Almost EVERYTHING we have been told (and are still being told) are lies . . . the sooner that humanity admits that it has been duped, the sooner something gets done about it . . .
Update 2: Greece's Skai reports that if/when banks reopen (supposedly on Tuesday), a 60€ withdrawal limit will be imposed. Update: In a televised address to the
nation, Greek PM Alexis Tsipras assured Greeks that their deposits are
safe despite an upcoming bank holiday and despite the fact that Greek
stocks will not open for trading on Monday. Tsipras also said Athens has
re-applied for a bailout extension and urged Greeks to "remain calm" in
the face of what is sure to be a turbulent week.
GREEK PRIME MINISTER SAYS GREEK PEOPLE SHOULD REMAIN CALM
GREEK PM: BANK OF GREECE PROPOSED BANK TRANSACTION RESTRICTIONS
GREEK PRIME SAID GREECE RE-APPLIED FOR BAILOUT EXTENSION
GREEK PRIME MINISTER SAYS DEPOSITS ARE COMPLETELY SAFE
Earlier:
Despite the reassurances from any and all elected (and unelected)
officials, given the run on bank ATMs in Greece has turned into a
stampede, it is not surprising that:
GREEK BANKS TO REMAIN CLOSED FROM MONDAY FOR A WEEK: PIRAEUS BANK CEO
PIRAEUS BANK CEO THOMOPOULOS SPEAKS TO REPORTERS IN ATHENS
The announcement was made when Piraeus Bank CEO Anthimos Thomopoulos
told reporters after a meeting of the government’s financial-stability
panel on Sunday. The launch of capital controls just as the Greek summer
tourism season starts, is sure to be the final crushing blow to Greece,
whose entire economy will now grind to a halt.
At the same time, Finance Minister Yanis Varoufakis said an
announcement would be made after a Cabinet meeting due to start
imminently in Athens. Which is ironic considering just earlier today
Varoufakis said he is opposed to the "very concept" of capital controls:
Banks will remain shut until at least after a July 5 referendum
called by Prime Minister Alexis Tsipras on whether to accept austerity
in exchange for a European bailout, Kathemerini newspaper reported,
citing unnamed sources.
Reuters is also reporting that the Greek stock market will not open on Monday (leaving us wondering just what that will do to the Greek ETFs liquidity in US markets) as hedgers scramble to protect un-closable losses wherever they can.
More from Reuters, which reports that "Greece's banks, kept afloat by
emergency funding from the European Central Bank, are on the front line
as Athens moves towards defaulting on a 1.6 billion euros payment due
to the International Monetary Fund on Tuesday."
The ECB had made it difficult for the banks to open on Monday because
it decided to freeze the level of funding support it gives the banking
system, rather than increasing it to cover a rise in withdrawals from
worried depositors.
Amid drama in Greece, where a clear majority of people want to remain
inside the euro, the next few days present a major challenge to the
integrity of the 16-year-old euro zone currency bloc. The consequences
for markets and the wider financial system are unclear.
The head of Piraeus Bank, one of Greece's top four banks, speaking
after a meeting of the country's financial stability council, said banks
would be shut on Monday while a financial industry source told Reuters
the Athens stock exchange would not open.
"It is a dark hour for Europe....nevertheless from where we're
sitting we have a clear conscience," Greek Finance Minister Yanis
Varoufakis said earlier in an interview with the BBC.
Greece's left-wing Syriza government had for months been negotiating a
deal to release funding in time for its IMF payment. Then suddenly, in
the early hours of Saturday, Tspiras asked for extra time to enable
Greeks to vote in a referendum on the terms of the deal.
Creditors turned down this request, leaving little option for Greece
but to default, piling further pressure on the country's banking system.
The creditors want Greece to cut pensions and raise taxes in ways
that Tsipras has long argued would deepen one of the worst economic
crises of modern times in a country where a quarter of the workforce is
already unemployed.
Pro-European Greek opposition parties have united in condemning the
decision to call the referendum on the bailout terms, but people on the
streets of Athens backed the decision.
"I want him (Tsipras) to knock his fist on the table and to say 'enough!'," said resident Evgenoula.
Many leading economists have voiced sympathy with the Greek
government's argument that further cuts in spending risk choking off the
growth which would give Greece some prospect of servicing debts worth
nearly twice its annual national income.
The IMF has pressed European governments to ease Athens' debt burden,
something most say they will only do when Greece first shows it is
trimming its budget.
Long lines formed outside many ATMs on Sunday, including some of 40 to 50 people outside some in central Athens.
The Bank of Greece said it was making "huge efforts" to ensure the machines remained stocked.
The German foreign ministry said tourists heading to Greece should
take plenty of cash to avoid possible problems with local banks and some
tourists said they were joining the ATM queues.
"I am trying to go over to the bigger banks," said Cassandra Preston,
a Canadian tourist. "I am here for another month and I would like to
make sure I have some cash on me."
* * *
In other words, Greek speculators (and of course, those depositors
who were dumb enough to still have money in local banks) just got CYNK'd
- you can buy stocks all you want, but if the market is about to fall
out of the bottom, you simply are not allowed to sell.
Which, incidentally, is coming to every centrally-planned, banana "market" near you...
Two topics we’ve deemed critically important
to a thorough understanding of both global finance and the shifting
geopolitical landscape are the death of the petrodollar and the idea of
yuan hegemony.
Last November, in “How The Petrodollar Quietly Died And No One Noticed,” we said the following about the slow motion demise of the system that has served to perpetuate decades of dollar dominance:
Two years ago, in hushed tones at first, then ever louder, the
financial world began discussing that which shall never be discussed in
polite company - the end of the system that according to many has framed
and facilitated the US Dollar's reserve currency status: the
Petrodollar, or the world in which oil export countries would
recycle the dollars they received in exchange for their oil exports, by
purchasing more USD-denominated assets, boosting the financial strength
of the reserve currency, leading to even higher asset prices and even
more USD-denominated purchases, and so forth, in a virtuous (especially
if one held US-denominated assets and printed US currency) loop.
The main thrust for this shift away from the USD, if primarily in
the non-mainstream media, was that with Russia and China, as well as
the rest of the BRIC nations, increasingly seeking to distance
themselves from the US-led, "developed world" status quo spearheaded by
the IMF, global trade would increasingly take place through bilateral
arrangements which bypass the (Petro)dollar entirely. And sure
enough, this has certainly been taking place, as first Russia and China,
together with Iran, and ever more developing nations, have transacted
among each other, bypassing the USD entirely, instead engaging in
bilateral trade arrangements.
Falling crude prices served to accelerate the petrodollar’s demise and in 2014, OPEC nations drained liquidity from financial markets for the first time in nearly two decades:
By Goldman’s estimates, a new oil price “equilibrium” (i.e. a
sustained downturn) could result in a net petrodollar drain of $24
billion per month on the way to nearly $900 billion in total by 2018.
The implications, BofAML notes, are far reaching: "...the end of
the Petrodollar recycling chain is said to impact everything from
Russian geopolitics, to global capital market liquidity, to safe-haven
demand for Treasurys, to social tensions in developing nations, to the
Fed's exit strategy.”
Shifting to the idea of yuan hegemony, China is aggressively pushing its Silk Road Fund and Asian Infrastructure Investment Bank.
The $40 billion Silk Road Fund is backed by China’s FX reserves, the
Export-Import Bank of China, and China Development Bank and seeks to
increase ROIC for Chinese SOEs by investing in infrastructure projects
across the developing world, while the $50 billion AIIB is funded by 57
founding member countries (the US and Japan have not joined) and will
serve to upend traditionally dominant multilateral institutions which
have failed to respond to the rising influence and economic clout of
their EM membership. China will push for the yuan to play a
prominent role in the settlement of AIIB transactions and may look to
establish special reserves in both the AIIB and Silk Road fund to issue
yuan-denominated loans.
Back in early November, SWIFT data showed that 15 new countries had
joined a list of nations settling more than 10% of their trade deals
with China in yuan. "This is a good sign for [yuan] adoption rates and
internationalisation. In particular, Canada's [yuan] usage for payments,
which has increased greatly over this period, is very interesting since
we have not seen strong adoption of the [yuan] from North America to
date,” Astrid Thorsen, Swift's head of business intelligence said.
Earlier that month, China and Russia indicated that going forward,
more trade between the two countries would be settled in yuan. From
Reuters, last November:
Russia and China intend to increase the amount of trade settled
in the yuan, President Vladimir Putin said in remarks that would be
welcomed by Chinese authorities who want the currency to be used more
widely around the world. Spurred on by their often testy relations with the United
States, Russia and China have long advocated reducing the role of the
dollar in international trade.
Curtailing the dollar's influence fits well with China's
ambitions to increase the influence of the yuan and eventually turn it
into a global reserve currency. With 32 percent of its $4 trillion
foreign exchange reserves invested in U.S. government debt, China wants
to curb investment risks in dollar.
The quest to limit the dollar’s dominance became more urgent for
Moscow this year when U.S. and European governments imposed sanctions on
Russia over its support for separatist rebels in Ukraine.
"As part of our cooperation with this country (China), we intend to
use national currencies in mutual transactions.The initial deals for
rouble and yuan are taking place. I want to note that we are ready to expand these opportunities in (our) energy resources trade," Putin said at the time, suggesting that going forward, Russia may look to settle sales of oil in yuan.
Sure enough, Gazprom has confirmed that since the beginning of the
year, all oil sales to China have been settled in renminbi. From FT:
Russia’s third-largest oil producer, is now settling all
of its crude sales to China in renminbi, in the most clear sign yet that
western sanctions have driven an increase in the use of the Chinese
currency by Russian companies.
Russian executives have talked up the possibility of a shift from
the US dollar to renminbi as the Kremlin launched a “pivot to Asia”
foreign policy partly in response to the western sanctions against
Moscow over its intervention in Ukraine, but until now there has been
little clarity over how much trade is being settled in the Chinese
currency.
Gazprom Neft, the oil arm of state gas giant Gazprom, said on
Friday that since the start of 2015 it had been selling in renminbi all
of its oil for export down the East Siberia Pacific Ocean pipeline to
China.
Russian companies’ crude exports were largely settled in dollars
until the summer of last year, when the US and Europe imposed sanctions
on the Russian energy sector over the Ukraine crisis...
Gazprom Neft responded more rapidly than most, with Alexander
Dyukov, chief executive, announcing in April last year that the company
had secured agreement from 95 per cent of its customers to settle
transactions in euros rather than dollars, should the need to do so
arise.
Mr Dyukov later said the company had started selling oil
for export in roubles and renminbi, but he did not specify whether the
sales were significant in scale.
According to Gazprom Neft’s first-quarter results issued last
month, the East Siberian Pacific Ocean pipeline accounted for 37.2 per
cent of the company’s crude oil exports of 1.6m tonnes in the three
months to March 31.
With that, the "PetroYuan" has officially been born and while FT
notes that "other Russian energy groups have been more reluctant to drop
the dollar for settlement of oil sales," the fact that Russian
producers are now openly considering a shift at the same time that
officials in the US and Europe are openly discussing stepped up economic
sanctions suggests renminbi settlements may become more commonplace
going forward.
To understand why and to what extent this is significant in the current environment, consider the following from WSJ:
Officials of the Organization of the Petroleum Exporting
Countries, which declined to cut oil production last year, reasoned that
maintaining high production levels would protect market share in
crucial importing nations.;
But Chinese customs data released Friday show that China’s
crude imports from some big OPEC nations have plummeted, while imports
from Russia surged 36% in 2014. Meanwhile, imports from Saudi Arabia
fell 8% and those from Venezuela dropped 11%.
To summarize: Western economic sanctions on Russia have pushed
domestic oil producers to settle crude exports to China in yuan just as
Russian oil is rising as a percentage of total Chinese crude imports.
Meanwhile, the collapse in crude prices led to the first net outflow of
petrodollars from financial markets in 18 years, and if Goldman's
projections prove correct, the net supply of petrodollars could fall by
nearly $900 billion over the next three years. All of this comes as
China is making a concerted push to settle loans from its newly-created
infrastructure funds in renminbi.
Putting it all together, the PetroYuan represents the intersection of a dying petrodollar and an ascendant renminbi.
Moscow (AFP) - Russian President
Vladimir Putin ratified an accord Saturday to set up a $100-billion
reserve fund for the so-called BRICS -- the five leading emerging
economies that include Russia, China, Brazil, India and South Africa.
Moscow
is expected to contribute $18 billion to the reserve, well behind the
$41 billion China has promised to pour into the fund that was set up
after an agreement signed in July 2014 in Brazil.
The
emerging economies also plan to form their own international bank based
in Shanghai to challenge western dominance over international money
markets.
"The accord on the
creation of a common reserve fund for BRICS countries has been
ratified," a document from the Kremlin quoted by RIA Novosti news agency
said.
The fund is meant to
shield the BRICS against "short-term liquidity pressures" and promote
greater cooperation between the five member countries.
Russia
-- which has suffered huge currency fluctuations since the outbreak of
the crisis in Ukraine -- sees the fund as an alternative to
international financial institutions like the IMF and World Bank that
are dominated by the United States.
The BRICS countries between them account for 40 percent of the world's population, and a fifth of the planet's GDP.
Russian President Vladimir Putin has signed a law
ratifying the deal establishing the BRICS New Development Bank (NDB),
according to a document published on Monday on Russia's official website
for legal information. The BRICS New
Development Bank (NDB) was set up to challenge two major
Western-led giants – the World Bank and the International
Monetary Fund. NDB's key role will be to serve as a pool of
currency for infrastructure projects within a group of five
countries with major emerging national economies - Russia,
Brazil, India, China and South Africa.
According to the Russian Finance Ministry, the New Development
Bank is expected to start functioning fully by the end of the
year, with the headquarters slated for opening in Shanghai. The
chairmanship, with a term of five years, will rotate among the
members.
It's hoped the new bank will stamp the growing influence of the
BRICS. The NDB is expected to become one of the world's key
institutions, with a stated capital of $100 billion. Each of the
five-member countries is expected to allocate an equal share of
the $50 billion startup capital that will be expanded to $100
billion. Russia has agreed to provide $2 billion from the federal
budget for the bank over the next seven years.
The bank, which will be able to start lending in 2016, will be
open to other countries that are members of the United Nations.
The BRICS share is never to decline below 55 percent, however.
The money will be used to finance development projects in the
emerging economies.
India will serve as the first five-year rotating president, and
the first Chairman of the Board of Directors will be Brazilian.
The bank was first proposed in 2012. The signing of the agreement
to create the joint development bank by the heads of the five
countries took place at the BRICS summit in Fortaleza, Brazil, in
June 2014.
The lower chamber of the Russian parliament, the State Duma,
ratified the agreement on the NDB establishment last month.
Are You Prepared For The Coming Economic Collapse And The Next Great Depression?
By Michael Snyder, on January 19th, 2015
The absolutely stunning decision by the Swiss National Bank to decouple from the euro
has triggered billions of dollars worth of losses all over the globe.
Citigroup and Deutsche Bank both say that their losses were somewhere in
the neighborhood of 150 million dollars, a major hedge fund that had
830 million dollars in assets at the end of December has been forced to
shut down, and several major global currency trading firms have
announced that they are now insolvent. And these are just the losses
that we know about so far. It will be many months before the full scope
of the financial devastation caused by the Swiss National Bank is fully
revealed. But of course the same thing could be said about the crash
in the price of oil that we have witnessed in recent weeks. These two
“black swan events” have set financial dominoes in motion all over the
globe. At this point we can only guess how bad the financial
devastation will ultimately be.
But everyone agrees that it will be bad. For example, one financial
expert at Boston University says that he believes the losses caused by
the Swiss National Bank decision will be in the billions of dollars…
“The losses will be in the billions — they are still being tallied,” said Mark T. Williams, an executive-in-residence at Boston University specializing in risk management. “They
will range from large banks, brokers, hedge funds, mutual funds to
currency speculators. There will be ripple effects throughout the
financial system.”
Citigroup, the world’s biggest currencies dealer, lost more than $150
million at its trading desks, a person with knowledge of the matter
said last week. Deutsche Bank lost $150 million and Barclays less than
$100 million, people familiar with the events said, after the Swiss
National Bank scrapped a three-year-old policy of capping its currency
against the euro and the franc soared as much as 41 percent that day
versus the euro. Spokesmen for the three banks declined to comment.
And actually, if the total losses from this crisis are only limited
to the “billions” I think that we will be extremely fortunate.
As I mentioned above, a hedge fund that had 830 million dollars in
assets at the end of December just completely imploded. Everest
Capital’s Global Fund had heavily bet against the Swiss franc, and as a
result it now has lost “virtually all its money”…
Marko Dimitrijevic, the hedge fund manager who survived
at least five emerging market debt crises, is closing his largest hedge
fund after losing virtually all its money this week when the Swiss
National Bank unexpectedly let the franc trade freely against the euro,
according to a person familiar with the firm.
Everest Capital’s Global Fund had about $830 million in assets as of
the end of December, according to a client report. The Miami-based firm,
which specializes in emerging markets, still manages seven funds with
about $2.2 billion in assets. The global fund, the firm’s oldest, was
betting the Swiss franc would decline, said the person, who asked not to
be named because the information is private.
This is how fast things can move in the financial marketplace when things start getting crazy.
It can seem like you are on top of the world one day, but just a short while later you can be filing for bankruptcy.
Consider what just happened to FXCM. It is one of the largest retail
currency trading firms on the entire planet, and the decision by the
Swiss National Bank instantly created a 200 million dollar hole in the company that desperately needed to be filled…
The magnitude of the crisis for U.S. currency traders
became clear Friday when New York-based FXCM, a publicly traded U.S.
currency broker, and the largest so far to announce it was in financial
trouble after suffering a 90-percent drop in the firm’s stock price,
reported the firm would need a $200-$300 million bailout to prevent
capital requirements from being breached. Highly leveraged currency
traders, including retail customers, were unable to come up with
sufficient capital to cover the losses suffered in their currency
trading accounts when the Swiss franc surged.
Currency traders worldwide allowed to leverage their accounts 100:1,
meaning the customer can bet $100 in the currency exchange markets for
every $1.00 the customer has on deposit in its account, can result in
huge gains from unexpected currency price fluctuations or massive and
devastating losses, should the customer bet wrong.
Fortunately for FXCM, another company called Leucadia came riding to the rescue with a 300 million dollar loan.
But other currency trading firms were not so lucky.
For example, Alpari has already announced that it is going into insolvency…
Retail broker Alpari UK filed for insolvency on Friday.
The move “caused by the SNB’s unexpected policy reversal of capping
the Swiss franc against the euro has resulted in exceptional volatility
and extreme lack of liquidity,” Alpari, the shirt sponsor of English
Premier League soccer club West Ham, said in a statement.
“This has resulted in the majority of clients sustaining losses which
exceeded their account equity. Where a client cannot cover this loss,
it is passed on to us. This has forced Alpari (UK) Limited to confirm
that it has entered into insolvency.”
And Alpari is far from alone. Quite a few other smaller currency trading firms all over the world are in the exact same boat.
Unfortunately, this could potentially just be the beginning of the currency chaos.
All eyes are on the European Central Bank right now. If a major
round of quantitative easing is announced, that could unleash yet
another wave of crippling losses for financial institutions. The
following is from a recent CNBC article…
One of Europe’s most influential economists has warned
that the quantitative easing measures seen being unveiled by the
European Central Bank (ECB) this week could create deep market volatility, akin to what was seen after the Swiss National Bank abandoned its currency peg.
“There was so much capital flight in anticipation of the QE to
Switzerland, that the Swiss central bank was unable to stem the tide,
and there will be more effects of that sort,” the President of Germany’s
Ifo Institute for Economic Research, Hans-Werner Sinn, told CNBC on
Monday.
As I have written about previously,
we are moving into a time of greatly increased financial volatility.
And when we start to see tremendous ups and downs in the financial
world, that is a sign that a great crash is coming. We witnessed this
prior to the financial crisis of 2008, and now we are watching it happen
again.
And this is not just happening in the United States. Just check out what happened in China on Monday…
Chinese shares plunged about 8% Monday after the
country’s securities regulator imposed margin trading curbs on several
major brokerages, a sign that authorities are trying to rein in the
market’s big gains. It was China’s largest drop in six years.
Sadly, most Americans have absolutely no idea what is coming.
They just trust that Barack Obama, Congress and the “experts” at the Federal Reserve have it all figured out.
So when the next great financial crisis does arrive, most people are
going to be absolutely blindsided by it, even though anyone that is
willing to look at the facts honestly should be able to see it
steamrolling directly toward us.
Over the past couple of years, we have been blessed to experience a period of relative stability.
But that period of relative stability is now ending.
I hope that you are getting ready for what comes next.
The grand stage leans East for the European players, with steps taken
to the right, the weight having shifted, the messages suddenly more
angry, more filled with disgust, more loaded with open confrontation.
The commercial forces aligned with Russia are coming to the fore. The
departure after a recent re-election by Chancellor Merkel should serve
as the final slam of the hammer. She stood in the wrong camp, the banker
and politician camp. They do not run Germany.
The marriage is over, the glow gone, the lawyers in the room, the
bitterness in the open. Those exciting Saturday nights with the
Germans and French enjoying a good ride with Mustang Sally are over.
The once vivacious peppery exhilarating relationship with steamy back
room sessions has turned ugly, old, nasty. She has lost her appeal, and
worse, has turned vicious and destructive. Sally has stolen the jewelry,
wrecked the credit lines, undermined the day job, and backstabbed the
neighbors. As time passes, more joint accounts are seen as drained. Sally must go.
The once thrilling tosses replete with the excitement of a bucking
mare have turned into a kick to the head, a broken bed, as the acidic
Buck has fallen from grace and burns holes everywhere. The lascivious
flow has turned blood red, hardly a monthly matter.
The only thing holding the relationship and tight liaison together is
the heavy narcotics flow through NATO bases and major European banks. Regardless, Sally must go.
Her devious devices, tools, ploys, nasty friends, and antics threaten
to wreck the European industry supply lines and heated homes. The
nation’s accounts are depleted. Sally must go. Her ride is more like a
kicking old hag with warts where a sexy smile once resided. Her trust is
nowhere. She is wrecking the European house. Sally must go. When
Germany turns away from Sally, and shows her the door, it will be clear
in the global country club that Sally is gone.
Then eastern winds will blow some fresh air on the putrid parlors.
BERLIN INDICTMENT CHARGES
Berlin is outraged by clear USGovt spying, and in process of
conducting a Gold audit among their population. Germany is building
motives to split from the Euro Monetary Union (common Euro currency) by
forging stronger open ties with Russia & China. The justification is
becoming plainly laid out, in four perceived indictment charges. The Jackass believes Germany will break from US/UK and its USDollar fiat currency regime over four primary thorny issues.
The four are major indictments, all extremely serious, all indicative
of a decayed system and morally bankrupt leadership. The charges are
coming into view, highlighting fundamental commercial, philosophical,
and ethical conflicts that distinguish the two nations (considering
US/UK a single entity). The issues center on the following key
differences:
1) Good relations with Russia and continued energy supply from Gazprom
2) Displeasure over planned Draghi Euro Central Bank bond monetization
3) Disgust over NSA espionage by USGovt, with benefit for US corporations
4) Damage to German population from gold price suppression.
The damage began with the refusal to repatriation German official
gold by the New York Fed. The damage ends with the USGovt NSA espionage.
Germany is very angry, sufficiently motivated to part ways with the
US/Anglo camp. The plan to make distance from the British &
Americans appears to be well along in execution. The critical stake in
the ground was the prosecution, investigation, and forced actions during
the Deutsche Bank actions. The trained eye and informed view notices
the intense activity for the last two years, as closing all the back
doors from the gold halls. Some major eruptions can no longer be brushed
aside as simple anomalies. The boils, open sores, and deep rashes are
visible everywhere. The London Fix is being abandoned, Deutsche Bank
forfeiting its seat, regulatory bodies in the deeply corrupted London
Centre concluding nothing askew and all is well. The LIBOR scandal has
some German ignition points, with no prosecutions anywhere in sight. The
FOREX and Gold derivatives are under intense scrutiny, again with a
German hand to unwind the corrupted arenas, with massive naked short
raids continuing in the last two weeks.
EXIT USDOLLAR, ENTER GOLD STANDARD
The plan seem obvious for Germany, to exit the USDollar, but first to
embrace the Euro as a caretaker currency platform before the Eurasian
Trade Zone comes together and offers a gold-backed continental currency
with broad shoulders. All of Europe will rally around the Euro flagpole,
hunker down during the other financial HAARP-like storm (bearing Weimar
nameplate), and ride the storm until the Russian-Chinese hard asset
currency arrives. The BRICS have invaded the mainstream Western stage
and hold a banner for all to see. The stage has been altered, its weight
shifted, leaning to the East. Tremendously important historical events
are occurring. The King Dollar is wounded mortally, having fallen off
the throne, looking weakened, haggard, and ashen. Sympathy for the US-UK
corrupt violent vindictive crew has vanished. Next comes the assaults
on the European Commission, that corrupt den.
The path to the Gold Trade Standard is becoming visible, the key break being the divorce between Germany and the US/UK fascists.
It complements the divorce between the US and Saudis which has occurred
since March. That break has been detailed in public Jackass essays. The
German break is the new event, with current episodes absolutely
mesmerizing for their importance and shock. Some US press sources are
awakening. The United States Govt has treated France and Germany like
adversaries, even enemy camps. The BNP Paribas case was atrocious for
its devious ploys, giving old line Europeans a kick to the head. The US
rats have infiltrated with organized networks of espionage agents. The
press prefers to describe them as merely eavesdropping. In reality they
are gathering information on Germany strategic planning, on Germany
corporate contracts in development, and on German political functions.
The consequence is a coordinated indictment taking shape which will
result in the final steps coming to pass in the Global Paradigm Shift.
The USDollar will be chucked into the dustbin of history, but first, it
will be kicked to the used car scrap heap where it awaits finally
processing. That processing consists of the conversion of USTreasury
Bonds into Gold bullion on a massive scale at numerous offices. The
BRICS Banks are ready to do business. They are two, the Development Bank
and the Contingency Reserve Arrangement (CRA). In time the CRA will be
known as the New IMF for its function, while the Development Bank will
be known as the Central Bank housing gold.
In extreme focus in the past month is item #3, the nefarious NSA
espionage. Those who call it eavesdropping miss the point. It is not
about catching juicy information on politician affairs. It is not to
grab a lead on Merkel’s next luncheon for tabloid display. It is to
seize information on Russian and Chinese developments and plans, on the
commercial front and financial sector respectively. It is to infiltrate
the German computer systems and communication systems, probably to plant
Trojan Horses for later leverage in blackmail at the state level. The
Berlin officials are well aware. The entire NSA espionage chapter
appears to be exploding on the scene. In fact, word has come that
Russian Intelligence offices tipped off the Berlin officials about the
USGovt NSA activity before arrests were made last week. The Snowden
files are being used in important ways. The Central European source
stated briefly, “The comical part in all this is that Russian
intelligence FSB and GRU tipped the German authorities off by providing
the leads.” The Germans followed up quickly, so quickly that a
divorce is the conclusion. In the meantime, the German-Russian
cooperation with trust develops while the German-Anglo trust withers
away. The break between the Germans and the Fascists from US-UK-EU may
be closer than ever, as history is turned on its head since World War
II. The entrenched Fascists on the global financial war front are the
Americans and British accomplices, the big corrupt banks being the
pillboxes. They will be abandoned, or toppled. At risk is the NATO
Alliance. If and when Germany pivots fully eastward, the NATO membership
will be rendered empty chair with a speaker phone attached.
GOLD ROOM CRIME
On item #4, a national audit seems underway inside Germany, as part
of a criminal investigation. The purpose is not made clear, but the
agenda seems obvious to the Jackass. The Federal Financial Supervisory
Authority (BaFin) has asked German banks and investment intermediaries
to formally hand over data about clients investment in precious metals
until mid-July. All the depots will respond. The state wants to
determine the extent of private sector German investment in Gold &
Silver. The BaFin has requested copious information about client
investments in precious metals from German banks and asset managers. But
the requested information is only about derivatives. A national audit
seems the path, to determine damages to institutions and citizens alike.
They seek certain precious metals or groups of precious metals as
reference value, as well as shares in precious metals. They cite the
Securities Trading Act and the Capital Investment Act, much like an
attorney would before the court. Explicitly mentioned are Exchange
Traded Funds, Exchange Traded Commodities & Certificates, which
involve gold, silver, platinum, and palladium. BaFin has requested
information from 2013, such as details on volumes and order size, in
addition to methods recommended. The national audit is underway, even if
not stated in public in clear terms. The entire gold issue began as a
major sore spot when the New York Fed refused to repatriate 330 tons of
gold from the German official account. Since that event, it has been
like pulling a thread in a sweater.
The full purpose has not been revealed, but a multi-sector
national audit for precious metals market losses due to corruption seems
the ultimate motive. To be sure, BaFin has been making formal
inquisitions on alleged gold price manipulation for more than a year
now, especially at Deutsche Bank. The bank has many vice presidents
actively squirming, as they reveal key data on London frauds, cutting
immunity deals for themselves. Thus the London mid-level banker murders
with ties to Germany. Many believe the investigation of German gold
investments could possibly be related to extensions of the FOREX and
Gold market investigation underway at D-Bank. The suspicion from the
German front is to identify the extent of potential damage caused to
investors by gold price manipulation. BaFin told Gold Reporter in a
written statement that the inquiry was routine and that the probe does
not relate to investigations on alleged gold price manipulation by
Deutsche Bank. Conclude therefore that a bigger purpose is at work,
to take account of national damages to German financial firms and German
citizens. Furthermore, and not incidentally, many German citizens
have large accounts in the major Swiss bullion banks, where corruption
is rife, the secured gold illicitly sold. Ongoing class action lawsuits
are in progress, kept well under wraps.
MISCELLANEOUS HINTS & WINDS
Many are the other scattered indications. They are growing fast like
open windows, all facing the Easterly winds. The July Money War Report
for the Hat Trick Letter offers details, but here are some in synopsis
form to mull over. The mosaic is filling in, the collage telling the
story. The Germans are going to give Russian partner a bear hug and the
US bitch the cold shoulder. As a German official recently said, enough
is enough.
The Germany Govt has instructed its companies to limit cooperation
and procurement orders with the US corporations. New strict guidelines
on security are to be enforced, as the fallout grows. They are
installing No-Spy clauses in German contracts to guarantee that
untrustworthy US firms do not relinquish confidential data. The
effect will be felt by IBM, Cisco, and Microsoft. The effect has already
seen an impact with a canceled Verizon account, where suspicion runs
thick of planted blackmail Trojan horses and virus seeds. Severing ties
with Russia, crushing relations with China, alienating France, and
angering Germany has managed to sour relations with old friends to a
point where one wonders just who is a remaining US ally in Europe these
days. Germany will sever banking and business ties with the United
States, as a matter of survival, all in time. NATO is a major clue.
Stephen Leeb has noticed Germany and China making a stronger
alliance, along with Russia. While the USGovt spies on Germany
(corporate trade secrets too), Berlin is turning Eastward. The Jackass
has been adamant, how Germany is the linch pin in the Eurasian Trade
Zone coming to form. India is important, but Germany is the game
changer. Leeb notices how the Germany is being called strategic partners
by Chinese leaders. He notes the growing relations with Russia. He
concluded, “Perhaps the United States is spying on her [Merkel]
because of her closeness to not only Russia, but also to China, and her
distancing herself from the United States. It appears that the
German-Russian-Chinese connection is getting stronger and stronger, and
the [connection with the] US is becoming more distant. It feels like the
world is changing in front of us. Do not be surprised to see Gold &
Silver being the ultimate safe havens, but also Gold being sure to play
a part in the new reserve currency in the East. This means the
price of Gold will soar as that [scenario] begins to unfold. We are very
close to that point of inflection, and every news story of any
importance that I see proves that is the case.” Leading analysts are
noticing the German linch pin. Leeb detects a new Gold-backed currency
launched from the East like a ballistic missile. It will contain Russian
& Chinese markings, a BRICS guidance system, and elite private
consultant designers. Sally must go, the Greenback to yield to the
Redback.
Massive demonstrations in German cities have taken place, aimed to
end the Federal Reserve. Consider Lars Maehrholz, main organizer of the
massive Monday peace vigils in Berlin. The recurring vigils are part of
an autonomous fully independent movement that gained massive popularity
in the capital city. Like with the Occupy Wall Street movement, their
advocates are under attack, in this case violent. Maehrholz is the
object of severe criticism by the German mainstream media and political
system. Worse, a car he was riding in was the object of a fire bomb
incident by an anonymous perp. Lars had received online threats of
exactly such actions. The coverup went into action quickly. The local
police decided that the car caught on fire by itself, and are not
investigating the case. Luckily neither the organizer Maehrholz nor his
companion were in the car when it was set on fire. The common finger of
suspicion points once more to Langley, where the professionals ply their
trade. Memories of Operation Gladio remain fresh during three decades
of sponsored Langley violence.
Germany has suspended shale-gas drilling for the next seven
years during a political standoff with Russia, the nation’s main gas
supplier. Not only are shale projects a source of contamination, but
they rub Russia the wrong way. They will be halted. Besides, they have
deep concerns that exploration techniques could pollute groundwater,
even sap electricity capacity. The dangerous fracking in Germany will
stop for the foreseeable future, which wins praise from the
environmental groups in the country. The Halliburton chemicals (monopoly
in fracking business) are reputed to include toxic additives far beyond
those necessary to release the natural gas, like heavy metals and even
radioactive waste. Notice in Germany, how common sense prevails over
corporate greed, corruption, and corrosive global agenda.
Germany and China are developing a special relationship, forging some
new deals in the automobile and aviation sectors. The nations are
embarking on deals to build helicopter and car plants. The deal precedes
high level meeting between the German Chancellor and Chinese Premier. China is the magnet and Germany is being drawn into its vast sphere.
Hundreds of German firms do active business in China, led by
construction firms and equipment suppliers, as well as car makers and
machine tool firms. The main contracts featured the purchase of
helicopters from Germany, worth over $400 million. Germany’s enthusiasm
has come with gusto toward the construction of the Silk Road Economic
Belt. It will serve all Europe. Over 3000 (three thousand) German
companies do active business in Russia. Those who expect a German
boycott of Russia as part of USGovt sanctions are true morons. The more
pressure the US leaders apply, the more they will break apart the NATO
Alliance with a crowbar.
Expect new block buster contracts with Volkswagen, Siemens, Airbus,
Deutsche Bank, and Lufthansa, all very popular brands among the rising
middle class in China. BMW sold half a million cars in China last year,
which they would prefer not to cut off. Honoring lunatic US-led
sanctions means hundreds of thousands of German job losses. As an added
spice, an Eco-Park will be built in Qingdao which will showcase energy
efficient buildings, using German engineering. The link is clear.
Germany is going East for trade reinforced by secure energy, which is
certain to cause a rift and split for US relations. The US cannot stop
evolution, where the Western European nations forge stronger ties with
Russia, which on the return lane provide reliable cheap energy supply.
At risk is the entire system of NATO bases across Europe, which have
been abused with narcotics distribution, and recently overrun by
professional mercenaries. Neither narcotics trafficking nor
accommodation of private mercenaries are not part of the original NATO
Treaty.
COMING SOON THE BRICS CURRENCY
The climax event is the launch of the BRICS currency. Informed
sources, whom the Jackass believes are directly involved in the
planning, execution, and implementation, inform that the new currency will be gold-backed with further backbone in silver, crude oil, and in some manner natural gas.
The Gazprom gas pipelines are far more important than the financial
press mention. They are the skeleton and distribution system by which to
capture Europe and to install the New Gold Trade Standard. The hints of
its arrival are seen in the details for the BRICS Development Bank and
the BRICS Emergency Fund. Without any hesitation in my mind, it is clear
that these funds will serve as fronts for massive conversion of USTreasury Bonds into Gold bullion,
which will reside in the BRICS Central Bank. The decision for location
of the funds might be haggled in the open, but expect the central bank
to be dispersed, using various key locations. The BRICS nations are all
too familiar with US & Langley tactics, to destabilize, to raise
internal dissension, to launch a war, and to steal the gold in banks
amidst the chaos and confusion offered by the maze and din of war. The
war in Ukraine, just like the war in Syria, and the attacks on Cyprus,
all had Gazprom as common element.
The wars are to defend the USDollar, in the last stages of its reign
of terror. The harder the US gangsters pull on the reins, the more they
apply the fracture from the lever. However, Ukraine is the Waterloo. Yet
comes the dreaded HOLOMODOR (famine) since no planting season took
place in the fertile rich lands. Thus no growing season during the
outbreak of war. Thus no harvest season. Starvation during a collapsed
economy will surely turn the tide against the US-led Fascists in Kiev,
all in time. Mass defection among their ranks has already begun, the
fascist forces running low on supplies like ammunition, food, water,
surrounded and until a hail of grenade fire at numerous locations.
Thefts of their central bank gold and raiding official bank accounts by
the US-led regime assured the outcome. Do not expect Germany to continue
its reckless NATO support in this failed mercenary action. The ultimate
victim of this desperate adventure will be the USDollar and NATO.
ESPIONAGE AGAINST ALLY
The attention has gone from Sally to Ally, the relation turned
quietly hostile. Not the queer conversion of GMAC into an empty bag
lending institution, but rather the key Central European Ally in NATO.
In the past Hat Trick Letter essays, items #1 and #2 have been
addressed, focus having been on the deteriorated Ukraine situation and
the antagonistic Bundesbank position. The US fictional output from
destructive fracking and deceptive shale projects has been pledged to
Europe, in a massive ruse that is vacant on its face. Huge 95%
writedowns of shale oil reserves like by Monterey in California,
combined with departures of fracking firms like Medallion in Western
Pennsylvania, testify to the fact that the USGovt strategy is a ruse
with empty tube. The German central bank has challenged the Draghi
EuroCB not to embark on destructive unsterilized bond monetization. In
the past, the EuroCB policy disagreements on phony bond patches and bond
monetization have been the source of great conflict, even with German
high court rulings against the EuroCB. The LTRO (Long Term Refinancing
Operation) is but another device from the same Weimar laboratory, a mere
banker con game with super seniority rights to favor the elite
investors.
It has previously been theorized that all humans will be outsourced to robots by the 2045 date of The Singularity. However, we already are seeing the rapid replacement of workers in a wide variety of areas, and it is having an undeniable economic impact.
The science of artificial intelligence is being fully embraced by all of
the major tech companies. With such investment behind various robotic
and A.I. initiatives, we are beginning to see a strong acceleration toward replacing humans as completely as possible.
One entrepreneur in the field is now saying that for specific jobs there very well could be 100% replacement in just 5 years.
The economic elite
have not hidden their agenda of replacing human labor with machines.
Speaking at the most recent Davos economic conference - widely
considered to be the elite economic forum to discuss trends and
political strategy - an expert in artificial intelligence and machine
learning, Jeremy Howard, had some stunning announcements that indicate a
major shift in employment is set to occur very soon.
Howard stated
that we have hit a critical threshold where machine intelligence is
performing better than even the leading experts in the fields of
medicine, science, and banking, among others. Howard went on to assert
that we are about to encounter conditions akin to those that occurred
after the Industrial Revolution replaced manufacturing and agricultural
workers to a vast degree.
And this is for highly skilled labor. But as A.I. entrepreneur
and owner of London Brand Management, Dmitry Askenov, asserts -
salespeople, call center staff and customer service personnel are really
on the chopping block.
In these types of information acquisition and information relay jobs,
computers could function faster and with a far lesser degree of error.
As Askenov's company website indicates:
For example, if someone asks a question, the
system understands it and finds an answer, and gets back in the same
tone of voice; it ‘echo’s’ the sentiment. If the same person asks five
more questions, the system understands this person is engaging with the
product and can notify one or more of the appropriate people in the
organisation who can then follow up the customer’s interest. The only
difference between how a real human would do this and our system is the
speed of the reply and that our system is tireless – it can work
24/7/365 and can reply to a potential customer’s question with the
correct information in milliseconds.
Our
system, like a human, understands natural language such as questions
and feedback as well a the product knowledge held by clients and in the
public domain. It then finds the required information, performs
programmed actions and replies as a human would. (Source)
Some
people might believe that computers are still in the stages of merely
processing information and could never communicate in a human manner to
be equally effective where social cues are concerned. Not so, says
Askenov:
It not only reads the keywords and understands
the kind of information you are trying to learn; it also interprets
context, sentiment, and can even understand humour. It also remembers
and learns as you talk to it, so it’s capable of having a proper
conversation.
[...]
Within
five years we will have a system that truly knows more than a human
could ever know and is more efficient at delivering information. (emphasis added) [Source]
The
rapid development in artificial intelligence is what has led to such
seemingly outlandish predictions such as those made by Professor of
Computer Science, Moshe Vardi, when he stated that all human work will be fully outsourced to robots and robotic machine intelligence by 2045.
But we need to keep in mind that this is not some sort of overnight
switch that gets thrown; it is happening right now, as technology is
already killing middle class jobs.
Apparently no one seems to be immune ... not even this writer. Another recent article really got
my personal attention - robot journalism. It seems that indeed robot
journalists are populating the Internet. So far, they have been
relegated to statistical acquisition articles, such as sporting events,
financial reports, and earthquake news. However, as Singularity Hub
reported, more news is being written by the proprietary A.I. program
from company Narrative Science than you might think:
Forbes is open about its use of Narrative’s
software, including an explanation in the article. The LA Times
earthquake story, written by an algorithm created by one of their staff,
included a disclaimer. But many more big sites anonymously use algorithms to write simple stories.
Narrative’s approach can be applied elsewhere too. The firm recently launched an app
that works with Google Analytics to transform raw website metrics
(traffic, sources, referrals, demographics) into accessible, natural
language reports. These could be useful in any business, a kind of
automated analyst to help make sense of big data sets. (Source)
Remembering
that this type of technology is exponential in its evolution, we are
presented with predictions that a robot journalist could win the Pulitzer prize within 5 years,
which precisely echoes the time frame given by Askenov for call center
staff replacement. Narrative Science goes on to claim that 90% of all
news articles could be A.I. generated by 2030.
I am left hoping that these predictions are just wishful thinking from
company spokespeople with a product to sell. In the meantime, if you
have any news tips, please send them my way in the comment section
below.
Inside Wall Street's most secret society: The
billionaire banker fraternity where cross-dressing new members make
jokes about Hillary Clinton and drunkenly mock the financial crisis
Kappa Beta Phiwas founded in 1929 and has remained secret for more than eight decades
One reporter managed to sneak into their January 2012 induction for new members
Witnessed them dressed in drag, telling jokes in bad taste and mocking Main Street and the bailout
REVEALED: MEMBERS OF WALL STREET's SECRET SOCIETY
Wilbur Ross: Grand Swipe - American Investor estimated by Forbes in 2011 to be worth $1.9 billion
Alexandra Lebenthal: Grand Swipe from 2003 - 2004 - President and CEO of the municipal bond franchise Lebenthal & Company
Peter Kellogg: Grand Swipe from 1999-200: Businessman and philanthropist with a net worth estimated by Forbes at around $2.3 billion
Michael R. Bloomberg: Former Mayor of New York City and business magnate worth who is the 13th richest man in the world with a fortune of $31 billion
Laurence Fink: chairman and chief executive officer of BlackRock - the largest money-management firm in the world with assets of $3.5 trillion
Paul Tudor Jones: The founder of Tudor Investment Corporation estimated to have a net worth of USD 3.6 billion
+7
Club: Former New York Mayor Michael Bloomberg is
listed as a member of Kappa Beta Phi - although Roose did not witness
him at the January 2012 induction of new members
+7
+7
Exalted company: Alan "Ace" Greenberg, former
Bear Stearns Chairman and CEO in 2008 - was still attending Kappa Beta
Phi, a secret society for elite Wall Street financiers in 2012 as was
Marc Lasry - who has donated to President Barack Obama
. . . the lyrics were changed to include
the line, 'I believe that God has a plan for all of us. I believe my
plan involves a seven-figure bonus.'
+7
+7
Busted: Michael Novogratz, (left) principal of
Fortress Investment Group LLC, and co-chief investment officer of the
Fortress Macro Fund caught Kevin Roose in the act while Ted Virtue
(right) told some off-color jokes as he was inducted
Bankers
committing suicide by jumping from the rooftops of their own banks is
something that we think of when we think of the Great Depression. Well,
it just happened in London, England. A vice president at JPMorgan's
European headquarters in London plunged to his death after jumping from
the top of the 33rd floor. He fell more than 500 feet, and it is being
reported by an eyewitness that "there was quite a lot of blood".
This comes on the heels of news that a former Deutsche Bank executive
was found hanged in his home in London on Sunday. So why is this
happening? Yes, the markets have gone down a little bit recently but
they certainly have not crashed yet. Could there be more to these
deaths than meets the eye? You never know. And as I will discuss
below, there have been a lot of other really strange things happening
around the world lately as well.
But before we get to any of that, let's take a closer look at some of
these banker deaths. The JPMorgan executive that jumped to his death
on Tuesday was named Gabriel Magee. He was 39 years old, and his suicide has the city of London in shock...
A bank executive who died after jumping 500ft from the
top of JP Morgan's European headquarters in London this morning has been
named as Gabriel Magee. The American senior manager, 39, fell from the 33-story skyscraper
and was found on the ninth floor roof, which surrounds the Canary Wharf
skyscraper. He was a vice president in the corporate and investment bank
technology department having joined in 2004, moving to Britain from the
United States in 2007.
What would cause a man in his prime working years who is making huge amounts of money to do something like that?
The death on Sunday of former Deutsche Bank executive Bill Broeksmit is also a mystery. According to the Daily Mail, police consider his death to be "non-suspicious", which means that they believe that it was a suicide and not a murder...
A former Deutsche Bank executive has been found dead at a house in London, it emerged today. The body of William ‘Bill’ Broeksmit, 58, was discovered at his home
in South Kensington on Sunday shortly after midday by police, who had
been called to reports of a man found hanging at a house. Mr Broeksmit - who retired last February - was a former senior
manager with close ties to co-chief executive Anshu Jain. Metropolitan
Police officers said his death was declared as non-suspicious.
On top of that, Business Insider is reporting that a communications director at another bank in London was found dead last week...
Last week, a U.K.-based communications director at Swiss Re AG died last week. The cause of death has not been made public.
Perhaps it is just a coincidence that these deaths have all come so close to one another. After all, people die all the time.
And London is rather dreary this time of the year. It is easy for
people to get depressed if they are not accustomed to endless gloomy
weather.
If the stock market was already crashing, it would be easy to blame
the suicides on that. The world certainly remembers what happened during the crash of 1929...
Historically, bankers have been stereotyped as the most
likely to commit suicide. This has a lot to do with the famous 1929
stock market crash, which resulted in 1,616 banks failing and more than
20,000 businesses going bankrupt. The number of bankers committing
suicide directly after the crash is thought to have been only around 20,
with another 100 people connected to the financial industry dying at
their own hand within the year.
But the market isn't crashing just yet. We definitely appear to be at a "turning point", but things are still at least somewhat stable.
So why are bankers killing themselves?
That is a good question.
As I mentioned above, there have also been quite a few other strange
things that have happened lately that seem to be "out of place".
For example, Matt Drudge of the Drudge Report posted the following cryptic message on Twitter the other day...
Bloomberg reports that 'My Bank' - one of Russia's top 200 lenders by assets - has introduced a complete ban on cash withdrawals until next week. While the Ruble has been losing ground rapidly recently, we suspect few have been expecting bank runs in Russia.
Yes, we have heard some reports of people having difficulty getting
money out of their banks around the world lately, but this news out of
Russia really surprised me.
Yet another story that seemed rather odd was a report in the Wall Street Journal
earlier this week that stated that Germany's central bank is advocating
"a one-time wealth tax" for European nations that need a bailout...
Germany's central bank Monday proposed a one-time wealth
tax as an option for euro-zone countries facing bankruptcy, reviving a
idea that has circled for years in Europe but has so far gained little
traction.
Why would they be suggesting such a thing if "economic recovery" was just around the corner?
According to that same article, the IMF has recommended a similar thing...
The International Monetary Fund in October also floated
the idea of a one-time "capital levy," amid a sharp deterioration of
public finances in many countries. A 10% tax would bring the debt levels
of a sample of 15 euro-zone member countries back to pre-crisis levels
of 2007, the IMF said.
So what does all of this mean?
I am not exactly sure, but I have got a bad feeling about this -
especially considering the financial chaos that we are witnessing in
emerging markets all over the globe right now.
This
week, just so that our viewers don't think that this is just an
Americancentric show, we introduce you to the Chinese kingpins that
also seem to of lost their checkbook!!!!
.... ok enough with the cheesy 80's TV!!!
............ although seriously? It kinda is like watching a really terrible 80's Soap Opera!!!
China’s $23 Trillion Rothschild Credit ‘Debt’ Bubble Is Starting To
Collapse ~ China Hanging Bankers: While U.S. Is $6 Trillion Less At $17
Trillion.
Did you know that financial institutions all over the world are
warning that we could see a “mega default” on a very prominent
high-yield investment product in China onJanuary 31st? Transparency From
China Coming To America: Half Of U.S. Stocks Are Counterfeit! We are
being told that this could lead to a cascading collapse of the shadow
banking system in China which could potentially result in “sky-high
interest rates” and “a precipitous plunge in credit“. In other words, it
could be a “Lehman Brothers moment” for Asia. And since the global
financial system is more interconnected today than ever before, that
would be very bad news for the United States as well. Since Lehman
Brothers collapsed in 2008, the level of private domestic credit in
China has risen from $9 trillion to an astounding $23 trillion. That is
an increase of $14 trillion in just a little bit more than 5 years. Much
of that “hot money” has flowed into stocks, bonds and real estate in
the United States. So what do you think is going to happen when that
bubble collapses? The Big Dogs On Wall Street Are Starting To Get Very
Nervous: Coming To America? China & Iran to Execute Bankers On Fraud
Charges! The bubble of private debt that we have seen inflate in China
since the Lehman crisis is unlike anything that the world has ever seen.
Never before has so much private debt been accumulated in such a short
period of time. All of this debt has helped fuel tremendous economic
growth in China, but now a whole bunch of Chinese companies are
realizing that they have gotten in way, way over their heads.
A little bit more info on this China financial fiasco:
China’s $23 Trillion
Rothschild Credit ‘Debt’ Bubble Is Starting To Collapse ~ China Hanging
Bankers: While U.S. Is $6 Trillion Less At $17 Trillion.
Read more:
http://americankabuki.blogspot.com/2014/01/chinas-23-trillion-rothschild-credit.html#ixzz2rG8fKvVH
American Kabuki is licensed under a Creative Commons Attribution 4.0 International License. You
may copy, quote, and redistribute this material so long as you do not
alter it in any way, and you include this link:
http://americankabuki.blogspot.com
Chinese Stocks Tumble On Contagion Concerns From First Shadow-Banking Default
Submitted by Tyler Durden on 01/16/2014 21:54 -0500
While manufacturing and services PMIs
disappointed, the big problem in big China remains that of an
out-of-control credit creation process that is blowing up. As we previously noted,
instead of crushing credit creation, the PBOC's liquidity rationing has
forced distressed companies into high-interest-cost products in the
shadow-banking world. Investors on the other side of "troubled shadow
banking products" had assumed that 'someone' would bail them out but
this evening Reuters reports that ICBC has confirmed that it will not rescue holders of the "Credit Equals Gold #1 Collective Trust Product", due to mature Jan 31st with $492 million outstanding......
Industrial and Commercial Bank of China, the world's largest bank by assets, said on Thursday that
it has no plans to use its own money to repay investors in a troubled
off-balance-sheet investment product that it helped to market.
ICBC's shares have fallen this week amid speculation that the bank would be forced to help repay investors in a 3 billion yuan ($496.20 million) high-yield investment product issued by China Credit Trust Co Ltd but marketed through ICBC branches. The product is due to mature on Jan. 31.
"Regarding this unsubstantiated rumour, a situation completely does not exist in which ICBC will assume the main responsibility (for the trust product)," an ICBC spokesman told Reuters by phone on Tuesday.
The trust product, called "2010 China
Credit / Credit Equals Gold #1 Collective Trust Product", used the
funds it raised from wealthy investors in 2010 to make a loan to
unlisted coal company Shanxi Zhenfu Energy Group Ltd.
But in May 2012, Zhenfu Energy's vice chairman, Wang Ping Yan, was arrested for accepting deposits without a banking licence.
...... But it's not a Soap Opera! No Really it isn't!
But wait! There is MORE!!!
While most of the attention in the Chinese shadow banking system is focused on the Credit Equals Gold #1 Trust's default, as we first brought to investors' attention here, and the PBOC has thrown nearly CNY 400 billion at the market in the last few days, there appears to be a bigger problem brewing. As China's CNR reports, depositors in some of Yancheng City's largest farmers' co-operative mutual fund societies ("banks") have been unable to withdraw "hundreds of millions" in deposits in the last few weeks.
"Everyone wants to borrow and no one wants to save," warned one
'salesperson', "and loan repayments are difficult to recover." There is "no money" and the doors are locked.
The locked doors of one farmers' co-op...
Salesperson: ...the money has been slowly falling and in the end is difficult to ask for money, right? And now there is no money coming in, now people don't want to save money, and take all the money.
Reporter: But it's their money, they should be able to...
Salesperson: I know I should [given them money]; however, when the turn started, their is no money, we get cut off and lenders and borrowers took off...
One depositor blames the government (for false promises
Mac Slavo outlines what I've been saying for a while- never mind the cash, there ain't no gold either!
Fed’s Dirty Little Secret: “The Gold Isn’t There… Exists as Paper IOU’s”
Mac Slavo
January 21st, 2014
The assumption by global depositors who have entrusted their national
savings with the Federal Reserve and US Government has always been that
when they request to repatriate their holdings the Fed would simply
open the vault, access said assets and ship them back to where they
belong.
That’s exactly what Germany expected would happen last year when the
country requested that the Federal Reserve return about one-fifth of
their gold reserves. But that’s when things got really dicey. The Fed
announced that Germany’s gold would be returned… but it would take seven
years to get back home.
The response to Germany’s request turned heads all over the world and
raised concerns that the Federal Reserve had squandered its gold
holdings. But this isn’t the only red flag that was raised. Public
pressure reached such levels that the Fed was forced to take steps to
maintain confidence in its operations, so it started shipping gold to
Germany. Except it turns out that the gold being sent back to the
Bundesbank wasn’t actually German gold. It contained none of the
original serial numbers, had no hallmarks, and was reportedly just
recently melted. The implications are earth shattering and hit the very core of the
problems facing America today. The whole system as it exists is just one
big paper IOU.....
Continue reading HERE But then, isn't that what a fiat dollar is? Just an IOU? hmmmmmmm
SAN FRANCISCO (MarketWatch) -- Shares of HSBC Holdings PLC HSBC-1.52%
fell on Thursday following a report that the banking giant may have overstated assets by as much as $92 billion.
... over stating that you have $92 Billion in
fiat currency IOUs for gold that doesn't exist..... isn't that kinda
like telling the other players that you have Park Place and Boardwalk
with 4 hotels on each, when in fact all you have is Mediterranean Avenue
and Baltic Avenue? And then you realize, that it's just a giant game
that they are playing anyway, and this one might not have any "Get out
of jail free" cards.
The Black Sheep tries to warn its friends with the truth it has seen, unfortunately herd mentality kicks in for the Sheeple, and they run in fear from the black sheep and keep to the safety of their flock.
Having tried to no avail to awaken his peers, the Black Sheep have no other choice but to unite with each other and escape the impending doom.
