Back in September in “How Mario Draghi Can Force The Swiss National Bank To Go ‘Nuclear On Depositors,” we discussed the implications of the ECB’s (likely) decision to plunge further into NIRP-dom at the bank’s December meeting.
In short, DM central banks – with the possible exception of the Fed which is about to create a rather meaningful policy divergence with its core CB brethren – are in a proverbial race to bottom. It’s a beggar-thy-neighbor monetary policy regime and the more stubborn inflation expectations prove to be, the more aggressive the tit-for-tat easing, as everyone involved scrambles to protect their currency in the face of incessant competitive devaluations on all sides.
As we outlined in great detail in the post linked above, the ECB’s ultra dovish lean has the potential to create a lot of problems for the Riksbank, the Norges Bank, and the SNB. Continue reading »
A significant debate is underway in Russia since imposition of western financial sanctions on Russian banks and corporations in 2014. It’s about a proposal presented by the Moscow Patriarchate of the Orthodox Church. The proposal, which resembles Islamic interest-free banking models in many respects, was first unveiled in December 2014 at the depth of the Ruble crisis and oil price free-fall. This August the idea received a huge boost from the endorsement of the Russian Chamber of Commerce and Industry. It could change history for the better depending on what is done and where it further leads. Continue reading »
One week ago, we reported, with little surprise, that just days after last Friday’s terrorist attack, the European Commission had “implemented strict controls to make it difficult to acquire firearms.”
This followed our take from two months ago, predicting with uncanny accuracy the events of November 13, when we said that “as the need to ratchet up the fear factor grows, expect more such reports of asylum seekers who have penetrated deep inside Europe, and whose intentions are to terrorize the public. Expect a few explosions thrown in for good effect” and we added that “since everyone knows by now “not to let a crisis go to waste” the one thing Europe needs is a visceral, tangible crisis, ideally with chilling explosions and innocent casualties. We expect one will be provided on short notice.” Continue reading »
As we’ve noted previously, the War on Cash is accelerating.
In recent months:
1) The SEC and other regulators have implemented legislation allowing Money Market Funds to lock in your cash for up to 10 days during the next financial crisis (meaning you cannot get your money out).
2) The FDIC has implemented legislation permitting it to seize “systemically important” banks and convert their deposits into equity (the dreaded “bail in” used in Cyprus in 2013).
3) JP Morgan and other large banks have begun rejecting large deposits. Continue reading »
Back in May we first introduced our readers to the FX manipulation practice known as “last look.” Wait, what’s that? This is what we said:
The last look practice is a legacy of over-the-phone currency trading, when traders would take a final check of the market before executing an order. It has survived even as foreign-exchange trading moved onto electronic platforms, leaving banks with the option to back out of an order after it was accepted by a client. Continue reading »
AP reports today:
Federal Reserve Chair Janet Yellen is stressing the need to review the unconventional monetary policies that central banks around the world deployed in response to the 2008 global financial crisis.
She said Thursday that the post-crisis period offers policymakers an opportunity to assess the effectiveness of the tools and better understand the impact of new regulation. Continue reading »
Earlier this morning, as I was just minding my own business reading what appeared to be an uneventful Wall Street Journal article titled, Justice Department Gets Tougher on Corporate Crime, I came across a stunning revelation. Continue reading »
I think you would do well to watch this video below.
Too big to fail is a seven-year phenomenon created by the most powerful central banks to bolster the largest, most politically connected US and European banks. More than that, it’s a global concern predicated on that handful of private banks controlling too much market share and elite central banks infusing them with boatloads of cheap capital and other aid.
Synthetic bank and market subsidization disguised as ‘monetary policy’ has spawned artificial asset and debt bubbles – everywhere. The most rapacious speculative capital and associated risk flows from these power-players to the least protected, or least regulated, locales. Continue reading »
China and Russia too are run by TPTB.
To them this is a big game of chess and the people are the pawns that will be sacrificed.
While the world was following the tragic events unfolding on Friday night in France where hundreds of innocent civilians were killed or injured, an important economic development took place at the IMF, whose staff and head Christine Lagarde, officially greenlighted the acceptance of China’s currency – the Renminbi, or Yuan – into the IMF’s foreign exchange basket, also known as the Special Drawing Rights.
As Reuters summarizes, the recommendation paves the way for the Fund’s executive board, which has the final say, to place the yuan on a par with the U.S. dollar Japanese yen, British pound and euro at a meeting scheduled for November 30. At this point only an explicit veto by US political interests deep behind the stage can derail the CNY’s ascension into the SDR. The United States, the Fund’s biggest shareholder, has said it would back the yuan’s inclusion if it met the IMF’s criteria, a U.S. Treasury spokesperson said, adding: “We will review the IMF’s paper in that light.” Continue reading »
NEW YORK (JTA) — Three Jewish men, two of them Israeli citizens, are among those charged with hacking the website of JPMorgan Chase & Co. and stealing hundreds of millions of dollars.
The indictments of Gery Shalon, Joshua Samuel Aaron and Ziv Orenstein in U.S. District Court, Southern District of New York were unsealed Tuesday. The 23-count indictment encompasses the Chase hack along with numerous alleged crimes targeting 12 other companies, including nine financial service companies and The Wall Street Journal, Reuters reported. Continue reading »
Today, bankers all around the world are making it more and more difficult to withdraw more than $3000 or €3000 per day or to pay in cash for any item priced higher than these levels. Though most people are asleep and not questioning why this is, this global banker movement should be interpreted as a clear and present danger to everyone’s savings. If you’re still not convinced, then this video should convince you of this danger. If it doesn’t, nothing will!
As central planners the world over grapple with the effective “lower bound” that’s imposed by the existence of physical banknotes, there’s been no shortage of calls for a ban on cash.
Put simply, if you eliminate physical currency, you also eliminate the idea of a floor for depo rates.
After all, if people can’t withdraw paper money and stash it under the mattress, then interest rates can be as negative as the government wants them to be in order to “encourage” consumption. If, for instance, you’re being charged 10% for saving your money, then by God you will probably spend that money rather than see the bank collect a double-digit fee just for holding on to your paycheck. Continue reading »
Goldman Sachs announced last month that its investment in a Utah preschool program had helped 109 “at-risk” kindergartners avoid special education. The investment also resulted in a $260,000 payout for the Wall Street firm, the first of many payments that is expected from the investment.
Yet since the Utah results were disclosed, questions have emerged about whether the program achieved the success that was claimed. Nine early-education experts who reviewed the program for The New York Times quickly identified a number of irregularities in how the program’s success was measured, which seem to have led Goldman and the state to significantly overstate the effect that the investment had achieved in helping young children avoid special education.
Goldman said its investment had helped almost 99 percent of the Utah children it was tracking avoid special education in kindergarten. The bank received a payment for each of those children.
The big problem, researchers say, is that even well-funded preschool programs — and the Utah program was not well funded — have been found to reduce the number of students needing special education by, at most, 50 percent. Most programs yield a reduction of closer to 10 or 20 percent.
– From the New York Times article: Success Metrics Questioned in School Program Funded by Goldman
Just when you think “Too Big to Fail and Jail” Wall Street can’t stoop any lower, they go ahead and exceed expectations. The following story is so base, so disgusting, and so completely void of any semblance of ethics, it could only have been achieved by the Vampire Squid itself. Continue reading »
Having watched the credit markets grow more and more weary of the major US financials, it should not be total surprise that ratings agency S&P just put all the majors on watch for a rating downgrade:
*JPMORGAN, CITIGROUP, GOLDMAN SACHS, STATE STREET CORP, MORGAN STANLEY MAY BE CUT BY S&P
Despite all the talking heads proclamations on higher rates and net interest margins and ‘strongest balance sheets’ ever, S&P obviously sees something more worrisome looming. This comes just hours after Moody’s put Bank of Nova Scotia on review also (blaming the move on concerns over increased risk appetite).
“When a country embarks on deficit financing (Bush-Obamanomics) and inflationism (Quantitative easing) you wipe out the middle class and wealth is transferred from the middle class and the poor to the rich.
– Ron Paul
“Deficits mean future tax increases, pure and simple. Deficit spending should be viewed as a tax on future generations, and politicians who create deficits should be exposed as tax hikers.”
– Ron Paul
Wall Street is counting its winnings from seven years of easy money.
The results represent a clear victory for Wall Street over Main Street, according to the team of Michael Hartnett, BofA’s chief investment strategist.
“Zero rates and asset purchases of central banks have, thus far, proved much more favorable to Wall Street, capitalists, shadow banks, ‘unicorns,’ and so on than it has for Main Street, workers, savers, banks and the jobs market,” the BofA team wrote.
– From the Bloomberg article: Here’s How Much QE Helped Wall Street Steamroll Main Street
In a refreshing bit of honesty from “Too Big to Fail and Jail” Wall Street firm Bank of America, the American peasants are informed about a reality with which they are all too familiar. That the U.S. government and the Federal Reserve Bank bailed out the rich and powerful, while leaving average citizens high and dry. Continue reading »
… here are some shocking statistics on how we got there, and which we all take for granted, courtesy of BofA:
- There have been 606 global rate cuts since LEH
- $12.4 trillion of central bank asset purchases (QE) since Bear Stearns
- The Fed is operating a zero rate policy for the longest period ever (even exceeding the WW2 Aug’37-Sep’42 zero rate period)
- European central banks operating negative rate policies (Swiss policy rate currently -0.75%; Sweden’s policy rate currently -0.35
- Just this month, the PBoC cut rates, the ECB confirmed QE2, Sweden announced additional QE, and the BoJ promised additional easing if necessary “without hesitation”
- $6.3 trillion global government bonds currently yielding <0%
- $20.0 trillion global government bonds currently yielding <1%
But wait, there’s more in describing what BofA says is the most immense and long-lasting monetary stimulus, i.e., bubble, in history:
This article was written by J.D. Heyes and originally published at Natural News.com.
Editor’s Comment: Only in the bizarro-world controlled by the banksters would cash money become a liability and pseudo-criminalized form of payment (which is actually an instrument of debt).
But as SHTF has covered at length, the big banks are much more interesting in having everyone under their control, and on watch through the cashless control surveillance grid.
WAR ON CASH: Banks to start charging for cash deposits
by J.D. Heyes
Few could have envisioned it even just a few years ago, but it’s happening now, and on an ever-widening scale. More big U.S. banks are shunning cash, because the banking system has become so dependent on other “assets” that large cash deposits actually pose a threat to their financial health, according to The Wall Street Journal. Continue reading »
“The conditions in the economies of the rest of the world have undoubtedly proved weaker compared with a few months ago, in particular in the emerging economies. Global growth forecasts have been revised downwards. This slowdown is probably not temporary.”
Undoubtedly, the most amusing this about the prospect of more easing from the ECB (as telegraphed by Mario Draghi last week) and the BoJ (where Haruhiko Kuroda just jeopardized his status as monetary madman par excellence by failing to expand stimulus) is that both Europe and Japan both recently slid back into deflation despite trillions in central bank asset purchases.
In other words, the market expects both Draghi and Kuroda to double- and triple- down on policies that clearly aren’t working when it comes to altering inflation expectations and/or boosting aggregate demand. Indeed, both Goldman and BofAML said as much last week. For those who missed it, here’s Goldman’s take Continue reading »
Iceland — First, Iceland jailed its crooked bankers for their direct involvement in the financial crisis of 2008. Now, every Icelander will receive a payout for the sale of one of its three largest banks, Íslandsbanki.
If Finance Minister Bjarni Benediktsson has his way — and he likely will — Icelanders will be paid kr 30,000 after the government takes over ownership of the bank. Íslandsbanki would be second of the three largest banks under State proprietorship.
As we put it a few days ago while mocking Saudi Arabia’s attitude toward “collateral damage” from its bombing runs in Yemen, “you can’t make an omelette without breaking a few eggs.” Well, over at Deutsche Bank, John Cryan has been busy crushing whole cartons worth.
From sweeping job cuts, to reorganizations, to eliminating the dividend, Cryan has been a veritable wrecking ball since taking the helm from co-CEOs Anshu Jain (who is gone) and Jürgen Fitschen (who is leaving).
This surely will end ‘well’!
Haruhiko Kuroda owns 52% of all Japanese ETFs. And now he wants more. Facing a lack of willing JGB sellers, the BoJ now faces the possibility that ramping up its easing efforts will entail expanding the bank’s already elephantine equity portfolio. “At a fundamental level, I don’t support the idea of central banks buying ETFs or equities. Unlike bonds, equities never redeem. That means they will have to be sold at some point, which creates market risk.”
From the article:
“Anyone else found to have obtained at least “35 confidential documents” from the Fed on at least “20 occassions” would be sent straight to jail with a prison sentence anywhere between several decades and life. Goldman’s punishment? 0.6% of its 2014 Net Income.”
0.6%? Remember, Goldman is still “doing God’s work”.
Two days ago we reported that the saga of Rohit Bansal, Goldman’s “leaker” at the Fed is coming to a close with the announcement of a criminal case filed against Goldman’s deep throat who had previously spent 7 years at the NY Fed, and was about to spend some time in prison, and who had been providing Goldman with confidential information sourced from his contact at the NY Fed for months, as a result of which Goldman would be charged a penalty. Continue reading »
Deutsche Bank is going through a painful restructuring that began with the ouster of co-CEOs Anshu Jain and Jürgen Fitschen and culminated in new CEO John Cryan’s move to eliminate a quarter of the workforce, or some 23,000 people. Well don’t look now, but just moments ago, Europe’s biggest bank eliminated the dividend.
The slow motion financial holocaust has been underway for some time now.
Goldman Sach recently commented that we are in the third wave of the great crisis. What happened in 2008 remains directly relevant to the personal financial risk that most Americans face at the brink of the next phase of the collapse. Continue reading »
H/t reader squodgy:
“Terrible Grammar & Spelling, but the essence of this reality check article is profound.”
An article circulating on the internet and entitled, “When will the Bank Bubble Burst” makes some good points about the lurking catastrophe of world markets.
Egon von Greyerz writes about an recent that took place at Deutsche Bank (DB), where a junior employee “paid $6 billion to a hedge fund which was the gross value of a position, [where] he should have paid the net.” Continue reading »
General Electric Co (GE.N) took a big step on Tuesday in its plan to unload most of its financing operations, saying it has agreed to sell commercial lending and leasing businesses worth more than $30 billion to Wells Fargo & Co (WFC.N).
The U.S. conglomerate has now inked $126 billion in transactions — more than half of its overall target — since announcing in April it would seek to reduce its GE Capital financing business to less than 10 percent of earnings as it focuses more on industrial manufacturing. GE Capital accounted for 42 percent of the company’s profit in 2014. Continue reading »