Road provides the first basic outline. The multi-polar world is yet to be built; the trillions floating in the air of the Western financial markets will once again find where to touch down. It’s a true New Deal that the Chinese are offering us, we have seen, but this time it’s global. The West invented globalization but its China, and the BRICS, who have completed the process and put globality in place… To read more, subscribe to the GEAB
[1] Source : Business Insider, 02/04/2015.
[2] According to a 2013 study (already) 80% of Americans have already been an unemployed during their working lives, or for at least a year, have depended on state aid, or have lived on incomes 150% below the poverty line. Source : Associated Press, 28/07/2013.
It was the sudden firing of Deutche Bank’s co-CEOs this past weekend – The Brown Stuff Is About To Hit The Fan – that prompted me to spend more time analyzing a sequence of events which indicate to me some sort of derivatives position, possibly at Deutsche Bank, has exploded. In addition, the stock and bond markets have been emitting some curious signals which reflect that fact that something happened in the global economic and financial system.
The DJ Transports are largely made up of trucking, railroad and delivery services stocks. This sector of the market reflects the heart-beat of economic activity, especially as it relates to consumer spending in the United States. The Transports are down 9.4% from its all-time high. I wrote about the collapsing U.S. economy a week ago: LINK The behavior of the Dow Jones Transports is the market’s confirmation that the U.S. economy is contracting.
It’s the firing of Jain that caught my interest. In a management shake-up a little over two weeks ago, Jain was given more power by the Board and shareholders. So why was Jain suddenly and unexpectedly fired less than three weeks after having been given more control over the bank?
As I wrote yesterday, Jain’s raison d’etre was to build Deutsche Bank into the world’s largest derivatives dealer.
This could be the start of the big financial markets inferno that many of us have been expecting for quite some time.
Is the collapse imminent, and our very way of life under threat of total global meltdown?
Perhaps the signs and warnings are there, at every level, for those who want to see it.
An outright panic has taken hold over many who see September 2015 as a convergence of ominous events – including the Pope’s visit to America, the United Nations summit on Agenda 21-like development, expectations for a stunning policy change at the Federal Reserve, unprecedented experiments at CERN and the end of the seven year business cycle, a date that has already seen the tragic events of 9/11 and the 2008 economic collapse in this century.
For many economic experts, it is a dangerous and capricious time for global finance, with many warning that a massive global collapse is imminent.
RT profiled several who are bracing for next month’s signposts of doom:
Jeff Berwick, Canadian entrepreneur and editor of The Dollar Vigilante, recently told Gordon T. Long in an interview: “There’s enough going on in September to have me incredibly curious and concerned about what’s going to happen.”
[…]
Doug Casey, [head of Casey Research said] “With these stupid governments printing trillions and trillions of new currency units,” Casey, describing the US Federal Reserve’s quantitative easing program, “it’s building up to a catastrophe of historic proportions.”
[…]
Gerald Celente, [founder of Trends Research said]“You’re going to see a global stock market crash… There’s going to be panic on the streets from Wall Street to Shanghai, to the UK down to Brazil.”
“You’re going to see one market after another begin to collapse.”
[…]
Larry Edelson [Research Director for Weiss Research said] “On October 7, 2015, the first economic super cycle since 1929 will trigger a global financial crisis of epic proportions. It will bring Europe, Japan and the United States to their knees, sending nearly one billion human beings on a roller-coaster ride through hell for the next five years. A ride like no generation has ever seen. I am 100 percent confident it will hit within the next few months.”
Obviously, these are not vague or uncertain predictions.
And they aren’t alone – there is a chorus of prominent voices warning plainly that something big is coming soon, and quite possibly specifically in September.
Are they right?
Will this be revealed to be a baseless panic, or is these the last weeks above ground?
Only time will tell, but take heed according to what information is out there.
Just be ready if it really does happen.
Read more:
It Starts Today: “A Financial Collapse Is Imminent Within This Six Month Time Period”
Are “Eerie Events Culminating in September”? Why Some Are Bracing for a Crash or Big Event
Top Post-Collapse Barter Items And Trade Skills
Economist Warns of Collapse Risk: “Will Not Allow Life to Continue As We Know It”
Collapse Investing: Money and Wealth Preservation During Times of Uncertainty and Instability
Bad Moon rising: Americans bracing for September shocker
Robert Bridge
Robert Bridge, originally from Pittsburgh, Pennsylvania, has worked as an investigative journalist in Russia since 1998. His articles have been featured in many publications, including Russia in Global Affairs, The Drudge Report, Russia Insider and Infowars.com. Bridge is the author of the book “Midnight in the American Empire”, which was released in early 2013.
Published time: 16 Aug, 2015 11:09
Across the vast expanse of the internet, everyone from professional economists to armchair theorists are sounding the alarm that next month may hold some ugly surprises for the global economy.
Despite exorbitant executive salaries, record earnings on Wall Street and a surging dollar, an increasing number of forecasters are warning the feel-good data is severely skewered - a bit like a new coat of paint that used-car dealerships use to conceal the fact that a car's engine is shot. Indeed, many experts are giving the rickety US-made jalopy just months before the big collapse begins.
Gerald Celente, the founder of Trends Research, who predicted the “panic of 2008,” says the economic earthquake will send reverberations around the world.
“You’re going to see a global stock market crash,” Celente told King World News. “There’s going to be panic on the streets from Wall Street to Shanghai, to the UK down to Brazil.”
“You’re going to see one market after another begin to collapse.”
Doug Casey, a successful investor and the head of Casey Research, saw little to be upbeat about in the current economic climate.
"With these stupid governments printing trillions and trillions of new currency units," Casey, describing the US Federal Reserve’s quantitative easing program, told Reason magazine in a recent interview, “it's building up to a catastrophe of historic proportions."
And he certainly does not advise keeping much money in any financial institution.
"Most of the banks in the world are bankrupt," he said.
In a recent conversation between senior analyst Larry Edelson and Mike Burnick, the Research Director for Weiss Research, Edelson made a stunning prediction, even providing an exact date for what he predicts will be a “rollercoaster ride through hell.”
“On October 7, 2015, the first economic super cycle since 1929 will trigger a global financial crisis of epic proportions. It will bring Europe, Japan and the United States to their knees, sending nearly one billion human beings on a roller-coaster ride through hell for the next five years. A ride like no generation has ever seen. I am 100 percent confident it will hit within the next few months.”
And there are dozens of other such apocalyptic predictions on the health of the global economy that it leaves one feeling dizzy and desperate - something like watching an approaching tidal wave in the full knowledge there is no hope of outrunning it.
Meanwhile, confidence in the US economy among Americans dropped sharply in July to its lowest level in 2015, according to a new US Economic Confidence Index rating released by Gallup earlier this month.
Perhaps the non-stop onslaught of super-negative news – everything from the Greek tragedy to the Chinese currency devaluation – has got Americans convinced the global economy has entered dangerous waters. Indeed, scratch the shiny surface of the US economy and the wear and rust is immediately apparent.
Jeff Berwick, Canadian entrepreneur and editor of The Dollar Vigilante, recently told Gordon T. Long in an interview: “There’s enough going on in September to have me incredibly curious and concerned about what’s going to happen.”
- Jade Helm 15, an ultra-secret (i.e. no media presence permitted) US military exercise spanning seven Southwestern states is expected to end of September 15; five closed WalMart stores, ostensibly for plumbing work, in the vicinity of the exercises has raised fears that the sprawling facilities will be able to double as some sort of detention centers following the collapse;
- Pope Francis is scheduled to address the 70th annual UN General Assembly in New York on September 25; will the Bishop of Rome be in town to offer a divine blessing to Wall Street, which may require a real miracle to escape the fallout from the next downturn?
- Last but not least, the US Federal Reserve will hold its Federal Open Market Committee (FOMC) on September 16-17, where it is anticipated that Fed chair Janet Yellen will announce an interest rate hike, the first in years, which experts say could possibly trigger economic panic.
Indeed, the hysteria over next month has reached such a fever pitch that even seasoned experts are cracking open their dusty Bible for signposts.
The seventh year of the Biblical agricultural cycle - as set down in the Torah – just happens to fall on September 15, 2015. This is a real millennial event, with a so-called tetrad of blood moons (four consecutive lunar eclipses) all falling on Judaic religious days. For those who track such astrological occurrences, a number of major events have occurred at the end of the “7-year business cycle,” as it is now commonly known.
In 2008, for example, the world suffered its worst financial crisis in decades, while in September 2001 the United States experienced the worst-ever terror attack on its territory, as well as a massive sell-off on Wall Street when markets reopened on Sept. 17.
Whatever the case may be, Americans – increasingly wary of the weak underbelly of their economy - are gearing up for fireworks in September. But even if nothing happens, all that prepping and stockpiling – much like in the runup to the overhyped Y2K non-event - will certainly boost economic performance across the board.
By Stefan Stanford - All News Pipeline - Live Free Or Die
Still unbeknownst to most Americans there is a vast secretive network of 'elitists' working behind the scenes to shape and shift the world like clay into what they want it to be. As September of 2015 approaches, the latest session of the nwo's 'play session' nearly complete, their global fireworks show has begun with global war and chaos featuring America's destruction taking center stage - there will be no intermissions we are warned!
A look all across alternative news headlines brings new revelations. Mike Adams at Natural News dropped this bombshell: "China and America Already At War". This story from Michael Snyder at' End Of The American Dream' tells us that Russian media is talking about what's coming in September while the mainstream media in the US has been inexplicably silent about what's coming.
While the UK's 'The Telegraph' puts out the warning that the doomsday clock for a global market crash has struck one minute before midnight, CNN devotes headlines to a celebrity's nude photo controversy while USA Today gives important headline space to the FAKE World Wrestling's 'Summer Slam' and even Fox News gives a headline to the former matriarch of 'The Brady Bunch' on 'Dancing with the Stars.'
As Sputnik News tells us of Russia and China's latest strong move to move away from the US dollar and create an entirely different gold market, all we need to do is take a visit to Google Trends to see why America is doomed as we see some of the top things being searched for in our country include major league baseball, the national hockey league, Jimmy Kimmel live and Starbucks pumpkin spice lattes.
Meanwhile across the globe, chaos is being engineered by the nwo like a child throwing a tantrum after they broke their favorite toy as the central bankers lose control as warned of in this story from The Economic Collapse Blog that tells us about the 23 nations around the world where stock market crashes are ALREADY happening. We're also given these words of caution.: "Of course this is just the beginning. The western world is going to feel this kind of pain as well very soon."
Thankfully there is some real news being published by America's mainstream media as the Washington Times tells us that the US Navy is on alert as China and Russia team up for the largest joint naval exercises EVER! Is Mike Adams bombshell accurate when he tells us that the explosion in Tianjin was carried out by a Pentagon space weapon in retaliation for China devaluating the Yuan? In the 1st video below, FaceLikeTheSun tells us all about Mike Adams space weapon theory. Has WW3 already begun?
Is financial expert Harry Dent correct when he tells Alex Jones in the 2nd video below that we are only WEEKS away from the 'global financial collapse'? All News Pipeline has published several stories in the last several months about the mysterious website Deagel.com and their prediction that by 2025, there will be 254 million LESS Americans living in America then than there are here now. All across America we've been witnessing a massive amount of transportation of military vehicles by train and roadway. We've learned that if war begins again, Russia will likely bring it to our shores. The only thing standing in between a 'New World Order' global government tyranny and liberty is a STRONG America as September closes in.
Let's take a look at Deagel figures (2025 Forecast here) for America, Mexico China and Russia for 2014 and 2025. What you see here is the forecast of America's destruction in numbers. #1 in GDP and PPP with China 2nd, Russia 9th and Mexico 15th in 2014 as seen in the 1st screenshot, check out the forecast numbers for 2025 where not only are BRICS nations China, Brazil, Russia and India taking spots 1 through 4 but Mexico comes in at #6 with the US falling to lucky #13. With the US showing a population drop from 318 million to 65 million in less than 10 years, with a PPP drop from $54,800 to $9,061, it's clear who the losers are if the 'new world order' gets their way. Mexico's PPP for 2025 is HIGHER than the US's! Also not the HUGE drop in military expenditures in the US; what does that tell us? 2014 here.:
Chart below shows 2025 forecast. How does the US fall so far?
Was the Tianjin explosion caused by the US and the Pentagon as is argued in this video?
Expert view: Why should we be worried about China's economy?
By John Ficenec, video by Ju Zhang
3:06PM BST 17 Aug 2015
China currency devaluation signals endgame leaving equity markets free to collapse under the weight of impossible expectations
When the banking crisis crippled global markets seven years ago, central bankers stepped in as lenders of last resort. Profligate private-sector loans were moved on to the public-sector balance sheet and vast money-printing gave the global economy room to heal.
Time is now rapidly running out. From China to Brazil, the central banks have lost control and at the same time the global economy is grinding to a halt. It is only a matter of time before stock markets collapse under the weight of their lofty expectations and record valuations.
The FTSE 100 has now erased its gains for the year, but there are signs things could get a whole lot worse.
The mushroom cloud of the first test of a hydrogen bomb
It is only a matter of time before stock markets collapse under the weight of their lofty expectations and record valuations.
1 - China slowdown
China was the great saviour of the world economy in 2008. The launching of an unprecedented stimulus package sparked an infrastructure investment boom. The voracious demand for commodities to fuel its construction boom dragged along oil- and resource-rich emerging markets.
• Ambrose Evans-Pritchard: China cannot risk the global chaos of currency devaluation
• Why China has devalued the renminbi
The Chinese economy has now hit a brick wall. Economic growth has dipped below 7pc for the first time in a quarter of a century, according to official data. That probably means the real economy is far weaker.
The People’s Bank of China has pursued several measures to boost the flagging economy. The rate of borrowing has been slashed during the past 12 months from 6pc to 4.85pc. Opting to devalue the currency was a last resort and signalled the great era of Chinese growth is rapidly approaching its endgame.
Data for exports showed an 8.9pc slump in July from the same period a year before. Analysts expected exports to fall only 0.3pc, so this was a huge miss.
The Chinese housing market is also in a perilous state. House prices have fallen sharply after decades of steady growth. For the millions who stored their wealth in property, it makes for unsettling times.
2 - Commodity collapse
The China slowdown has sent shock waves through commodity markets. The Bloomberg Global Commodity index, which tracks the prices of 22 commodity prices, fell to levels last seen at the beginning of this century.
The oil price is the purest barometer of world growth as it is the fuel that drives nearly all industry and production around the globe.
• Andrew Critchlow: Oil companies travel back to 1986 in search of a future
Brent crude, the global benchmark for oil, has begun falling once again after a brief rally earlier in the year. It is now hovering above multi-year lows at about $50 per barrel.
Iron ore is an essential raw material needed to feed China’s steel mills, and as such is a good gauge of the construction boom.
The benchmark iron ore price has fallen to $56 per tonne, less than half its $140 per tonne level in January 2014.
3 - Resource sector credit crisis
Billions of dollars in loans were raised on global capital markets to fund new mines and oil exploration that was only ever profitable at previous elevated prices.
With oil and metals prices having collapsed, many of these projects are now loss-making. The loans raised to back the projects are now under water and investors may never see any returns.
Nowhere has this been felt more acutely than shale oil and gas drilling in the US. Tumbling oil prices have squeezed the finances of US drillers. Two of the biggest issuers of junk bonds in the past five years, Chesapeake and California Resources, have seen the value of their bonds tumble as panic grips capital markets.
As more debt needs refinancing in future years, there is a risk the contagion will spread rapidly.
4 - Dominoes begin to fall
The great props to the world economy are now beginning to fall. China is going into reverse. And the emerging markets that consumed so many of our products are crippled by currency devaluation. The famed Brics of Brazil, Russia, India, China and South Africa, to whom the West was supposed to pass on the torch of economic growth, are in varying states of disarray.
• Is the global economy headed for another crash? Three signs to watch out for
• Regulators could be responsible for next financial crash
• Global stock markets jolted by China's historic renminbi devaluation
The central banks are rapidly losing control. The Chinese stock market has already crashed and disaster was only averted by the government buying billions of shares. Stock markets in Greece are in turmoil as the economy grinds to a halt and the country flirts with ejection from the eurozone.
Earlier this year, investors flocked to the safe-haven currency of the Swiss franc but as a €1.1 trillion quantitative easing programme devalued the euro, the Swiss central bank was forced to abandon its four-year peg to the euro.
5 - Credit markets roll over
As central banks run out of silver bullets then, credit markets are desperately seeking to reprice risk. The London Interbank Offered Rate (Libor), a guide to how worried UK banks are about lending to each other, has been steadily rising during the past 12 months. Part of this process is a healthy return to normal pricing of risk after six years of extraordinary monetary stimulus. However, as the essential transmission systems of lending between banks begin to take the strain, it is quite possible that six years of reliance on central banks for funds has left the credit system unable to cope.
Credit investors are often far better at pricing risk than optimistic equity investors. In the US while the S&P 500 (orange line) continues to soar, the high yield debt market has already begun to fall sharply (white line).
6 - Interest rate shock
Interest rates have been held at emergency lows in the UK and US for around six years. The US is expected to move first, with rates starting to rise from today’s 0pc-0.25pc around the end of the year. Investors have already starting buying dollars in anticipation of a strengthening US currency. UK rate rises are expected to follow shortly after.
7 - Bull market third longest on record
The UK stock market is in its 77th month of a bull market, which began in March 2009. On only two other occasions in history has the market risen for longer. One is in the lead-up to the Great Crash in 1929 and the other before the bursting of the dotcom bubble in the early 2000s.
UK markets have been a beneficiary of the huge balance-sheet expansion in the US. US monetary base, a measure of notes and coins in circulation plus reserves held at the central bank, has more than quadrupled from around $800m to more than $4 trillion since 2008. The stock market has been a direct beneficiary of this money and will struggle now that QE3 has ended.
8 - Overvalued US market
In the US, Professor Robert Shiller’s cyclically adjusted price earnings ratio – or Shiller CAPE – for the S&P 500 stands at 27.2, some 64pc above its historic average of 16.6. On only three occasions since 1882 has it been higher – in 1929, 2000 and 2007. _________________ --
'Suppression of truth, human spirit and the holy chord of justice never works long-term. Something the suppressors never get.' David Southwell
http://aangirfan.blogspot.com http://aanirfan.blogspot.com
Martin Van Creveld: Let me quote General Moshe Dayan: "Israel must be like a mad dog, too dangerous to bother."
Martin Van Creveld: I'll quote Henry Kissinger: "In campaigns like this the antiterror forces lose, because they don't win, and the rebels win by not losing."
37m ago
Biggest crash since 2009 "wipes £74bn off FTSE 100"
54m ago
FTSE 100 tumbles 4.67%
2h ago
Larry Summers: This could be very serious
2h ago
Photos: Global stock markets routed
3h ago
Global markets deep in the red
3h ago
Dow Jones falls 1,000 points
6h ago
Summary: Europe follows Asia's lead, sharply downwards _________________ 'And he (the devil) said to him: To thee will I give all this power, and the glory of them; for to me they are delivered, and to whom I will, I give them'. Luke IV 5-7.
https://www.youtube.com/watch?v=mzp7NiI0SUU _________________ --
'Suppression of truth, human spirit and the holy chord of justice never works long-term. Something the suppressors never get.' David Southwell
http://aangirfan.blogspot.com http://aanirfan.blogspot.com
Martin Van Creveld: Let me quote General Moshe Dayan: "Israel must be like a mad dog, too dangerous to bother."
Martin Van Creveld: I'll quote Henry Kissinger: "In campaigns like this the antiterror forces lose, because they don't win, and the rebels win by not losing."
'At some point or another, we’ve all wished that we had a crystal ball that could tell us what’s going to happen next. The world can be a hell of a scary place sometimes, and having an idea of what the future may hold can be a lifesaver. Nowhere is this more applicable than with the economy.
The global financial system is a force that none of us have any substantial control over. All we can hope to do is ride the booms and busts of our economy as best we can. However, if we can catch even a small glimpse of what’s to come, we can brace ourselves and our families for the hard times that are ahead.
Obviously, when an economy is enduring a downturn it affects every facet of society and the signs are everywhere, but some of these trends actually begin before the economy collapses. Here are a few that you may not have been aware of.
Cardboard Box Index
There are many ways to measure the health of an economy, but few are as accurate as the cardboard box index. After all, just about every product we buy has graced the inside of a cardboard box at some point, so the amount of cardboard that is being produced is a pretty solid indicator for the health of the economy.
If cardboard manufacturers are experiencing good growth and exceptional sales, then the economy is probably improving, and the opposite is true when the economy is falling apart. While GDP growth is often reported quarterly, cardboard production and the profits of cardboard manufactures often shift downward before a recession becomes official.
Trash Index
Just as cardboard production can give us an idea of how much we’re buying, so to does the amount of trash we throw away. When the economy is on the up and up, we buy more stuff and we’re more willing to replace something than to fix it. This means that we’re also throwing out more products in a good economy. When the trash index was first discovered in 2010, it was found to be more accurate in predicting economic trends than metal, lumber, or fuel consumption.
R-Word Index
Obviously, when a recession is afoot everyone is talking about it, especially the news. You’ll hear and read that word on the news much more when the economy is tanking, which shouldn’t come as a surprise to anyone. However, usage of the word ‘recession’ often spikes in the weeks and months before a recession is actually declared.
Since 1990, The Economist magazine has been maintaining the R-Word index, which keeps track of how many newspaper articles feature the word ‘recession’. While it’s not 100% percent accurate, so far is has predicted the recessions of 1990, 2001, and 2007.
Skyscraper Index
Much like the cost of housing, the construction of extremely tall skyscrapers are a good (although controversial) indicator for an economic bubble. Many of the world’s tallest skyscrapers were built just before major financial collapses throughout the 20th century, so if you hear about a new record-breaking tower being built in your city, look out.
Champagne Index
One of the most accurate harbingers of an economic collapse, is the sale and consumption of champagne. Since this beverage is often reserved for celebrations, it is consumed the most when the good times are rolling in a big way. Unfortunately, these are the same times that precede major market crashes. Essentially, the Champagne Index is really just a delusion index. We drink lots of bubbly when financial bubbles are about to burst. In recent years, the sale of French Champagne has gone through the roof at the height of the dotcom bubble in 1999, and just before the housing crash in 2007.
While none of these indicators are perfect, they all seem to be right most of the time, and they can certainly beat a coin flip by a wide margin. If you only relied on one of these trends then you would stand a good chance of looking like a fool. However, if you pay close attention to all of them, then you should be able to reasonably predict when rough times are ahead.'
Joshua Krause was born and raised in the Bay Area. He is a writer and researcher focused on principles of self-sufficiency and liberty at Ready Nutrition. You can follow Joshua’s work at our Facebook page or on his personal Twitter.
Joshua’s website is Strange Danger _________________ 'And he (the devil) said to him: To thee will I give all this power, and the glory of them; for to me they are delivered, and to whom I will, I give them'. Luke IV 5-7.
Joined: 14 Dec 2005 Posts: 475 Location: North London
Posted: Mon Oct 12, 2015 8:40 am Post subject: More warnings of crisis
Quote:
And actually what we are heading for would more accurately be described as a “credit freeze” or a “credit panic”, but a “credit crunch” will definitely work for now. The IMF is warning that the “dangerous over-leveraging” that we have been witnessing “threatens to unleash a wave of defaults” all across the globe…
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