Poland and Germany should unite, says Lech Walesa

For those that follow Bible Prophecy, this could yet be another eye opener. Daniel 2:40 – 43 comes to mind: Iron mixed with clay. This is what the upcoming United States of Europe looks like, which is a mix of countries that have so many cultural/social/economic differences, yet continue an attempt to unite — which is led by none other than Germany, the economic powerhouse of the EU, or the Fourth Reich.

Lech Walesa has called for Poland to unite with Germany to form one European state, despite the bloody history between the two countries.

The Nobel Peace Prize winner and former Polish president, whose Solidarity trade union played a key role in bringing an end to the Cold War, said the world had changed and needed new ways of organising itself.

“We need to expand economic and defence co-operation and other structures to create one state from Poland and Germany in Europe,” he said. Continue reading

Detroit’s Default May Spark U.S. Death Spiral of Debt

Debt is deadly, and it’s made even worse with rising interest rates that can prevent you from eliminating the load. What happens with rising interest rates is that more of the payments go toward the interest and less to the principal. In fact, it’s what I call a death spiral of debt that worsens as rates move higher.

When individuals face excessive debt, often the solution is to reduce spending and adhere to a strict repayment program. Continue reading

Denial-of-service attack takes down JP Morgan Chase sites

The Web sites for banking giant JP Morgan Chase are offline this afternoon as the result of a distributed-denial-of-service attack, a representative told CNET.

The site’s usual banking tools and content were replaced this afternoon with a message that said:

Our website is temporarily down, but our branches and Mobile Apps are available. Please try again later. Continue reading

The great Portuguese sell-off

First Greece was subjugated and forced to yield (still is) national sovereignty, now comes Portugal. One country at a time, the European continent is being captured via economic warfare. Be it the Troika  or the EU itself, all roads lead back to Europe’s powerhouse, Berlin, and it’s Fourth Reich making the capture. With the Vatican undergoing a leadership transition and possible candidate elected this St. Patrick’s Day, we could likely soon see the revived Holy Roman Empire.

Little by little, the Portuguese state is going down in defeat. In April 2011, when the country got a loan of €78bn from the troika (EC, ECB and IMF) to avoid bankruptcy, it committed itself to privatisation. But under the leadership of Passos Coelho, a model student of the fiscal discipline demanded by the troika, the sell-off of the “crown jewels” – what’s left of them, that is – has sped up.

Losing control of their destiny

For the 80,000 or so inhabitants of Viana, like for the rest of the country, the powerful wave of privatisation is causing a lot of worry. “Some of these state enterprises are gems, others are junk buckets, but they’re all strategic assets. And we’re losing them forever,” worries Bernardo S Barbosa, head of the local weekly Aurora do Lima. The Socialist mayor, José Maria Costa, shares a growing national concern: the feeling that the country is losing its sovereignty. In a vast room at City Hall, this engineer by training reacts very angrily to the policy of the executive: “By taking away our public assets, which are so vital, to the benefit of foreign companies, and private interests at that, we’re losing control of our own destiny. I even fear that in the end it will affect our freedom and democracy.” Continue reading

Why Worst Not Over for Europe: Canada Bank Official

Bank of Canada Governor Mark Carney warned on Saturday against an emerging consensus among delegates at the World Economic Forum in Davos that the worst of the euro zone debt crisis was over.

Carney said that tail risks — an unlikely event which could prompt a market sell off — are “still out there.” Continue reading

Money for Nothin’ Writing Checks for Free

When coming from PIMCO, alarm bells should be going off.

Mr. Bernanke never provided additional clarity as to what he meant by “no cost.” Perhaps he was referring to zero-bound interest rates, although at the time in 2002, 10-year Treasuries were at 4%. Or perhaps he knew something that American citizens, their political representatives, and almost all investors still don’t know: that quantitative easing – the purchase of Treasury and Agency mortgage obligations from the private sector – IS essentially costless in a number of ways. That might strike almost all of us as rather incredible – writing checks for free – but that in effect is what a central bank does. Yet if ordinary citizens and corporations can’t overdraft their accounts without criminal liability, how can the Fed or the European Central Bank or any central bank get away with printing “electronic money” and distributing it via helicopter flyovers in the trillions and trillions of dollars?

Well, the answer is sort of complicated but then it’s sort of simple: They just make it up. When the Fed now writes $85 billion of checks to buy Treasuries and mortgages every month, they really have nothing in the “bank” to back them. Supposedly they own a few billion dollars of “gold certificates” that represent a fairy-tale claim on Ft. Knox’s secret stash, but there’s essentially nothing there but trust. When a primary dealer such as J.P. Morgan or Bank of America sells its Treasuries to the Fed, it gets a “credit” in its account with the Fed, known as “reserves.” It can spend those reserves for something else, but then another bank gets a credit for its reserves and so on and so on. The Fed has told its member banks “Trust me, we will always honor your reserves,” and so the banks do, and corporations and ordinary citizens trust the banks, and “the beat goes on,” as Sonny and Cher sang. $54 trillion of credit in the U.S. financial system based upon trusting a central bank with nothing in the vault to back it up. Amazing! Continue reading

Chinese Group Buys 80% of AIG Plane Unit for $4.2B

A Chinese group agreed to buy 80.1 percent of American International Group Inc. (AIG)’s plane-leasing unit (0067543Q) for $4.23 billion in the nation’s largest acquisition of a U.S. company.

The acquisition gives the group control of the world’s second-largest aircraft lessor as rising travel in China and Asia spurs demand for planes. AIG, which counts the U.S. government as its largest investor, is selling the Los Angeles- based unit as Chief Executive Officer Robert Benmosche focuses on insurance operations and works to reduce debt. Continue reading

Morgan Stanley’s Doom Scenario: Major Recession in 2013

The global economy is likely to be stuck in the “twilight zone” of sluggish growth in 2013, Morgan Stanley has warned, but if policymakers fail to act, it could get a lot worse.

The bank’s economics team forecasts a full-blown recession next year, under a pessimistic scenario, with global gross domestic product (GDP) likely to plunge 2 percent.

More than ever, the economic outlook hinges upon the actions taken or not taken by governments and central banks,” Morgan Stanley said in a report. Continue reading

Why Miami Is Becoming the ‘Russian Riviera’

Essentially, real estate brokers are letting in the Russian mob — not Russians simply wanting to ‘escape the cold.’ Today, most (if not all) of the rich Russians are part of the communist oligarchy. If you’re not part of the team, then you’re one of the serfs with no future prospects. Real estate brokers today are motivated by both greed and an easy sell to countrymen awash in oil & gas revenue as well as a fractured American economy that has Americans selling their homes or losing them. They essentially have no clue who or what they are letting in.

On a recent afternoon, Miami real-estate agent Jill Eber is taking a Russian millionaire on a mansion-shopping trip.

“This is the Versace Room,” Eber says, walking into a vast living room of blue velvet sofas and gold French Imperial lamps. “It really makes a statement.”

The mansion, “Castello del Sole,” sits on an exclusive island on Miami Beach and has eight bedrooms, nine baths and a three-story foyer with fresco ceilings. The grounds include two yacht docks, a tennis court, guest villas, a five-car garage and a lagoon-style pool with over 100,000 gallons of water.

The asking price: $37 million. Continue reading

The Tragedy Of The Euro! What About Germany?

Brecht Arnaert writes: 2012 has been a year of great turmoil for the euro. But our economy is not the only thing that is in crisis. Our economic theory is too, and even more so: for decades macro-economic policy has been conducted within a Keynesian framework, and while no Keynesian economist has predicted this crisis, or even is able to explain it’s causes, we are still listening to them today to get out of the mess they brought us into. I would say that this is a problem of legitimacy.

I am telling this not only as an economist. I am a defender of liberty too. What is happening in Europe right now should not only worry economists, but every freedom-loving citizen. As we speak, measures are being taken to take away our liberties in a way that Hayek described so well in his “Road to serfdom”: each government intervention requires more government intervention, until no freedom is left anymore. Step by step our property rights are being eroded, and, not too far from here, in Brussels, a giant Moloch called the European Commission is centralizing powers with a speed that would have been unimaginable before the Treaty of Lisbon. Continue reading

Turk – 15,000 Tons Of Western Central Bank Gold Is Gone

Today James Turk once again shocked King World News when he stated, “… in 1997 over (a stunning) 2,000 tons of gold moved out of Great Britain.”  Turk added, “Now since Great Britain is not a gold miner, we know that gold had to come out of the Bank of England (where they store other countries gold), and it probably went into Zurich (Switzerland) for what’s called ‘leasing’ but I use the word ‘lending,’ or lending into the market.”

But first, here is what Turk had to say about his last interview titled, “The Entire German Gold Hoard Is Gone,” which has received an incredible amount of attention around the world:  “Yes, it’s getting increasing attention, Eric, and rightly so.  There has been a lot of deception about how much gold is really in central bank vaults.

The reason why there is this deception, if you look at a balance sheet of a central bank like the Bundesbank, Bank of Italy or the Bank of England, they basically say gold in the vault and gold out on loan, they show it as one line item.  They call it, ‘gold and gold receivables.’

Anybody who understands generally accepted accounting principles knows that ‘cash’ is different from an ‘account receivable.’ Continue reading

Recession ‘taking hold’ in Eurozone, OECD says

With Greek at 24.4% in June and as the Eurozone facing an acceleration of inflation, one might expect to see more of what has taken place in Spain — just on a wider scale.

PARIS (AP) — Europe’s debt crisis is pushing the 17-country eurozone toward recession and dragging down the global economy, the Organization for Economic Cooperation and Development said Thursday.

Even growth in traditional economic powerhouse Germany is slowing, and the OECD’s interim assessment said that Europe’s largest economy could slip into recession by the end of the year.

Full article: Recession ‘taking hold’ in Eurozone, OECD says (AP)