The Fed Sends A Frightening Letter To JPMorgan, Corporate Media Yawns

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Yesterday the Federal Reserve released a 19-page letter that it and the FDIC had issued to Jamie Dimon, the Chairman and CEO of JPMorgan Chase, on April 12 as a result of its failure to present a credible plan for winding itself down if the bank failed. The letter carried frightening passages and large blocks of redacted material in critical areas, instilling in any careful reader a sense of panic about the U.S. financial system.

A rational observer of Wall Street’s serial hubris might have expected some key segments of this letter to make it into the business press. A mere eight years ago the United States experienced a complete meltdown of its financial system, leading to the worst economic collapse since the Great Depression. President Obama and regulators have been assuring us over these intervening eight years that things are under control as a result of the Dodd-Frank financial reform legislation. But according to the letter the Fed and FDIC issued on April 12 to JPMorgan Chase, the country’s largest bank with over $2 trillion in assets and $51 trillion in notional amounts of derivatives, things are decidedly not under control. Continue reading

Deutsche Bank Is Scared: “What Needs To Be Done” In Its Own Words

As each day passes by, it looks like Germany will lead the world into economic collapse and bring the EU with it. However, this will not lead to a complete breakup of Europe, but a United States of Europe — Germany’s long-term ambition for decades. The crisis, be it economic or social, is leading to further integration within some member states, such as forging the creating of a European Army. The greatest heist of all time is under construction and destroying what we see as the EU today, in order to reshape it into the United States of Europe.

If you follow Bible prophecy and know of the great late David Wilkerson, you might give pause to think about what’s going on today, as his vision laid out in 1973.

 

It all started in mid/late 2014, when the first whispers of a Fed rate hike emerged, which in turn led to relentless increase in the value of the US dollar and the plunge in the price of oil and all commodities, unleashing the worst commodity bear market in history.

The immediate implication of these two concurrent events was missed by most, although we wrote about it and previewed the implications in November of that year in “How The Petrodollar Quietly Died, And Nobody Noticed.” 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.

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Europe’s Banks Begin to Fail

Guess who did eventually bail out Greece.

An article from 2011 with lessons to learn from for today:

 

A chain reaction is set in motion—and a lot of people are going to get hurt.

The date is May 11, 1931. Creditanstalt, a little-known Austrian bank, suddenly announces it can’t make its debt payments. An unstoppable chain reaction results.

Bank failure, stock market crash, mass business closures, 25 percent unemployment, trade wars, runaway inflation, multiple currency collapses, the Great Depression, World War ii. All of it began with a little-known bank in a small country in the heart of Europe.

That is history. And it is happening again.

A similar epoch-changing event may be about to occur in Europe.

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The world economic crisis

We are on the threshold of a new economics that would form the basis of a new public policy quite different from the one that was followed within the neo-classical paradigm that has held sway over the last six decades. Here I examine briefly the origins and nature of the latest crisis in the world capitalist economy and its implications for economic theory.

In the process of its growth, the world economy has undergone a structural change in the post-war period in terms of two important features. First, the multinational corporations that emerged in this period not only sold goods and services on a global scale but were able to achieve internationalisation in their production processes such that different components of a particular good could be manufactured in their facilities in different countries to take advantage of country specific resource endowments. This laid the basis of an unprecedented growth in productivity, and profits. Given the problem of investing these profits within the sphere of production, due to demand constraints, profits from the sphere of production began to flow into the financial sphere. Continue reading

America is due for a revolution

Here’s the good news: The chaos and upheaval we see all around us have historical precedents and yet America survived. The bad news: Everything likely will get worse before it gets better again.

That’s my chief takeaway from “Shattered Consensus,” a meticulously argued analysis of the growing disorder. Author James Piereson persuasively makes the case there is an inevitable “revolution” coming because our politics, culture, education, economics and even philanthropy are so polarized that the country can no longer resolve its differences.

Piereson describes the endgame this way: “The problems will mount to a point of crisis where either they will be addressed through a ‘fourth revolution’ or the polity will begin to disintegrate for lack of fundamental agreement.” Continue reading

IMF Warns Next Financial Crash Is Only a Matter of Time

With interest rates at a 5,000-year low, are we really surprised that a crash is coming?

The International Monetary Fund (imf) is warning that a financial crisis is practically guaranteed, and it’s just a matter of time before it strikes. The organization’s newly released Global Financial Stability report is sobering reading. The flaws in the global financial system have not been fixed, it says.

It highlights soaring global debt, particularly in emerging markets. The implication is that we could see a repeat of the 1997 currency crisis also known as the “Asian Flu,” which saw massive currency devaluations, contractions in global trade, economic turmoil, and social instability.

But conditions are much more dangerous today than back then. Virtually the whole world is teetering on recession, the West and Russia are back in Cold War mode, the Middle East is engaged in actual war in Syria, and the world is more interconnected than ever—potentially making the transmission of financial diseases much quicker. Continue reading

5 Ways Europe Is Reviving The 1930s

Unless the continent changes course, Europe is likely to transform from a harbinger of prosperity and democracy into a far less hospitable and more dangerous place.

Czech police intercepted a group of Syrian asylum-seekers on a train headed for Germany. Upon being detained, the 200 or so refugees were marked with ink numbers on their forearms. While clearly a mishap, it was not the first time that Europeans were reminded of a period many would rather forget.

In July, a Polish member of the European Parliament, Janusz Korwin-Mikke, used the Nazi salute in a parliamentary debate. Two years earlier, members of the Greek Parliament for the far-right Golden Dawn party shouted “Heil Hitler” as their colleague Panagiotis Iliopoulos was being ejected from the chamber for unparliamentary language.

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James Dale Davidson: Current Global Crash Is a ‘Rerun of 1929’

Please see the website for the video.

 

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The current global stock-market crash is eerily reminiscent of the Wall Street crash of 1929, investment expert and author James Dale Davidson told Newsmax TV.

“What we’re seeing, if I could say it this way, is a rerun of 1929 with the main crash falling in Shanghai rather than in Wall Street,” he told “Newsmax Prime.”

“If you’re not scared, you’re not watching,” he said. “Since the last time I was on Newsmax TV on the 11th of August to discuss the Chinese devaluation, which was a small step, I said it was only the beginning of a major change that was going on. And since that time, $5 trillion have gone to money heaven, which is a significant change,” he said. Continue reading

The US Economy Continues Its Collapse — Paul Craig Roberts

Do you remember when real reporters existed? Those were the days before the Clinton regime concentrated the media into a few hands and turned the media into a Ministry of Propaganda, a tool of Big Brother. The false reality in which Americans live extends into economic life. Last Friday’s employment report was a continuation of a long string of bad news spun into good news. The media repeats two numbers as if they mean something—the monthly payroll jobs gains and the unemployment rate—and ignores the numbers that show the continuing multi-year decline in employment opportunities while the economy is allegedly recovering.

The so-called recovery is based on the U.3 measure of the unemployment rate. This measure does not include any unemployed person who has become discouraged from the inability to find a job and has not looked for a job in four weeks. The U.3 measure of unemployment only includes the still hopeful who think they will find a job. Continue reading

Greece needs €100bn debt relief as permanent depression looms

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National Institute of Economic and Social Research says Greek debt write-off must be much larger than IMF demands, as think-tank warns VAT hikes and budget targets are asphyxiating economy

Greece needs a debt write-down of almost €100bn (£70bn) if the country is to stand a chance of clawing its way out of a “prolonged and severe depression”, according to a leading think-tank.

In a stark analysis, the National Institute of Economic and Social Research (NIESR) laid bare the impact of VAT hikes and strict budget targets that it said could become “self-defeating”.

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Gulf Journalists: The West’s Current Paralysis Vis-à-vis Iran Parallels Its Inability To Deal With Nazi Germany Prior To WWII

In his March 19, 2015 column in the Saudi Al-Jazirah daily, Dr. Hamza Al-Salem compared the “Iran of the ayatollahs” to Nazi Germany, and warned that the Nazis’ secret military buildup prior to World War II could be repeated in much the same way by Iran.

Al-Salem noted that in the 1930s, the Allies focused on rebuilding their economies following World War I, and chose to disregard the Nazi regime’s military buildup – even after the latter invaded Austria and Czechoslovakia – and thus enabled it to occupy all of Europe. He wrote that Iran is now secretly developing destructive technology, just as the Nazis had, and went on to warn that it could deceive and distract the world. He also compared the inaction and apparent paralysis of the Obama administration in this situation to that of the Allies prior to World War II.

Ahmad Al-Jarallah, editor of the English-language Kuwaiti newspaper Arab Times, compared the nuclear deal with Iran to the Munich Agreement signed with Hitler in 1938. He wrote that, just like Nazi Germany, Iran is managing to swindle the world and obtain a deal on its own terms. The only question that remains, he said, is which Arab country will take the place of Austria or Poland and be the first country to succumb to Iran’s expansionist ambitions. 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

The really worrying financial crisis is happening in China, not Greece

China looks like it is heading for its version of the 1929 stock market crash

While all Western eyes remain firmly focused on Greece, a potentially much more significant financial crisis is developing on the other side of world. In some quarters, it’s already being called China’s 1929 – the year of the most infamous stock market crash in history and the start of the economic catastrophe of the Great Depression.

In any normal summer, a 30pc fall in the Chinese stock market – a loss of value roughly equivalent to the UK’s entire economic output last year – after an ascent which had seen share prices more than double within the space of a year would have been front page news across the globe.

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Why Europe Will Lead the Charge to Eliminate Cash – The Next Step in Global Meltdown

Made in Germany, and by design it will fail. The incoming Fourth Reich will see to it.

 

Europe will lead the world into this Economic Totalitarianism because government is now desperate to retain the Euro. If the Euro collapses, so will Brussels. The government exists solely because of the Euro.

The fatal design of the Euro is the key. The failure to have consolidated the debts of all individual member states has been the worst possible mistake perhaps ever made in this post-Great Depression era of New Economics where government lawyers assume they can just write a law and that will be followed as some new modern dictator. Continue reading