The Fed’s Built a Financial “Maginot Line”

 

Over the coming months, I believe we could see an economic meltdown at least six times the size of the 2007 subprime mortgage meltdown. That’s right: I believe we could see an economic meltdown at least six times the size of the 2007 subprime mortgage meltdown

Circumstances lead me to believe it could play out like the meltdown I experienced in 1998 after Long Term Capital Management (LTCM) failed.

This time, however, there will be several crucial differences that will leave investors and regulators unprepared.

In the national defense community, military commanders are known for fighting the last war. They study their prior failures in preparation for the next conflict. The problem is that each war inevitably involves new tactics for which they’re completely unprepared.

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Everyone on Earth has been irradiated by Fukushima — “Shocking new study reveals true extent of global impact” — “Scientists are only just now confirming far-reaching effects” of nuclear disaster

 

New Scientist, May 5, 2017 (emphasis added): Fukushima accident gave everyone an X-ray’s worth of radiation — “We don’t need to worry,” says Nikolaos Evangeliou at the Norwegian Institute for Air Research, whose team has conducted the first global survey of radiation exposure caused by the meltdown of three nuclear reactors at the Fukushima-Daiichi nuclear plant… Evangeliou’s team has calculated the approximate exposure of everyone on Earth to two radioactive isotopes of caesium… He has estimated the dose that most individuals received to be 0.1 millisievert. “What I found was that we got one extra X-ray each,” says Evangeliou… But Evangeliou says that the effects on wildlife around the plant might be more severe. Already, he says, increased levels of radiation around Fukushima have been linked to declines in bird populations there between 2011 and 2014. “There have also been reports of declines in other species such as insects and some mammals,” he says… Continue reading

Italy MUST act NOW: IMF’s URGENT warning to EU as Italian debt hits ‘ALARMING’ levels

Italy is on the brink of financial and political meltdown and leader Matteo Renzi may be abut to push t over the edge by calling a referendum on constitutional reform in October, potentially plunging the already beleaguered European Union into fresh chaos.

Juan Toro of the International Monetary Fund (Fmi), said: “It is necessary to take significant measures in the recovery of credit.”  Continue reading

Venezuela Demonstrates Why Socialism Always Fails

Venezuela had the greatest oil reserves of any country. The country was ruled for 14 years with the iron fist of Hugo Chavez. Then anti-capitalism wiped out the country and sent it into hyperinflation. “Socialism fails when you run out of other people’s money,” as Margaret Thatcher said. It is human nature for people to work less if the state is robbing them. What is the point of producing if the state just takes it away? Every socialist system has sent capital fleeing and caused investment to decline, yet politicians never see this. They just assume everyone will continue to work and pay whatever they demand in taxes. Venezuela is in a meltdown and people are starving. Continue reading

The China Syndrome: The Coming Global Financial Meltdown

The 1979 film The China Syndrome took its name from the darkly humorous notion that a nuclear reactor meltdown in the U.S. would burn straight through the Earth to China. (wikipedia: The China Syndrome)

In today’s world, the financial meltdown in China has burned straight through the global financial system to the U.S. financial markets. The mainstream financial media is delighted to promote the many links between the U.S. and Chinese economies when the two economies are feeding each other’s expansion in a tightly coupled virtuous cycle. Continue reading

U.S. debt headed toward Greek levels

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United States’ projected debt over the next 25 years looks a lot like Greece’s over the past 25.

With all the chaos unravelling in Greece, Congress would be wise to do what it takes to avoid reaching Greek debt levels. But it’s not a matter of sticking to the status quo and avoiding bad decisions that would put the budget on a Greek-like path, because the budget is on that path already. Continue reading

Government Has Gone Insane – That’s What a Phase Transition Is All About

Whom the gods would destroythey first make mad,” was spoken by Prometheus in Henry Wadsworth Longfellow’s poem “The Masque of Pandora”. This seems to be very appropriate to explain our government officials for they are truly insane when it comes to economics. This is all about them sustaining a failed system that is unsupportable. They refuse to look at what they are doing and instead they are clamping down on everyone destroying the very fabric of the world economy. Continue reading

Exclusive: EU executive sees personal savings used to plug long-term financing gap

The savings of the European Union’s 500 million citizens could be used to fund long-term investments to boost the economy and help plug the gap left by banks since the financial crisis, an EU document says.

The EU is looking for ways to wean the 28-country bloc from its heavy reliance on bank financing and find other means of funding small companies, infrastructure projects and other investment. Continue reading

Study: All 107 U.S. nuclear reactors vulnerable to terrorists

Every commercial nuclear reactor in the United States is insufficiently protected against “credible” terrorist threats, according to a new report (PDF) from the Nuclear Proliferation Prevention Project at the University of Texas at Austin.

The report found that facilities were vulnerable to the theft of bomb-grade nuclear materials and sabotage attacks designed to cause a meltdown. Continue reading