Tag Archives: Bankster Elite

12 Signs That An Imminent Global Financial Crash Has Become Even More Likely

Financials

Did you see what just happened?

by Michael Snyder | Economic Collapse | August 12, 2015

The devaluation of the yuan by China triggered the largest one day drop for that currency in the modern era.  This caused other global currencies to crash relative to the U.S. dollar, the price of oil hit a six year low, and stock markets all over the world were rattled.  The Dow fell 212 points on Tuesday, and Apple stock plummeted another 5 percent.  As we hurtle toward the absolutely critical months of September and October, the unraveling of the global financial system is beginning to accelerate.  At this point, it is not going to take very much to push us into a full-blown worldwide financial crisis.  The following are 12 signs that indicate that a global financial crash has become even more likely after the events of the past few days…

#1 The devaluation of the yuan on Tuesday took virtually the entire planet by surprise (and not in a good way).  The following comes from Reuters
China’s 2 percent devaluation of the yuan on Tuesday pushed the U.S. dollar higher and hit Wall Street and other global equity markets as it raised fears of a new round of currency wars and fed worries about slowing Chinese economic growth.

#2 One of the big reasons why China devalued the yuan was to try to boost exports.  China’s exports declined 8.3 percent in July, and global trade overall is falling at a pace that we haven’t seen since the last recession.

#3 Now that the Chinese have devalued their currency, other nations that rely on exports are indicating that they might do the same thing.  If you scan the big financial news sites, it seems like the term “currency war” is now being bandied about quite a bit.

 

#4 This is the very first time that the 50 day moving average for the Dow has moved below the 200 day moving average in the last four years. This is known as a “death cross”, and it is a very troubling sign.  We are just about at the point where all of the most common technical signals that investors typically use to make investment decisions will be screaming “sell”.

#5 The price of oil just closed at a brand new six year low.  When the price of oil started to decline back in late 2014, a whole lot of people were proclaiming that this would be a good thing for the U.S. economy.  Now we can see just how wrong they were.

At this point, the price of oil has already fallen to a level that is going to be absolutely nightmarish for the global economy if it stays here.  Just consider what Jeff Gundlach had to say about this in December…

And back in December 2014, “Bond King” Jeff Gundlach had a serious warning for the world if oil prices got to $40 a barrel.

“I hope it does not go to $40,” Gundlach said in apresentation, “because then something is very, very wrong with the world, not just the economy. The geopolitical consequences could be — to put it bluntly — terrifying.”

#6 This week we learned that OPEC has been pumping more oil than we thought, and it is being projected that this could cause the price of oil to plunge into the 30s

Increased pumping by OPEC as Chinese demand appears to be slackening could drive oil to the lowest prices since the peak of the financial crisis.

West Texas Intermediate crude futures skidded through the year’s lows and looked set to break into the $30s-per-barrel range after the Organization of the Petroleum Exporting Countries admitted to more pumping and China devalued its currency, sending ripples through global markets.

#7 In a recent article, I explained that the collapse in commodity prices that we are witnessing right now is eerily similar to what we witnessed just before the stock market crash of 2008.  On Tuesday, things got even worse for commodities as the price of copper closed at a brand new six year low.

#8 The South American debt crisis of 2015 continues to intensify.  Brazil’s government bonds have been downgraded to just one level above junk status, and the approval rating of Brazil’s president has fallen into the single digits.

#9 Just before the financial crisis of 2008, a surging U.S. dollar put an extraordinary amount of stress on emerging markets.  Now that is happening again.  Emerging market stocks just hit a brand new four year low on Tuesday thanks to the stunt that China just pulled.

#10 Things are not so great in the United States either.  The ratio of wholesale inventories to sales in the United States just hit the highest level since the last recession.  What that means is that there is a whole lot of stuff sitting in warehouses out there that is waiting to be sold in an economy that is rapidly slowing down.

#11 Speaking of slowing down, the growth of consumer spending in the United States has just plummeted to multi-year lows.

#12 Deep inside, most of us can feel what is coming.  According to Gallup, the number of Americans that believe that the economy is getting worse is almost 50 percent higher than the number of Americans that believe that the economy is getting better.

Things are lining up perfectly for a global financial crisis and a major recession beginning in the fall and winter of 2015.

But just because things look like they will happen a certain way does not necessarily mean that they will.  All it takes is a single “event” of some sort to change everything.

So what do you believe will happen in the months ahead?

Please feel free to join the discussion by posting a comment below…

 

New IMF Report on Greece Says Projections Are Unrealistically Optimistic

They went ahead with it, anyway

greece-flag

by Eric Zuesse | Infowars.com | Originally published July 15, 2015

new IMF report on Greece, issued on Tuesday, July 14th, is titled “AN UPDATE OF IMF STAFF’S PRELIMINARY PUBLIC DEBT SUSTAINABILITY ANALYSIS,” and it says — these are quotations, not paraphrases — in summary

Greece’s public debt has become highly unsustainable. … The financing need through end-2018 is now estimated at Euro 85 billion. … Greece’s debt can now only be made sustainable through debt relief measures that go far beyond what Europe has been willing to consider so far. … Public debt cannot be assumed to migrate back onto the balance sheet of the private sector at interest rates consistent with debt sustainability until debt is much lower. Greece cannot return to markets anytime soon at interest rates that it can afford. … Medium-term primary surplus target: Greece is expected to maintain primary surpluses for the next several decades of 3.5 percent of GDP. Few countries have managed to do so. …

Shortfalls in program implementation during the last year led to a significant increase in the financing need [which was] estimated only a few weeks ago. … The preliminary (mutually agreed) assessment of the three institutions is that total financing need through end-2018 will increase to Euro 85 billion, or some Euro 25 billion above what was projected in the IMF’s published DSA [Debt Sustainability Analysis] only two weeks ago. … 

Debt would peak at close to 200 percent of GDP in the next two years. This contrasts with earlier projections that the peak in debt—at 177 percent of GDP in 2014—is already behind us.

By 2022, debt is now projected to be at 170 percent of GDP, compared to an estimate of 142 percent of GDP projected in our published DSA.

Gross financing needs would rise to levels well above what they were at the last review (and above the 15 percent of GDP threshold deemed safe) and continue rising in the long term.

Moreover, these projections remain subject to considerable downside risk, suggesting that there could be a need for additional further exceptional financing from Member States.

ADDITIONAL:

Though this report revises the previous IMF estimates, which had been issued just two weeks ago, the new report was (according to the Wall Street Journal) “circulated to eurozone officials over the weekend and published more broadly Tuesday.” This would mean that when the Greek government and its creditors reached agreement on Sunday night, July 12th, they already knew that the estimates on which their deal was reached were unrealistically optimistic. They went ahead with it, anyway.

The Greek public had overwhelmingly voted a week earlier to reject a deal that was less draconian than the one which was reached on July 12th, and yet the Greek government, which had urged them to vote against it, promptly ignored that vote against it, which the Greek government had been calling for. And, now, it appears that both sides to the deal even knew that its terms are impossible, yet ignored that, and agreed to it.

The persistent and ongoing deceit here is hard to square with widespread allegations that the EU is at all democratic. The origin of this loan and earlier loans to Greece (euphemistically called ‘bailouts,’ as if it weren’t the banks which were being bailed out by the taxpayers, instead of the Greek public, who had never received the benefits of those loans anyway) had been private investors in Greek government bonds, receiving high interest rates on these junk bonds, which turn out to have been guaranteed by Western publics bailing out Western banks. Between 2010 and 2015, the IMF and other Western taxpayer-supported debt-transfer agents, bought those bum loans and thus transferred those risks from private investors onto taxpayers. And now, this continues, though with one major added poison pill for the Greek public: “privatization.” Greek government assets, including everything from highways to health care, will be sold off to investors at steeply depreciated prices, so that the Greek public will have not only skyrocketing taxes but also disappearing government services. Obviously, the youth-unemployment rate of near 50% will become much worse, and virtually all young Greeks will move elsewhere in Europe, while their parents will die, or even increasingly commit suicide, in the soaring poverty of the Greek ghost-town state. Greece’s essential tourist industry will collapse. But the banks, and the investors in the bank stocks, will be protected. This is socialism for the rich, capitalism for the poor. Call it fascism.

 

Investigative historian Eric Zuesse is the author, most recently, of  They’re Not Even Close: The Democratic vs. Republican Economic Records, 1910-2010, and of  CHRIST’S VENTRILOQUISTS: The Event that Created Christianity.

Greece Today, America Tomorrow?

The drama over Greece’s financial crisis continues to dominate the headlines

greece-greek-bankby Ron Paul | InfoWars | Originally published July 13, 2015

The drama over Greece’s financial crisis continues to dominate the headlines. As this column is being written, a deal may have been reached providing Greece with yet another bailout if the Greek government adopts new “austerity” measures. The deal will allow all sides to brag about how they came together to save the Greek economy and the European Monetary Union. However, this deal is merely a Band-Aid, not a permanent fix to Greece’s problems. So another crisis is inevitable.

The Greek crisis provides a look into what awaits us unless we stop overspending on warfare and welfare and restore a sound monetary system. While most commentators have focused on Greece’s welfare state, much of Greece’s deficit was caused by excessive military spending. Even as its economy collapses and the government makes (minor) cuts in welfare spending, Greece’s military budget remains among the largest in the European Union.

Despite all the handwringing over how the phony sequestration cuts have weakened America’s defences, the United States military budget remains larger than the combined budgets of the world’s next 15 highest spending militaries. Little, if any, of the military budget is spent defending the American people from foreign threats. Instead, the American government wastes billions of dollars on an imperial foreign policy that makes Americans less safe. America will never get its fiscal house in order until we change our foreign policy and stop wasting trillions on unnecessary and unconstitutional wars.

Excessive military spending is not the sole cause of America’s problems. Like Greece, America suffers from excessive welfare and entitlement spending. Reducing military spending and corporate welfare will allow the government to transition away from the welfare state without hurting those dependent on government programs. Supporting an orderly transition away from the welfare state should not be confused with denying the need to reduce welfare and entitlement spending.

On reason Greece has been forced to seek bailouts from its EU partners is that Greece ceded control over its currency when it joined the European Union. In contrast, the dollar’s status as the world’s reserve currency is the main reason the US has been able to run up huge deficits without suffering a major economic crisis. The need for the Federal Reserve to monetize ever-increasing levels of government spending will eventually create hyperinflation, which will lead to increasing threats to the dollar’s status. China and Russia are already moving away from using the dollar in international transactions. It is only a matter of time before more countries challenge the dollar’s reserve currency status, and, when this happens, a Greece-style catastrophe may be unavoidable.

Despite the clear dangers of staying on our recent course, Congress continues to increase spending. The only real debate between the two parties is over whether we should spend more on welfare or warfare. It is easy to blame the politicians for our current dilemma. But the politicians are responding to demands from the people for greater spending. Too many Americans believe they have a moral right to government support. This entitlement mentally is just as common, if not more so, among the corporate welfare queens of the militarily-industrial complex, the big banks, and the crony capitalists as it is among lower-income Americans.

Congress will only reverse course when a critical mass of people reject the entitlement mentality and understand that the government is incapable of running the world, running our lives, and running the economy. Therefore, those of us who know the truth must spread the ideas of, and grow the movement for, limited government, free markets, sound money, and peace.

 

The Last Days Of ‘Normal Life’ In America

These are the last days of “normal life” in America

American-flag-barbed-wireby Michael Snyder | End Of The American Dream | Originally published July 13, 2015

If you have got family and friends that you would like to visit before things start getting really crazy, you should do so within the next couple of months, because these are the last days of “normal life” in America.

The website where I have posted this article is called “End of the American Dream“, but perhaps I should have entitled it “The End of America” because that is essentially what we are heading for.  The debt-fueled prosperity that so many of us take for granted is about to come to a screeching halt, and we are about to enter the hardest times that any of us have ever known.  And I am not just talking about economics either.  Based on all of the intel and information that I have gathered, we are about to enter a “perfect storm” that is going to shake this country in just about every possible way that it can be shaken.  So I hope that you will truly savor this summer – days like this will not come around again any time soon.

Have you ever known someone that lived a seemingly charmed life even though that individual made foolish decision after foolish decision?

In the end, reality almost always catches up with people like that.

And in so many ways, we have been living a charmed life as a nation even though we have been making incredibly foolish decisions for decades.  We have cursed ourselves over and over again, and just about every form of evil that you can possibly imagine is exploding all around us.  As a nation, we now stand for just about everything that is foul, disgusting and wicked, and the rest of the world is absolutely horrified by what has happened to us.

Once upon a time, we were one of the most loved nations on the entire planet.

Now we are one of the most hated.

The things that we have been doing to ourselves and to other countries are about to catch up with us in a major way.  We thought that we were getting away with everything that we were doing, but that was never the case.  When you do evil, there is always a price to pay.

Over the past few weeks, some very strange things have begun to happen.  And in the months ahead, we are going to see some more unusual events.  But to be honest, this is just the tip of the iceberg.  For now, you are just going to have to trust me on this one.

If my tone sounds ominous, that is good, because that is precisely the mood that I am trying to convey.  Right now, there are major things going on behind the scenes, and all of our comfortable little lives are about to get shaken up big time.

I have often written about the global elite and about how they like to go about doing things.  Throughout history, they have always liked to create order out of chaos.  In other words, they will often purposely create a crisis in order to push through things that they would not be able to accomplish during “normal” times.

I believe that we are about to enter one of those periods of time.  The problems that we are about to experience are going to be used to justify radical “solutions” that will further the overall agenda of the elite.  But because we will be in the middle of an “emergency”, a lot of people will choose to go along with those solutions.

Sadly, most people don’t understand how the world works because they are so consumed with other things.  We live in a society that is absolutely addicted to entertainment.  Just recently, I wrote about how the average American spends more than 10 hours a day plugged in to some form of media.  If we are not watching television, we are listening to the radio, going to movies, playing video games, messing with our smartphones or spending endless hours on the Internet.  And more than 90 percent of the “programming” that we are fed through these devices is produced by just 6 absolutely gigantic media corporations.

And who controls those gigantic media corporations?

The elite do.

And have you noticed how “the mainstream media” loves to divide us?

Today, Americans are more divided than ever it seems.  Our news broadcasts endlessly fixate on “black vs. white”, “male vs. female”, “liberal vs. conservative”, “rich vs. poor”, etc, etc.

Americans are extremely angry and frustrated at this point, but most of our anger and frustration is directed at one another.

How can we ever hope to come up with any solutions for our nation if we spend so much time hating our fellow citizens?

But this is just how the elite like it.

They love to play divide and conquer.  If we were united, we would be far more difficult to manipulate.

And even if we did find a way to come together, what values and principles would we use to rebuild this nation?

The truth is that most Americans deeply reject the values and principles that the founders of this country once held so dear.

Personally, I am very optimistic about the future.  My wife and I believe that the greatest chapters of our lives are still ahead of us.

But am I optimistic about the future of the United States?

No, I am not.

Perhaps you are reading this and you have come to the conclusion that I am being irrationally negative.  If so, you are probably spending way too much time plugged in to the “propaganda matrix” that I described above.  The establishment wants you to believe that everything is going to be just fine and that the best days for this world are ahead.

If you think that I am wrong, I challenge you to bookmark this page.  Then, after some time has passed, come back and revisit what I had to say today.

I believe that you will be quite shocked by how your perspective has changed.

The last half of this year (2015) is going to represent a major turning point, and we are moving into hard times unlike anything that America has ever seen before.

Unfortunately, most of the “sheeple” are going to be completely blindsided by what is coming.  They just continue to follow their utterly clueless leaders down a path toward oblivion.

But the good news is that once the “shaking” starts, many of these “sheeple” will begin to wake up.

When that happens, who will those “sheeple” turn to for answers?

 

 

3 Big Reasons Why The ‘Greek Debt Deal’ Is Really A German Trap

Greece is saved?

greece-flag

by Michael Snyder | Economic Collapse | Originally published July 14, 2015

Greece is saved? All over the planet, news headlines are boldly proclaiming that a “deal” has been reached which will give Greece the money that it needs and keep it in the eurozone.

But as you will see below, this is not true at all.  Yesterday, when I wrote that “there never was going to be any deal“, I was not exaggerating.  This “deal” was not drafted with the intention of “saving Greece”.  As I explained in my previous article, these negotiations were all about setting up Greece for eviction from the euro.  You see, the truth is that Greece desperately wants to stay in the euro, but Germany (and allies such as Finland) want Greece out.  Since Germany can’t simply order Greece to leave the euro, they need some sort of legal framework which will make it possible, and that is what this new “deal” provides.  As I am about to explain, there are all kinds of conditions that must be satisfied and hurdles that must be crossed before Greece ever sees a single penny.  If there is a single hiccup along the way, and this is what the Germans are counting on, Greece will be ejected from the eurozone.  This “deal” has been designed to fail so that the Germans can get what they have wanted all along.  I think that three very famous words from Admiral Ackbar sum up the situation very well: “It’s a trap!

So why is this “Greek debt deal” really a German trap?

The following are three big reasons…

#1 The “Deal” Is Designed To Be Rejected By The Greek Parliament

If Germany really wanted to save Greece, they would have already done so.  Instead, now they have forced Greek Prime Minister Alexis Tsipras to agree to much, much harsher austerity terms than Greek voters overwhelmingly rejected during the recent referendum by a vote of 61 percent to 39 percent.  Tsipras has only been given until Wednesday to pass a whole bunch of new laws, and another week to make another series of major economic changes.  The following comes from CNN

Greece has to swiftly pass a series of new laws. Prime Minister Alexis Tsipras has until Wednesday to convince Parliament to pass the first few, including pension cuts and higher taxes.

Assuming that happens, Greek lawmakers have another week, until July 22, to enact another batch of economic changes. These include adopting European Union rules on how to manage banks in crisis, and do a major overhaul to make Greece’s civil courts faster and more efficient.

Can Tsipras actually get all this done in such a short amount of time?

The Germans are hoping that he can’t.  And already, two of Syriza’s coalition partners have publicly declared that they have no intention of voting in favor of this “deal”.  The following is from a Bloomberg report

Discontent brewed as Tsipras arrived back in the Greek capital. Left Platform, a faction within Syriza, and his coalition partners, the Independent Greeks party, both signaled they won’t be able to support the deal. That opposition alone would wipe out Tsipras’s 12-seat majority in parliament, forcing him to rely on opposition votes to carry the day.

The terms of the “deal” are not extremely draconian because the Germans want to destroy Greek sovereignty as many are suggesting.  Rather, they are designed to provoke an overwhelmingly negative reaction in Greece so that the Greeks will willingly choose to reject the deal and thus be booted out of the euro.

And this is what we are seeing.  So far, the response of the Greek public toward this deal has been overwhelmingly negative

Haralambos Rouliskos, a 60-year-old economist who was out walking in Athens, described the deal as “misery, humiliation and slavery”.

Katerina Katsaba, a 52-year-old working for a pharmaceutical company, said: “I am not in favour of this deal. I know they (the eurozone creditors) are trying to blackmail us.”

On Wednesday, the union for Greek public workers has even called a 24 hour strike to protest this “agreement”

Greece’s public workers are being called to stage a 24-hour strike on Wednesday, the day their country’s parliament is to vote on reforms needed to unlock the bankster eurozone plan agreed to by Greek Prime Minster Alex Tsipras.

Their union, Adedy, called for the stoppage in a statement issued today, saying it was against the agreement reached with the eurozone.

The Greek government is not guaranteed any money right now.

According to Bloomberg, the Greek government must pass all of the laws being imposed upon them by the EU “before Greece can even begin negotiations with creditors to access a third international bailout in five years.”

The Germans and their allies are actually hoping that there is a huge backlash in Greece and that Tsipras fails to get this package pushed through the Greek parliament.  If that happens, Greece gets ejected from the euro, and Germany doesn’t look like the bad guy.

#2 Even If The “Deal” Miraculously Gets Through The Greek Parliament, It May Not Survive Other European Parliaments

The Greek parliament is not the only legislative body that must approve this new deal.  The German and Finnish parliaments (among others) must also approve it.  According to USA Today, it is being projected that the German and Finnish parliaments will probably vote on this new deal on Thursday or Friday…

Thursday/Friday, July 16/17: Eurozone parliaments must also agree to the plan for Greece’s $95 billion bailout. The biggest tests may come from Finland and Germany, two nations especially critical of Greece’s handling of the crisis. Berlin has contributed the most to Greece’s loans.

Either Germany or Finland could kill the entire “deal” with a single “no” vote.

Finnish Finance Minister Alexander Stubb has already stated that Finland “cannot agree” with a new bailout for Greece, and it is highly questionable whether or not the German parliament will give it approval.

I think that the Germans and their allies would much prefer for the Greeks to reject the deal and walk away, but it may come down to one of these parliaments drawing a line in the sand.

#3 The Deal Makes Implementation Extraordinarily Difficult

If Greece fails to live up to each and every one of the extremely draconian measures demanded in the “deal”, they will be booted from the eurozone.

And if you take a look at what is being demanded of them, it is extremely unrealistic.  Here is just one example…

For instance, the Greek government agreed to transfer up to 50 billion euros worth of Greek assets to an independent fund that will raise money from privatization.

According to the document, 25 billion euros from this fund will be poured into the banks, 12.5 billion will be used to pay off debt, and the remaining 12.5 billion to boost the economy through investment.

The fund will be based in Greece and run by the Greeks, but with supervision from European authorities.

Where in the world is the Greek government going to find 50 billion euros worth of assets at this point?  The Greek government is flat broke and the banks are insolvent.

But if they don’t find 50 billion euros worth of assets, they have violated the agreement and they get booted.

This whole thing is about setting up Greece for failure so that there is a legal excuse to boot them out of the euro.

And it actually almost happened very early on Monday morning.  The following comes from Business Insider

As the FT tells it, German Chancellor Angela Merkel and Greek Prime Minister Alexis Tsipras rose from their chairs at 6 a.m. on Monday and headed for the door, resigned to a Greek exit from the euro.

“Sorry, but there is no way you are leaving this room,” European Council president Donald Tusk reportedly said.

And so a Grexit was avoided.

For the moment, Greece has supposedly been “saved”.

But anyone that believes that this crisis is “over” is just being delusional.

The Germans and their allies have successfully lured the Greek government into a trap. Thanks to Tsipras, they have been handed a legal framework for getting rid of Greece.

All they have to do now is wait for just the right moment to spring the trap, and it might just happen a lot sooner than a lot of people may think.

 

Anti-austerity Protesters and Police Clash Outside Greek Parliament

Demonstrators oppose surrender of Greek sovereignty to European bankers

July 15, 2015

Demonstrators opposed to the surrender of Greek sovereignty to European bankers are confronting police and throwing Molotov cocktails in Athens, according to reports.

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The protests against the $96 billion bailout plan have shut down much of the city.

USA Today reports:

As the deadline neared and Greece teetered on the verge of financial collapse, a general strike and at least 10 separate protests took place in Athens as demonstrators called for the government to reject the new rescue package or try to renegotiate for better terms from international creditors that include the European Central Bank, eurozone governments and the International Monetary Fund. So far, the lenders have been unyielding in their terms.

 

 

Goldman Sachs’ bankers set to share £5.3 BILLION in pay and bonuses despite profits slump

US-based investment bank made £670million in the three months to the end of June but that was down by 53% on the same period last year

fedmoney

by Graham Hiscott | Mirror | July 16, 2015

Mega bank Goldman Sachs has set aside £5.3 billion for six months of staff pay and perks – despite profits slumping.

The massive sum in salaries and bonuses and other benefits equates to more than £150,000 for each of the Wall Street giant’s 34,900-strong worldwide ­workforce, with some high-flying bankers pocketing a much bigger share than that.

The US-based investment bank employs around 5,500 people in the UK.

Headed by chief executive and chairman Lloyd Blankfein, it made £670million in the three months to the end of June – but that was down by 53% on the same period last year.

Luke Hildyard, of think tank the High Pay Centre, said: “This is an example of the greedy, obnoxious way that the economy works.

Read more

 

JP Morgan to Pay Another Slap on the Wrist Fine for Engaging in Systemic Consumer Credit Card Debt Fraud

Average citizens are treated under the U.S. “justice” (or just us?) system

jp-morgan-bankby Michael Krieger | Liberty Blitzkrieg | Originally published July 9, 2015

Just yesterday, I published a post titled: Florida Man Sentenced to 2.5 Years in Jail for Having Sex on the Beach. The purpose of that post wasn’t to justify his actions, but rather to highlight the difference between how average citizens are treated under the U.S. “justice” system, and how thieving, remorseless financial oligarchs are treated.

While, Mr. Caballero may have ruined the day of a few beach goers by crudely having sex on a public beach in broad daylight, he didn’t run the U.S. economy into the ground and cause destitution to tens of millions of Americans. Nor did he received trillions in taxpayer backstops and bailouts, only to turn around and pay himself a record bonus and then carry on with extremely profitable, illegal financial schemes. No, it was the bank executives who did (and continue to do) all of that. Guess who ends up in prison?

And now, for the latest financial scam perpetrated by JP Morgan, as well as the insignificant slap on the wrist fine, I present the following – this is from Reuters:

JPMorgan Chase & Co has agreed to pay at least $125 million to settle probes by U.S. state and federal authorities that the bank sought to improperly collect and sell consumer credit card debt, according to people familiar with the matter.

The settlement also includes about $50 million in restitution, the sources said.

The nation’s largest bank has been accused of relying on robo-signing and other discredited methods of going after consumers for debts they may not have owed and for providing inaccurate information to debt buyers. Robo-signing refers to signing documents in mass quantities without reviewing records.

I mean, what’s the big deal here? Clearly sex on the beach presents graver threat to American society.

The U.S. Consumer Financial Protection Bureau (CFPB), 47 states and the District of Columbia are expected to announce the settlements as soon as Wednesday, the people said.

California Attorney General Kamala Harris sued in 2013, claiming the bank engaged in fraudulent and unlawful debt collection practices against 100,000 California credit card borrowers over some three years.

The state claims the bank flooded state courts with questionable lawsuits, filing thousands every month, including 469 such lawsuits in one day alone.

In September 2013, the U.S. Consumer Financial Protection Bureau ordered JPMorgan to refund $309 million to about 2 million customers for illegal credit card practices, including charging consumers for credit card monitoring services they did not receive.

Thanks for playing suckers. Now go BTFD.

 

Sealed HSBC Report Shows U.S. Managers Battling Clean-up Squad

Managers from unit battled auditors with four-part strategy — Discredit, Deny, Deflect and Delay

hsbc

by Greg Farrell | Bloomberg | Originally published July 7, 2015

HSBC Holdings Plc, smarting from a $1.9 billion fine for providing banking to money launderers and sanctions-dodgers, promised U.S. officials it would clean up its act.

Within a year, its reform efforts met resistance from leaders of HSBC’s U.S. investment-banking unit — some of whom mounted a campaign of bullying, footdragging and discrediting against in-house watchdogs, according to previously unreported details from a report by the bank’s court-appointed monitor.

HSBC agreed to submit to the monitor’s oversight in late 2012, as part of a pact with the U.S. Justice Department that required it to bolster its in-house controls. Armed with that directive, HSBC compliance officers singled out a half-dozen clients whose activities could put the London-based bank at risk — including a Saudi bank that had been linked to Sept. 11, 2001, hijackers — and advised the U.S. investment-banking division to consider dropping those relationships.

There was no indication that the U.S. managers jumped to investigate. Instead, some of them requested that the six banks’ alleged sins be omitted from an in-house audit that compliance-team members were preparing to submit to HSBC’s top executives. The compliance team’s final audit omitted specifics about the banks, according to the monitor’s report.

As that audit took shape, U.S. investment banking managers put up other resistance, according to the court-appointed monitor’s report: One manager shouted at a compliance officer for wasting his time and dismissed her findings. Overall, the report says, managers from the unit battled auditors with what one compliance officer characterized as a four-part strategy — Discredit, Deny, Deflect and Delay.

Read more

Chinese Stocks Collapsed Right Before NYSE Shutdown

Before NYSE shutdown, Hang Seng Index plunged its most since 2008 financial crisis

by Kit Daniels | Infowars.com | July 8, 2015

european-stocks

 

Chinese stocks were suffering huge declines prior to the New York Stock Exchange shutdown due to an alleged “technical issue,” fueling concerns whether the NYSE was actually halted due to the free fall in China.

Companies in China fell 20% from a May high and, right before the NYSE shutdown, the Hang Seng Index plunged its most since the 2008 financial crisis.

“The Hang Seng Index fell 5.8% to 23,516.56 at the close today, the biggest drop since November 2008, after slumping as much as 8.6%,” Bloomberg’s Kana Nishizawa wrote.

Overall, China’s stock market plunge has wiped out around $3.2 trillion since June 12.

“Investors are disappointed and afraid that the Chinese policy makers lost control of the market,” Mari Oshidari, a Hong Kong-based financial strategist, said. “With no end in sight to the plunge, sentiment has turned cold.”

“With liquidity drying up in the mainland, the Hong Kong market is being sold instead –- the only thing it can do is just quietly take the storm.”

The global economy is so dependent on China that if the country were to completely implode, a world-wide recession would likely result.

Not long after China suffered huge losses on Wednesday, the New York Stock Exchange temporarily halted trading due to an alleged “technical issue.”

“NYSE/NYSE MKT has temporarily suspended trading in all symbols,” the NYSE said in a statement. “Additional information will follow as soon as possible.”

Art Cashin, director of floor operations at the NYSE, told CNBC it had been a “bumpy day” before the stock market was shut down.

“We had some technical problems even before the opening,” he said.

 

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Farage Rocks EU Parliament: Tells Tsipras – ‘Leave the Euro, Reclaim Your Democracy’

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Rousing speech met with cheers, applause

by Paul Joseph Watson | July 8, 2015

UKIP leader Nigel Farage gave a rousing speech in front of the European Parliament in Strasbourg today during which he directly told Greece’s Prime Minister Alexis Tsipras to lead the Greek people out of the Eurozone and reclaim the country’s democracy.

Farage told Tsipras that his country should have never joined the euro in the first place, but that it was forced to do so by big banks like Goldman Sachs and German arms manufacturers.

“When the bailouts began, they weren’t for the Greek people, those bailouts were to bailout French, German and Italian banks – they haven’t helped you at all,” said Farage to the sound of applause.

“You have been very brave, you called that referendum, when one of your predecessors tried to do the same, the bully boys of Brussels had him removed,” said the UKIP leader as Tsipras looked on.

“There were threats and bullying, but the Greeks stood firm….they will give you no more these people – they can’t afford to – if they give you more they’ll have to give other Eurozone members more – so your moment has come and frankly if you’ve got the courage you should lead the Greek people out of the Eurozone with your head held high, get back your democracy, get back control of your country, give your people the leadership and the hope that they crave,” added Farage.

The response to Farage’s speech – given that he is normally used to being heckled by pro-Brussels MEPs – was quite momentous as loud applause once again filled the room.

“Yes it will be tough for the first few months, but with a devalued currency and with friends of Greece all over the world, you will recover,” concluded Farage to the sound of cheering.

Tsipras looked fairly nonplussed but he was obviously trying to keep a straight face.

The Greek Prime Minister is still planning to strike a deal with creditors before a deadline on Thursday. Speculation is mounting that banks could run out of cash if the impasse continues, followed by civil unrest and riots.

Farage also remarked on what the wider implications of the Greek referendum were for the entire EU.

“The European project is actually beginning to die,” said Farage, adding that the people of Europe have rejected EU federalism time and time again whenever asked.

The UKIP leader said that attempts to make Europeans show allegiance to the flag and anthem of the EU had proven fruitless, noting that the ultimate agenda of a political union had failed.

“The countries of Europe are different – if you try and force together different people or different economies without first seeking the consent of those people it is unlikely to work and the plan has failed,” said Farage, adding that the whole of the Mediterranean now “finds itself in the wrong currency.”

“The continent is now divided from north to south, there is a new Berlin Wall and it’s called the euro,” asserted the UKIP leader.

Greece ‘48 Hours Away From Unrest’

Greek Unrest

Hedge fund managers turned cautious on global equities in the run-up to Sunday’s vote

by Will Wainewright | Bloomberg | July 6, 2015

Greek Prime Minister Alexis Tsipras probably has 48 hours to resolve a standoff with creditors before civil unrest breaks out and ATMs run out of cash, hedge fund Balyasny Asset Management said.

Fund managers are questioning how the International Monetary Fund and Europe’s leaders can seal a deal with Athens following the “no” vote in a Greek referendum on Sunday. Sixty-one percent of voters rejected austerity, increasing the likelihood of an exit from the euro area.

“I don’t see a good resolution any time soon,” Colin Lancaster, senior managing director with Balyasny, a $9 billion fund based in Chicago, said in an e-mailed statement. “The big question is whether the EU adopts a strategy of waiting them out. The hope would be that the unrest leads to a unity government or change in government.”

Hedge fund managers turned cautious on global equities in the run-up to Sunday’s vote, with sales of stocks sending a gauge of manager bullishness sliding. The Evercore ISI index of hedge fund long versus short bets was at 50.5 in the week ending July 1, down from 51.8 at the start of June, data from the New York-based research firm show.

The survey, based on 31 hedge funds with about $86 billion under management, tracks investments on a zero through 100 scale. Readings of zero show “maximum” short selling, or the sale of borrowed equities with the hope of profiting by buying them at lower prices later; 100 means “maximum” bullish bets. The index has dipped below 50 only twice in the past year.

 

Plan B

There’s little chance of Greece accepting a deal unless the country’s debt is restructured, Philippe Ferreira, global strategist at Lyxor Asset Management, a Paris-based unit of Societe Generale SA with investments in about 100 hedge funds, said in an e-mail. Investors should be cautious as European Union leaders may not have an adequate plan B if negotiations fail, he said.

Greece has been targeted by some hedge funds seeking returns in a market viewed as too risky for many traditional investors. John Paulson of Paulson & Co. bought bank stocks, while Perry Capital, Knighthead Capital Management and Monarch Alternative Capital purchased Greek debt. Randy Smith, who runs Alden Global Capital, started a Greek-focused fund in December.

Bruce Richards, co-founder of U.S. hedge fund Marathon Asset Management, said last week Tsipras will be gone within 30 days regardless of the outcome of the nation’s referendum.

A “no” vote would cause “rioting in the streets come weeks from now when the banks are closing and you have drachma,” he said in an interview on the television program “Wall Street Week.”

Europe’s leaders run the danger of setting a precedent for other governments if they agree to a writedown for Greece, said Savvas Savouri, chief economist at Toscafund Asset Management, a $3 billion London-based hedge fund.

“Other debt-burdened countries will campaign for the same treatment,” he said. “That is especially relevant with a Spanish election in December.”

 

 

 

Rothschilds & Rockefellers: Trillionaires Of The World – A Brief history

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Originally Posted January 2010…

“Money is Power”, or shall we say, “The Monopoly to Create Credit Money and charge interest is Absolute Power”. (Alex James)

Amsel (Amschel) Bauer Mayer Rothschild, 1838:

“Let me issue and control a Nation’s money and I care not who makes its laws”.

Letter written from London by the Rothschilds to their New York agents introducing their banking method into America:

“The few who can understand the system will be either so interested in its profits, or so dependent on its favours, that there will be no opposition from that class, while, on the other hand, that great body of people, mentally incapable of comprehending the tremendous advantage that Capital derives from the system, will bear its burden without complaint and, perhaps, without even suspecting that the system is inimical to their interests.”

Nathan Rothschild said to the Commons Secret Committee on the question early in 1819:

“In what line of business are you? – Mostly in the foreign banking line. “Have the goodness to state to the Committee in detail, what you conceive would be the consequence of an obligation imposed upon the Bank [of England, which he owned] to resume cash payments at the expiration of a year from the present time? – I do not think it can be done without very great distress to this country; it would do a great deal of mischief; we may not actually know ourselves what mischief it might cause. “Have the goodness to explain the nature of the mischief, and in what way it would be produced? – Money will be so very scarce, every article in this country will fall to such an enormous extent, that many persons will be ruined.”

The director of the Prussian Treasury wrote on a visit to London that Nathan Rothschild had as early as 1817: “.., incredible influence upon all financial affairs here in London. It is widely stated.., that he entirely regulates the rate of exchange in the City. His power as a banker is enormous”.

Austrian Prince Mettemich’s secretary wrote of the Rothschilds, as early as 1818, that: “… they are the richest people in Europe.”

Referring to James Rothschild, the poet Heinrich Heine said:

“Money is the god of our times, and Rothschild is his prophet.”

James Rothschild built his fabulous mansion, called Ferrilres, 19 miles north-east of Paris. Wilhelm I, on first seeing it, exclaimed:

“Kings couldn’t afford this. It could only belong to a Rothschild!”

Author Frederic Morton wrote that the Rothschilds had:

“conquered the World more thoroughly, more cunningly, and much more lastingly than all the Caesars before…”

As Napoleon pointed out: “Terrorism, War & Bankruptcy are caused by the privatization of money, issued as a debt and compounded by interest “- he cancelled debt and interest in France – hence the Battle of Waterloo.

Some writers have claimed that Nathan Rothschild “warned that the United States would find itself involved in a most disastrous war if the bank’s charter were not renewed.” (do you see the similarities here? If you don’t play the game an economic disaster will fall on you and you will be destroyed.)

“There is but one power in Europe and that is Rothschild.”

19th century French commentator.

Lord Rothschild (Rockefellers and Rothschilds’ relatives) in his book The Shadow of a Great Man quotes a letter sent from Davidson on June 24, 1814 to Nathan Rothschild,

“As long as a house is like yours, and as long as you work together with your brothers, not a house in the world will be able to compete with you, to cause you harm or to take advantage of you, for together you can undertake and perform more than any house in the world.” The closeness of the Rothschild brothers is seen in a letter from Soloman (Salmon) Rothschild to his brother Nathan on Feb. 28, 1815, “We are like the mechanism of a watch: each part is essential.” (2)

This closeness is further seen in that of the 18 marriages made by Mayer Amschel Rothschild’s grandchildren – 16 were contracted between first cousins.

“Centralisation of credit in the hands of the state, by means of a national bank with state capital and an exclusive monopoly.” The Communist Manifesto. In the case of the Bolshevik revolution, Rothschilds/ Rockefellers’ Chase Bank owned the state. In the US, the FED owners “own” the state.

Rothschilds’ favorite saying who along with the Rockefellers are the major Illuminati Banking Dynasties: “Who controls the issuance of money controls the government!”

Nathan Rothschild said (1777-1836):

“I care not what puppet is placed on the throne of England to rule the Empire. The man who controls Britain’s money supply controls the British Empire and I control the British money supply.”

Rockefeller is reported to have said: “Competition is a sin”. “Own nothing. Control everything”. Because he wants to centralize control of everything and enslave us all, i.e. the modern Nimrod or Pharaoh.

The Rothschild were behind the colonization and occupations of India and the Rothschild owned British Petroleum was granted unlimited rights to all offshore Indian oil, which is still valid till this day.

“Give me the control of the credit of a nation, and I care not who makes the laws.”

The famous boastful statement of Nathaniel Meyer Rothschild, speaking to a group of international bankers, 1912:

“The few who could understand the system (cheque, money, credits) will either be so interested in its profits, or so dependent on its favours, that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.” The boastful statement by Rothschild Bros. of London.

[efoods]These people are the top masterminds and conspired for the creation of illegal FEDERAL RESERVE BANK in 1913: Theodore Roosevelt, Paul Warburg – Representative Of Rothschild, Woodrow Wilson – U.S. President Signed FED Into Act, Nelson W. Aldrich – Representative Of Rockefeller, Benjamin Strong – Representative Of Rockefeller, Frank A. Vanderlip – Representative Of Rockefeller, John D. Rockefeller – Rockefeller Himself, Henry Davison – Representative Of J. P. Morgan, Charles Norton – Representative Of J. P. Morgan.

In the last century, members of the British Fabian Society dynastic banking families in the City of London financed the Communist takeover of Russia. Trotsky in his biography refers to some of the loans from these British financiers going back as far as 1907. By 1917 the major subsidies and funding for the Bolshevik Revolution were co-ordinated and arranged by Sir George Buchanan and Lord Alfred Milner. [no doubt using money from Cecil Rhodes’ South African gold and diamond legacy – Ed]

The Communist system in Russia was a “British experiment” designed ultimately to become the Fabian Socialist model for the British takeover of the World through the UN and EU. The British plan to takeover the World and bring in a “New World Order” began with the teachings of John Ruskin and Cecil Rhodes at Oxford University. Rhodes in one of his wills in 1877 left his vast fortune to Lord Nathan Rothschild as trustee to set up the Rhodes Scholarship Program at Oxford to indoctrinate promising young graduates for the purpose, and also establish a secret society [Royal Institute of International Affairs RIIA, which branched into the Round Table, the Bilderbergers, the CFR, the Trilateral, etc — Ed] for leading business and banking leaders around the World who would work for the City to bring in their Socialist World government.

Rothschild appointed Lord Alfred Milner to implement the plan.

Benjamin Freedman (Friedman) said this in 1961, Washington (he was a millionaire insider in international Zionist organizations, friend to 4 US presidents, and was also part of the 117-man strong Zionist delegation at the signing of the Treaty of Versailles in 1919 where Germany was forced into bankruptcy to the Zionist BankLords and social chaos):

“Two years into WW1, Germany, which was then winning the war, offered Britain and France a negotiated peace deal, but German Zionist groups seeing the opportunity made a deal with Britain to get the United States into the war if Britain promised to give the Zionists Palestine.”

In other words, they made this deal:

“We will get the United States into this war as your ally. The price you must pay us is Palestine after you have won the war and defeated Germany, Austria-Hungary, and Turkey.”

They made that promise, in October of 1916. And shortly after that — I don’t know how many here remember it — the United States, which was almost totally pro-German because the newspapers and mass communications media here were controlled by the Zionist bankers who owned the major commercial banks and the 12 Federal Reserve Banks (the original Stockholders of the Federal Reserve Banks in 1913 were the Rockefeller’ s, JP Morgan, Rothschild’s, Lazard Freres, Schoellkopf, Kuhn-Loeb, Warburgs, Lehman Brothers and Goldman Sachs, all with roots in Germany’s Zionists like the British Royal family, J.P. Morgan, Carnegie, Bush, Rumsfeld, Clintons, the Nazis that were brought into the CIA, etc.

http://land.netonecom.net/tlp/ref/federal_reserve.shtml ) and they were pro-German because they wanted to use Germany to destroy the Czar of Russia and let the Communists whom they funded take over. The German Zionist bankers — Rothschilds, Rockefeller, Kuhn Loeb and the other big banking firms in the United States refused to finance France or England to the extent of one dollar. They stood aside and they said:

“As long as France and England are tied up with Russia, not one cent!”

They poured money into Germany, fighting with Germany against Russia, to lick the Czarist regime. The newspapers had been all pro-German, where they’d been telling the people of the difficulties that Germany was having fighting Great Britain commercially and in other respects, then after making the deal with the British for Palestine, all of a sudden the Germans were no good. They were villains. They were Huns. They were shooting Red Cross nurses. They were cutting off babies’ hands. And they were no good. The Zionists in London sent cables to the US, to Justice Brandeis: “Go to work on President Wilson. We’re getting from England what we want. Now you go to work, and you go to work on President Wilson and get the US into the war.” And that did happen. Shortly after President Woodrow Wilson declared war on Germany.

The power of the Rothschild family was evidenced on 24 Sept 2002 when a helicopter touched down on the lawn of Waddedson Manor, their ancestral home in Buckinghamshire, England. Out of the helicopter strode Warren Buffet, – touted as the second richest man in the World but really a lower ranking player- and Arnold Schwarzenegger (the gropinator), at that time a candidate for the Governorship of California.

Also in attendance at this two day meeting of the World’s most powerful businessmen and financiers hosted by Jacob Rothschild were James Wolfensohn, president of the World Bank and Nicky Oppenheimer, chairman of De Beers. Arnold went on to secure the governorship of one of the biggest economies on the planet a year later. That he was initiated into the ruling class in the Rothschilds’ English country manor suggests that the centre of gravity of the three hundred trillion dollar cartel is in the U.K. and Europe not the U.S.

A recent article in the London Financial Times indicates why it is impossible to gain an accurate estimate of the wealth of the Trillionaire bankers. Discussing the sale of Evelyn Rothschild’s stake in Rothschild Continuation Holdings, it states: …[this] requires agreement on the valuation of privately held assets whose value has never been tested in a public market. Most of these assets are held in a complex network of tax-efficient structures around the World.

Queen Elizabeth II’s shareholdings remain hidden behind Bank of England Nominee accounts. The Guardian newspaper reported in May 2002 …

“the reason for the wild variations in valuations of her private wealth can be pinned on the secrecy over her portfolio of share investments. This is because her subjects have no way of knowing through a public register of interests where she, as their head of state, chooses to invest her money. Unlike the members of the Commons and now the Lords, the Queen does not have to annually declare her interests and as a result her subjects cannot question her or know about potential conflicts of interests…”

In fact, the Queen even has an extra mechanism to ensure that her investments remain secret – a nominee company called the Bank of England Nominees. It has been available for decades to the entire World’s current heads of state to allow them anonymity when buying shares. Therefore, when a company publishes a share register and the Bank of England Nominees is listed, it is not possible to gauge whether the Queen, President Bush or even Saddam Hussein is the true shareholder.

By this method, the Trillionaire masters of the universe remain hidden whilst Forbes magazine poses lower ranking billionaires like Bill Gates and Warren Buffett as the richest men in the World. Retired management consultant Gaylon Ross Sr, author of Who’s Who of the Global Elite, has been tipped from a private source that the combined wealth of the Rockefeller family in 1998 was approx. (US) $11 trillion and the Rothschilds (U.S.) $100 trillion.

However, something of an insider’s knowledge of the hidden wealth of the elite is contained in the article, “Will the Dollar and America Fall Down on August 19?..” on page 1 of the 12th July 2001 issue of Russian newspaper Pravda. The newspaper interviewed Tatyana Koryagina, a senior research fellow in the Institute of Macroeconomic Researches subordinated to the Russian Ministry of Economic Development (Minekonom) on the subject of a recent conference concerning the fate of the US. economy.

Koryagina: The known history of civilization is merely the visible part of the iceberg. There is a shadow economy, shadow politics and also a shadow history, known to conspirologists. There are [unseen] forces acting in the World, unstoppable for [most powerful] countries and even continents.

Ashley Mote (EU):

“Mr President, I wish to draw your attention to the Global Security Fund, set up in the early 1990s under the auspices of Jacob Rothschild. This is a Brussels-based fund and it is no ordinary fund: it does not trade, it is not listed and it has a totally different purpose. It is being used for geopolitical engineering purposes, apparently under the guidance of the intelligence services.”

“I have previously asked about the alleged involvement of the European Union’s own intelligence resources in the management of slush funds in offshore accounts, and I still await a reply. To that question I now add another: what are the European Union’s connections to the Global Security Fund and what relationship does it have with European Union institutions? “

Recently, Ashley Mote of the European Union (EU) asked this volatile question in a public EU meeting, a question never answered, as Mr. Mote, merely by asking this question, was immediately scratched from the White House Christmas card list and placed on its top ten hit list. The Illuminati’s cash cow, grazing freely on the World wide pasture of greenbacks, isn’t called “Elsie”

…but instead is called the Global Security Fund, a name actually meaning in the secret cult’s language Global Terrorist Fund. In simple terms, it’s a gigantic illegal trust fund, estimated by undercover overseas financial investigators at 65 trillion dollars, set-up for “Illuminati rainy days” and established when it is desperately needed in a pinch for bribery, assassinations and sponsoring World wide terrorist activities to divert attention from their banking mafia. Although the fund is cloaked in secrecy and made possible by the Western civilization’ s Federal Reserve banking system, investigators trying to pry into the Illuminati’s secret treasure trove have uncovered some interesting facts.

 

 

 

Our worst fears about the market are coming true

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Sean Goldsmith in The Stansberry Digest: 

Today’s Digest carries a grave warning: Our worst fears about the global monetary system are coming true. The wheels are starting to fall off. A crash could be just around the corner.

Below, we’ll show you the specific steps we’re taking to prepare… and how you can do the same. But first, we need to explain how and why the global monetary system is coming unglued. We do this by explaining what’s going on in the giant global market that you probably know nothing about.

Most investors don’t pay any attention to the currency market. But they should.

The currency market is the world’s largest, most important market. It’s where governments, corporations, and investors execute trillions of dollars’ worth of transactions every day. It’s where a Japanese carmaker goes to exchange money earned in American dollars to pay expenses in Japanese yen. It’s where a U.S.-based hotel chain must exchange euros earned in Germany into dollars that can sit in its U.S. bank account. It’s where nations buy and sell currencies by the billions in the normal course of doing business.

The currency market is far, far larger than the stock market. After all, it’s the market for money. When there are real problems in the economy, you see them clearly in the currency market.

We realize the currency market isn’t as exciting as the next Apple or the next Facebook. It doesn’t have the allure of making a killing in a big oil strike. You won’t hear your brother-in-law opining on the likely direction of the Australian dollar.

But ignoring this market – and the messages it is sending right now – is a huge mistake that could bankrupt you and your family.

As you’re about to see, many of the world’s major currencies are plummeting in value right now. They’re plummeting in response to insane government policies that constitute the largest monetary experiment in human history. Monetary experts like Jim Rickards say these policies constitute “currency wars.” This is where the politicians of major economies actively devalue their currencies in order to make their exports cheaper to the rest of the world… and make it so they can pay off debts with devalued currencies. It’s truly a “race to zero.”

The result of this experiment will be financial disaster. And you must take steps to protect yourself.

For example… you may have heard the value of the Japanese yen is declining. But do you know why?

A nation’s currency is like a rough “stock price” of that nation. Generally speaking, if a country manages its finances well and engages in productive behavior, its currency appreciates over the long term. If a country racks up huge debts and runs its finances like a drug addict, its currency depreciates over the long term.

For example, Zimbabwe and Venezuela are two of the worst-managed economies of the last decade. The leaders of these nations treated the national coffers as a personal piggy bank… While they got rich, their constituents toiled in poverty and suffered hyperinflation. Zimbabwe’s currency has lost nearly 75% of its value since 2009 (when its currency was reissued). Venezuela’s currency has lost 70% of its value over the past 10 years.

This brings us to Japan. Japan is the world’s third-largest economy. It’s a leader in automobile and electronics production. But the country announced it officially entered a recession in November… The country’s GDP shrank an annualized 7.1% in the second quarter of 2014 from the previous quarter.

This recession hit despite Prime Minister Shinzo Abe’s massive quantitative easing (QE) in an effort to stimulate Japan’s economy. Beginning in 2012, Abe printed 60 trillion to 70 trillion yen a year (nearly $600 billion). Following the recent recession announcement, Abe said he would up the QE to 80 trillion yen ($676 billion).

Bank of Japan Governor Haruhiko Kuroda said the increased QE “shows our unwavering determination to end deflation.” In other words, Japan will print and print and print…

Recklessly expanding a country’s monetary base is disastrous for its currency. And Abe’s efforts have caused a huge decline in the trade value of the Japanese yen. It’s in a clear downtrend.

The yen lost 33% of its value since late 2012, hitting a seven-year low against the dollar. This is an enormous move for a major currency.

And how about the euro, currency of the world’s largest economic bloc, the European Union?

Regular Digest readers know the European economy is struggling. The high-tax welfare states of France, Spain, Portugal, Italy, and Greece are drowning in debt. Their economies are slowing and deflation is taking hold. Unemployment is soaring. And like Japan, this dire outcome follows massive easing from the European Central Bank.

These economies simply can’t compete with Asia and North America. Naturally, the central bankers are responding with more stimulus and currency devaluation.

Just last week, European Central Bank President Mario Draghi announced he would flood the European currency union with more than $1 trillion in newly created money. It’s a desperate attempt from a desperate group of politicians. Instead of asking citizens to make needed changes in government policy – so-called “austerity” like less welfare – the politicians chose currency devaluation. This sent the euro to an 11-year low against the dollar. It has plummeted 19% since April…

Please keep in mind the enormity of this move. A 19% decline is a stupendous move for a major currency. This isn’t a high-flying tech stock. It’s not a speculative gold stock. This is the value of bank accounts. This is the value of debts. This is the currency of the world’s largest economic bloc. And it’s falling apart.

But it’s not just happening in Europe and Japan. Almost every major currency (save the U.S. dollar) is getting destroyed.

The plunge in oil prices has killed the Canadian dollar. And Canada’s central bank, the Bank of Canada, worsened the decline this month when it cut its benchmark interest rate by 0.25 percentage points to 0.75%.

The Australian dollar plunged 17% from its 52-week high on July 1. And investors believe the Reserve Bank of Australia will cut rates to a record low from today’s 2.5%.

Falling oil prices, a war with Ukraine, and economic sanctions from the U.S. have destroyed the Russian ruble.

And in one of the wildest currency moves in history, the Swiss franc soared as much as 39% against the euro in one day following the Swiss National Bank’s removal of its peg to the euro.

Unlike the rest of the currencies we discussed today, the Swiss franc – a longtime safe-haven asset – appreciated. We’re simply noting that the currency of a stodgy, economically sound country like Switzerland should never experience such volatility.

Something is wrong in the currency markets today…

Despite the madness, we are seeing one bright spot: Gold.

Expansion of the global money supply is generally bullish for the precious metal. Still, the price has slumped. But, as we discussed in the January 20 Digest and the January 21 Digest, gold is forming a bottom.

As you can see from the chart below, gold is breaking out…

Steve Sjuggerud, Matt Badiali, and Jeff Clark are all urging their subscribers to invest in gold right now.

In short, governments can print more money, but they can’t print more gold. And with interest rates across the world at record lows (and in some cases, negative), gold is even more attractive.

Many readers have asked why gold and the U.S. dollar are moving up in lockstep… They believe gold is the “anti-dollar.” But that’s not the case.

Gold is performing well for two main reasons…

First, gold is a currency. In our opinion, it’s the safest currency by a mile because it has no counterparty risk. And again, you can’t print more of it. People are starting to realize this and they’re diversifying into the precious metal.

Second, gold benefits from the “fear trade.” When people get scared of what’s happening in the markets, they want the security of owning gold.

As you can see from the charts above, the world is losing faith in fiat money… so people are rushing to safe-haven assets like the world’s reserve currency (the dollar) and gold.

We’ve been warning about this event for years. We knew global central banks couldn’t continue to boost their economies via quantitative easing forever. Eventually, those debts come due… Eventually, the world loses faith in manipulated fiat currencies.

But what happens then?

As Porter said last week on an episode of Stansberry Radio, “We are in the early stages of the complete collapse of global capitalism.” He thinks stocks could fall by 50% or more.

Regardless of when the market correction comes, you have an incredible opportunity to buy gold today.

The metal is trading for less than $1,300 an ounce, down from its 2011 high of $1,900. We think it could easily hit $2,000 an ounce this year. Jim Rickards, who wrote the book Currency Wars and is an expert on this topic, believes gold will hit $7,000 an ounce one day.

And that’s based on the actions already taken by central banks.

But we’ll undoubtedly see many more shocks to the system in coming years…

For example, it’s possible the euro will disband.

The anti-austerity party Syriza just won the elections in Greece. The party, led by Alexis Tsipras, rallied support by saying Greece would not repay the hundreds of billions of dollars it owes to the “troika” – the Eurpean Central Bank, International Monetary Fund, and European Union (EU).

Upon election, Tsipras softened his language, saying he plans to write Greece’s debt down while abandoning the budget constraints that were part of Greece’s bailout. He also said Greece will stay in the European currency union.

Given politicians’ long history of false statements, we’re not putting much weight in Tsipras’ claims.

Even if Greece does stay in the euro bloc, we’ll see shocks to the system throughout these negotiations. And we’ll likely see more and more Europeans join the “anti-austerity” mindset – with more fringe parties winning elections in the EU.

And the global race to zero is still on… Central banks will continue doing what they’ve always done – printing money. But the consequences are only getting more severe.

So… what actions should you take?

Porter advises everyone to have at least 10% of your net worth in physical gold before you put a penny in the stock market.

If you still need to purchase physical gold, we recommend using two dealers: Van Simmons at David Hall Rare Coins and Rich Checkan at Asset Strategies International.

As we always remind readers, we receive no compensation for recommending their services. You can reach Van at 1-800-759-7575 or by e-mail at van@davidhall.com , and you can reach Rich at 1-800-831-0007 or by e-mail at contactus@assetstrategies.com .

Following that, you should definitely own gold stocks. And when it comes to gold stocks, one man’s track record has outperformed the rest… His name is John Doody.

John’s proprietary method for investing in gold stocks has returned 636% since 2001 – double the gains of bullion.

And right now, John is imploring his subscribers to purchase gold stocks. (He also put his money where his mouth is and personally invested a fortune in the sector.)

But outside of a small group of investors, not many people know about John’s investment strategies.

That’s why a self-proclaimed “financial survivalist” recently published the details online…

Giant profit opportunities don’t come around often in gold stocks. And when they do, it’s important you take advantage… because these stocks soar when the trend moves up.

You can get all the details right here.

 

 

For once here’s Some Honesty Courtesy Of The US Congress – Frightening

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It doesn’t’ take a rocket scientists to figure out what a bankrupt government will do—just like any thief, they’ll go after easy targets first

Simon Black | Sovereign Man blog | February 1, 2015

A member of my staff caught an obscure resolution that was introduced in the US House of Representatives last week—Resolution no. 41.

The fact that there was essentially no coverage of this Resolution really shows how the mainstream media is completely turning a blind eye to the true fiscal situation of the United States of America.

The entire point of the resolution is to say that the federal government is broke.

It can’t pay its own bills, and therefore is shouldn’t be responsible to pay anyone else’s either.

It doesn’t’ take a rocket scientists to figure out what a bankrupt government will do—just like any thief, they’ll go after easy targets first.

The easiest target of all is future generations.

They’re going to run up the debt as high as they can, which essentially means pulling future tax revenues into today. It’s the easiest tax of all, because unborn children do not vote.

The estate tax is another one to watch out for—because, like unborn children, dead people don’t vote either.

 

We had a great podcast yesterday about retirement savings, where there’s an easy $5 trillion treasure chest for them to raid.

And, of course, there’s the greatest tax of all, the inflation tax, which decreases the standard of living for most of the population as the cost of living rises much faster than incomes.

This Resolution is a pretty scary dose of honesty. But again, what’s even more concerning is that it was just ignored and has objectively a zero percent chance of passing.

I do encourage you to check it out though—even the government is admitting it’s finished.

I’ll quote from the Resolution now without comment and wish you a very pleasant weekend:

Whereas the Federal Government is operating at an annual deficit and is increasing its outstanding debt every year;

Whereas the Federal Government, as of January 2015, is carrying more than $18.0 trillion in debt, of which $13.0 trillion is owed to the public and $5.08 trillion is owed to Social Security and other trust funds;

Whereas foreign governments, individuals, and corporations as of October 2014 own 47 percent of Federal debt held by the public;

Whereas Social Security’s unfunded liabilities in 2014 are $10.6 trillion over 75 years and $24.9 trillion over the infinite horizon;

Whereas the Federal debt held by the public is expected to increase by more than $7 trillion from 2014 to 2024 according to the Congressional Budget Office;

Whereas more than 16 percent of the entire Federal budget goes directly to States and local governments;

Whereas more than 22 percent of total State and local government general revenue comes from the Federal Government according to Census Bureau’s latest Annual Survey of State and Local Government Finance;

Whereas several State and local pension plans are expected to fully exhaust their funds within ten years.

*  *  *

Our goal is simple: To help you achieve personal liberty and financial prosperity no matter what happens.

 

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Birth Pangs Of The Coming Great Depression

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The signs of the times are everywhere – all you have to do is open up your eyes and look at them

Michael Snyder | Economic Collapse | January 30, 2015

The signs of the times are everywhere – all you have to do is open up your eyes and look at them.  When a pregnant woman first goes into labor, the birth pangs are usually fairly moderate and are not that close together.  But as the time for delivery approaches, they become much more frequent and much more intense.

Economically, what we are experiencing right now are birth pangs of the coming Great Depression.  As we get closer to the crisis that is looming on the horizon, they will become even more powerful.  This week, we learned that the Baltic Dry Index has fallen to the lowest level that we have seen in 29 years.  The Baltic Dry Index also crashed during the financial collapse of 2008, but right now it is already lower than it was at any point during the last financial crisis.  In addition, “Dr. Copper” and other industrial commodities continue to plunge.  This almost always happens before we enter an economic downturn.  Meanwhile, as I mentioned the other day, orders for durable goods are declining.  This is also a traditional indicator that a recession is approaching.  The warning signs are there – we just have to be open to what they are telling us.

And of course there are so many more parallels between past economic downturns and what is happening right now.

For example, volatility has returned to the markets in a big way.  On Tuesday the Dow was down about 300 points, on Wednesday it was down another couple hundred points, and then on Thursday it was up a couple hundred points.

This is precisely how markets behave just before they crash.  When markets are calm, they tend to go up.  When markets get really choppy and start behaving erratically, that tells us that a big move down is usually coming.

At the same time, almost every major global currency is imploding.  For much more on this, see the amazing charts in this article.

In particular, I am greatly concerned about the collapse of the euro.  The Swiss would not have decoupled their currency from the euro if it was healthy.  And political events in Greece are certainly not going to help things either.  Economic conditions across Europe just continue to get worse, and the future of the eurozone itself is very much in doubt at this point.  And if the eurozone does break up, a European economic depression is almost virtually assured – at least in the short term.

 

And I haven’t even mentioned the oil crash yet.

There is only one other time in all of history when the price of oil collapsed by more than 60 dollars, and that was just prior to the horrific financial crisis of 2008.

Since the last financial crisis, the oil industry has been a huge source for job growth in this country.  The following is an excerpt from a recent CNN article

The oil sector has added over a half million jobs — many of them high paying — since the recession ended in June 2009. That’s 13% of all US job growth over that period.

Now energy companies and related sectors are laying off thousands. Expect that trend to continue, bears say.

But losing good jobs is just the tip of the iceberg of this oil crisis.

At this point, the price of oil has already dropped to a catastrophically low level.  The longer it stays at this level, the more damage that it is going to do.  If the price of oil stays at this level for all of 2015, we are going to have a complete and total financial nightmare on our hands

For the first time in 18 years, oil exporters are pulling liquidity out of world markets rather than putting money in. The world is now fast approaching a world reserve currency shift. If we see 8 to 12 months at these oil prices; U.S. shale industry will be wiped out. The effect on junk bonds will cascade to the rest of the stock market and U.S. economy.

…and this time there will be nothing left to catch the falling knife before it hits the American economy right in the heart. Not the FED nor the U.S. government can stop what’s coming. Liquidity will freeze up, our credit will be downgraded, the stock market will start to collapse, and then we can expect the FED to come in and hyper-inflate the dollar. This will cause the world to finish abandoning the world reserve currency in the last rungs of trade. This will be the end of the petrodollar.

Something that I have not discussed so far this year is the looming crisis in emerging market debt.

 

This is a really big deal.  As a Business Insider article recently detailed, we could be talking about hundreds of billions of dollars…

Russia this week became the first of the major economies to lose its investment grade status from Standard & Poor’s, falling out off the top ratings category for credits deemed to have a low risk of default for the first time in a decade.

If Moody’s and Fitch follow, conservative investors barred from owning junk securities must sell their holdings. JPMorgan estimates this means they may ditch $6 billion in Russian government rouble and dollar debt.

Russia may have company. Almost $260 billion worth of sovereign and corporate bonds – nearly a tenth of outstanding emerging market (EM) debt – is in danger of being relegated to junk, according to David Spegel, head of emerging debt at BNP Paribas, who calls such credits “falling angels”.

And no article of this nature would be complete without mentioning derivatives.

I could not possibly overemphasize the danger that the 700 trillion dollar derivatives bubble poses to the global financial system.

As we enter the coming Great Depression, derivatives are going to play a starring role.  Wall Street has been pumped full of funny money by global central banks, and our financial markets have been transformed into the greatest casino in the history of the world.  When this house of cards comes crashing down, and it will, it is going to be a financial disaster unlike anything that the planet has ever seen.

And yes, global central banks are very much responsible for setting the stage for what we are about to experience.

 

I really like the way that David Stockman put it the other day…

The global financial system is literally booby-trapped with accidents waiting to happen owing to six consecutive years of massive money printing by nearly every central bank in the world.

Over that span, the collective balance sheet of the major central banks has soared by nearly $11 trillion, meaning that honest price discovery has been virtually destroyed. This massive “bid” for existing financial assets based on credit confected from thin air drove long-term bond yields to rock bottom levels not seen in 600 years since the Black Plague; and pinned money market costs at zero—-for 73 months running.

What is the consequence of this drastic financial repression along the entire yield curve? The answer is bond prices which keep rising regardless of credit risk, inflation or taxes; and rampant carry trade speculation that can’t get out of its own way because  central banks have made the financial gamblers’ cost of goods—the “funding” cost of their trades—-essentially zero.

Of course I am not the only one warning that a new Great Depression is coming.  For instance, just consider what British hedge fund manager Crispin Odey is saying…

British hedge fund manager Crispin Odey thinks we’ve entered an economic downturn that is “likely to be remembered in a hundred years,” and central banks won’t be able to stop it.

In his Odey Asset Management investor letter dated Dec. 31, Odey writes that the shorting opportunity “looks as great as it was in 07/09.”

“My point is that we used all our monetary firepower to avoid the first downturn in 2007-09,” he writes, “so we are really at a dangerous point to try to counter the effects of a slowing China, falling commodities and EM incomes, and the ultimate First World Effects. This is the heart of the message. If economic activity far from picks up, but falters, then there will be a painful round of debt default.”

Even though most average citizens are completely oblivious to what is happening, many among the elite are heeding the warning signs and are feverishly getting prepared.  As Robert Johnson told a stunned audience at the World Economic Forum the other day, they are “buying airstrips and farms in places like New Zealand“.  They can see the horrifying storm forming on the horizon and they are preparing to get out while the getting is good.

It can be very frustrating to write about economics, because things in the financial world can take an extended period of time to play out.  Sadly, most people these days have extremely short attention spans.  We live in a world of iPhones, iPads, YouTube videos, Facebook updates and 48 hour news cycles.  People no longer are accustomed to thinking in long-term time frames, and if something does not happen right away we tend to get bored with it.

But the economic world is not like a game of “Angry Birds”.  Rather, it is very much like a game of chess.

And unfortunately for us, checkmate is right around the corner.

Source

 

How Capitalism Dies

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Can you think of a single thing a politician or central banker has contributed to the welfare of the world?

Bill Bonner | Zero Hedge | January 27, 2015

Two Comedy Acts

Today, we’re going to tell you why America’s middle class is getting poorer. Or put another way, we’re going to show you how capitalism dies.

Two comedy acts appeared last week: President Obama’s State of the Union address and Mario Draghi’s QE announcement.

Mr. Obama claimed credit for a “recovery” that has left the typical American poorer than he was before. And not only is he poorer, but also he is more dependent on the very people who engineered the phony recovery. (See below.)

Mr. Draghi followed up with a series of one-liners, the gist of which was that he now proposes to save Europe from the specter of inadequate inflation.

ECB to the Rescue

Who could take Draghi seriously? After all, what’s wrong with stable prices? Nothing at all! The 19th century had fairly stable prices… as well as the fastest GDP and wage growth in human history. Serious consumer price inflation didn’t begin in the US until the 1970s, when America’s new flexible, adaptable, expandable, super-duper fiat money came into service.

Since then, the cost of living in the US is up roughly 600%. And the rate of economic growth has fallen. Mr. Draghi did not mention these facts when he announced his euro-debasement program. But it hardly mattered. The real purpose of euro-zone QE is the same as the real purpose of the US version – to prevent the cronies from getting what they deserve.

 

They own hundreds of billions of euro worth of European sovereign bonds – now trading at the highest prices and lowest yields in recorded history. Many were bought with negative yields. And now, with aging populations, rising debt levels, gummed-up regulations, rising living costs, rising taxes and falling revenues, there is almost no way these bonds can be worth what speculators paid for them.

How are the insiders going to get their money back? The ECB to the rescue! It promises to transfer $1.3 trillion to the financial elite over the next 21 months – buying sovereign bonds and other slippery obligations at the rate of €60 billion ($67 billion) every month. Not that we are complaining; we’ve got a sense of humor!

Besides, we’re card-carrying members of the 1%… and happy to get a share of the loot. If only we had bought those Italian sovereign bonds! So, there you have it…

In the New World, the commander-in-chief claims credit for something he didn’t do. In the Old World, the central-banker-in-chief claims to be doing something not worth doing. Neither is doing what he should do.

 

Germany-2-yr_-yield

Germany’s 2 year note now sport a yield to maturity of minus 0.143%. All over the developed world, more than $ 4 trillion in sovereign debt are now trading at negative yields. This is no longer just return-free risk, it is at the next stage where you have to pay for the risk to lend money to governments that in a sober assessment cannot be called anything but effectively insolvent.

America’s Disappearing Wealth Creators

We chuckle … and move on. We were supposed to tell you about how it was possible for the average American to get poorer at a time that should have been the most productive and prosperous ever. We won’t disappoint you.

Who makes people better off? President Obama? Mario Draghi? Can you think of a single thing a politician or central banker has contributed to the welfare of the world? We can’t.

Did they invent hamburgers? Did they pave roads? Did they produce wheat or lay bricks? We’re exaggerating to make our point. They are, no doubt, amusing at dinner parties. And they pet their dogs.

But sticking to the material world, the world of getting and spending, has a president or central banker ever put in a decent day’s work or added a single centime or farthing to the nation’s GDP? Not that we know of. Then who has?

If we had to put a title on this little discussion, we might call it: “America’s Disappearing Wealth Creators.” Or if we wanted to be more lurid: “How the Zombies Ate America’s Entrepreneurs.”

More information…. Source

 

 

Bankster Austerity Measures Under Attack in Wake of Syriza Win in Greece

Ban Money

 

 

 

 

Politicos line up for fight against bankster plan to impoverish millions

Kurt Nimmo | Infowars.com | January 26, 2015

British Prime Minister David Cameron has reacted to the Greek election and the rejection of globalist austerity measures by saying the victory of Syriza in the Greek general election over the weekend will “increase economic uncertainty across Europe.”

On Sunday the leader of radical leftist Syriza party, Alexis Tsipras, promised to end five years of austerity, “humiliation and suffering” imposed by international banksters on the Greek people.

Tsipras is a dedicated communist who gave his youngest son the middle name of Ernesto after Cuban revolutionary Che Guevara.

“Greece leaves behinds catastrophic austerity, it leaves behind fear and authoritarianism, it leaves behind five years of humiliation and anguish,” Tsipras, who was sworn in as prime minister on Monday, told supporters.

The Greek coalition party now has an absolute, 151-seat majority in parliament.

Tsipras and Syriza demand a renegotiation of Greece’s £179 billion bailout and a revisitation of the clauses that make the Greek government’s implementation of devastating austerity measures mandatory.

Additionally, Syriza is calling for cancellation of over 50 percent of Greek debt owed to ECB banksters and Eurozone states.

The victory of Syriza has emboldened the anti-austerity movement in Britain and on the European continent.

In Britain, Labor Party members called the Syriza win “exciting” and demanded Ed Millibrand, the leader of the party, oppose “savage” spending cuts by the British government.

“Nobody should underestimate the anger and the demand for change here,” said leftwing Labor MP John McDonnell. He said the Syriza victory points the way for similar moves in Britain.

The British chancellor, George Osborne, warned the promises made by Syriza to end crippling austerity would be “very difficult to deliver and incompatible with what the eurozone currently demands of its members.”

In December, Osborne detailed an austerity plan for Britain that reduces public spending to levels not seen since the 1930s and the Great Depression. The plan calls for the loss of a million public sector jobs, reduction of public sector wages, an increase in rates levied on property, and an aggressive crackdown on tax avoidance.

Despite the stance of politicos, banksters and EU apparatchiks in Britain and Europe, the Syriza win does not bode well for European central banker schemes.

“Europe is well-aware that any Greek renegotiation means one thing: an impairment of the ECB balance sheet, something which is also a non-starter for the central bank which is already toying dangerously close with losing all credibility as well as big losses for German taxpayers now that the bulk of Greek debt exposure has been mutualized outside of the banking sector,” notes Zero Hedge.

“Whatever happens, expect a substantial increase in volatility in coming weeks as Greek pre-election promises and the harsh European reality finally collide, and lots and lots of red flashing headlines and FX kneejerk responses.”

Source

Obama to Call For New Tax Increases

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Will use State of the Union address to target top earners, investment, inheritance… (Ed: but NOT him exempt Elite…)

Fox News | January 18, 2015

President Obama plans to call for billions in tax increases on top earners – including a hike in investment tax rates — in order to fund new tax credits and other measures the White House claims will help the middle class.

The president’s proposals, which also include eliminating a tax break on inheritances, are likely to be cheered by the Democratic Party’s liberal base when they are announced Tuesday night in his State of the Union address. However, the tax increases are all but certain to be non-starters with the new Republican majority on Capitol Hill.

The president’s address — his first to a Republican-led Congress — will call for $320 billion in tax increases over 10 years. Aside from funding new tax credits including a tax credit for working families and expanding the child care tax credit, the White House says that money would go to funding measures to make college more afforable and accessible, including the president’s recently announced plan to make community college free for many students.

The centerpiece of the president’s tax proposal is an increase in the capital gains and dividends rate on couples making more than $500,000 per year to 28 percent, the same level as under President Ronald Reagan. The top capital gains rate has already been raised from 15 percent to 23.8 percent during Obama’s presidency.

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Ukraine’s Creditors Grab for the Biggest Pieces of Its Carcass

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Ukraine completely torn apart

Eric Zuesse | Washington’s Blog | January 11, 2015

The lifelong Russia-enemy George Soros, and the Russian government itself, are now openly fighting over which parts of the Ukrainian government they’ll be getting in the bankruptcy proceeding that’s already unofficially starting.

Here’s the necessary background, so that the battle now occurring on the part of Ukraine’s creditors can be truthfully and honestly understood:

In December 2013 — just before the overthrow of the Russia-friendly Ukrainian Government of Ukrainian President Viktor Yanukovych, by Soros’s American President and major political-campaign investment, Barack Obama — Russia lent Ukraine $3 billion with a contract saying that if Ukraine’s debt would rise above 60% of Ukraine’s GDP, then Russia would be able to demand immediate repayment, and Ukraine agreed to the contract’s condition that Ukraine wouldn’t pay a cent to any other creditor before the entire due-balance on this $3 billion loan is returned to Russia.

Then, on 4 February 2014, Victoria Nuland of Obama’s State Department selected Ukrainian banker Arseniy Yatsenyuk as the person to take control over Ukraine as soon as Obama’s Ukrainian coup would occur, which turned out to be 18 days later, on February 22nd.

Soros’s and Obama’s plan was to privatize as much of the Ukrainian Government as possible in a fire-sale of its assets, such as the valuable gas-fields in the Yuzivska region in Ukraine’s southeast (where the civil war now is), so that Soros and the other investors would be able to get their money back, with interest. Furthermore, inasmuch as only Soros and other insiders would be in on this fire-sale, those same people would also be the bidders; and thus Ukraine’s assets would be sold to them at prices far lower than their actual worth as economic investments for the future. This would turn their prior Ukrainian bonds into super-discounted equity or stock in what now are Ukrainian Government-owned gas-fields, electrical power companies, factories, etc. Furthermore, Western agribusiness giants are now coming into Western Ukraine to buy up Ukrainian farmland, which is among the world’s most-fertile.

The basic privatization-scheme that’s being used here had originally been drawn up by the Harvard economist, and the then-World-Bank chief, Lawrence Summers, and by Harvard’s Economics Department, in the 1990s, as being the way for American insider investors and the U.S.S.R.’s Communist Party insiders, to buy the U.S.S.R.’s assets dirt-cheap, and thereby profit from the dissolution of the U.S.S.R. Those economists oversaw the sell-offs of industrial and other assets throughout many of the 15 nations comprising the Soviet Union, one of which is Ukraine, where the fire-sales are now occurring.

With this as the background, the world’s great newspaper, German Economic News, headlines, on January 10th (as translated by the present writer into English), “Putin v. Soros: Russia Grabs for EU-Billions to Ukraine,” and reports that:

“Just a few days after Angela Merkel cleared the way for a 1.8 billion euro loan from the EU’s tax-money for [Ukrainian Premier] Arseny ‘Yaz’ Yatsenyuk, Russia launched its interest in this money: Moscow is considering to mature a loan it had made to Kiev. Russia makes this move especially against the speculator George Soros.

Ukraine’s ‘Yaz’ Yatsenyuk met with Chancellor Merkel, at the Chancellor’s Office, on Thursday [Jan. 8]. No sooner was the Premier assured by the EU of receiving 1.8 billion euros, than Russia intervenes for the money — Moscow may trigger the state bankruptcy of Ukraine.

Russia could use the EU payments to Ukraine to mature a loan that is due at the end of January, and Kiev cannot use its own resources: Moscow could demand early repayment of a three-billion-dollar loan to Ukraine. Ukraine did not meet a number of conditions [of the loan-agreement], reported the Russian news agency RIA Novosti on Saturday [the 10th], citing government sources. Under these circumstances, Russia was forced to insist on the earlier payment.”

Soros has been lobbying very intensively, after the coup (see all about it by clicking on that link), to persuade the EU, IMF and U.S., to donate enough of Western taxpayers’ money, so as to enable Ukraine to buy enough weapons to win its war against the rebelling portion of Ukraine — the region which had voted 90% for the overthrown former President, Viktor Yanukovych — the region in Ukraine that’s often called “Donbass,” which is in Ukraine’s far east, and which has declared its independence, and which includes much of the Yuzivska gas-field. That region has consistently rejected the Obama-coup-imposed Government; and consequently its gas cannot be used to repay Ukraine’s debts unless Ukraine regains control over that land, where now, almost certainly, even more than 90% of the people reject that Government. (Click here in order to see the transcript of the EU officials’ phone-conversation in which their Foreign-Affairs Minister Catherine Ashton was informed by her own investigator, on 25 February 2014, that Yanukovych had been overthrown in a violent coup, rather than himself perpetrated the bloodshed, and that Ukraine’s current President, Petro Poroshenko, himself acknowledged to the EU’s investigator at the time, that it was a coup — which Ashton hadn’t known of until that moment.)

This is the reason why the IMF informed the coup Government, on 1 May 2014, that unless it could regain control over the rebels’ land, which means eliminate its residents (since they would never accept a Government that is set upon exterminating them), the IMF would stop lending (actually donating, since these ‘loans’ will come at the end of the long line in the bankruptcy proceeding that’s now inevitable) Ukraine more of its Western taxpayers’ money. Without those gas-fields and other assets, even the existing IMF loans to Ukraine wouldn’t likely ever be able to be paid back. New IMF loans surely won’t be.

On 6 January 2015, an aide to Poroshenko announced that, as the news-headline on this story the following day phrased it, “Ukraine Says $450 Million Was Stolen from Its Military in 2014.” This report also noted that, “This amount happens to be precisely the same maximum amount of money that the U.S. Government, in legislation that was supported by more than 98% of U.S. Senators and Representatives and that was signed into law by U.S. President Barack Obama on December 18th, will donate to Ukraine’s military for this year, 2015.” Both Republicans and Democrats in the U.S. Congress overwhelmingly support Obama’s ethnic-cleansing program to get rid of the people in that region of Ukraine and thus endorsed the $450 million donation by U.S. taxpayers. However, if the people we’re hiring to do that job are stealing as much money as we’re donating to them, then people like Soros could end up losing money on their bond-investments. This is the reason why Soros is pressing the European Union to donate lots more of their taxpayers’ money to this war. In the 5 February issue of the New York Review of Books, he says, “all the consequences of helping Ukraine would be positive. By enabling Ukraine to defend itself, Europe would be indirectly also defending itself.” He doesn’t mention that Ukraine’s Government resulted from a coup instead of from the anti-corruption demonstrators in the Maidan, and he portrays Russia’s President Vladimir Putin as being the aggressor for accepting Crimea back into Russia (where it had been during 1783-1954), and not America’s President Barack Obama as being the aggressor for perpetrating the coup and trying to oust Russia’s Black Sea Fleet from Crimea. Soros says:

“Putin’s ambition to recreate a Russian empire has unintentionally helped bring into being a new Ukraine that is opposed to Russia and seeks to become the opposite of the old Ukraine with its endemic corruption and ineffective government. The new Ukraine is led by the cream of civil society: young people, many of whom studied abroad and refused to join either government or business on their return because they found both of them repugnant. Many of them found their place in academic institutions, think tanks, and nongovernmental organizations. A widespread volunteer movement, of unprecedented scope and power unseen in other countries, has helped Ukraine to stand strong against Russian aggression.”

Here is the type of people that Obama’s team actually placed into control over the actually coup-Government. It’s the opposite of “the cream of civil society.” In fact, the very same person who is described there led the organization, called Right Sector, which perpetrated the massacre of the people inside the Trade Unions Building in Odessa on May 2nd, the day after the IMF had said that if the opponents to the new regime weren’t eliminated, IMF loans to Ukraine would stop. And the main financier paying those Right Sector operatives to do that was this man, who recently hired two young people who are closely associated with the Obama White House.

The Russian novelist Zakhar Prilepin was quoted on 3 January 2015 in an interview by RIA Novosti Ukraine, after having travelled through Donbass and spoken with many people there, in order to understand why the separation from Ukraine had occurred. He said:

“I thoroughly questioned local guys what led them to battle, I think Ukraine should know the answers. One of the main points of reference was not even Maidan [the demonstrations, and the extreme violence there that produced the coup in February], which many looked upon with distaste, but suffered, and namely it [the start of the civil war] was the events in Odessa [the May 2nd massacre in Odessa] — and the reaction of thousands of Ukrainian bloggers on this obvious atrocity.”

In other words: Until the massacre in Odessa, residents in Donbass were willing to have some kind of federation arrangement with the post-coup Government; but, after the massacre, they knew that this new Government wanted them dead. That massacre was thus the real start of Ukraine’s civil war.

Soros’s International Renaissance Foundation (or Fund) was one of the three top financial backers of Ukraine’s Hromadske TV, which interviewed (and never criticized) a guest who said:

“Donbass, in general, is not simply a region in a very depressed condition, it has got a whole number of problems, the biggest of which is that it is severely overpopulated with people nobody has any use for. Trust me I know perfectly well what I am saying. If we take, for example, just the Donetsk oblast, there are approximately 4 million inhabitants, at least 1.5 million of which are superfluous. That’s what I mean: we don’t need to [try to] ‘understand’ Donbass, we need to understand Ukrainian national interests. Donbass must be exploited as a resource, which it is. I don’t claim to have a quick solution recipe, but the most important thing that must be done — no matter how cruel it may sound — is that there is a certain category of people that must be exterminated.”

The other main funders of Hromadske TV are the U.S. Government and the Netherlands Government.

Soros’s NYRB article closes with a five-point analysis of where the tens of billions of dollars that will be required in order to exterminate those people should come from. He lists: Balance of Payments Assistance, European Financial Stability Mechanism, Macro-Financial Assistance Facility, European Union, IMF, Extended Fund Facility, European Investment Bank, World Bank, European Bank for Reconstruction and Development, Paris Club.

He says that if they don’t come up with the funds: “Europe will be left on its own to defend itself against Russian aggression, and Europe will have abandoned the values and principles on which the European Union was founded. That would be an irreparable loss.”

On 1 January 2015, he headlined a Project Syndicate oped at Live Mint and other sites, “Europe at War: Supporting the New Ukraine in 2015 and Beyond Is the Most Cost-Effective Investment the EU Could Make,” and he said:

By invading Ukraine in 2014, President Vladimir Putin’s Russia has posed a fundamental challenge to the values and principles on which the European Union (EU) was founded. …

Putin’s regime is based on rule by force, manifested in repression at home and aggression abroad. …

Russia annexed Crimea and established separatist enclaves in eastern Ukraine’s Donbas region. …

The West, sadly, has provided embattled Ukraine with only a façade of support. …

All available resources should be put to work in the war effort, even if that requires running up budget deficits. Europe is fortunate that German Chancellor Angela Merkel has behaved as a true European with regard to the threat posed by Russia. …

Helping Ukraine to defend itself against Russian aggression would have a stimulative effect on Ukraine and Europe. The EU’s members are at war—and they need to start acting like it. …

Ukraine needs an immediate cash injection of, say, $20 billion, with a promise of more when needed. …

The “new Ukraine” is resolutely pro-European. …

Supporting the new Ukraine in 2015 and beyond is the most cost-effective investment the EU could make.

His call here was a more detailed presentation of the argument that the Financial Times had made earlier, on 30 November 2014, under the headline, “The Economic Collapse of Ukraine Must Be Halted: The IMF and Western donors need to inject $15bn of emergency funding.” Nobody mentions that those “Western donors” are taxpayers, and that the Ukrainian public aren’t being bailed out but that the Western aristocracy is.

However, Arseniy Yatsenyuk himself said essentially this very thing, on 9 January 2015, under a Ukrainian site’s headline (translated here) “IMF money will be used only for the payment of foreign debts – Yatseniuk,” which presented this quotation from him:

“I would also like to note that the money that we get in the framework of international financial assistance, does not go to finance the state budget deficit, it does not go to the payment of pensions, does not go to the payment of wages. All of this is happening in the first place, to perform our external obligations.”

Those “external obligations” were first stated, on 1 May 2014, by the IMF, when it demanded, basically, that the people in Donbass be exterminated. Western aristocrats want the land that’s there, not the people who live on it. And Western taxpayers are supposed to foot the bill in order to get rid of the residents in Donbass.

This is the deal that’s being proposed — and executed — in Western ‘democracies.’

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