Exclusive: Wary of natural disaster, NY Fed bulks up in Chicago

Perhaps the Fed is preparing for a crisis of its own doing and a ‘natural disaster’ is a scapegoat.

Although, and admittedly to their credit, a natural disaster is looming as Mt. Saint Hellens is ready to blow at any moment and a mega earthquake is poised to sink half of California into the Pacific. The New Madrid Fault line is also a great concern at the moment. However, normally in the real world, it’s rather difficult and borderline asinine to try and make a connection between Fed rate hikes and natural disasters.

As the article notes, cyber attacks likely will also play a role in a new crisis.

 

(Reuters) – The New York branch of the U.S. Federal Reserve, wary that a natural disaster or other eventuality could shut down its market operations as it approaches an interest rate hike, has added staff and bulked up its satellite office in Chicago.

Some market technicians have transferred from New York and others were hired at the office housed in the Chicago Fed, according to several people familiar with the build-out that began about two years ago, after Hurricane Sandy struck Manhattan. Continue reading

Obama launches diplomacy with Tehran after quietly accepting Iran’s current nuclear capabilities

Whatever direction gives Israel the short end of the stick is the one both Iran and the current White House administration will likely choose.

Iranian President Rouhani conspicuously avoided shaking the hand President Barack Obama extended to his government at the UN Tuesday, Sept. 24, by absenting himself from the UN reception for world readers. He made this gesture under strong international spotlight to underscore the value Iran places on being respected as an equal in the negotiations ahead with the United States, Iranian sources stress.

Obama knew the “handshake rebuff” was coming, yet he went through with his announcement of direct engagement with Iran earlier Tuesday. To give his rhetoric weight, he demonstratively instructed Secretary of State John Kerry to take charge of the pursuit of “face to face negotiations” with Tehran.

The link Obama made in his speech between the Iranian and Palestinians negotiating processes as the two focal issues of his Middle East policy was further embodied by his appointment of the same official, John Kerry, to take charge of both tracks. This has placed Israel at a disadvantage on both fronts. Continue reading

Cyprus bail-out: savers will be raided to save euro in future crises, says eurozone chief

If it can happen in Cyprus, it can happen across more European nations as the EU and its ‘troika’ set a precedent by changing its own rules. What’s more is that if it can happen in Europe, it can happen in the United States.

Savings accounts in Spain, Italy and other European countries will be raided if needed to preserve Europe’s single currency by propping up failing banks, a senior eurozone official has announced.

The euro fell on global markets after Jeroen Dijsselbloem, the Dutch chairman of the eurozone, announced that the heavy losses inflicted on depositors in Cyprus would be the template for future banking crises across Europe. Continue reading