Former BIS Chief Economist Warns “More Dangers Now Than In 2007”

Bloomberg

 

Having warned in the past that “the system is dangerously unacnhored,” former chief economist of the Bank for International Settlements, William White, told Bloomberg TV overnight that the current situation “looks very similar to 2008,” adding that OECD sees “more dangers” today than in 2007. Continue reading

Euro on the brink of DISASTER: Germany’s debt plans could send currency into MELTDOWN

Remember what Merkel said in 2012. Destroying to rebuild is the case here.

 

GERMANY could spark the eurozone’s collapse with controversial changes to government debt and bailout rules, a leading economist has warned.

Professor Peter Bofinger, a special advisor to the Berlin-based government, said Italy and Spain could potentially be forced out of the euro and back to their own currencies under new plans.

Under the proposed scheme, investors who hold Eurozone government-issued debts through bonds would have to accept write-offs on the value of their investment before the group steps in to offer bailout cash. Continue reading

The Deflation Monster Has Arrived

 

 

As we’ve been warning for quite a while (too long for my taste): the world’s grand experiment with debt has come to an end. And it’s now unraveling.

Just in the two weeks since the start of 2016, the US equity markets are down almost 10%. Their worst start to the year in history. Many other markets across the world are suffering worse.

If you watched stock prices today, you likely had flashbacks to the financial crisis of 2008. At one point the Dow was down over 500 points, the S&P cracked below key support at 1,900, and the price of oil dropped below $30/barrel. Scared investors are wondering:  What the heck is happening? Many are also fearfully asking: Are we re-entering another crisis?

Sadly, we think so. While there may be a market rescue that provide some relief in the near term, looking at the next few years, we will experience this as a time of unprecedented financial market turmoil, political upheaval and social unrest. The losses will be staggering. Markets are going to crash, wealth will be transferred from the unwary to the well-connected, and life for most people will get harder as measured against the recent past. Continue reading

America Is About to Import a Global Debt Crisis

A global debt crisis is coming. The warning signs have been emerging for months.

“This market instability is not going away. It’s been building for six years. It can only end one way – with a ‘Super Crash,'” Money Morning Global Credit Strategist Michael E. Lewitt told readers back on Sept. 8. “It’s not just China that’s creating this next (much worse) sell-off. It’s also the massive, $200 trillion global debt bubble that’s driving the world economy to its knees.” Continue reading

Greek GDP: The Shocking Reality Vs IMF Forecasts; And Who Is To Blame For The Greek Implosion

With a Greek default, shortly followed by a Grexit, a collapse of the “irreversible union” (but… but… “political capital“), and ultimately the end of the latest European monetary union experiment (the latest in a long and illustrious series of prior failures) now seemingly imminent, the blame game has begun. As the NYT noted overnight “the recriminations that would then fly would be so bitter that they would inflict a second round of damage.”

But who is really to blame? Continue reading

Abolishing Cash – New Age of Economic Totalitarianism

Europe is moving full speed ahead to eliminate all cash. Instead of reforming and tackling the economic problems, government always seeks to maintain the same course of thinking and that now leads us to the totalitarian approach coming from Brussels. To maintain the euro, they must maintain the banks.

But the bank reserves are debts of all member states. As government becomes insolvent as in Greece, the banking system is undermined. The only way to prevent the banking collapse is to prevent people from withdrawing cash. Continue reading

Schäuble Warns of “Sudden” Greek Default

In the end, all roads lead back to Berlin’s Fourth Reich which controls the entire European Union through its Troika economic pressure groups. As The Telegraph points out, the ECB is one such example.

For those that have paid attention long enough, you will have come to realize the entire system was designed to fail. You cannot logically combine so many diverse countries with differing economies and cultures. What’s been done is by design and a means to an end. Create the crisis and provide the ready-made solution.

 

The governments of Greece – new and old – screwed up. Other debt-sinner countries are able to borrow at near-zero or negative interest rates, simply taking money from investors with a promise to return it on a given day in the future if investors give it new money to do so. These investors, it must be said, had their brains washed by the ECB and other central banks in order to allow this to happen. But the governments of Greece somehow missed that gravy train.

Now, no one wants to lend Greece money at negative interest rates, least of all the Greeks themselves, who know their governments better than anyone else on the planet and have less trust in it than anyone else on the planet: they’re yanking their euros out of their banks even as the ECB is propping them up with fresh euros that ultimately belong to taxpayers elsewhere. Continue reading

Trade Policy and Economic Decline

In a book titled SELLING US OUT, J.R. Martin writes of Chinese companies “exploiting loopholes in the U.S.-China tax treaty signed by the Reagan administration in 1986.” He asks what the Founding Fathers would say about our current trade deficit, and our indebtedness to communist-ruled China. Martin asks, “What would Washington and Adams think about the corrupt and destructive power of the two major political parties in America? How would they judge today’s capitalism?” Continue reading

James Turk Warns The Federal Reserve Is Already Insolvent

Today James Turk told stunned King World News when he warned, “… the Federal Reserve is already insolvent.”  Turk also stated, “Because of the intense leverage that the Federal Reserve employs, this means the mark-down on its $2.844 trillion of securities is, in reality, a staggering $57 billion loss.”  Here is what Turk had to say in this extraordinary interview:  “There was an interesting article in The Telegraph here in London over the weekend, Eric.  It highlighted a study just released by former a Federal Reserve governor that examined the Fed’s solvency.”

James Turk continues:  Continue reading

Counterfeit Money, Counterfeit Policy

What is the difference between printing money and counterfeiting? There is none.

Counterfeiting is illegal because it is the false creation of value. The counterfeiter takes low-value paper and turns it into high-value money, which is fundamentally a claim on the real productive value of the economy that issues the currency and recognizes it as a proxy means of exchanging that productive value.

Counterfeiting is illegal because the counterfeiter creates no additional value–he creates only the proxy for value. Creating real value–adding meaningful goods or services to the economy–is tedious, hard work. How much easier to simply transform near-worthless paper into a claim on actual goods and services.

If this is illegal, then would somebody please arrest the Board of the Federal Reserve for counterfeiting? The Fed has blatantly printed money without creating any real value to back up their added claims on productive value. Hence they are counterfeiting, pure and simple. A government based on rule of law would arrest these fraudsters and cons at the earliest possible convenience.

And while you’re drawing up the indictment, can you also charge them with counterfeiting competence and policy, as they have demonstrated the Peter Principle par excellence: the Board has risen to its highest level of incompetence. Their counterfeit policies have wreaked incomparable damage on the real productive economy.

The essence of counterfeit policy–a fake policy that claims to be something it is not–is “extend and pretend.” And the sole goal of “extend and pretend” is self-preservation and the preservation of the Financial Elite which has tightened its grip on the nation’s throat as a direct consequence of Federal Reserve policies–notably “extend and pretend.”

Full article: Counterfeit Money, Counterfeit Policy (Financial Sense)