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Porter Stansberry- Porter Stansberry: These events confirm my greatest fears - 0 views

www.thedailycrux.com/...ents-confirm-my-greatest-fears Banksters Porter-Stansberry Inflation Federal-Reserve-Bankster-Cartel
shared by Gary Edwards on 26 Sep 12 - No Cached
  • Gary Edwards on 26 Sep 12
     
    The Central Banksters of the World are printing money as fast as possible, and using this paper to buy up tons of GOLD.  Rather than lending to productive businesses, the Banksters are using their fiat paper volumes to buy up hard assets, with land, precious metals, and controlling positions in asset rich productive or leading commodity enterprises.  This is not going to end well for those left holding paper when it all crashes. "If you didn't take our warnings or strategies seriously before, I hope now you can see that we have been right: The authorities mean to print their bad sovereign debts away through an ongoing and massive inflation. Just how big is this inflation likely to be? When you look at the world's largest external debt positions, two economic areas appear as outliers: the European Union ($16 trillion) and the U.S. ($14.7 trillion). Even on a per-capita basis, the external foreign debts of the U.S. are enormous ($50,000 per person). Many countries in the European Union are in an even more precarious position. France has $74,000 in external debt per person. Germany has $57,000. These countries obviously have much to gain by printing the currency necessary to repay their obligations. I estimate we'll see at least another doubling of the monetary base in both the U.S. and the ECB. The question is how these nations' creditors will respond. In response... the West's creditors are piling into the one reserve asset no one can print: gold. Since the beginning of quantitative easing in America, Russia has almost doubled its holdings of gold, buying 500 tons. China bought 454 tons during the same period. And it's not only America's economic and military rivals who obviously no longer trust the U.S. dollar or the euro. In the last year, Switzerland's central bank has quietly increased its holdings of gold by nearly 25%. We are approaching the moment of a global paper currency collapse: In the second quarter of this year, central banks around the world
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EFDD Block at EU Parliament Collapsed - The real Danger of Fascism comes from Where? | ... - 0 views

nsnbc.me/...psed-real-danger-fascism-comes EU EU-skeptics
shared by Paul Merrell on 17 Oct 14 - No Cached
  • The Europe for Freedom and Direct Democracy (EFDD) group at the European Parliament, which is known for being the most outspoken Euro skeptic alliance has collapsed. The breakup came after the withdrawal of Latvian MEP Iveta Grigule and was allegedly brought about by lobbying against the block with participation of EU Parliament President Martin Schulz.
  • To officially form a block at the EU Parliament and to be privied to EU funding, extra talking time and committee seats, requires that a block represents members from at least seven EU member states. On June 4, 2014, the Danish People’s Party and the Finns Party left the block and were admitted to the European Conservatives and Reformists. EFDD was reduced to represent only six member states when Latvian MEP Iveta Grigule left the block. The withdrawal of Grigule is a severe blow for the remaining EFDD members, including the UK Independence Party UKIP and the Italian right-wing populist movement of Beppe Grillo, the Five Star Movement. The withdrawal of Grigule’s support for the EFDD came, allegedly, after intense lobbying against the Euro-skeptic alliance. Among the lobbyists was allegedly the President of the EU Parliament, Martin Schulz.
  • The EFDD accused Schulz of having caused Grigule’s withdrawal and the collapse of the block. The EFDD alleged that Schulz asked Grigule to resign from the group in return for adopting a role of president in a special EU delegation to Kazakhstan. The collapse deals a severe financial blow to the blocks constituent parties. UKIP could lose up to €14 million, equivalent to US$17.8 million of EU funding, reported the Financial Times.
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  • The allegation that the collapse was willingly brought about by an anti-EU-skeptic alliance is substantiated by the fact that EU officials are notoriously known for anti-democratic practices, and especially for targeting EU-skeptics. In March 2013, a leaked, secret EU report revealed that the European Commission planned to use millions of euro on a massive manipulation campaign up to the 2014 elections. Morten Messerschmidt, an MEP for the Danish People’s Party which left the EFDD in June 2014, denounced the pre-election pro-EU campaign as undemocratic and dangerous.
  • Likewise, the Euro-skeptic block was targeted with a unified scare campaign when UKIP and other Euro-skeptics won more seats during the last EU Parliamentary elections than expected. Corporate and state-funded media throughout Europe, almost unanimously, warned that Europe was on a “slippery slope towards fascism”, while it was neglected that most of the establishment pro-EU parties supported the Nazi and Ultra-Nationalist coup d’État in Ukraine.
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A Lesson in Economics | Liberty News Network - 0 views

www.libertynews.com/...a-lesson-in-economics Banksters euro-crisis Greece
shared by Gary Edwards on 21 Feb 12 - No Cached
  • Gary Edwards on 21 Feb 12
     
    Good primer on world economics.  First of a three part series, focusing on the basic economic terms and the certain bankruptcy-default of Greece.  Short explanation of the Euro  "Greek Bailout" dance we see today, and how it all about buying time for Big Euro Banksters to unload their Greek debt before the inevitable collapse. excerpt: The measure you're seeing frequently, especially in reference to Greece is "debt to GDP", or the amount of sovereign debt - debt guaranteed by the "full faith and credit" of a nation - compared to the nation's GDP. Anything over 120% is generally considered "not sustainable", in other words the country is in a position where they will not be able to make the interest payments on their debt and will likely default unless drastic measures are taken. Greece is running about 160%. Here's an important note. Look back at the definition of GDP and take special note that one of the elements of it is government spending. In other words, the federal government has the ability to impact the GDP - and create the perception of economic growth and stability - by borrowing money and increasing spending - and governments across the world, including the US, have been doing it for decades. OK. let's talk about Greece. And why a little country in the Mediterranean is getting all this attention. Greece is a socialist country whose population is declining at a rapid rate and whose government employees, who represent 10% of their workforce, are retiring at rapid pace with fixed retirement benefits that approach what they were making when they worked. Right now Greece spends 12% of their GDP on public pensions and that's going to go up dramatically because their population is aging rapidly. Their public debt, held primarily by other European countries and the European Central Bank (ECB) is running 160% of their GDP and their last round of bond sales produced interest rates of 17%. Their problem is exacerbated by the fa
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Jim Kunstler's 2014 Forecast - Burning Down The House | Zero Hedge - 0 views

www.zerohedge.com/...14-forecast-burning-down-house Banksters
shared by Gary Edwards on 08 Jan 14 - No Cached
  • Gary Edwards on 08 Jan 14
     
    Incredible must read analysis. Take away: the world is going to go "medevil". It's the only way out of this mess. Since the zero hedge layout is so bad, i'm going to post as much of the article as Diigo will allow: Jim Kunstler's 2014 Forecast - Burning Down The House Submitted by Tyler Durden on 01/06/2014 19:36 -0500 Submitted by James H. Kunstler of Kunstler.com , Many of us in the Long Emergency crowd and like-minded brother-and-sisterhoods remain perplexed by the amazing stasis in our national life, despite the gathering tsunami of forces arrayed to rock our economy, our culture, and our politics. Nothing has yielded to these forces already in motion, so far. Nothing changes, nothing gives, yet. It's like being buried alive in Jell-O. It's embarrassing to appear so out-of-tune with the consensus, but we persevere like good soldiers in a just war. Paper and digital markets levitate, central banks pull out all the stops of their magical reality-tweaking machine to manipulate everything, accounting fraud pervades public and private enterprise, everything is mis-priced, all official statistics are lies of one kind or another, the regulating authorities sit on their hands, lost in raptures of online pornography (or dreams of future employment at Goldman Sachs), the news media sprinkles wishful-thinking propaganda about a mythical "recovery" and the "shale gas miracle" on a credulous public desperate to believe, the routine swindles of medicine get more cruel and blatant each month, a tiny cohort of financial vampire squids suck in all the nominal wealth of society, and everybody else is left whirling down the drain of posterity in a vortex of diminishing returns and scuttled expectations. Life in the USA is like living in a broken-down, cob-jobbed, vermin-infested house that needs to be gutted, disinfected, and rebuilt - with the hope that it might come out of the restoration process retaining the better qualities of our heritage.
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Alan Greenspan says British break from EU 'is just the tip of the iceberg' - 0 views

www.cnbc.com/...st-the-tip-of-the-iceberg.html economic-collapse Brexit Euro Greenspan
shared by Paul Merrell on 01 Jul 16 - No Cached
  • Former Fed Chairman Alan Greenspan told CNBC on Friday the U.K. vote to leave the European Union ushers in a period that's even worse than the darkest days of October 1987. Britons voted by 51.9 percent to quit the 28-country union, shocking markets that had priced in a win for the remain camp. "This is the worst period I recall since I've been in public service," Greenspan said on "Squawk on the Street." "There's nothing like it, including the crisis — remember October the 19th, 1987, when the Dow went down by a record amount, 23 percent? That I thought was the bottom of all potential problems. This has a corrosive effect which is not easy to go away."
  • The former Fed chairman said that the root of the "British problem is far more widespread." He said the result of the referendum will "almost surely" lead to the Scottish National Party trying to "resurrect Scottish Independence." Greenspan said the "euro currency is the immediate problem." While the euro and the euro zone were major steps in a movement toward European political integration, "it's failing," he said. "Brexit is not the end of the set of problems, which I always thought were going to start with the euro because the euro is a very serious problem in that the southern part of the euro zone is being funded by the northern part and the European Central Bank," Greenspan said.
  • Even with that in mind, the European Central Bank is limited in what it can do because these fundamental problems like the stagnation of real incomes don't have easy solutions, Greenspan told CNBC. "There's a certain amount that monetary policy can do, but our problem is fundamentally fiscal," he said, adding that this is true in the United States as well as "every major country in Europe." Part of the problem is that the "developed countries are all aging very rapidly," which is leading to a higher ratio of government spending in the form of entitlements, Greenspan said. The 90-year-old Greenspan presided over the Federal Reserve for 19 years, starting with the administration of President Ronald Reagan through that of George W. Bush.
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Blowback Begins: EU To Ditch Dollar In Payments For Iranian Oil | Zero Hedge - 0 views

www.zerohedge.com/...ch-dollar-payments-iranian-oil war & peace economic-warfare de-dollarization EU Iran
shared by Paul Merrell on 17 May 18 - No Cached
  • The dollar’s collapse is nearing.  The European Union is planning to switch it’s payments to the Euro for its oil purchases from Iran, eliminating United States dollar transactions.
  • it is highly likely that the US dollar will collapse as nations distance themselves from the United States’ often disastrous foreign policies.  As RTreported, dozens of contracts signed between European businesses and the Islamic Republic could be at risk of cancellation if Brussels obeys Washington’s sanctions. This would damage Iran’s economy and European firms would lose a huge market in the Middle East. Switching to alternative settlement currencies allows both sides to continue trading despite US sanctions and will damage the dollar in the process.  Earlier this week, EU foreign policy chief Federica Mogherini said that the foreign ministers of the UK, France, Germany, and Iran had agreed to work out practical solutions in response to Washington’s move in the next few weeks. The bloc is reportedly planning to maintain and deepen economic ties with Iran, including in the area of oil and gas supplies.
  • The dollar’s collapse is nearing.  The European Union is planning to switch it’s payments to the Euro for its oil purchases from Iran, eliminating United States dollar transactions.
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  • Just one more nail to the US dollar’s coffin.  Its collapse is all but imminent at this point. The EU has successfully found a way to scoff at potential future sanctions on Iran by openly defying the US; and as an “added bonus,” they’ve helped seal the dollar’s fate.  According to RT, a diplomatic source with the EU has told a news outlet of the decision.   “I’m privy to the information that the EU is going to shift from dollar to euro to pay for crude from Iran,” said the diplomatic source.  Brussels has been at odds with Washington over the US’s decision to withdrawal from the Iran nuclear deal, which was reached during the administration of Barack Obama. President Donald Trump has pledged to re-impose sanctions against the Islamic Republic as soon as he is able to do so. The Trump administration also has had plans to topple the current regime in Iran, according to leaked documents, and it looks like they’ve just given themselves the go-ahead:
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Portuguese Debt Crisis Brings New Trouble for Euro - NYTimes.com - 0 views

www.nytimes.com/...n-way-to-ease-debt-crisis.html portugal euro financial-collapse
shared by Paul Merrell on 10 Apr 13 - No Cached
  • Just weeks after European leaders tamped down a banking crisis in Cyprus, troubles in the euro zone have again reared their head, this time in Portugal.
  • “The risks in the euro zone have increased markedly over the past six weeks or so,” wrote Nicholas Spiro, managing director of Spiro Sovereign Strategy, a London-based consultancy that assesses risk on sovereign debt. A critical moment for the latest trouble took place on Friday, when Portugal’s Constitutional Court struck down four of nine contested austerity measures that the government introduced as part of a 2013 budget that included about 5 billion euros, or $6.5 billion, of tax increases and spending cuts. The ruling left the government short about 1.4 billion euros of expected revenue, or more than one-fifth of the 2013 austerity package.
  • Specifically, the court, which began reviewing the legality of the government’s austerity measures in January, ruled as unconstitutional and discriminatory the government’s plans to cut holiday bonuses for civil servants and pensioners, as well as to reduce sick leave and unemployment benefits.
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Can Greece and EU Make Amends? | Consortiumnews - 0 views

consortiumnews.com/...can-greece-and-eu-make-amends economy Greece EU Eurozone
shared by Paul Merrell on 07 Jul 15 - No Cached
  • As German Chancellor Angela Merkel has said, loans must be repaid. In principle, of course, she is right, but there are extenuating circumstances, including that the lenders baited the trap in which the Greeks have fallen. The lenders offered loans when they should have known that the borrowers had little chance of repaying them.Sometimes in Greece – as, for example, in Latin America – bank officers encouraged borrowing because they got bonuses for generating business, a common banking practice. Other loans were made for political purposes. Some also had “security” aspects.Collectively, the Greeks are “guilty” of accepting the loans. They should have known how hard it would be to repay them. Some, prudently, refused, but when the loans temporarily created a minor boom, almost everyone was swept up in the euphoria.
  • And the Greeks were not alone. Other heavy borrowers included the governments and peoples of Spain, Portugal, Italy and Ireland. This is what makes the current crisis more than just a Greek problem.Internationally, there are already signs that lenders are reacting to the Greek vote in panic. If one country that borrowed heavily is defaulting, they ask, which other heavily-borrowing country is likely to be next? Many have suggested it will be Spain. Apparently a number of lenders believe that popular Spanish movements resemble the coalition of groups supporting Greek Prime Minister Alexis Tsipras’s Syriza. The bankers may not particularly care about the politics or ideology, but they fear the turmoil.Bankers are usually noted for their prudence (especially when the risks of non-payment are readily apparent). And prudence argues for either making no new loans or even calling in those already made. This could dramatically harm the Spanish economy where already in this year nearly one in four workers could not find a job.So, it’s clear that the time of danger is here. What about the time for statesmanship? Ironically, the lenders do not seem to have yet understood that the “No” vote could save the Euro, save Greece – and potentially save Spain, Italy, Portugal and Ireland. Why is that so?
  • It is so because having secured his support at home, Prime Minister Tsipras can now afford to negotiate a sensible deal. And, having seen that Tsipras survived what amounted to a vote-of-no-confidence and would have meant his political removal if he had lost, Chancellor Merkel and French President Francois Hollande now realize that they must negotiate a sensible deal with Tsipras if they are to save the Euro and potentially the European Union.What would be the basis of a compromise? While there are details of considerable complexity, the heart of the matter is reasonably simple:First, Greece cannot repay the huge debt in the foreseeable future. That would have been true even if the Greeks had voted “yes.” Put starkly, the IMF, the European Central Bank and other creditors must forgive a large part of the Greek debt. They probably will choose to disguise “forgiveness” by calling it an extension into the remote future.
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  • Second, if Greece is to survive in some acceptable manner – and possibly even avoid a civil war – the country will need additional emergency financing. Tsipras’s electoral victory will make it possible for him to bend slightly – but not much – on such issues as welfare payments.At the same time,  public desperation – as funds dry up and even food becomes scarce – will impel him to compromise as much as he can to stay in office. Meanwhile, the lenders will find strong incentives to help because a total collapse of the Greek economy raises the specter of collapse in other European Union economies and the ultimate danger of the splintering of the European Union and the collapse of the Euro.
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Asia Times Online :: The Fall of the House of Europe - 0 views

www.atimes.com/...WOR-01-110313.html banksters financial-collapse EU collapse Italy
shared by Paul Merrell on 12 Mar 13 - No Cached
  • There's more, much more. These four characters - Bersani, Monti, Grillo, Berlusconi - happen to be at the heart of a larger than life Shakespearean tragedy: the political failure of the troika (European Commission, European Central Bank and International Monetary Fund), which translates into the politics of the European Union being smashed to pieces. That's what happens when the EU project was never about a political ''union'' - but essentially about the euro as a common currency. No wonder the most important mechanism of European unification is the European Central Bank. Yet abandon all hope of European politicians asking their disgruntled citizens about a real European union. Does anybody still want it? And exactly under what format?
  • All hell is breaking loose in the EU. Le Monde insists Europe is not in agony. Oh yes, it is; in a coma. And yet Brussels (the bureaucrat-infested European Commission) and Berlin (the German government) simply don't care about a Plan B; it's austerity or bust. Predictably, Dutch Finance Minister Jeroen Dijsselbloem - the new head of the spectacularly non-transparent political committee that runs the euro - said that what Monti was doing (and was roundly rejected by Italians) is ''crucial for the entire eurozone''.
  • The verdict is of an Italy ''in the hands of polit-clowns that may shatter the euro or force the country to exit''. Even the liberal-progressive Der Tagesspiegel in Berlin defines Italy as ''a danger to Europe''
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  • So whatever government emerges in Italy, the message from Brussels, Berlin and Frankfurt remains the same: if you don't cut, cut and cut, you're on your own. Germany, for its part, has only a plan A. It spells out ''Forget the Club Med''. This means closer integration with Eastern Europe (and further on down the road, Turkey). A free trade deal with the US. And more business with Russia - energy is key - and the BRICS in general. Whatever the public spin, the fact is German think-tanks are already gaming a dual-track eurozone.
  • Philosopher Franco Berardi - who way back in the 1970s was part of the Italian autonomous movements - correctly evaluates that what Europe is living today is a direct consequence of the 1990s, when financial capital hijacked the European model and calcified it under neoliberalism. Subsequently, a detailed case can be made that the financial Masters of the Universe used the aftermath of the 2008 financial crisis to turbo-charge the political disintegration of the EU via a tsunami of salary cuts, job precariousness for the young, the flattening of pensions and hardcore privatization of everything. No wonder roughly 75% of Italians ended up saying ''No'' to Monti and Merkel.
  • What Grillo's movement has already done is to show how ungovernable Europe is under the Monti-Merkel austerity mantra. Now the ball is in the European financial elite's court. Most wouldn't mind letting Italy become the new Greece. So we go back full circle. The only way out would be a political reformulation of the EU. As it is, most of Europe is watching, impotently, the death of the welfare state, sacrificed in the altar of Recession. And that runs parallel to Europe slouching towards global irrelevance - Real Madrid and Bayern Munich notwithstanding. The Fall of the House of Europe might turn into a horror story beyond anything imagined by Poe - displaying elements of (already visible) fascism, neo-Dickensian worker exploitation and a wide-ranging social, civil war. In this context, the slow reconstruction of a socially based Europe may become no more than a pipe dream.
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Euro plummets as global oil prices collapse - Europe - Al Jazeera English - 0 views

www.aljazeera.com/...llapse-201515223845848495.html economy Eurozone Greece Syriza election
shared by Paul Merrell on 08 Jan 15 - No Cached
  • The euro has plunged to a nine-year low against the dollar on worries that a victory in Greece by the far-left Syriza party in the January 25 election will result in the country's departure from the European Union. The EU currency's value, which dived on Monday to $1.1864, a level last reached back in 2006. was also dented by growing expectations of quantitative easing, or economic stimulus, from the European Central Bank. "Greek problems may spell trouble for the eurozone (and) may impact energy demand out of Western Europe -- especially with press suggesting German politicians are talking about Grexit," said analyst Anthony Cheung.
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ECB Head Mario Draghi Admits For First Time EU May Break-Up - TruePublica - 0 views

truepublica.org.uk/...for-first-time-eu-may-break-up banksters euro EU-disintegration
shared by Paul Merrell on 01 Feb 17 - No Cached
  • Back in 2012, Mario Draghi, President of the European Central Bank, pledged to do “whatever it takes” to protect the eurozone from collapse, infamous words I’m sure he has come to regret. Draghi’s speech at an investment conference in London boosted markets at the time and forced down Spain and Italy’s borrowing costs after saying; “Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.” The markets responded because they were effectively being manipulated. Known as “Outright Monetary Transactions” the scheme was to have been deployed alongside a QE programme from March 2015, itself racking up ¢80billion a month. Several trillion euros later and the EU looks as precarious as ever with growth a distant memory. In Italy, yields on bonds dropped from 6.3 per cent to 1.2 per cent after that famous speech and all seemed good – on the face of it. But deep down, it was not as we had been led to believe. Italy’s government debt grew and is now equal to 133 per cent of GDP. When Ireland imploded and had to be fully bailed out by the ECB, it’s debt pile was 132.2% of GDP.
  • With all this intervention, the ECB’s balance sheet ballooned – set to overtake the U.S. Fed Reserve and has now reached over $3trillion according to Bank of America Merrill Lynch (not to be confused with national debt). Then, totally off the mainstream media radar came news that another Italian bank had disintegrated. And while attention was focused on the rescue of Banca Monte dei Paschi di Siena, which is still not fully finalised, news came that Banca Etruria, has quietly slipped into bankruptcy. “It was announced (Dec 21st) that the first part of an investigation concerning fraudulent bankruptcy charges (at Banca Etruria), in which 21 board members are implicated, had been closed. This strand of the investigation concerns €180 million of loans offered by the bank which were never paid back, leading to the regional lender’s bankruptcy and eventual bail-in/out last November that left bondholders holding virtually worthless bonds.” Next up and out of the blue comes UniCredit, the country’s largest bank. It is seeking to raise €13bn of desperately needed capital but large as though this is, the biggest problems, according to the FT is that the smaller banks, like Banca Etruria, are now in a perilous position and on the verge of falling over the cliff edge. Italy has banks on every street corner, with more branches per capita than any other OECD country. The lack of growth (occurred since it joined the Euro), has suppressed much needed profits on the one hand whilst seeing poor wage growth on the other, causing drastically increased non-performing loans that now add up to an eye-watering €360billion.
  • The FT reports that Italian banks “have long sold their own shares and debt to their retail customers as an attractive alternative to savings products, a disgraceful practice that should never have been allowed. It means that ordinary Italians, many in retirement, have already suffered as bank shares have fallen. They will suffer much more in a bail-in.” The FT is suggesting that a full bail-in is on the cards. It is. truepublica reported back in September that banks throughout the EU would simply steal depositors money if any of them failed now that new bail-in rules had been implemented. And that is exactly what is happening. The result of all this is that Mario Draghi, clearly feeling the strain, has finally admitted defeat and said that there is a strong possibility of the EU falling apart. This time the tactic to keep unity was to threaten every country in the EU by stating that leaving the Eurozone would cost dearly and would require any member country to settle its claims or debts with the bloc’s payments system before severing ties. There’s nothing to stop a desperate member country from leaving and simply defaulting.
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Greg Palast | Investigative Reporter - 0 views

www.gregpalast.com/ions-and-the-euro-leper-colony financial-collapse Greece Eurozone Euro default IMF Germany
shared by Paul Merrell on 20 Jan 15 - No Cached
  • Europe is stunned, and bankers aghast, that polls show the new party of the Left, Syriza, will win Greece’s parliamentary elections to be held this coming Sunday, January 25. Syriza promises that, if elected, it will cure Greece of leprosy. Oddly, Syriza also promises that it will remain in the leper colony.  That is, Syriza wants to rid Greece of the cruelty of austerity imposed by the European Central Bank but insists on staying in the euro zone. The problem is, austerity run wild is merely a symptom of an illness.  The underlying disease is the euro itself.
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The Daily Bell - Doug Casey on the Continuing Debasement of Money, Language and Banking... - 0 views

www.thedailybell.com/...-and-Banking-in-the-Modern-Age Banksters
shared by Gary Edwards on 09 Jul 15 - No Cached
  • This isn't going to last because the way you get wealthy is by producing more than you consume and saving the difference – not by consuming more than you produce, and borrowing the difference. With the Fed keeping interest rates at artificially low levels, hoping to increase consumption, they're making it very foolish to save – when you get ½% or 1% on your savings. So people are saving less and they're borrowing more than they otherwise would. This is a formula for making things worse, not better.
  • They are, idiotically, doing exactly the opposite of what they should be.
  • In point of fact, the Fed should be abolished; the market, not bureaucrats, should determine interest rates. We wouldn't be in this pickle to start with if the government wasn't involved in the economy.
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  • The Chinese, the Japanese – everybody is selling, trying to pass the Old Maid card of US Government debt, which represents return–free risk. Nobody other than the Fed is buying, and interest rates would skyrocket if they stopped. The more QE there is, the more distortions it will cause, however, making for a bigger disaster the longer it goes on.
  • Will the Fed continue to inflate the money supply? Doug Casey: They have to, because with the huge amount of debt in the world – and the amount of debt in the world has increased something like 40 or 50% just since the Greater Depression started – if they don't keep increasing the amount of money in the world then nobody's going to be able to service the huge amount of debt that is out there. So I don't see anything changing in the years to come. They've truly painted themselves into a corner. They're caught between Scylla and Charybdis, and we don't have Odysseus steering the ship of state.
  • Let me say, again, that the Fed serves no useful purpose and it should be abolished. Central banks create "super money" by buying government or other debt with new currency units that they credit to the sellers' accounts at commercial banks. That's the actual engine of inflation.
  • But it's greatly compounded in the commercial banking system through fractional reserve lending – which would not be possible without a central bank. Fractional reserve lending allows banks to multiply the money supply several times.
  • If $100 of Fed super money, freshly created, is deposited in a commercial bank like Chase or Citibank, then $90 can be lent out with a 10% reserve, the current number. That money is redeposited. They'll then lend out 90% of that $90, or $81, and then 90% of that $81, so it multiplies.
  • Central banking and fractional reserve lending go hand-in-hand.
  • Without a central bank, any bank that engaged in fractional reserve banking would be considered guilty of fraud and, when discovered, would be punished by a bank run, followed by criminal charges. The point to be made here is that the entire banking system today is totally unsound and totally corrupt.
  • In a sound banking system you have two types of deposits – checking account (or demand) deposits, and savings account (or time) deposits. They are completely different businesses. With demand deposits, you pay the bank to store your money securely, and write checks against it. A bank should no more lend out demand deposit money than Allied Storage should lend out the furniture you're paying them to store.
  • Savings accounts are completely different. Here you lend money to a bank, perhaps at 3%, and they relend it at 6%, making 3% to cover costs, risks and profits. A sound bank not only has to match the maturities of its deposits with the maturities of its loans, but must insure loans are both highly secured and self-liquidating.
  • These principles have been totally lost. Today banks operate as hedge funds.
  • As an aside, if someone were to set up a well-capitalized 100% reserve bank in a tax haven, especially using gold as an alternative currency, it would be immensely successful in the years to come – when most all conventional banks will fail.
  • By all historical, normal parameters, the stock market is greatly overvalued.
  • The trillions of new currency units that the Fed is creating are creating bubbles, and one of them is in the stock market. The biggest bubble, of course, is in the bond market – that's a super bubble.
  • Not only does the dollar have no real value but the banks you keep it in are all insolvent.
  • There are few sound investments out there. Today there are no investments; there are only speculations.
  • From the economist's point of view, the bubbles created by central banking are a disaster, but from a speculator's point of view they're a godsend. It's becoming harder and harder to be an investor; I define an investor as someone who allocates capital to productive business. It's hard to be an investor because you now have to spend more money on lawyers than on engineers and workers if you want to produce something. You're increasingly forced to be a speculator in today's climate.
  • Stock and bond markets all over the world are overpriced – with the exception of Russian stocks right now; they could be a very interesting speculation. I wouldn't touch anything in China yet, because all the Chinese banks are going to go bust.
  • The Chinese have been more profligate inflating the yuan than the Americans have been with the dollar. It's fantastic what the Chinese have done since Deng liberalized the economy in the early '80s, but now's not a time to be in their markets.
  • You've got to remember there are two types of people in the world: people who want to control material reality and people who want to control other people.
  • It's that second type who go into politics. They play games – here it's called the Great Game, which dignifies it in a way it shouldn't be – with other people's lives and property. It's been this way ever since the state was created about 5,000 years ago, and I don't think you should play games with other people's lives.
  • On the bright side, there are more scientists and engineers alive today than in all of human history put together, and so technology is advancing more rapidly than ever for that reason. That's a huge plus.
  • The second good thing is that the average person, at least those who aren't on welfare, tries to produce more than he consumes. That creates capital.
  • But I'm afraid that Western civilization reached its peak before World War I. World War I destroyed a huge amount of capital and, more importantly, it changed the moral bases of so many things.
  • Then World War II institutionalized the State as the most important part of society – which is perverse, because the state is actually the enemy of civil society.
  • I think Western civilization reached its peak in 1913, when it reached its maximum geographical extent. That was coincidental with the peak of its technological and philosophical influence on the world, much the way the Roman Empire reached its peak at about the end of the first century, then went down, slowly at first and then quickly. That's what's happening to the West.
  • Relative to the rest of the world, and contribution to world production, our piece of the economic pie is getting smaller and smaller. If we have another serious war it would be absolutely smaller, and the final nail in the coffin. Meanwhile, the US, with its bloated military, is just itching for another war. It's out of control, and unlikely to change at this point. That's a big trend that is in motion that I think is going to stay in motion.
  • Europe is in particularly bad shape. The place is a fascist/socialist disaster.
  • It was possible for the average European to keep his head above water through tax evasion in the past, but now those governments have broken bank secrecy everywhere, and it will destroy a lot of capital.
  • The "nation-state" is a really stupid and dysfunctional idea, and I'm glad it's on its way out.
  • That said, even the US, which from a cultural point of view is as much of a country as any place in the world, should actually break up into at least five or six regions.
  • Canada should break up into at least five or six regions initially.
  • I don't think politically; politics is the problem, not the solution. I think that the ideal solution is for every individual to opt out of the current system. When they give a war, you don't come. When they give a tax, you don't pay. When they give an election, you don't vote. You even try not to use their currency and their banking system. T
  • he ideal thing is to let the system collapse under its own weight as opposed to starting a new political party and then continuing to act politically, which is to say to use force on other people.
  • Market risk is huge today, but political risk is even bigger. One indication of that was, when the banks in Cyprus went bust some months ago, the government essentially confiscated everybody's account above 100,000 euros, in what they called a "bail-in."
  • You need several options. It seems like people haven't learned anything from what happened in Russia in 1917, Germany in 1933, China in 1948, Cuba in 1959, or Vietnam in 1975. Rwanda, Cambodia, Yugoslavia, Zimbabwe, Ukraine, Syria ... there are lots of examples and these things can and will eventually happen almost everywhere. When the chimpanzees go crazy, you don't want to be where they are. You've got to have a Plan B. You've got to have a crib out of that political jurisdiction. Acting like a plant, and staying put, isn't a good survival strategy for a human.
  • Gary Edwards on 09 Jul 15
     
    "Doug Casey: I don't see a real recovery until they stop debasing the currency, radically cut government spending and taxation and eliminate most regulation. In other words, cease doing the things that caused this depression. And that's not going to happen until there's a collapse of the current order. Things have cyclically improved since the height of the crisis of 2008-09. The trillions of currency units created by the Federal Reserve have jammed the stock market higher and kept the big banks from going under. What surprises me is that retail prices have not moved as significantly as I would have expected. The reason, I believe, is that most of that money is still sitting in financial institutions. It has gone into cash out of fear, into stocks because they represent real wealth with earning power and into various speculative assets like artwork and collectible cars. Real estate has recovered somewhat, not because of strong fundamentals but strictly because of money creation. This isn't going to last because the way you get wealthy is by producing more than you consume and saving the difference - not by consuming more than you produce, and borrowing the difference. With the Fed keeping interest rates at artificially low levels, hoping to increase consumption, they're making it very foolish to save - when you get ½% or 1% on your savings. So people are saving less and they're borrowing more than they otherwise would. This is a formula for making things worse, not better. They are, idiotically, doing exactly the opposite of what they should be. Although, I hasten to add, I hate to pontificate on what the Fed "should" do. In point of fact, the Fed should be abolished; the market, not bureaucrats, should determine interest rates. We wouldn't be in this pickle to start with if the government wasn't involved in the economy. In fact, if it wasn't for the state, I suspect we'd all have a vastly higher standard of living, and would be colonizing the Moon, Mars and
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The Great Deceiver - The Federal Reserve - 0 views

www.thedailybell.com/...-Deceiver--The-Federal-Reserve Paul-Craig-Roberts Federal-Reserve-Bankster-Cartel
shared by Gary Edwards on 13 May 14 - No Cached
  • From November 2013 through January 2014 Belgium with a GDP of $480 billion purchased $141.2 billion of US Treasury bonds. Somehow Belgium came up with enough money to allocate during a 3-month period 29 percent of its annual GDP to the purchase of US Treasury bonds. Certainly Belgium did not have a budget surplus of $141.2 billion. Was Belgium running a trade surplus during a 3-month period equal to 29 percent of Belgium GDP? No, Belgium's trade and current accounts are in deficit. Did Belgium's central bank print $141.2 billion worth of euros in order to make the purchase? No, Belgium is a member of the euro system, and its central bank cannot increase the money supply. So where did the $141.2 billion come from?
  • There is only one source. The money came from the US Federal Reserve, and the purchase was laundered through Belgium in order to hide the fact that actual Federal Reserve bond purchases during November 2013 through January 2014 were $112 billion per month. In other words, during those 3 months there was a sharp rise in bond purchases by the Fed. The Fed's actual bond purchases for those three months are $27 billion per month above the original $85 billion monthly purchase and $47 billion above the official $65 billion monthly purchase at that time. (In March 2014, official QE was tapered to $55 billion per month and to $45 billion for May.) Why did the Federal Reserve have to purchase so many bonds above the announced amounts and why did the Fed have to launder and hide the purchase? Some country or countries, unknown at this time, for reasons we do not know dumped $104 billion in Treasuries in one week.
  • What are the reasons for this deception by the Federal Reserve?
  • ...6 more annotations...
  • The Fed realized that its policy of Quantitative Easing initiated in order to support the balance sheets of "banks too big to fail" and to lower the Treasury's borrowing cost was putting pressure on the US dollar's value. Tapering was a way of reassuring holders of dollars and dollar-denominated financial instruments that the Fed was going to reduce and eventually end the printing of new dollars with which to support financial markets. The image of foreign governments bailing out of Treasuries could unsettle the markets that the Fed was attempting to soothe by tapering.
  • A hundred billion dollar sale of US Treasuries is a big sale. If the seller was a big holder of Treasuries, the sale could signal the bond market that a big holder might be selling Treasuries in large chunks. The Fed would want to keep the fact and identity of such a seller secret in order to avoid a stampede out of Treasuries. Such a stampede would raise interest rates, collapse US financial markets, and raise the cost of financing the US debt. To avoid the rise in interest rates, the Fed would have to accept the risk to the dollar of purchasing all the bonds. This would be a no-win situation for the Fed, because a large increase in QE would unsettle the market for US dollars.
  • Washington's power ultimately rests on the dollar as world reserve currency. This privilege, attained at Bretton Woods following World War 2, allows the US to pay its bills by issuing debt. The world currency role also gives the US the power to cut countries out of the international payments system and to impose sanctions.
  • As impelled as the Fed is to protect the large banks that sit on the board of directors of the NY Fed, the Fed has to protect the dollar. That the Fed believed that it could not buy the bonds outright but needed to disguise its purchase by laundering it through Belgium suggests that the Fed is concerned that the world is losing confidence in the dollar. If the world loses confidence in the dollar, the cost of living in the US would rise sharply as the dollar drops in value. Economic hardship and poverty would worsen. Political instability would rise. If the dollar lost substantial value, the dollar would lose its reserve currency status. Washington would not be able to issue new debt or new dollars in order to pay its bills.
  • Its wars and hundreds of overseas military bases could not be financed.
  • The withdrawal from unsustainable empire would begin. The rest of the world would see this as the silver lining in the collapse of the international monetary system brought on by the hubris and arrogance of Washington.
  • Gary Edwards on 13 May 14
     
    Incredible.  Since 2009, the Fed has been pumping $85 Billion per month into the Wall Street hedge funds of it's member banks.  Economist Paul Craig Roberts noticed some funny business the past few months regarding the Fed's numbers.  It turns out that while the Fed has been trying to convince the world that they are tapering off on their $85 Billion per month debt printing spree, the truth is just the opposite.  They have increased the debt spree to $112 Billion per month; with the help of a secret money laundering operation involving Belgium! Incredible!
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Cyprus bail-out: savers will be raided to save euro in future crises, says eurozone chi... - 0 views

www.telegraph.co.uk/...rises-says-eurozone-chief.html Cyprus banksters financial-collapse confiscation
shared by Paul Merrell on 28 Mar 13 - No Cached
  • Savings accounts in Spain, Italy and other European countries will be raided if needed to preserve Europe's single currency by propping up failing banks, a senior eurozone official has announced.
  • The new policy will alarm hundreds of thousands of British expatriates who live and have transferred their savings, proceeds from house sales and other assets to eurozone bank accounts in countries such as France, Spain and Italy. The euro fell on global markets after Jeroen Dijsselbloem, the Dutch chairman of the eurozone, told the FT and Reuters that the heavy losses inflicted on depositors in Cyprus would be the template for future banking crises across Europe.
  • "If there is a risk in a bank, our first question should be 'Okay, what are you in the bank going to do about that? What can you do to recapitalise yourself?'," he said. "If the bank can't do it, then we'll talk to the shareholders and the bondholders, we'll ask them to contribute in recapitalising the bank, and if necessary the uninsured deposit holders." Ditching a three-year-old policy of protecting senior bondholders and large depositors, over €100,000, in banks, Mr Dijsselbloem argued that the lack of market contagion surrounding Cyprus showed that private investors could now be hit to pay for bad banking debts.
  • ...2 more annotations...
  • "If we want to have a healthy, sound financial sector, the only way is to say, 'Look, there where you take on the risks, you must deal with them, and if you can't deal with them, then you shouldn't have taken them on,'" he said. "The consequences may be that it's the end of story, and that is an approach that I think, now that we are out of the heat of the crisis, we should take." The announcement is highly significant as it signals the mothballing of the euro's €700bn bailout fund, the European Stability Mechanism (ESM), which Spain and Ireland wants to be used to recapitalise their troubled banks.
  • he eurozone had been planning to roll out the ESM as a "big bazooka" in mid-2014 that could help save banks and prevent financial turmoil in countries such Spain or Italy, a development that has been delayed by German resistance. Mr Dijesselbloem's comments will alarm countries like Ireland and Spain that had been hoping to access the ESM in order to restructure banks without killing off their financial sector by inflicting huge losses on investors. "I think the approach needs to be, let's deal with the banks within the banks first, before looking at public money or any other instrument coming from the public side," he said. "Banks should basically be able to save themselves, or at least restructure or recapitalise themselves as far as possible."
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The Daily Bell - Richard Ebeling on Higher Interest Rates, Collectivism and the Coming ... - 0 views

www.thedailybell.com/...tivism-and-the-Coming-Collapse Richard-Ebeling The-Daily-Bell Austrian-Economics Liberty-Tryanny
shared by Gary Edwards on 17 Jun 13 - No Cached
  • The "larger dysfunction," as you express it, arises out of a number of factors. The primary one, in my view, is a philosophical and psychological schizophrenia among the American people.
  • While many on "the left" ridicule the idea, there is a strong case for the idea of "American exceptionalism," meaning that the United States stands out as something unique, different and special among the nations of the world.
  • the American Founding Fathers constructed a political system in the United States based on a concept on which no other country was consciously founded:
  • ...95 more annotations...
  • But the American Revolution and the US Constitution hailed a different conception of man, society and government.
  • n the rest of the world, and for all of human history, the presumption has been that the individual was a slave or a subject to a higher authority. It might be the tribal chief; or the "divinely ordained" monarch who presumed to rule over and control people in the name of God; or, especially after the French Revolution and the rise of modern socialism, "the nation" or "the people" who laid claim to the life and work of the individual.
  • the idea of individual rights.
  • That is, as long as the individual did not violate the equal rights of others to their life, liberty and property, each person was free to shape and guide his own future, and give meaning and value to his own life as he considered best in the pursuit of that happiness that was considered the purpose and goal of each man during his sojourn on this Earth.
  • Governments did not exist to give or bestow "rights" or "privileges" at its own discretion.
  • Governments were to secure and protect each individual's rights, which he possessed by "the nature of things."
  • The individual was presumed to own himself. He was "sovereign."
  • The real and fundamental notion of "self-government" referred to the right of each individual to rule over himself.
  • Each individual, by his nature and his reason, had a right to his life, his liberty and his honestly acquired property.
  • during the first 150 years of America's history there was virtually no Welfare State and relatively few government regulations, controls and restrictions on the choices and actions of the free citizen.
  • But for more than a century, now, an opposing conception of man, society and government has increasingly gained a hold over the ideas and attitudes of people in the US.
  • It was "imported" from Europe in the form of modern collectivism.
  • The individual was expected to see himself as belonging to something "greater" than himself. He was to sacrifice for "great national causes."
  • He was told that if life had not provided all that he desired or hoped for, it was because others had "exploited" him in some economic or social manner, and that government would redress the "injustice" through redistribution of wealth or regulation of the marketplace.
  • If he had had financial and material success, the individual should feel guilty and embarrassed by it, because, surely, if some had noticeably more, it could only be because others had been forced to live with noticeably less.
  • left on its own, free competition tends to evolve into harmful monopolies and oligopolies, with the wealthy "few" benefiting at the expense of the "many."
  • They are the crises of the Interventionist-Welfare State: the attempt to impose reactionary collectivist policies of political paternalism and redistributive plunder on a society still possessing parts of its original individualist and rights-based roots.
  • it is in the form of communism's and socialism's critique of capitalism.
  • Unregulated capitalism leads to "unearned" and "excessive" profits; unbridled markets generate the business cycle and the hardships of recessions and depressions;
  • These two conflicting conceptions of man, society and government have been and are at war here in the United States.
  • And if it cannot be gotten and guaranteed through the redistributive mechanisms of the European Union and the euro, well, maybe we should return power to our own nation-states to provide the jobs, the social "safety nets" and the financial means to pay for it through, once again, printing our own national paper currencies.
  • This is the political-philosophical bankruptcy of the West and the dead ends of the collectivist promises of the last 100 years.
  • Ludwig von Mises's book, Socialism: An Economic and Sociological Analysis, originally published in 1922, demonstrated how and why a socialist, centrally planned system was inherently unworkable.
  • The nationalization of productive property, the abolition of markets and the prohibition of all competitive exchange among the members of society would prevent the emergence and operation of a price system, without which it is impossible to know people's demands for desired goods and the relative value they place on them.
  • It also prevents the emergence of prices for the factors of production (land, labor, capital) and makes it impossible to know their opportunity costs – the value of those factors of production in alternative competing uses among entrepreneurs desiring to employ them.
  • Without such a price system the central planners are flying blind, unable to rationally know or decide how best to utilize labor, capital and resources in productively efficient ways to make the goods and services most highly valued by the consuming public.
  • Thus, Mises concluded, comprehensive socialist central planning would lead to "planned chaos."
  • And, therefore, there is no guarantee that the amount of investments undertaken and their time horizons are compatible with the available resources not also being demanded and used for more immediate consumer goods production in the society.
  • As a consequence, financial markets do not work like real markets.
  • Thus, the interventionist state leads to waste, inefficiency and misuses of resources that lower the standards of living that we all, otherwise, could have enjoyed.
  • We cannot be sure what the amount of real savings may be in the society to support real and sustainable investment and capital formation.
  • Government intervention prevents prices from "telling the truth" about the real supply and demand conditions thus leading to imbalances and distortions in the market.
  • We cannot know what the "real cost" of borrowing should be, since interest rates are not determined by actual, private sector savings and investment decisions.
  • Government production regulations, controls, restrictions and prohibitions prevent entrepreneurs from using their knowledge, ability and capital in ways that most effectively produce the goods consumers actually want and at the most cost-competitive prices possible.
  • This is why countries around the world periodically experience booms and busts, inflations and recessions − not because of some inherent instabilities or "irrationalities" in financial markets, but because of monetary central planning through central banking that does not allow market-based financial intermediation to develop and work as it could and would in a real free-market setting.
  • But in the United States and especially in Europe, government "austerity" means merely temporarily reducing the rate of increase in government spending, slowing down the rate at which new debt is accumulating and significantly raising taxes in an attempt to close the deficit gap.
  • The fundamental problem is that over the decades, the size and scope of governments in the Western world have been growing far more than the rates at which their economies have been expanding, so that the "slice" of the national economic "pie" eaten by government has been growing larger and larger, even when the "pie" in absolute terms is bigger than it was, say, 30 or 40 years ago.
  • European governments, in general, take the view that "austerity" means squeezing the private sector more through taxes and other revenue sources to avoid any noticeable and significant cuts in what government does and spends.
  • So there is "austerity" for the private sector and a mad rush for financial "safety nets" for the government and those who live off the State.
  • In reality, of course, it is the burdens of government regulation, taxation and impediments to more flexible labor and related markets that have generated the high unemployment rates and the retarded recovery from the recession.
  • Instead, the "common market" ideal has been transformed into the goal of a European Union "Super-State" to which the individual countries and their citizens would be subservient and obedient.
  • Keynesian policies offer people and politicians what they want to hear. Claiming that any sluggish business or lost jobs are due to a lack of "aggregate demand," Keynes argued that full employment and profitable business could only be reestablished and maintained through "activist" government monetary and fiscal policy – print money and run budget deficits.
  • What Britain and Europe should have as its goal is the ideal of the classical liberal free traders of the 19th century – non-intervention by governments in people's lives, at home and abroad. That is, a de-politicization of society, so people may freely work, trade and travel as they peacefully wish, with government merely the protector of people's individual rights.
  • Take the benefits away and tell people they are free to come and work to support themselves and their families. Restore more flexibility and competitiveness to labor markets and reduce taxes and business regulations.
  • Then those who come to Britain's shores will be those wanting freedom and opportunity without being a burden upon others.
  • What was needed was a change in ideas from the statist mentality to one of individual freedom and unhampered free markets.
  • In an epoch of collectivist ideas, don't be surprised if governments regulate, control, intervene and redistribute wealth.
  • The tentacle of regulations, restrictions and politically-correct social controls are spreading out in every direction from Brussels and its European-wide manipulating and mismanaging bureaucracy.
  • In the name of assuring "national prosperity," politicians could spend money to buy the votes that get them elected and reelected to government offices.
  • And every special interest group could make the case that government-spending programs that benefitted them were all reasonable and necessary to assure a fully employed and growing economy.
  • Furthermore, the Keynesian rationale for government deficit spending enabled politicians to seem to be able to offer something for nothing. They could offer, say, $100 of government spending to voters and special interest groups but the tax burden imposed in the present might only be $75, since the remainder of the money to pay for that government spending was borrowed. And that borrowed money would not have to be repaid until some indefinite time in the future by unspecific taxpayers when that "tomorrow" finally arrived.
  • instability
  • Keynes argued that the market economy's inherent
  • arose from the
  • who were subject to irrational and unpredictable waves of "optimism" and "pessimism."
  • animal spirits" of businessmen
  • Mises argued that there was nothing inherent in the market economy to bring about these swings of economic booms followed by periods of depression and unemployment.
  • If markets got out of balance with the necessity of an eventual correction in the economy to, once again, set things right, the source of this instability was government monetary policy.
  • Central banks too often followed a policy of trying to create "good times" in the economy by expanding the money supply through the banking system.
  • With new, excess funds created by the central bank available for lending, banks lower rates of interest to attract borrowers.
  • But this throws savings and investment out of balance, since the rate of interest no longer serves as a reliable indicator and signal concerning the availability of real savings in the economy in relation to those wanting to borrow funds for various investment purposes.
  • The economic crisis comes when it is discovered that all the claims on resources, capital and labor for all the attempted consumption and investment activities in the economy are greater than the actual and available amounts of such scarce resources.
  • The recession period, in Mises's view, is the necessary "correction" period when in the post-boom era, people must adapt and adjust to the newly discovered "real" supply and demand conditions in the market.
  • Any interference with the "rebalancing" of the economy by government raising taxes, imposing more regulations, or new artificial government "stimulus" activities merely makes it more difficult and time-consuming for people in the private sector to get the economy back on an even keel.
  • Friedrich A. Hayek, once observed, unemployment is not "caused" by stopping an inflation, but rather inflation induces the artificial employments that cannot be sustained and which inevitably disappear once the inflation is reined in.
  • The recession of 2008-2009 was the result of several years of central bank stimulus.
  • From 2003 to 2008, the Federal Reserve increased the money supply by about 50 percent.
  • Interest rates for much of this time, when adjusted for inflation, were either zero or negative.
  • Awash in cash, banks extended loans to virtually anyone, with no serious and usual concern about the borrower's credit-worthiness.
  • This was most notably true in the housing market, where government agencies like Fannie May and Freddie Mac were pressuring banks to make mortgage loans by promising a guarantee that they would make good on any bad home loans.
  • Since 2008-2009, the Federal Reserve has, again, turned on the monetary spigot, increasing its own portfolio by almost $3 trillion, by buying US Treasuries, US mortgages and other assets.
  • So why has there not been a complementary explosion of price inflation?
  • In some areas there has been, most clearly in the stock market and the bond market, But the reason why all that newly created money has not brought about a higher price inflation is due to the fact that a large part of all newly created money is sitting as unlent reserves in banks.
  • This is because the Federal Reserve has been paying banks a rate of interest slightly above the market interest rates to induce banks not to lend.
  • (a) general "regime uncertainty," that is, no one knows what government policy will be tomorrow; will ObamaCare be fully implemented after January 2014?;
  • Among the reasons for the sluggish jobs growth in the US are:
  • (b) what will taxes be for the rest of the current president's term in the White House
  • (c) what will the regulatory environment be like for the next three years – in 2012, the government implemented around 80,000 pages of regulations as printed in the Federal Registry;
  • (d) how will the deficit and debt problems play out between Congress and the White House and will it threaten the general financial situation in the country; an
  • (e) what wars, if any, will the government find itself involved in, in places like the Middle East?
  • China
  • is still a controlled and commanded society, with a government that works hard to try to determine what people read, see and think.
  • All these building projects have been brought into existence by a government that not only controls the money supply and manipulates interest rates but also heavy-handedly tells banks whom to specifically loan to and for what investment activities.
  • Central planning is alive and well in China, with the motives being both power and profits for those inside and outside the Communist Party having the most influence and connections in "high" places.
  • In my opinion, China is heading for a great economic crisis, resulting from a highly imbalanced and distorted economic system still guided far more by politics than sound market decision-making.
  • global financial markets in any foreseeable future. It is a money that still primarily exists to serve the political purposes of those who sit in the "inner circles" of power in Beijing.
  • One hundred years ago, in 1913, how many could have predicted that a year later a European-wide war would break out that would lead to the destruction of great European empires and set the stage for the rise of totalitarian collectivism that resulted in an even worse global war two decades later?
  • Thus, whether, at the end of the day, freedom triumphs and the future is one of liberty and prosperity is partly on each one of us.
  • Near the end of his great book, Socialism, Ludwig von Mises said:
  • "Everyone carries a part of society on his shoulders; no one is relieved of his share of responsibility by others. And no one can find a safe way out for himself if society is sweeping towards destruction. Therefore, everyone, in his own interest, must thrust himself vigorously into the intellectual battle. None can stand aside with unconcern; the interests of everyone hang on the result. Whether he chooses or not, every man is drawn into the great historical struggle, the decisive battle into which our epoch has plunged us . . . Whether society shall continue to evolve or where it shall decay lies . . . in the hands of man."
  • In my view, the idea of a "soft landing" is an illusion based on the idea held by central bankers, themselves, that they have the wisdom and ability to know how to "micro-manage" the all the changes and adjustments resulting from their own manipulations of the monetary aggregates. They do not have this wisdom and ability. So hold on for what is most likely to be another rocky road.
  • It was Mises's clear vision that once society has broken the relationship between value and payment, sooner or later people would not know the price of anything.
  • At this point, investment ceases and business becomes furtive and transactional.
  • People cannot plan for the future because they do not understand the reality of the present.
  • Society begins to sink.
  • Gary Edwards on 17 Jun 13
     
    Incredible.  A simple explanation that explains everything.  Rchard Ebeling's "Unified Theory of Everything" is something every American can understand.  If only they would take a break from "Dancing with the Stars" and pay attention to the future of their country and the world.  It's a future where either "individual freedom", as defined by our Constitution and Declaration of Independence, will win out; or, the forces of fascist socialism / marxism will continue to roll and rule.  Incredible read!!!!
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Executives at collapsed Iceland bank jailed for fraud | Reuters - 0 views

uk.reuters.com/...d-crisis-idUKBRE8BR0EW20121228 banksters Iceland
shared by Paul Merrell on 30 Dec 12 - No Cached
  • (Reuters) - Two former executives at an Icelandic bank which collapsed in the 2008 financial meltdown were sentenced to jail on Friday for fraud which led to a 53 million euro loss, in the first major trial of Icelandic bankers linked to the crisis.
3More

At the Royal Bank of Scotland, the business of rescuing the world's worst bank - The Wa... - 0 views

www.washingtonpost.com/...2-82bc-511538ae90a4_story.html financial-collapse banksters RBS
shared by Paul Merrell on 21 Apr 13 - No Cached
  • Rory Cullinan runs the world’s worst bank from a fifth-floor office overlooking Liverpool Street station in London. His 400-person outfit doesn’t lend money or trade securities. Instead, it sells blown-out mortgages, busted loans and entire companies amassed by Royal Bank of Scotland Group before it collapsed in the global financial crash of 2008. On a Friday afternoon, Cullinan is savoring a new feeling in his life as a toxic-asset disposal specialist: hope that the worst is finally over. After four years of marathon dealmaking, Cullinan’s Non-Core Division has whacked a 258-billion-pound ($390 billion) financial junk pile down to 57 billion pounds and eased pressure on RBS’s balance sheet. That has been chief executive Stephen Hester’s top priority since the government saved RBS from insolvency beginning in late 2008 with a 45-billion-pound lifeline — the biggest bank bailout in history.
  • The RBS mess has pitted Chancellor of the Exchequer George Osborne, who continues to stand behind Hester’s turnaround plan, against Bank of England Governor Mervyn King, who says it is not working. King told the Parliamentary Commission on Banking Standards that the government should fully nationalize RBS, then split it up and re-privatize the “good” pieces of the bank to recoup what it can of the bailout.“We should simply accept the reality today that it is worth less than we thought and should find a way to get an RBS that can be useful to the U.K. economy,” said King, 65, who will retire June 30.
  • Hester has told investors and analysts that getting a grip on RBS has proven a far tougher task than he expected because the euro zone’s sovereign-debt crisis and two recessions in Britain have undermined the bank’s bedrock lending business. Hester has also been hit with misdeeds that took root before he arrived at the bank.In February, RBS agreed to pay a $612 million penalty to regulators and law enforcement officials in the United States and Britain to settle allegations that 21 of its traders had manipulated the London interbank offered rate, or Libor, from 2006 to 2010. Barclays paid a $453 million penalty in July to settle its Libor case, and UBS was fined $1.5 billion in December.
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Iceland Defies Bank Backlash: Advance $1.2 Billion Debt Relief Plan - 0 views

www.informationclearinghouse.info/article37023.htm financial-collapse Iceland debt-relief banksters
shared by Paul Merrell on 02 Dec 13 - No Cached
  • Iceland’s government has announced that it will be writing off up to 24,000 euros ($32,600) of every household’s mortgage, fulfilling its election promise, despite overwhelming criticism from international financial institutions. The measure was introduced by the country’s prime minister, Sigmundur David Gunnlaugsson, the leader of the Progressive Party which won the late-April elections on a promise of household debt relief. According to the government’s website the household debt will be reduced by 13 percent on average.  Citizens of Iceland have been suffering from debt since the 2008 financial crisis, which led to high borrowing costs after the collapse of the krona against other currencies.   “Currently, household debt is equivalent to 108 percent of GDP, which is high by international comparison,” highlighted a government statement, according to AFP. "The action will boost household disposable income and encourage savings.” The government said that the debt relief will begin by mid-2014 and according to estimates the measure is set to cost $1.2 billion in total. It will be spread out over four years. 
  • The financing plan for the program has not yet been laid out. However, Gunnlaugsson has promised that public finances will not be put at risk. It was initially proposed that the foreign creditors of Icelandic banks would pay for the measure. International organizations have confronted the idea with criticism. The International Monetary Fund (IMF) and the Organization for Economic Cooperation and Development (OECD) have advised against it, citing economic concerns. Iceland has “little fiscal space for additional household debt relief” according to the IMF, while the OECD stated that Iceland should limit its mortgage relief to low-income households. In the meantime, ratings service, Standard & Poor's, cut back on its outlook for Iceland's long-term credit rating to negative from stable, stating that the economic measure could affect the confidence of foreign investors if it ends up being paid for by the existing creditors of Icelandic banks.
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Peter Schiff of Euro Pacific Gets it Right - 0 views

andrewsullivan.theatlantic.com/...vindication.html soros economy politics financial-crisis Peter-Schiff banksters
shared by Gary Edwards on 18 Nov 08 - Cached
  • Gary Edwards on 18 Nov 08
     
    A YouTube montage of Peter Schiff's comments and predicitons on Fox Business News startign back in 2006. Peter called it exactly right, correctly identifying that mortgages and falling home values would cause a global economic collapse. Incredible foresight.
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