Global Recession Coming – Even “Powerhouse” Germany and UK Slow “Dramatically”

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IMF 2015 Global National Debt Map – IMF

 

– IMF warn of “fresh financial crisis”
– German exports fall 5.2%, largest slump since recession of 2009
– German imports also fall 3.1%
– Many sectors across German economy see unexpected declines in factory orders and industrial production
– UK Chief Financial Officers (CFOs) report sharp rise in uncertainty
– UK PMI has fallen to lowest level since April 2013
– Hope for the best but be prepared for less benign scenarios

The IMF have been growing more vocal in recent weeks about the possibility of another financial crisis and severe recession. The head of financial stability at the IMF, José Viñals has said that this outlook “does not rely on extreme assumptions at all”. Continue reading

This Is The Endgame, According To Deutsche Bank

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DB’s Jim Reid lays out the “endgame” scenario, one which this website first said is inevitable back in 2009. With Citi and Macquarie already on board, expect what was once merely the figment of a “deranged tinfoil conspiracy-theory blog’s” imagination, to become global monetary policy. And yes, the real endgame is the one we have said from day one: total fiat (and conventional economics) collapse.

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From Deutsche Bank’s chief credit strateigst Continue reading

Fed, Central Banks Trapped – Gold Foundation of Exter’s Pyramid

Essentially, the price of gold has been kept artificially low and should be well over $2000 per ounce by now. The manipulation game with gold, currencies and the economy in general cannot continue indefinitely and we’ll see that soon. The Fed is running out of tricks.

 

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The future direction of the planet is between the central bank’s counter-party paper Ponzi currency or the independence of real money.

Foresighted central banker John Exter is famous for his classification of risk assets. Using Exter’s Golden Pyramid the riskiest assets are those at the bottom of the pyramid and situated at the top of the apex is gold bullion – independent from the counter-party risk of central banks’ paper and electronic currency.

At the bottom of the wealth asset pyramid are overleveraged paper derivatives estimated to be a magnitude of up to six times the world’s wealth. An example of this is in Germany today where it was recently estimated that Deutsche Bank has a massive 70 trillion dollars worth of exposure to derivatives. Meanwhile, annual GDP in Germany is just 4 trillion dollars.

Warren Buffett warned of these “financial weapons of mass destruction.” Continue reading

Europe Will Soon Impose Border Controls

Europe is imposing capital controls…  next up will be border controls.

How do we know? Because they already suggested this before.

Back in March of 2012, when the EU Crisis first began to spin out of control, then Prime Minister of France Nicolas Sarkozy openly called for the renegotiation of the Schengen Treaty: the treaty that established the 26-nation EU as a “borderless” entity in which individuals could move from one country to another with little difficulty and which also made trade among EU members easier. Continue reading

Warren Buffett: Derivatives Are Still Weapons Of Mass Destruction And ‘Are Likely To Cause Big Trouble’

After all these years, the most famous investor in the world still believes that derivatives are financial weapons of mass destruction.  And you know what?  He is exactly right.  The next great global financial collapse that so many are warning about is nearly upon us, and when it arrives derivatives are going to play a starring role.  When many people hear the word “derivatives”, they tend to tune out because it is a word that sounds very complicated.  And without a doubt, derivatives can be enormously complex.  But what I try to do is to take complex subjects and break them down into simple terms.  At their core, derivatives represent nothing more than a legalized form of gambling.  A derivative is essentially a bet that something either will or will not happen in the future.  Ultimately, someone will win money and someone will lose money.  There are hundreds of trillions of dollars worth of these bets floating around out there, and one of these days this gigantic time bomb is going to go off and absolutely cripple the entire global financial system. Continue reading

Eurozone May Survive Grexit, But Italy, Spain Exposed to Increased Risk

The periphery scenario keeps coming back. On another note, this isn’t the first time warning trumpets have been sounded over Spain or Italy. You can find more information on them HERE and HERE. And while we’re at it, lets not forget about our friends in France, either.

Lastly, never forget the bigger picture: It was known the Euro would fail in the greatest heist of all time.

 

WASHINGTON (Sputnik) — The European Union and the international financial system can survive a Greek exit from the Eurozone, or Grexit, but a greater danger is that it could set off a domino’s effect forcing Spain and Italy to pull out as well, experts told Sputnik.

“As long as it’s just Greece, then I think the consequences for the United States will be very limited, and that’s because the US market already have factored in, that they’ve priced in a high probability of Greek exit,” Institute for Economic Affairs Deputy Editorial Director Richard Wellings in London said on Thursday.

Continue reading

China could crash US dollar with 30,000 tons of gold: commentary

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China has the ability to crash the unstable US dollar with 30,000 tons of gold reserves, says Chinese economic observer Jin Zihou.

In a commentary posted online, Jin noted that former US Federal Reserve chair Alan Greenspan once said that the renminbi could become unexpectedly powerful in today’s financial system if Beijing would convert its US$4 trillion in foreign reserves into gold.

With the US dollar growing more unstable and China being America’s largest creditor, Beijing could potentially crash the US dollar with 30,000 tons of gold, Jin said. Continue reading

Grexit: Remaining In The Eurozone Is No Longer ‘The Base Case’ For Greece

According to the Wall Street Journal, Greece staying in the eurozone is no longer “the base case” for European officials, and one even told the Journal that “literally nothing has been achieved” in negotiations with the new Greek government since the Greek election almost three months ago.  In other words, you can take all of that stuff you heard about how the Greek crisis was fixed and throw it out the window.  Over the next few months, a big chunk of Greek government bonds held by the IMF and the European Central Bank will mature.  Unless negotiations produce a load of new cash for Greece, there will be a default, and right now there is very little optimism that we will see an agreement any time soon.  In fact, as I wrote about the other day, behind the scenes banks all over Europe are quietly preparing for a Grexit.  European news sources are reporting that the Greek banking system is on the verge of collapse, and over the past couple of weeks Greek bond yields have shot through the roof.  Most of the things that we would expect to see in the lead up to a Greek exit from the eurozone are happening, and now we will wait and see if the Greeks actually have the guts to pull the trigger when push comes to shove. Continue reading

Four things you need to know about ‘China’s World Bank’

In fact, many commentators say the AIIB is less about anything wrong with the ADB or the World Bank and more about China’s efforts to increase its voice in global development and financial governance, and even to reshape the financial world order itself.

With Tuesday marking the deadline for nations wishing to join as “founding members” of the new multinational lender, here are the four things you need know about the AIIB… Continue reading

One Last Look At The Real Economy Before It Implodes – Part 1

We are only two months into 2015, and it has already proven to be the most volatile year for the economic environment since 2008-2009. We have seen oil markets collapsing by about 50 percent in the span of a few months (just as the Federal Reserve announced the end of QE3, indicating fiat money was used to hide falling demand), the Baltic Dry Index losing 30 percent since the beginning of the year, the Swiss currency surprise, the Greeks threatening EU exit (and now Greek citizens threatening violent protests with the new four-month can-kicking deal), and the effects of the nine-month-long West Coast port strike not yet quantified. This is not just a fleeting expression of a negative first quarter; it is a sign of things to come. Continue reading

World must prepare for ‘Armageddon’-style cyber attack, warns US regulator

Benjamin Lawsky, superintendent of the New York State Department of Financial Services, says it is a “matter of time” before there is a systemic attack on the global financial system.

The world must prepare for an “Armageddon”-style cyber attack, one of America’s most influential regulators has warned.

Benjamin Lawsky, superintendent of the New York State Department of Financial Services, said it was a “matter of time” before there is a major cyber attack on the global financial system, and that the public needs to invest heavily in preventing disaster now, or pay an even higher price later on.

Continue reading

BRICS bank: 5 emerging powers to announce alternatives to IMF, World Bank

WASHINGTON — Fed up with U.S. dominance of the global financial system, five emerging market powers this week will launch their own versions of the World Bank and the International Monetary Fund.

Brazil, Russia, India, China and South Africa –the so-called BRICS countries — are seeking “alternatives to the existing world order,” said Harold Trinkunas, director of the Latin America Initiative at the Brookings Institution.

At a summit Tuesday through Thursday in Brazil, the five countries will unveil a $100 billion fund to fight financial crises, their version of the IMF. They will also launch a World Bank alternative, a new bank that will make loans for infrastructure projects across the developing world.

The five countries will invest equally in the lender, tentatively called the New Development Bank. Other countries may join later. Continue reading

Russia warns could ‘reduce to zero’ economic dependency on US

A grave mistake is to think that this can’t happen or won’t happen, or that the Russians don’t have the capability. China and Russia have both publicly expressed their unity against the USA and the EU after engineering the chaos running through the Ukraine at this moment. Previously they’ve always been united behind scenes, but as they both grow and advance militarily, economically and politically they can be out in the open about it — especially now that they have been given cause.

China has also previously threatened the ‘nuclear option’ on the US Dollar. For additional information, read the following article: China threatens ‘nuclear option’ of dollar sales

The USA, which is drunk off its own power, becoming more corrupt daily and rotting from within might have to face a grave and sobering reality — and sooner rather than later. America is not untouchable.

Europe also faces the same fate as the Heizung can be turned off at any given moment. You’ll also likely see a united Europe like never before as a result, unlike America where its current administration keeps drawing a new line in the sand each time it back-peddles.

Moscow (AFP) – Russia could reduce to zero its economic dependency on the United States if Washington agreed sanctions against Moscow over Ukraine, a Kremlin aide said on Tuesday, warning that the American financial system faced a “crash” if this happened.

“We would find a way not just to reduce our dependency on the United States to zero but to emerge from those sanctions with great benefits for ourselves,” said Kremlin economic aide Sergei Glazyev.

He told the RIA Novosti news agency Russia could stop using dollars for international transactions and create its own payment system using its “wonderful trade and economic relations with our partners in the East and South.”

Russian firms and banks would also not return loans from American financial institutions, he said.

“An attempt to announce sanctions would end in a crash for the financial system of the United States, which would cause the end of the domination of the United States in the global financial system,” he added. Continue reading

Replace dollar with super currency: economist

The World Bank’s former chief economist wants to replace the US dollar with a single global super-currency, saying it will create a more stable global financial system.

“The dominance of the greenback is the root cause of global financial and economic crises,” Justin Yifu Lin told Bruegel, a Brussels-based policy-research think tank. “The solution to this is to replace the national currency with a global currency.” Continue reading

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