It’s time to kill the $100 bill

Now come the calls for the slow death of cash in America:

 

Harvard’s Mossavar Rahmani Center for Business and Government, which I am privileged to direct, has just issued an important paper by senior fellow Peter Sands and a group of student collaborators. The paper makes a compelling case for stopping the issuance of high denomination notes like the 500 euro note and $100 bill or even withdrawing them from circulation. Continue reading

EU founding members pledge deeper integration

A two-speed Europe is back in the picture after talk from four years ago. The EU will likely split but a core group of nations will remain together in solidarity. For those who follow the written word of God, it could very well be the 10 horns (nations) as written about in Daniel 7 (See also Revelation 17), in Bible prophecy. As hs been documented here, the crisis is forcing a core unit to consider integration as the only answer to its problem. All this is coming falling under Berlin’s leadership. The Fourth Reich has landed and its United States of Europe is coming. The Berlin club put the task in motion and you’ll be seeing this political union with its own EU Army.

 

The six founding members of the EU have recommitted to building an “ever closer union”, but they have acknowledged differences with other states and for the first time they have backed a “two-speed” Europe.

At informal talks on Tuesday (9 February) in Rome, where the bloc’s founding treaty was signed in 1957, the foreign ministers of Belgium, France, Germany, Italy, Luxembourg and the Netherlands underscored that for them answers to the EU’s challenges lay in more integration, not less.

In a nod to Britain, they acknowledged that not every country should have to agree.

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China Unveils a Dangerous New Economic Weapon During a Perfectly Timed Distraction

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Caption: Representatives of the founding nations of the Asian Infrastructure Investment Bank applaud after Chinese President Xi Jinping unveiled a sculpture during the bank’s opening ceremony in Beijing on January 16. (MARK SCHIEFELBEIN/AFP/Getty Images)

 

China’s new Asian International Investment Bank could upset the balance of power in Asia.

On January 16, China inaugurated its new international investment bank. In a lavish, ribbon-cutting ceremony at the renowned Diaoyutai State Guesthouse in Beijing, Chinese President Xi Jinping told the assembled dignitaries that they were part of “a historical moment.”

Yet most people totally missed the significance.

While Xi was inaugurating the Asian Infrastructure Investment Bank (aiib)—a project that former United States Treasury Secretary Larry Summers earlier called a “wake-up call” for America and the most important economic event since America led the world off the gold standard in 1971—the world was focused on collapsing stock indexes.

And for good reason.

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Chinese president launches new AIIB development bank as power balance shifts

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Jin Liqun, the first president of the Asian Infrastructure Investment Bank, speaks during the bank’s opening ceremony in Beijing on Jan. 16. (AP Photo)

 

 

BEIJING–Chinese President Xi Jinping launched a new international development bank seen as a rival to the U.S.-led World Bank at a lavish ceremony on Jan. 16, as Beijing seeks to change the unwritten rules of global development finance.

Despite opposition from Washington, U.S. allies including Australia, Britain, German, Italy, the Philippines and South Korea have agreed to join the Asian Infrastructure Investment Bank (AIIB) in recognition of China’s growing economic clout.

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Paris Attacks Reveal the Outlines of a New Europe

A smaller EU with its own army can already be seen on the horizon.

“Europe will be forged in crises and will be the sum of the solutions adopted for those crises.” Those famous words from one of the European Union’s founding fathers, Jean Monnet, explain much of what is happening in Europe. The economic crisis is forcing the political union that EU leaders could not get voters to agree to. And now, in the aftermath of the Paris attacks, new, major changes are afoot.

Externally, Europe is being forced into the Middle East. France’s decision to invoke the EU’s self-defense clause instead of nato’s will have major implications for the union’s defense arrangement. Continue reading

Report: Greece threatened with Schengen suspension

If it does not improve control of its borders and reception of migrants, Greece could be faced with a suspension from the free movement Schengen area.

According to the Financial Times, the threat has been made to the Greek government by several EU officials including Luxembourg’s foreign minister Jean Asselborn, whose country holds the EU rotating presidency.

EU interior ministers meeting in Brussels Thursday (3 December) are expected to ask for more measures from Greece to control the flow of refugees to Europe, improve registration, and step up cooperation with the EU.

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EU preps to launch military strikes against Mediterranean people smugglers

Could this be the start of European Army operations? Only time will tell.

 

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With migrants reaching the EU’s shores in record numbers, the EU is prepping to move into its second, active phase of military operations against human traffickers. Source: PA

 

The European Union (EU) is planning to shift its operation in the Mediterranean against human trafficking to a more aggressive stance, said Federica Mogherini, the EU’s top official for security and defence policy.

The change would authorise the mission’s naval commanders to chase down, capture, and destroy the flimsy and overcrowded vessels used to ferry refugees – often fatally – to Europe’s shores. Continue reading

‘Greece might no longer be a country by the end of this week’

There are only losers in the agreement clinched on Monday at dawn by Greek prime minister Alexis Tsipras and his eurozone partners. First and foremost the Greek people and the German and European leaders, believes the European press.

After a deal between Greek and eurozone leaders was hammered out following 17 hours of arduous negotiations, there is really nothing to cheer about, writes Michał Sutowski in Krytyka Polityczna. “With PM Tsipras’ back against the wall, the German government has pushed through nearly all its conditions; it’s a minor consolation for the Greeks that a ‘temporary Grexit’ turned out to be a negotiation stunt rather than a real proposal and that the restructuring fund will be located in Athens instead of Luxembourg”, writes Sutowski. He stresses that the negotiations have clearly shown the EU leaders’ goal was “to crush the Greeks’ resistance and not to reach a compromise” –

Angela Merkel had a chance to join the pantheon of the great, in a way, of “progressive” European conservatives. Had she forced through, against the German press and her own finance minister, a civilized reform package in exchange for a partial debt restructuring, she would have been on the same footing with Otto von Bismarck and Benjamin Disraeli. It seems though that she decided to become a ‘thrifty housewife’ instead. Continue reading

EU Demands Complete Capitulation From Tsipras

European leaders gave Greek Prime Minister Alexis Tsipras a straightforward choice: ditch his principles or quit the euro.

Tsipras was presented with a laundry list of unfinished business from Greece’s previous bailouts at an emergency summit that stretched in its 14th hour by 5:59 a.m. Monday in Brussels. Euro-area chiefs gave Tsipras three days to enact their main demands to keep alive chances of adding bailout funds of as much as 86 billion euros ($96 billion) to earlier commitments of 240 billion euros.

With Greece running out of money and its banks shut the past two weeks, the gathering was billed as the country’s last chance to stay in the euro. Tsipras, who says he wants to keep Greece in the currency union, has been in financial limbo since his government missed a payment to the International Monetary Fund and allowed its second rescue package to lapse on June 30. Continue reading

Eurozone To Impose Capital Controls On Greece If No Deal By Weekend: German Press

It looks like we’re going to see a painful first shot fired at Greece if they can’t come up with a deal. What exactly will happen out of this is anyone’s guess, but here are three (but not limited to) possible scenarios while Germany’s Fourth Reich drops the hammer:

  • Greece capitulates and is brought to its knees and becomes a German vassal state like Cyprus. (40% chance)
  • Win-win situation for all is found with dual economy compromise. A dual economy with weaker EU nations on the periphery and two currencies as in Cuba. (40% chance)
  • Grexit with a following meldown of the world’s largest economy, the European Union. (20% chance — less likely due to high strategic importance and national security of Europe)

 

Just as we hinted earlier when we reported that the ECB may use the “nuclear option” on Wednesday and yank Greek ELA, here comes German Suddeutsche Zeiting [sic] with a report that Eurozone countries have reached a Greek emergency plan (yay)… which calls for the imposition of capital controls on Greece if no deal is concluded by the weekend (oh no). Continue reading

Greece gets wake-up call: coming week could seal its fate

BRUSSELS (AP) — International creditors sent Greek Prime Minister Alexis Tsipras home from a summit Thursday with a clear message: swiftly tone down your demands in the bailout talks over the next week or face financial ruin.

The International Monetary Fund took the toughest stance, saying it was bringing its negotiators back to Washington as there had been no sign of compromise.

“There has been no progress in narrowing these differences,” IMF spokesman Gerry Rice said Thursday. “There are major differences between us in most key areas.”

European Union President Donald Tusk earlier warned “there is no more time for gambling” and that next week’s meeting of the 19 eurozone finance ministers in Luxembourg should be the make-or-break session in sealing Athens’ fate. Continue reading

Fearful Greek savers pull money from banks and put it in cars

As was reported a month ago HERE.

 

Two weeks after Greece’s leftwing Syriza party won power at the election in January, Panayotis Fotiades pulled his deposits from an Athens bank.

“I felt certain there’d be a confrontation before long with the troika [of bailout monitors],” said the 55-year-old .

Like other owners of small and medium-sized companies in Greece, Mr Fotiades feared a radical government would resort to capital controls if relations with the country’s creditors deteriorated sharply. Continue reading

Bail-Ins Coming – EU Gives Countries Two Months To Adopt Rules

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– 11 countries face legal action if bail-in rules are not enacted within two months
– Bail-in legislation aims at removing state responsibility when banks collapse
– Rules place burden on creditors – among whom depositors are counted
– Austria abolished bank deposit guarantee in April
– “Bail-in regimes” coming globally


The European Commission has ordered 11 EU countries to enact the Bank Recovery and Resolution Directive (BRRD) within two months or be hauled before the EU Court of Justice, according to a report from Reuters on Friday.

The news was not covered in other media despite the important risks and ramifications for depositors and savers throughout the EU and indeed internationally.

The article “EU regulators tell 11 countries to adopt bank bail-in rules” reported how 11 countries are under pressure from the EC and had yet “to fall in line”. The countries were Bulgaria, the Czech Republic, Lithuania, Malta, Poland, Romania, Sweden, Luxembourg, the Netherlands, France and Italy. Continue reading

The New German Arrogance (II)

Germany knows controlling the flow of information is key, therefore it is now capturing the cyber realm. This, plus taking steps towards an EU Army, forcing further integration of EU member states and turning them into vassal states (i.e. Cyprus) are all key actions/characteristics of a nation striving to be a world superpower. Germany is now directly competing against the United States. The Fourth Reich has (almost) landed.

 

BERLIN/WASHINGTON/VIENNA (Own report) – In cooperation with NSA, a US military intelligence service, the German Federal Intelligence Service (BND) has massively intercepted and stored emails from Austria, Luxembourg and the Czech Republic. This became evident through an internal email from an employee of the Deutsche Telekom AG, responsible for cooperation with the intelligence service and police. According to the email, published by the Austrian parliamentarian Peter Pilz, Telekom, already in early February 2005, had given a green light to the BND having access to a fiber optic cable for internet communication connecting Luxembourg to Austria and numerous other countries. At the time, Frank-Walter Steinmeier (SPD), as Head of the Federal Chancellery, bore the highest responsibility for the activities of the BND. According to reports, Austria’s domestic intelligence was also being tapped. Whoever is cognizant of this communication, knows “almost everything about the Republic’s political life,” summarized Pilz. The governments concerned have raised no serious protests, in the Germany-dominated EU. The German government is continuing the BND’s technological upgrading, aimed ultimately toward raising German espionage “to an equal footing” with the NSA – also in internet spying.

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Greece could use ‘parallel currency’ as desperation grows

As was said three years ago, this seems like the safest option in a worst-case scenario. If this backdoor method gains traction in Greece, it would no doubt help avoid a Russian and Chinese invasion via Athens and full economic breakup of the single currency bloc. Other embattled countries might string along.

 

European Central Bank board member floats the idea of an “IOU” system to pay civil servants if country runs out of euros

Greece could start using a “parallel currency” to pay its civil servants if it runs out of cash, one of the European Central Bank’s board members has suggested. His comments come as the country scrambles to reach a deal with international creditors and avoid a default.

Highlighting the desperate situation faced by the country, Yves Merch, a member of the ECB’s executive board and governor of Luxembourg’s central bank, told Spanish newspaper La Vanguardia that Greece could resort to using “exceptional tools” to pay its obligations.

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