Prepare for collapse.
- China Is Crashing … As Predicted (Washington’s Blog, March 7, 2014):
The head of China’s sovereign wealth fund noted in 2009: “both China and America are addressing bubbles by creating more bubbles”.
He’s right …
Global credit excess is worse than before the 2008 crash.
The U.S. and Japan have been easing like crazy, but – as Zero Hedge notes [if you missed it when Tyler Durden first posted this] – China has been much worse:
Here is just the change in the past five years:
You read that right: in the past five years the total assets on US bank books have risen by a paltry $2.1 trillion while over the same period, Chinese bank assets have exploded by an unprecedented $15.4 trillion hitting a gargantuan CNY147 trillion or an epic $24 trillion – some two and a half times the GDP of China!
Continue reading »
Tags: Banking, China, Economy, Global News, Politics
- Obama Signs Executive Order Blocking Certain Russian Assets Due to Ukraine Crisis (Liberty Blitzkrieg, March 6, 2014):
Ok, so this seems like a very big deal and may represent a serious escalation in the soft conflict happening between the U.S. and Russia. As of today, the U.S. seems to be using financial warfare in its response. Not only does this Executive Order issued today appear to block certain Russian assets, it also imposes travel restrictions. The question on my mind now is, does Russia hold some of its treasuries in the custody of the Federal Reserve? If so, are these now frozen?
Here’s the text of the Executive Order (emphasis mine):
Executive Order — Blocking Property of Certain Persons Contributing to the Situation in Ukraine
- – – – – – -
BLOCKING PROPERTY OF CERTAIN PERSONS CONTRIBUTING TO THE SITUATION IN UKRAINE
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.) (NEA), section 212(f) of the Immigration and Nationality Act of 1952 (8 U.S.C. 1182(f)), and section 301 of title 3, United States Code,
I, BARACK OBAMA, President of the United States of America, find that the actions and policies of persons — including persons who have asserted governmental authority in the Crimean region without the authorization of the Government of Ukraine — that undermine democratic processes and institutions in Ukraine; threaten its peace, security, stability, sovereignty, and territorial integrity; and contribute to the misappropriation of its assets, constitute an unusual and extraordinary threat to the national security and foreign policy of the United States, and I hereby declare a national emergency to deal with that threat. I hereby order:
Section 1. (a) All property and interests in property that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person (including any foreign branch) of the following persons are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in: any person determined by the Secretary of the Treasury, in consultation with the Secretary of State:
Continue reading »
Tags: Banking, Barack Obama, Economy, Global News, Japan, Obama administration, Politics, Russia, Society, U.S., Ukraine
You can listen to the full interview here:
- Former central banker: “[Bankers] are making it up as they go along. (Sovereign Man, March 3, 2014):
[Editors note: Tim Price, Director of Investment at PFP Wealth Management and frequent Sovereign Man contributor is filling in for Simon today.]
A few weeks ago, William White (former economist at the Bank of England, the Bank of Canada, and Bank of International Settlements) made a frank admission.
And while we search for assets whose prices are less obviously distorted by malign government intervention, it’s refreshing to hear a mea culpa from a member of the economics “profession”.
White said: Continue reading »
Tags: Bank of Canada, Bank of England, Banking, BIS, Economy, Global News
- US Official Claims 6,000 Russian Troops In Complete Control Of Crimea – Crisis Map Update (ZeroHedge, March 2, 2014):
While the images and local news have been suggesting that Russia is in control on the Crimean peninsula, US officials (according to Bloomberg) have confirmed this:
- *RUSSIAN FORCES IN COMPLETE CONTROL OF CRIMEA: U.S. OFFICIAL
- *RUSSIA HAS 6,000 TROOPS IN CRIMEA, U.S. OFFICIAL SAYS
- *KERRY TO REAFFIRM SUPPORT FOR UKRANIAN SOVEREIGNITY, PSAKI SAYS
Obama, Merkel, and Cameron are now on a conference call to discuss this “fact” and officials have just reported that US Secretary of State John Kerry will visit Kiev tomorrow (though we suspect not Sevastopol): Continue reading »
Tags: Banking, Crimea, Economy, Global News, Government, Military, Politics, Russia, Ukraine, Vladimir Putin
- Ukraine Capital Control Crunch: Largest Bank Limits Cash Withdrawals To $100 Daily (ZeroHedge, March 2, 2014):
As we warned on Friday, the military escalation in Ukraine has had dire consequences for the financial state of the country, its banks, and ultimately its people. The central bank promised to rescue domestic banks so long as they agreed to its complete control and it appears the first consequences of that “we are here to help you” promise is coming true:
- UKRAINE’S PRIVATBANK LIMITS ATM WITHDRAWALS TO UAH1,000/DAY ($103/day)
Privatbank is Ukraine’s largest bank and while claiming this move is temporary (just like Cyprus’ capital controls), the bank has also ceased new loans amid what it calls “geopolitical instability”. In summary, you can’t have your money back! Expect long angry lines at Ukrainian banks on Monday morning (and at the pace of collapse in the Hyrvnia, hyperinflation next). Continue reading »
Tags: Banking, Capital Controls, Collapse, Economy, Global News, Government, Politics, Ukraine
- Ukraine Imposes Capital Controls, Limits Foreign Currency Withdrawals (ZeroHedge, Feb 28, 2014):
Yesterday we reported that as part of the Ukrainian central bank’s plan to bailout the nation’s largely insolvent private banks, it would provide any needed funding but only “if they will remain under open control of the National Bank of Ukraine.” And since the new CB head Stepan Kubiv’s allegiance to Europe were already well-known, this was merely a quick and efficient way of providing Europe with all the banking details including asset holdings of the local population. Today, the annexation of the country’s banking system by a “benevolent” Europe is complete.
Itar-Tass reports that Ukraine’s national bank has imposed temporary limits to withdraw money from foreign currency deposits to sums equivalent to no more than 15,000 hryvnias (about $1,500) a day, National Bank Chief Stepan Kubiv told a press conference. Or, as the citizens of Cyprus call it – capital controls.
Continue reading »
Tags: Banking, Capital Controls, Economy, Global News, Government, Politics, Ukraine
State-rescued lender confirms total losses since bailout level with 2008 state bail-out
- RBS has lost all the £46bn pumped in by the taxpayer (Telegeraph, Feb 27, 2014):
Royal Bank of Scotland has lost all the money invested in it by the taxpayer six years ago when the lender came close to collapse.
The bank has confirmed its total losses since its bailout have now drawn level with the £46bn pumped into it in 2008 in return for an 81pc stake.
RBS made a loss last year of £8.2bn, its sixth consecutive annual loss, taking its cumulative losses to £46bn.
The scale of the losses means that all the capital provided by the taxpayer has now been used up dealing with the toxic legacy assets on the bank’s balance sheet.
Continue reading »
Tags: Banking, Economy, Global News, Taxpayers, U.K.
YouTube Added: Feb 25, 2014
Tags: Banking, Barack Obama, Deutsche Bank, Dictatorship, Economy, Fascism, Forex, Gerald Celente, Global News, Government, IMF, JPMorgan, New World Order, Obama administration, Politics, Society, Ukraine, Victoria Nuland
- Fabrice “Fabulous Fab” Tourre to Teach Economics Class at University of Chicago (Liberty Blitzkrieg, Feb 26, 2014):
Just in case you thought for a second that the sorry discipline we call economics couldn’t stoop any further into the gutter of academic idiocy and irrelevance, think again. It’s now being reported that ex-Goldman Sachs trader Fabrice “Fabulous Fab” Tourre (recently convicted on six counts of securities fraud) will be teaching an honors economics class at the “prestigious” University of Chicago.
There’s nothing like an esteemed University setting the already culturally accepted example that ethics are for suckers. Stealing, cheating and corruption are the values most exalted in today’s world. It doesn’t matter how you achieve your wealth, as long as you attain it. After all, it’s not as if you’ll ever get in trouble for it as long as you work for a “Too Big to Jail” bank.
From the UK’s Telegraph:
Fabrice Tourre, the former Goldman Sachs trader convicted on six counts of securities fraud six months ago, will teach an honours class in economics at the University of Chicago this spring.
Continue reading »
Tags: Banking, Chicago, Economy, Fabrice Tourre, Global News, Goldman Sachs, Society, U.S.
- JPM To Lay Off 17,000 Mortgage Bankers In 2013 And 2014, Because The “Housing Recovery” (ZeroHedge, Feb 25, 2104):
The last time JPMorga had an investor day, Jamie Dimon explained to Mike Mayo why he is richer than him (and pretty much anyone else). This year, Jamie will be more focused on explaining to 8,000 JPM workers why after firing 16,500 people in consumer and mortgage banking, the bank will now let go another 2K and 6K in those same two groups (which will bring total mortgage and consumer banking headcount reductions between 2013 and 2014 to at least 17K and 7.5K, respectively). This may be tricky especially in the context of, you know, the housing and economic recovery, and stuff.
Tags: Banking, Economy, Global News
- Seen On An ATM In Western Australia (ZeroHedge, Feb 23, 2014):
With iron-ore stockpiles at record highs in China amid the escalating cash-for-steel financing debacles, one can only imagine the squeeze that is about to occur on the banks of a nation that is almost entirely economically dependent on said iron-ore mining production… which made us think when we saw this sign “justifying” holding low cash amounts in an Aussie bank ATM…
So no need for a withdrawal halt per se when you simply make it impossible for customers to get their money out…
Tags: Australia, Banking, Economy, Global News
- Madoff said JPMorgan executives knew of his fraud: lawsuit (Reuters, Feb 20, 2104):
NEW YORK (Reuters) – Two senior officials at JPMorgan Chase & Co and predecessor companies repeatedly confronted Bernard Madoff over irregularities in his business, a new lawsuit said, suggesting that bank leaders had “direct knowledge” of his Ponzi scheme.
The lawsuit filed in federal court in Manhattan on Wednesday on behalf of shareholders against Chief Executive Jamie Dimon and 12 other current and former executives and directors was based in part by statements made by Madoff himself during a series of interviews.
Continue reading »
Tags: Banking, Global News, Government, JPMorgan, Politics, U.S.
- RBS plans dramatic scaling back, to fire 30,000 of its 120,000 workers (Financial Times, Feb 20, 2014)
Royal Bank of Scotland is preparing a dramatic retrenchment that would see it become a much smaller UK retail and commercial bank in a move that is expected to slash staff numbers by at least 30,000 in the coming years.
The bank, which is 81 per cent owned by the government, is next week expected to announce its withdrawal from many of its riskier investment banking activities alongside a plan to offload much of its international business.
Continue reading »
Tags: Banking, Economy, Global News, RBS, U.K.
- “The Pig In The Python Is About To Be Expelled”: A Walk Thru Of China’s Hard Landing, And The Upcoming Global Harder Reset (ZeroHedge, Feb 20, 2014):
By now everyone knows that the Chinese credit bubble has hit unprecedented proportions. If they don’t, we remind them with the following chart of total bank “assets” (read debt) added since the collapse of Lehman: China literally puts the US to shame, where in addition to everything, the only actual source of incremental credit growth over the same time period has been the Fed as banks have used reserves as margin for risk purchases instead of lending.
Everyone should also know that like a metastatic cancer, the amount of non-performing, bad loans within the Chinese financial system is growing at an exponential pace.
Finally, what everyone learned over the past month, is that as the two massive, and unresolvable forces, come to a head, the first cracks in the facade are starting to appear as first one then another shadow-banking Trust product failed and had to be bailed out in the last minute.
However, as we showed last week, and then again last night, the default party in China is only just beginning as Trust failures in the coming months are set to accelerate at a breakneck pace. Continue reading »
Tags: Banking, China, Collapse, Economy, Global News, Government, Politics
- The Number Of Days In Which JPM Lost Money In All Of 2013 Is… (ZeroHedge, Feb 20, 2014):
Well, what did you expect.
However, there’s more.
First, the reason why the familiar histogram showing the trading days profits (we would say losses but TBTFs don’t lose money in the New Normal) such as the one seen here is no longer present, is because JPM has decided to no longer show it as of this quarter. Continue reading »
Tags: Banking, Economy, Global News, JPMorgan
- US Fed forces foreign banks to equal account ahead of next crisis (RT, Feb 19, 2014):
The Federal Reserve has tightened the rules for foreign banks operating in the US, forcing them to hold higher reserves to make them responsible for losses and provide extra solvency in case of another crisis.
Foreign lenders holding $50 billion in US assets will have to establish a subsidiary that will also need to follow the same risk management and liquidity standards as the biggest national banks do. The Federal Reserve extended the deadline by which foreign banks must comply and meet all the requirements, until July 2016, one year later than originally proposed.
Continue reading »
Tags: Banking, Economy, Fed, Federal Reserve, Global News, U.S.
- JPMorgan Imposes New Capital Controls on Cash Deposits! (Silver Doctors, Feb 18, 2014):
In October, we warned SD readers that JPMorgan had initiated capital controls, limiting cash withdrawals, and banning outgoing international bank wires.
The Morgue is at it again, reportedly at the request of the gov’t, as the bank has just informed customers of new capital controls on cash deposits, banning counter credit deposits, forcing customers to provide a photo ID before depositing their own cash into an account, and only allowing customers to deposit cash into accounts in which their name is listed.
The writing is clearly on the wall for any who have eyes to see.
Your opportunity to exit the current system with your wealth intact is slowly closing as the banksters attempt to seal off the exits without panicking the masses.
Tags: Banking, Economy, Global News, JPMorgan, U.S.
- Does The Trail Of Dead Bankers Lead Somewhere? (Economic Collapse, Feb 18, 2014):
What are we to make of this sudden rash of banker suicides? Does this trail of dead bankers lead somewhere? Or could it be just a coincidence that so many bankers have died in such close proximity? I will be perfectly honest and admit that I do not know what is going on. But there are some common themes that seem to link at least some of these deaths together. First of all, most of these men were in good health and in their prime working years. Secondly, most of these “suicides” seem to have come out of nowhere and were a total surprise to their families. Thirdly, three of the dead bankers worked for JP Morgan. Fourthly, several of these individuals were either involved in foreign exchange trading or the trading of derivatives in some way. So when “a foreign exchange trader” jumped to his death from the top of JP Morgan’s Hong Kong headquarters this morning, that definitely raised my eyebrows. These dead bankers are starting to pile up, and something definitely stinks about this whole thing.
What would cause a young man that is making really good money to jump off of a 30 story building? The following is how the South China Morning Post described the dramatic suicide of 33-year-old Li Jie: Continue reading »
Tags: Banking, Deutsche Bank, Economy, Global News, JPMorgan
- China Sold Second-Largest Amount Ever Of US Treasurys In December: And Guess Who Comes To The Rescue (ZeroHedge, Feb 18, 2014):
While we will have more to say about the disastrous December TIC data shortly, which was released early today, and which showed a dramatic plunge in foreign purchases of US securities in December – the month when the S&P soared to all time highs and when everyone was panicking about the 3% barrier in the 10 Year being breached and resulting in a selloff in Tsy paper – one thing stands out. The chart below shows holdings of Chinese Treasurys (pending revision of course, as the Treasury department is quite fond of ajdusting this data series with annual regularity): in a nutshell, Chinese Treasury holdings plunged by the most in two years, after China offloaded some $48 billion in paper, bringing its total to only $1268.9 billion, down from $1316.7 billion, and back to a level last seen in March 2013!
This was the second largest dump by China in history with the sole exception of December 2011.
Continue reading »
Tags: Banking, Belgium, Bonds, China, Debt, Economy, EU, Europe, Global News, Politics, U.S.
- Bank Runs Spread To Thailand (ZeroHedge, Feb 18, 2014):
Thailand’s Government Savings Bank (GSB) president admitted that clients withdrew 30bn Baht (around $1bn) in a single-day last week and Bank for Agriculture and Agricultural Cooperatives (BAAC) and Krungthai Bank (KTB), although of a much smaller magnitude, have also seen withdrawal spikes of similar magnitude according to The Bangkok Post. The ‘bank run’ comes after speculation that cash at the state-run banks are being used by the government (which is in turmoil) to fund farmers (who have not received their ‘promised’ rice subsidies of over 130 bn Baht). Withdrawal requests are met with banks warning that there were insufficient funds at the time due to many depositors withdrawing cash. One depositor, rather ironically summed it up, “I started to feel concerned that my money may become only paper.”
Via The Bangkok Post,
The deposit flight from the Government Savings Bank (GSB) is not out of fear for its financial stability but rather is a response to speculation the state-run bank is involved in lending to the troubled rice subsidy of the Yingluck Shinawatra government.
Spikes in money withdrawal have also been seen at the Bank for Agriculture and Agricultural Cooperatives (BAAC) and Krungthai Bank (KTB), although of a much smaller magnitude.
Continue reading »
Tags: Bank Run, Banking, Economy, Global News, Government, Politics, Thailand
The man stands on the roof of Chater House in Central as police try to talk him down. Photo: SCMP Pictures
- Second JPMorgan Banker Jumps To His Death: Said To Be 33 Year Old Hong Kong FX Trader (ZeroHedge, Feb 18, 2014):
The banker suicide wave that started in late January has now become an epidemic, and it seems to be focusing on one bank: JP Morgan.
After the first suicide that took place in JPM’s London headquarters, ending the life of 39 year old Gabriel Magee, a vice president in the investment bank’s technology department, next it was 37 year old Ryan Crane, an executive director in the firm’s program trading division, who died under still unknown circumstances.
Moments ago a third JPMorgan banker committed suicide, this time at the JPMorgan Charter House Asia headquarters in central Hong Kong, where a 33 year old man who was said to have been an FX trader for JPM, just jumped to his death.
Continue reading »
Tags: Banking, Economy, Global News, JPMorgan, Suicide
The credit card company’s recent contract update includes terms that sound menacing and creepy.
- Capital One Now Makes House-Calls Says It Can Show Up At Cardholders’ Homes, Workplaces (Los Angeles Times, Feb 17, 2014):
Ding-dong, Cap One calling.
Credit card issuer Capital One isn’t shy about getting into customers’ faces. The company recently sent a contract update to cardholders that makes clear it can drop by any time it pleases.
The update specifies that “we may contact you in any manner we choose” and that such contacts can include calls, emails, texts, faxes or a “personal visit.”
As if that weren’t creepy enough, Cap One says these visits can be “at your home and at your place of employment.”
The police need a court order to pull off something like that. But Cap One says it has the right to get up close and personal anytime, anywhere.
Continue reading »
Tags: Banking, CapitalOne, Credit Card, Economy, Global News, Society, U.S.
- “Off The Charts” How China Fooled The World (ZeroHedge, Feb 16, 2014):
China is now the second largest economy in the world and for the last 30 years China’s economy has been growing at an astonishing rate, wowing the world, as spending and investment has been undertaken on a scale never seen before in human history – 30 new airports, 26,000 miles of motorways and a new skyscraper every five days have been built in China in the last five years. But as we (and Michael Pettis, George Soros, and Jim Chanos – among many others) have warned, it is all eerily reminiscent of what happened in the West… the vast majority of it has been built on credit. This has now left the Chinese economy with huge debts and questions over whether much of the money can ever be paid back (spoiler alert: it can’t and it won’t).
The BBC’s Robert Peston travels to China to investigate how this mighty economic giant could actually be in serious trouble. Continue reading »
Tags: Banking, Bubble, China, Collapse, Debt, Economy, Global News, Government, Politics
- “Money Launderer Until Proven Innocent” – Italy Imposes 20% Tax Withholding On All Inbound Money Transfers (ZeroHedge, Feb 16, 2014):
While the propaganda surrounding Europe’s “recovery” has reached deafening levels, what is going on behind the scenes is quite the opposite, and in the latest example that Europe is increasingly formalizing a regime of implicit capital controls, we learn that Italy has just ordered banks to withhold a 20% tax on all inbound wire transfers: a decree which on to of everything will apply retroactively to February 1. As Il Sole reports, “the deductions will be automatic (unless prior request for exclusion), and then it will be up to the taxpayer to prove that the money is not in the nature of compensation “income.” In other words, as of this moment, but really starting two weeks ago, all Italians are money launderers unless proven innocent. Continue reading »
Tags: Banking, Economy, EU, Europe, Global News, Government, Italy, Politics, Taxes
- Wall Street on Parade Explores JP Morgan’s Disturbing Links to the CIA, NYPD and More… (Liberty Blitzkrieg, Feb 13, 2014):
Pam Martens of Wall Street on Parade does some excellent work, and I have featured her articles several times on this site. Most recently, I highlighted her article: New York is Drowning in Bribes and Corruption, which was a particularly popular post. In the article I have chosen today, she dives into a topic frequently discussed on the Wall Street on Parade site. Namely, the incestuous and entirely inappropriate relationship between JP Morgan and law enforcement, including the CIA itself. No wonder no one ever gets in trouble or goes to jail…
Here are some excerpts from her latest: Continue reading »
Tags: Banking, CIA, Economy, Global News, Government, JPMorgan, NYPD, Politics, U.S.
- Europe Considers Wholesale Savings Confiscation, Enforced Redistribution (ZeroHedge, Feb 13, 2014):
At first we thought Reuters had been punk’d in its article titled “EU executive sees personal savings used to plug long-term financing gap” which disclosed the latest leaked proposal by the European Commission, but after several hours without a retraction, we realized that the story is sadly true. Sadly, because everything that we warned about in “There May Be Only Painful Ways Out Of The Crisis” back in September of 2011, and everything that the depositors and citizens of Cyprus had to live through, seems on the verge of going continental. In a nutshell, and in Reuters’ own words, “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.” What is left unsaid is that the “usage” will be on a purely involuntary basis, at the discretion of the “union”, and can thus best be described as confiscation.
Continue reading »
Tags: Banking, Economy, EU, Europe, Global News, Government, Politics, Society
- The Vampire Squid Strikes Again: The Mega Banks’ Most Devious Scam Yet (Rolling Stone, Feb 12, 2014):
Banks are no longer just financing heavy industry. They are actually buying it up and inventing bigger, bolder and scarier scams than ever
all it the loophole that destroyed the world. It’s 1999, the tail end of the Clinton years. While the rest of America obsesses over Monica Lewinsky, Columbine and Mark McGwire’s biceps, Congress is feverishly crafting what could yet prove to be one of the most transformative laws in the history of our economy – a law that would make possible a broader concentration of financial and industrial power than we’ve seen in more than a century.
But the crazy thing is, nobody at the time quite knew it. Most observers on the Hill thought the Financial Services Modernization Act of 1999 – also known as the Gramm-Leach-Bliley Act – was just the latest and boldest in a long line of deregulatory handouts to Wall Street that had begun in the Reagan years.
Continue reading »
Tags: Banking, Economy, Global News, Goldman Sachs, Government, JPMorgan, Morgan Stanley, Politics, U.S.
- It Begins… Another High-Yield Chinese Shadow Banking Trust Defaults (ZeroHedge, Feb 12, 2014):
While the eyes of the world were focused on the now infamous “Credit Equals Gold #1″ Chinese wealth management product – it’s imminent default and last-minute bailout by ‘investors’ unknown – the coal industry in China continued to collapse (as we noted here). We noted at the time how bailing out current high-yield product investors would merely amplify the problems down the line and it seems that Chinese authorities have heard that message. As Reuters reports, a high-yield investment product backed by a loan to a debt-ridden coal company failed to repay investors when it matured last Friday, state media reported on Wednesday.
A high-yield investment product backed by a loan to a debt-ridden coal company failed to repay investors when it matured last Friday, state media reported on Wednesday, in the latest sign of financial stress in China’s shadow bank sector.
Continue reading »
Tags: Banking, Bonds, China, Collapse, Debt, Economy, Global News, Government, Politics