Mar 03

Blankfein-Hillary-Clinton

- As Jeb Bush Pounces On The Hillary Email Scandal, The Real Winner Is… Goldman Sachs (ZeroHedge, March 3, 2015):

While the Clintons have had their share of funding snafus in recent history exposing the former “not truly well off” first lady as not only a puppet of not only Wall Street but also America’s mega corporations, Hillary Clinton’s use of personal email accounts as America’s former top diplomat is a far more serious issue as it touches directly on accountability, and rational decision-making while in a top position of government power. To say that it impairs her image as a presidential candidate who puts the country ahead of her own interests, would be an understatement. Continue reading »

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Mar 02

bank-failure1

- Lehman Moment For Austrian “Bad Bank” Means Worse Coming (ZeroHedge, March 2, 2015):

Not “contained.” Just six short months ago, the 2Y bonds of Austria’s bank bank – HETA Asset Resolution AG – were trading well above par as the world and his mom reached for yield (~6%) in all the wrong places. Today, following the “spectacular development” over the weekend that the bank will be wound down due to the discovery of an $8.5bn “hole” in its balance sheet, the 2Y HETA bonds are trading below 50c on the dollar (at a yield of 54%). This is indeed Austria’s “Lehman” moment as for the first time in the new European ‘bail-in’ era, senior debt is getting a massive haircut.

As we noted yesterday, the punchline, is that while the world was waiting for Greece to announce capital controls, or a bail-in over the past week, it was none other than one of the Europe’s most pristeen credits (one which until recently was rated AAA/Aaa) that informed creditors a bail-in is imminent: “The finance ministry noted that creditors can be forced to contribute to the costs of winding down Heta – or “bailed in” – under new European legislation that Austria adopted this year so that taxpayers do not have to shoulder the entire burden.Continue reading »

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Mar 02

Sundown In America

- David Stockman Warns “It’s One Of The Scariest Moments In History” (ZeroHedge, March 1, 2015):

“The Fed is out of control,” exclaims David Stockman – perhaps best known for architecting Reagan’s economic turnaround known as ‘Morning in America’ – adding that “people don’t want to hear the reality and the truth that we’re facing.The following discussion, with Harry Dent, outlines their perspectives on the looming collapse of free market prosperity and the desctruction of American wealth as policymakers “take our economy in a direction that is dangerous, that is not sustainable, and is likely to fully undermine everything that’s been built up and created by the American people over decades and decades.” The Fed, Stockman concludes, “is a rogue institution,” and their actions have led us to “one of the scariest moments in our history… it’s a festering time-bomb and we’re not sure when it will explode.”

Full Discussion:

Continue reading »

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Mar 01

hypo group_0

- “Spectacular Developments” In Austria: Bail-In Arrives After €7.6 Billion Bad Bank Capital Hole “Discovered” (ZeroHedge, March 1, 2015):

Slowly, all the lies of the “recovery”, all the skeletons in the closet, and all the bodies swept under the rug are emerging.

Moments ago, Austrian ORF reported that there have been “spectacular developments” in the case of the Hypo Alpe Adria bad bank, also known as the Heta Asset Resolution, where an outside audit of Heta’s balance sheet exposed a capital hole of up to 7.6 billion euros ($8.51 billion) which the government was not prepared to fill, the Austrian Financial Market Authority said.

As a result, according to Reuters, the bad bank that was created in the aftermath of the Hypo collapse, is itself about to be unwound, as the bad bank itself goes bad! Continue reading »

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Mar 01

- China Cuts Interest Rates, Takes Number Of Central Banks Easing In 2015 To 21 (ZeroHedge, Feb 28, 2015):

And then there were 21. Hours ago on Saturday, the country whose currency is largely pegged to the dollar which itself is now anticipating a rate hike in the coming months, surprised the world by confirming its economic slowdown yet again following a recent rate cut just this past November when it lowered its benchmark rate by 40 bps, after it again cut benchmark lending and deposit rates by 25 bps starting on March 1. Specifically, the PBOC will lower the one-year lending rate to 5.35% from 5.6% and its one-year deposit rate to 2.5% from 2.75%. It also said it would raise the maximum interest rate on bank deposits to 130% of the benchmark rate from 120%.

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Feb 28

bank-failure1

- Puerto Rico’s 3rd Largest Bank Fails (ZeroHedge, Feb 27, 2015):

Based on Bloomberg data, Doral Bank is the 3rd largest (by assets) bank in Puerto Rico…or rather was. After a 58% collapse in the share price today, news broke after the close:

*PUERTO RICO’S DORAL BANK PLACED UNDER FDIC RECEIVERSHIP, BANCO POPULAR AGREES TO BUY DORAL BANK OPERATIONS

It appears Non-Performing Loans were over 40%. Popular will take the deposits (and 8 of Doral’s 26 branches) and the FDIC eats the bad debt (estimates to cost the Deposit Insurance Fund (DIF) will be $748.9 million).

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Feb 27

Is This The Most Important Chart For The Future Of The World’s Reserve Currency? (ZeroHedge, Feb 25, 2015):

When it comes to the future of the dollar status as the world’s reserve currency, the most important chart may be the fact that the US is now so woefully buried in debt that another global military conflict appears inevitable…

US debt

… or that it now takes virtually unlimited monetization of the debt shown above to preserve the illusion that the US is not bankrupt, pushing the S&P to record highs in the process…

fed monetary base

… or that the marginal impact of every additional dollar in new debt generates increasingly less economic growth? Continue reading »

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Feb 27

Great-Seal

- Janet Yellen Is Freaking Out About ‘Audit The Fed’ – Here Are 100 Reasons Why She Should Be (End Of The American Dream, Feb 24, 2015):

Janet Yellen is very alarmed that some members of Congress want to conduct a comprehensive audit of the Federal Reserve for the first time since it was created.  If the Fed is doing everything correctly, why should Yellen be alarmed?  What does she have to hide?

During testimony before Congress on Tuesday, she made “central bank independence” sound like it was the holy grail.  Even though every other government function is debated politically in this country, Yellen insists that what the Federal Reserve does is “too important” to be influenced by the American people.  Does any other government agency ever dare to make that claim?

But of course the Federal Reserve is not a government agency.  It is a private banking cartel that has far more power over our money and our economy than anyone else does.  And later on in this article I am going to share with you dozens of reasons why Congress should shut it down. Continue reading »

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Feb 27

Somebody tell them that all those billions were just spent to bail out the banksters …

- ‘Greece Won’t See A Cent Of The GREAT BAILOUT’ (Telegraph) … It’s All For The Banksters!

… but then I am sure they knew it already.


- “NEIN” – Germany’s Bild Has A Message For Greece: “No More Billions For Greedy Greeks” (ZeroHedge, Feb 25, 2015):

One day ahead of a key vote in the German Bundestag whether to ratify the 4-month Greek bailout extension, the biggest-selling, mass-market newspaper (or tabloid as some call it) with a circulation of 2.5 million, Bild, has made it very clear just how it feels about the latest Greek can kicking event.

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Feb 26

- Greece Suffers Biggest Bank Run In History: January Deposits Plunge To 2005 Levels (ZeroHedge, Feb 26, 2015):

Moments ago the Bank of Greece presented its latest, January, deposit data. And it’s a doozy: following a record €12.2 billion monthly outflow, greater in absolute and relative terms than anything experienced during any of the previous Greek crises and bailouts, the total amount of Greek corporate and household deposits has now tumbled to just €148 billion. This number is in line with some of the more pessimistic expectations, and brings the total cash holdings at Greek banks to the lowest level since August 2005.

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Feb 25

Financial-Bank-Account

- US government’s new ‘rule’ allows banks to completely make sh*t up (Sovereign Man, Feb 23, 2015):

In 1494, a 47-year old Franciscan friar named Luca Pacioli invented something that was revolutionary.

Pacioli was, in fact, a friend and contemporary of Leonardo da Vinci, and the two collaborated frequently.

So you’re probably guessing that Pacioli was a co-designer in Leonardo’s famed flying machine, or a new architectural technique.

On the contrary.

Pacioli’s invention was the double-entry accounting system; in fact he’s known by bean counters today as the father of accounting.

This was a major and much needed innovation at the time.

In the 15th century, Italy was dominating global trade and commerce.

Yet unlike in the centuries before where merchants were primarily transporters and traders of exotic goods, 15th century merchants had essentially become proto-bankers whose primary business was extending and trading credit.

This was a major change in the way that business was done, and it absolutely demanded a new way to keep track of it all.

That’s exactly what Pacioli invented. And his system of accounting is still being used today, over 500 years later. Continue reading »

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Feb 25

jpmorgan

- NIRP Officially Arrives In The US As JPM Starts Charging Fees On Deposits (ZeroHedge, Feb 24, 2015):

The nebulous threat of NIRP in the US “some time in the future” became tangible after J.P. Morgan Chase, the largest US bank by assets (and second largest in the US by total derivative notional) is preparing to charge large institutional customers for some deposits. WSJ adds that JPM “is aiming to reduce the affected deposits by billions of dollars, with a focus on bringing the number down this year. “The moves have thrown into question a cornerstone of banking, in which deposits have been seen as one of the industry’s most attractive forms of funding.

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Feb 24

From the article:

Under scrutiny are Bank of Nova Scotia , Barclays PLC, Credit Suisse Group AG , Deutsche Bank AG , Goldman Sachs Group Inc., J.P. Morgan Chase & Co., Société Générale SA, Standard Bank Group Ltd. and UBS AG , according to one of the people close to the investigation.”


- Ten Banks, Including JPM, Goldman, Deutsche, Barclays, SocGen And UBS, Probed For Gold Rigging (ZeroHedge, Feb 23, 2015):

No matter how many times the big banks are caught red-handed manipulating precious metals, some failed former Deutsche Bank prop-trader (you know who you are) will take a vociferous stand based on ad hominem attacks and zero facts that no, what you see in front of you is not precious metal rigging at all but a one-off event that has nothing to do with a criminal banking syndicate hell bent on taking advantage of anyone who is naive and dumb enough to still believe in fair and efficient markets. Continue reading »

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Feb 23

schauble stare

nein nein nein

- Why Germany Will Throw Up On The Greek “Reform Proposals”: Wage Hikes, Foreclosure Protection, “Red Lines” (ZeroHedge, Feb 23, 2015)

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Feb 22

- Switzerland flexes parliamentary muscle as scrutiny of HSBC intensifies (Reuters, Feb 19, 2015):

FINMA had first investigated HSBC as long as four years ago, when it criticized the bank’s internal controls, and it said on Thursday that two previously unpublicised investigations had found that HSBC violated money laundering guidelines.

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Feb 20

- Greek Deposit Run Accelerates Ahead Of Monday’s Bank Holiday (ZeroHedge, Feb 19, 2015):

Official Greek deposit data began tumbling in December (outflows around EUR3bn), and accelerated in January in the run up to the Syriza election (proxied by JPMorgan at over EUR 12bn). During the last two weeks, however, the absence of ATM lines and visible bank runs has been curiously lacking as, at least on the surface, there appears to be no panic. However, as Dody Tsiantar reports, sources in the Greek banking sector have told Greek newspapers that as much as EUR 25bn euros have left Greek banks since the end of December with outflows surging this week. Perhaps they are getting anxious that authorities will take Cypriot advantage of the Bank Holiday that is planned in Greece on Monday.

Greek Bank Holiday

As Dody Tsintar reports (via CNBC), Continue reading »

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Feb 20

silver-coinsWiener-Philharmoniker-Gold

- Why ZIRP/NIRP Is Killing Fractional Reserve Banking & Forcing Deposits Into Gold (ZeroHedge, Feb 18, 2015)

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Feb 19

draghi prayer

- ECB Releases Minutes From Its Historic January 22 “QE Launch” Policy Meeting (ZeroHedge, Feb 19, 2015):

Today, for the first time, the ECB released minutes from its historic January 21-22 meeting during which the ECB unleashed QE. While hardly containing anything earthshattering, here are the main highlights. First, from Bloomberg:

  • ECB MEETING ACCOUNT SHOWS POLICY MAKERS SPLIT ON QE
  • LARGE NUMBER’ OF COUNCIL MEMBERS IN FAVOR OF BUYING GOVT DEBT
  • ECB POLICY MAKERS SAW NO OPTION FOR POLICY OF `BENIGN NEGLECT’
  • ECB CONSENSUS WAS SOVEREIGN DEBT BUYING ONLY SUFFICIENT OPTION
  • ECB ACCOUNT SHOWS OFFICIALS CONSIDERED BUYING CORPORATE DEBT
  • ECB DECIDED TO RAISE BOND BUYING TO EU60B FROM EU50B PROPOSED
  • ECB POLICY MAKERS SAW DETERIORATION IN PRICE-STABILITY OUTLOOK
  • QE OPPONENTS SAID NO URGENT NEED FOR ACTION SEEN NOW
  • QE OPPONENTS SAID BUYING SOVEREIGN DEBT SHOULD BE LAST RESORT

And the key excerpt from the section discussing monetary policy: Continue reading »

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Feb 19

putin-chess

- De-Dollarization Accelerates: Russia Launches SWIFT-Alternative Linking 91 Entities (ZeroHedge, Feb 18, 2015):

Back in 2013, The NSA was first exposed for secretly ‘monitoring’ the SWIFT payments flows. This appears to have been among the last straws for Russia (and others) as far as both NSA spying and dollar domination.

Last year, following threats to remove Russia from SWIFT by the UK, (which SWIFT rapidly distanced its ‘independent-self’ from), Russia (and China) announced plans to create its own de-dollarized version. In November, Russia detailed the SWIFT-alternative’s launch date around May 2015, and just last month, Medvedev warned of “unlimited reaction” if Russia was cut off from the SWIFT payments system.

So the news this week that Russia has launched its own ‘SWIFT’-alternative, linking 91 credit institutions initially, suggests de-dollarization is considerably further along than many expected (especially as Russia dumps US Treasuries at a record pace).

Continue reading »

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Feb 19

Related info:

- HSBC Bank: Secret Origins To Laundering The World’s Drug Money


Malcolm X

- Chief Political Commentator of The Telegraph Resigns Over HSBC Coverage – Calls it “A Fraud on its Readers” (Liberty Blitzkrieg, Feb 18, 2015):

The Telegraph’s recent coverage of HSBC amounts to a form of fraud on its readers. It has been placing what it perceives to be the interests of a major international bank above its duty to bring the news to Telegraph readers. There is only one word to describe this situation: terrible. A free press is essential to a healthy democracy. There is a purpose to journalism, and it is not just to entertain. It is not to pander to political power, big corporations and rich men. Newspapers have what amounts in the end to a constitutional duty to tell their readers the truth.

- Peter Oborne, in his article: Why I have resigned from the Telegraph

Anyone reading this website understands that most of the mainstream media has been transformed into little more than complete propaganda over the past several decades. When the various papers and televisions stations aren’t covering up for the war crimes and corruption of politicians and intelligence agencies, they are busy protecting their corporate advertisers from any potential criticism. This isn’t just speculation anymore. Continue reading »

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