Pensions Timebomb in “Slow Motion Detonation” In U.S., EU and Internationally

 

Max Keiser and Stacy Herbert discuss the end of retirement which many Americans, Britons, Europeans and others will suffer as their pensions are decimated in the coming years due to zero percent interest rates and ultra loose monetary policies pursued for the benefit of banks and corporations.

Governments and central banks bailed out banks at the expense of pensioners and the pensions of workers who have been “thrown under the bus”. Continue reading

JPM: “Things Have Gotten Out Of Control: People Have More Confidence In Gold Than In Paper Money”

Please see the source for the video.

 

Following the biggest one-day surge in the price of gold since 2009, it is understandable that suddenly everyone who until recently was predicting the price of gold in the triple digits, or laughably explaining why “gold is doomed” wants to talk about the “pet rock.” As we showed earlier, already Goldman and Bank of America have opined with new and upwardly mobile “price targets”, while the scramble to obtain gold in a world drowning not only in negative rates but soon, cash bans, has already been unleashed. Continue reading

The Return Of Crisis

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Financial markets the world over are increasingly chaotic; either retreating or plunging. Our view remains that there’s a gigantic market crash in the coming future — one that has possibly started now.

Bubbles arise when asset prices inflate above what underlying incomes can sustain. Centuries ago, the Dutch woke up one morning and discovered that tulips were simply just flowers after all. But today, the public has yet to wake up to the mathematical reality that over $200 trillion in debt and perhaps another $500 trillion of un(der)funded liabilities really cannot ever be paid back under current terms. However, this fact is dawning within the minds of more and more critical thinkers with each passing day.

Continue reading

War On Cash Escalates: China Readies Digital Currency, IMF Says “Extremely Beneficial”

Remember when Bitcoin and its digital currency cohorts were slammed by authorities and written off by the elite as worthless? Well now, as the war on cash escalates, officials from The IMF to China are seeing the opportunity to control the world’s money through virtual (cash-less) currencies. Just as we warned most recently here, state wealth control is the goal and, as Bloomberg reports, The PBOC is targeting an early rollout of China’s own digital currency to “boost control of money” and none other than The IMF’s Christine Lagarde added that “virtual currencies are extremely beneficial.”

By way of background, as we explained previously, What exactly does a “war on cash” mean?

It means governments are limiting the use of cash and a variety of official-mouthpiece economists are calling for the outright abolition of cash. Authorities are both restricting the amount of cash that can be withdrawn from banks, and limiting what can be purchased with cash.

These limits are broadly called “capital controls.”

Why Now?

Continue reading

IMF warns of new financial crisis if interest rates rise

Fund says governments in emerging markets should prepare now for a new credit crunch because of a 10-year corporate borrowing binge

Rising global interest rates could prompt a new credit crunch in emerging markets, as businesses that have ridden the wave of cheap money to load up on debt are pushed into crisis, the International Monetary Fund has warned.

The debts of non-financial firms in emerging market economies quadrupled, from $4tn (£2.6tn) in 2004 to well over $18tn in 2014, according to the IMF’s twice-yearly Global Financial Stability Report. Continue reading

Central Banker Urges Lying To The Public About Bank Health

For years, many – and certainly this website – had mocked both European and US stress tests as futile exercises in boosting investor and public confidence, which instead of being taken seriously repeatedly failed to highlight failing banks such as Dexia, Bankia and all the Greek banks, in the process rendering the exercise a total farce. The implication of course, is that regulators, thus central bankers, openly lied to the public over and over just to preserve what little confidence in the system has left.

Now we know that far from merely another “conspiracy theory”, this is precisely the policy intent behind the “stress tests” – as Reuters reports citing a paper co-authored by a Bundesbank economist, “banking supervisors should withhold some information when they publish stress test results to prevent both bank runs and excessive risk taking by lenders.”

In other words: lie. Continue reading

Stock up on canned food for stock market crash, warns former Gordon Brown adviser

Global Geopolitics does not call dates, and a global market crash may in fact not happen, but all signs point towards an imminent crash. Warning signs are flashing, and not just from ‘conspiracy theorists’.

Don’t be foolish and think this warning pertains only to Great Britain. The U.S. will be one of the, if not the, hardest hit nations.

Why take a chance? How many more warnings do you need to see? Don’t be complacent. Prepare how you see fit. The best advice is to get right with God.

 

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A former adviser to Gordon Brown has urged people to stock up on canned goods and bottled water as stock markets around the world slide.

Damian McBride appeared to suggest that the stock market dip could lead to civil disorder or other situations where it would be unreasonable for someone to leave the house.

“Advice on the looming crash, No.1: get hard cash in a safe place now; don’t assume banks & cashpoints will be open, or bank cards will work,” he tweeted. Continue reading

Greeks Laugh As Bankers Beg Depositors To Return Money

Americans are also told by the government their accounts are safe because of FDIC coverage, but most don’t realize the FDIC is also running out of cash and may need to borrow from the very banks they bail out. What it boils down to is that the FDIC will not back up your accounts, but raid your accounts in the next crisis.

 

President of Greek Banks Association Louka Katseli appealed at the citizens to return their money to the banks. “Banks are absolutely trustworthy,” Katseli told Mega TV “as guaranteed by the ECB and the Bank Association, but they would have been even more powerful if 40 billion euros had not been withdrawn in the last months.

Katseli, a former PASOK Minister, appealed to citizens to return their deposits  to the banks “now that the banks are open” after a three-week holiday and capital controls.

“Let’s all help our economy,” Katseli urged Greeks and added “If you take your money out of your chests and houses – which are not safe in any case – and deposit at banks, this will enhance liquidity.” Continue reading

China Just Nationalized $6 Trillion of Stock Losses

China’s stock market had what traders call a “Dead Kitty” bounce on Thursday as the communist authorities dispatched police and security personnel to “encourage” insider-buying and to arrest short sellers. With the Chinese market still highly inflated even after falling $3 trillion in value, China took action last night to “nationalize” about $6 trillion in losses.

China is about to show its third straight quarter of negative real (after inflation) GDP growth. The nation had been relying on a stock market boom to play a “decisive role” in funding the nation’s “Silk Road” reforms to transition to a consumer economy.

But as Breitbart News warned in “China’s Lehman Brothers Weekend Begins,” the “Red Dragon” has suffered a financial collapse equivalent in degree to the U.S. stock crash in 2008-9. Unlike the U.S., which used a formal government bailout to stabilize markets, the Communist Party instructed the nation’s banks to use their own balance sheets to guarantee the current $8 trillion stated value of all of China’s 2800 listed stocks. Continue reading

Anonymous takes down New York Stock Exchange; media pretends cyber attack was technical incompetence ‘glitch’

Although officially it’s been called a “glitch”, the NYSE on Wednesday (as this article mentions) was glitched out of service with a whole other host of businesses, which brings the suspicion up another notch. Another theory could be that it wasn’t a glitch or hacker, but a suddenly imminent crash in the markets and the NYSE staff had simply pulled the plug out of the socket to halt trading and stem the tide. Of course, none of this is official but we shouldn’t be surprised to hear any of this should the word get out. “Glitch” just doesn’t fit the description.

 

(NaturalNews) Demonstrating America’s extreme vulnerability to activist-driven hackers who are trying to make a point, the New York Stock Exchange was shuttered for most of the day yesterday, stalling out hundreds of billions of dollars in trades.

The lying mainstream media, of course, has rolled out a pathetic (yet hilarious) cover story on all this, claiming there was no hack. Instead, the NYSE is just wholly incompetent and can’t run its own computer systems reliably, we’re told. Continue reading

Prepare for more cyber attacks on US

The “patch and pray” system within the United States has killed cyber security. Nobody is willing to commit any funds to protecting the system until something has already happened. Unless this way of thinking is changed and experts begin to go on the offense with cyber defense, America’s IT infrastructure is as good as dead.

 

Another week, another wave of cyber alarm in America. On Wednesday both the New York Stock Exchange and United Airlines suspended activity for several hours due to mysterious computing problems, while the Wall Street Journal’s website briefly went down. All three insisted that the outages reflected technical hitches, not malicious attack. But many are anxious after past assaults on mighty American companies and agencies.

In February Anthem, an insurance company, revealed that cyber hackers had stolen information on 80m customers. The Washington-based Office of Personnel Management said cyber hackers had taken data on millions of federal employees. Companies ranging from retailers to banks have been attacked, too. Continue reading

What Is Going on in the NY Fed? Will They Break Apart Big Banks?

“The problems originate from the culture of the firms, and this culture is largely shaped by the firms’ leadership.” 

Dudley’s main message was a warning: If nothing changed, regulators would have to conclude that large financial institutions are too big to manage, and “that your firms need to be dramatically downsized and simplified so they can be managed effectively.” Continue reading

Cyber Threat Looms

If it can happen, it eventually will happen. While America continues to make huge gains in vulnerability, its enemies are making huge gains in technology that enables them to hit harder and more effectively. Manchurian chips from China are placed throughout military hardware as well as government and civilian hardware — and the USA is just barely catching on to this, after decades of being infiltrated.

Former NSA Director: U.S. facing crippling cyber attack, long-term cyber espionage.

Retired Vice Adm. Mike McConnell, who headed both the National Security Agency (NSA) and served as director of national intelligence, said in a speech that one example of a devastating cyber attack would be the crippling of the U.S. economy through cyber attacks on banks and financial institutions.

“We have a national problem and it is significant. The next big issue will be a cyber 9/11,” McConnell said during a luncheon speech to a meeting of the American Bar Association standing committee on law and national security.

“I’ve been sounding the alarm, and I’ve been doing this now for 20 years,” he said. “We are going to have a cyber event that is catastrophic.” Continue reading

Money flies out of Spain, regions pressured

The unraveling of Europe is set to accelerate. Will Germany come to the rescue in exchange for sovereignty?

Spaniards alarmed by the dire state of their banks are squirreling money abroad at the fastest rate since records began, figures showed on Thursday, and the credit ratings of eight regions were cut.

Bank of Spain data showed a net 66.2 billion euros ($82.0 billion) was sent abroad last month, the most since records began in 1990. The figure compares to a 5.4 billion net entry of funds during the same month one year ago.

Full article: Money flies out of Spain, regions pressured (Reuters)

Eurodämmerung

Some of us have been talking it over, and here’s what we think the end game looks like:

1. Greek euro exit, very possibly next month.

2. Huge withdrawals from Spanish and Italian banks, as depositors try to move their money to Germany.

3a. Maybe, just possibly, de facto controls, with banks forbidden to transfer deposits out of country and limits on cash withdrawals.

3b. Alternatively, or maybe in tandem, huge draws on ECB credit to keep the banks from collapsing.

4a. Germany has a choice. Accept huge indirect public claims on Italy and Spain, plus a drastic revision of strategy — basically, to give Spain in particular any hope you need both guarantees on its debt to hold borrowing costs down and a higher eurozone inflation target to make relative price adjustment possible; or:

4b. End of the euro.

And we’re talking about months, not years, for this to play out.

Full article: Eurodämmerung (NY Times)