What would you (as SNB) do if you knew that the euro is doomed?
- So Much Changes In 48 Hours (ZeroHedge, Jan 15, 2015):
January 12, 2015: “We took stock of the situation less than a month ago, we looked again at all the parameters and we are convinced that the minimum exchange rate must remain the cornerstone of our monetary policy,” SNB’s Jean-Pierre Danthine.
January 15, 2015: “Recently, divergences between the monetary policies of the major currency areas have increased significantly – a trend that is likely to become even more pronounced. The euro has depreciated considerably against the US dollar and this, in turn, has caused the Swiss franc to weaken against the US dollar. In these circumstances, the SNB concluded that enforcing and maintaining the minimum exchange rate for the Swiss franc against the euro is no longer justified.”
- “It’s Carnage” – Swiss Franc Soars Most Ever After SNB Abandons EURCHF Floor; Macro Hedge Funds Crushed (ZeroHedge, Jan 15, 2015):
“As if millions of macro hedge funds suddenly cried out in terror and were suddenly silenced”
Over two decades ago, George Soros took on the Bank of England, and won. Just before lunch local time, the Swiss National Bank took on virtually every single macro hedge fund, the vast majority of which were short the Swiss Franc and crushed them, when it announced, first, that it would go further into NIRP, pushing its interest rate on deposit balances even more negative from -0.25% to -0.75%, a move which in itself would have been unprecedented and, second, announcing that the 1.20 EURCHF floor it had instituted in September 2011, the day gold hit its all time nominal high, was no more.
What happened next was truly shock and awe as algo after algo saw their EURCHF 1.1999 stops hit, and moments thereafter the EURCHF pair crashed to less then 0.75, margining out virtually every single long EURCHF position, before finally rebounding to a level just above 1.00, which is where it was trading just before the SNB instituted the currency floor over three years ago. Continue reading »
- Dear Jamie Dimon: This Is Why US Banks Are “Under Assault” (ZeroHedge, Jan 14, 2015):
Earlier today, during the JPM conference call, when Jamie Dimon wasn’t busy explaining why the Q4 earnings presentation was sorely missing the page showing JPM’s latest Net Interest Margin, a staple placeholder page in the presentation appendix, he found time to lament something totally different. As Bloomberg reports, Dimon lashed out at U.S. regulators for putting his bank “under assault.” We don’t know how American, or how fair, or how complex, but we know why. The reason: JPMorgan and the rest of the world’s banks have now become the world’s biggest organized crime syndicate. The evidence? $178 billion in government kickbacks to keep their criminal scheme going for the past 5 years: something which none other than the BCG called a “cost of doing business” – criminal business that is.
- Europe’s Largest Bank Stock Suspended, Admits Need For $8.9 Billion Capital Raise (ZeroHedge. Jan 8, 2015):
All is clearly not well below the surface. Europe’s largest bank (by market value) has admitted in a regulatory filing that it needs to raise capital. As WSJ reports,Banco Santander SA said it would raise up to €7.5 billion ($8.88 billion) in a capital hike, a bid to address long-running concerns among investors and analysts that its financial cushion was weaker than peers. European banking stocks are up over 2% today as Italian banks surge
limit up (BMPS +13%) on speculation that they will be purchased by Santander (who ‘pumpers’ believe are raising this capital to go on a spending spree) and ‘old’ Draghi headlines.
- Obama’s Fed Board Appointee Was Previously Busted, And Quit, For “Impropriety” (ZeroHedge, Jan 7, 2014):
Yesterday, to much fanfare, the White House blasted that it was Obama’s desire to appoint Allan R. Landon, a Hawaiian community banker, to serve on the Board of Governors of the Federal Reserve System. To wit: “President Obama said, “Allan Landon has the proven experience, judgment and deep knowledge of the financial system to serve at the Federal Reserve during this important time for our economy. He brings decades of leadership and expertise from various roles, particularly as a community banker. I’m confident that he will serve our country well.”
- Is Citi The Next AIG: 70 Trillion Reasons Why Citigroup And Congress Scrambled To Pass The Swaps “Push-Out” Rule (ZeroHedge, Jan 5, 2015):
Something stunning and unexpected took place in the third quarter: Citigroup, or rather its FDIC-insured Citibank National Association entity, just surpassed JPM and is now the biggest single holder of total derivatives in the US. Furthermore, as the charts below show, while every other bank was derisking its balance sheet, Citi not only increased its total derivative holdings by $1 trillion in Q2, but by a whopping, and perhaps even record, $9 trillion in the just concluded third quarter to $70.2 trillion!
- GAO Audit Of The Federal Reserve Reveals $16 TRILLION In Secret Bailouts (Sott.net, Sep 1, 2012)::
The list of institutions that received the most money from the Federal Reserve can be found on page 131 of the GAO Audit and are as follows..
Citigroup: $2.5 trillion ($2,500,000,000,000)
Morgan Stanley: $2.04 trillion ($2,040,000,000,000)
Merrill Lynch: $1.949 trillion ($1,949,000,000,000)
Bank of America: $1.344 trillion ($1,344,000,000,000)
Barclays PLC (United Kingdom): $868 billion ($868,000,000,000)
Bear Sterns: $853 billion ($853,000,000,000)
Goldman Sachs: $814 billion ($814,000,000,000)
Royal Bank of Scotland (UK): $541 billion ($541,000,000,000)
JP Morgan Chase: $391 billion ($391,000,000,000)
Deutsche Bank (Germany): $354 billion ($354,000,000,000)
UBS (Switzerland): $287 billion ($287,000,000,000)
Credit Suisse (Switzerland): $262 billion ($262,000,000,000)
Lehman Brothers: $183 billion ($183,000,000,000)
Bank of Scotland (United Kingdom): $181 billion ($181,000,000,000)
BNP Paribas (France): $175 billion ($175,000,000,000)
and many many more including banks in Belgium of all places
View the 266-page GAO audit of the Federal Reserve (July 21st, 2011):
Comment: It’s not “socialism for the rich”; that’s an oxymoron.
It’s corporatism, i.e. fascism, as defined by Benito Mussolini.
- Top Israeli Central Banker is The Real Power In The Federal Reserve (Blacklisted News, Jan 2, 2015):
Fed Chair Janet Yellen pushed for him to be her No. 2 in a move that was viewed as a show of confidence and strength as she prepares to lead the Fed through one of it most challenging periods, managing the wind down of massive stimulus programs put in place following the financial crisis.
The pairing was dubbed a central banking “dream team” by Fed watchers. Continue reading »
- Jim Willie: DOLLAR DEATH: Global Trade Using Dollars Down 50%! (Grams Gold, Dec 26, 2014):
This transcript of the interview with Jim Willie in early December 2014 highlights the importance of gold on the world stage, as well as other important events that are taking place.In the video interview titled, “No Prisoners in the Global Money War,” Willie says, “I think we have acceleration on the systemic breakdown globally. There is no asset foundation to the US banking system anymore. It’s just a bunch of ‘spinning derivatives on computer trades’. Continue reading »
Dec 31, 2014
Last month’s G20 Summit in Australia came and went without the protests and riots we’ve come to expect at the summit in recent years. But as author and researcher Ellen Brown notes, the real fireworks happened behind closed doors, where the group rubber stamped new regulations that will make Cyprus style bank bail-ins a worldwide reality.
This is the GRTV Feature Interview with Ellen Brown and your host, James Corbett.
- Big Banks Conspire with Giant Oil Company to Manipulate Currency Markets (Washington’s Blog, Dec 31, 2014):
Banks and Energy Companies Rig Currency Markets
But the banks not only shared confidential information with each other … they also shared it with a giant oil company.
Bloomberg reports this week:
With revenue of almost $400 billion last year and operations in about 80 countries, BP trades large quantities of currency each day. Traders at the company regularly received valuable information from counterparts at some of the world’s biggest banks — including tips about forthcoming trades, details of confidential client business and discussions of stop-losses, the trigger points for a flurry of buying or selling — according to four traders with direct knowledge of the practice. Continue reading »
To all those wondering if everything is rigged, we have a very simple answer: Yes.
- The Rigging Triangle Exposed: The JPMorgan-British Petroleum-Bank Of England Cartel Full Frontal (ZeroHedge, Dec 30, 2014):
The name Dick Usher is familiar to regular readers: he was the head of spot foreign exchange for JPMorgan, and the bank’s alleged chief FX market manipulator, who was promptly fired after it was revealed that JPM was the bank coordinating the biggest FX rigging scheme in history, as initially revealed in “Another JPMorganite Busted For “Bandits’ Club” Market Manipulation.” Subsequent revelations – which would have been impossible without the tremendous reporting of Bloomberg’s Liam Vaughan – showed that JPM was not alone: as recent legal actions confirmed, virtually every single bank was also a keen FX rigging participant. However, the undisputed ringleader was always America’s largest bank, which would make sense: having a virtually unlimited balance sheet, JPM could outlast practically any margin call, and make money while its far smaller peers were closed out of trades… and existence. Continue reading »
H/t reader M.G.:
“Looking at the destruction Morgan Stanley wrought on the mortgage market, and the crooked judges are looking for a “settlement” early next year. No word about the millions who suffered as a result of their policies, not just those who bought the homes, but all of us who suffered from radical drop in property values as a result of mass foreclosures around us.”
- Court Filing Illuminates Morgan Stanley Role in Lending (CNBC/New York Times, Dec 30, 2014):
Since the financial crisis, Wall Street firms have argued that they were victims, just like everybody else, of the bad mortgages that were churned out by subprime lenders like Countrywide and New Century.
Now, though, a trove of emails and confidential documents, filed in court, reveal the extent to which one of Wall Street’s leading banks, Morgan Stanley, actively influenced New Century’s push into riskier and more onerous mortgages, and brushed aside questions about the ability of homeowners to make the payments. Continue reading »
- When Fearmongering Goes Bad: Greece Scrambles To Prevent Deposit Run Goldman Warned About In Its “Worst Case” (ZeroHedge, Dec 29, 2014):
Earlier today we got a classic, if rare, example of what happens when bankers bluff with a 2-7 off suit… and the people call it.
Recall that just over two weeks ago, none other than Greek currency swap expert Goldman (alongside Jean-Claude Juncker who quite explicitly warned Greeks not “to vote wrong“) came out with a fire and brimstone worst-case scenario for Greece, which was nothing but an attempt at fearmongering designed to scare Greek MPs into doing Samaras’ bidding, in which it said not electing the designated presidential candidate may lead to a worst-case scenario which involves a “Cyprus-style prolonged bank holiday.”
- Ukraine Central Bank Conned Into Swapping Its Gold For Lead Bricks (ZeroHedge, Dec 22, 2014):
Just when one thought the story of Ukraine and its (now non-existant) gold could not get any more surreal, it did.
As a reminder, it was about a month ago when we learned courtesy of an interview on Ukraine TV with the country’s central bank head Valeriya Gontareva, that Ukraine’s gold was virtually all gone, when she made the stunning admission that “in the vaults of the central bank there is almost no gold left. There is a small amount of gold bullion left, but it’s just 1% of reserves.”
That in itself would have been sufficient to explain why just a few short days later, the Netherlands shocked the world when it announced it had secretly repatriated 122 tonnes of gold from the NY Fed, and had the story of Ukraine’s missing gold ended there (or even with the criminal probe launched by Ukraine whether the central bank head had abused her power and misused her office when she “intentionally committed an extremely unfavorable transaction for the gold and forex reserves of Ukraine”), it still would have been one of the most bizarre, surreal stories of 2014.
Luckily, the story just got far better, and far, far more bizarre and surreal.
As Bloomberg reports, Ukraine opened a criminal probe after several gold bars at the central bank’s storage in the southern city of Odessa turned to be painted lead.
I do not believe anything a Rothschild puppet bankster tells me, and that includes Societe Generale, especially if they are telling us vague, unsubstantiated BS like …
“It appears possible that the Central Bank of Russia has started to sell off some of its gold reserves in December, with some sources reporting that official gold reserves dropped by $4.3 billion in the first week of the month.”
“It appears possible …” Yeah, right!
Why not sell those soon to be worthless U.S. Trashury (sic) holdings instead …
- China, Russia Dump US Treasurys In October As Foreigners Sell Most US Stocks Since 2007 (ZeroHedge, Dec 15, 2014):
As for Russia, after selling $9.7 billion in October (a process which certainly continued in November) its latest total is just $108 billion, or just modestly higher than the $100 billion hit in March after the Ukraine conflict first broke out, and the second lowest total Russian Treasury holdings since 2008.
… and BUY gold and ask China to do the same.
Selling Russia’s gold? Putin might as well shoot himself in the foot (unless he too is an elite puppet).
Very few people understand what Putin is doing at the moment. And almost no one understands what he will do in the future.
No matter how strange it may seem, but right now, Putin is selling Russian oil and gas only for physical gold.
Putin is not shouting about it all over the world. And of course, he still accepts US dollars as an intermediate means of payment. But he immediately exchanges all these dollars obtained from the sale of oil and gas for physical gold!
– How long will the West be able to buy oil and gas from Russia in exchange for physical gold?
– And what will happen to the US petrodollar after the West runs out of physical gold to pay for Russian oil, gas and uranium, as well as to pay for Chinese goods?
No one in the west today can answer these seemingly simple questions.
And this is called “Checkmate”, ladies and gentlemen. The game is over.
The above article was translated buy Kristina Rus – which originally appeared in Russian at http://investcafe.ru/blogs/mbcy/posts/46245#
- Russia Has Begun Selling Its Gold, According To SocGen (ZeroHedge, Dec 18, 2014):
A few days ago, we first reported a rumor that was floating around Wall Street desks, and which, according to some, was the “reason” that gold was being kept lower even as sovereign risk was exploding around the globe. The rumor was that Russia was selling its gold holdings:
Rumor Russia selling gold
— zerohedge (@zerohedge) December 15, 2014
This led to Bloomberg speculating, and us rhetorically asking, if “Putin’s next step will be to sell gold”
“Russia is at a critical juncture and given the sanctions placed upon them and the rapid decline in oil prices, they may be forced to dip into their gold reserves, if it happens it will push gold lower.” That is what, according to some people Bloomberg has quoted, is in the cards.
While some suggest the accumulation was “tradition” it is still nonetheless an impressive aggregation of the barbarous relic:
So given the efforts to build this gold-backing for their nation’s currency, do we really expect Putin to now dump his physical: or perhaps more strategically suggest a true gold-backed currency and jawbone the currency that way?
So what is the truth? Well, we won’t for sure until the next official report by the Central Bank of Russia hits the IMF database, but in the menatime, SocGen just reported that the selling may have started: Continue reading »
- Swiss Central Bank Plunges Into NIRP, Sends Deposit Rates Negative, Scrambles Against Safe-Haven Capital Flight (ZeroHedge, Dec 18, 2014):
Everyone thought that any major monetary policy surprises and/or capital controls today would come from Putin during his annual press conference. Boy were they wrong: just after 2 am Eastern, none other than the Swiss National Bank joined the ranks of the ECB in scrambling to stem the wave of capital flight, not to mention the cost of money, when it announced it too would start charging customers for the privilege of holding cash in its banks, when it revealed a negative, -0.25% interest rate on sight deposits: a step which according to the SNB was critical in maintaining the 1.20 EURCHF floor.
The Swiss National Bank (SNB) is imposing an interest rate of –0.25% on sight deposit account balances at the SNB, with the aim of taking the three-month Libor into negative territory. It is thus expanding the target range for the three-month Libor to –0.75% to 0.25% and extending it to its usual width of 1 percentage point. Negative interest will be levied on balances exceeding a given exemption threshold. Continue reading »
- IMF Now Ready To Slam The Door On The U.S. And The Dollar (ALT-MARKET, Dec 17, 2014):
As I write this, the news is saturated with stories of a hostage situation possibly involving Islamic militants in Sydney, Australia. Like many, I am concerned about the shockwave such an event will create through our sociopolitical structures. However, while most of the world will be distracted by the outcome of this crisis (for good or bad) for at least the week, I find I must concern myself with a far more important and dangerous situation.
Up to 40 people may be held by a supposed extremist in Sydney,but the entire world is currently being held hostage economically by international banks. This is the crisis no one in the mainstream is talking about, so alternative analysts must.
As I predicted last month in “We Have Just Witnessed The Last Gasp Of The Global Economy,” severe volatility is now returning to global markets after the pre-game 10 percent drop in equities in October hinted at what was to come. Continue reading »
- Russian Central Bank Releases 7 Measures It Will Take To Stabilize The Financial Sector (ZeroHedge, Dec 17, 2014):
In its latest effort to counter financial instability – and show its commitment to maintaining order and support for the economy – Russia’s Central Bank (CBR) has unveiled 7 new measures… Ranging from bank recaps to measures aimed at helping manage interest-rate and credit risks, the reaction in the Ruble is positive for now… as perhaps, taking a lesson from the US, The CBR removes Mark-to-Market accounting for various credit instruments. Continue reading »
- A Full-Blown Economic Crisis Has Erupted In Russia (Economic Collapse, Dec 16, 2014):
The 8th largest economy on the entire planet is in a state of turmoil right now. The shocking collapse of the price of oil has hit a lot of countries really hard, but very few nations are as dependent on energy production as Russia is. Sales of oil and natural gas account for approximately two-thirds of all Russian exports and approximately 50 percent of all government revenue. So it should be no surprise that the fact that the price of oil has declined by almost 50 percent since June is absolutely catastrophic for the Russian economy. And when you throw in international sanctions, wild money printing by the Central Bank of Russia and unprecedented capital flight, you get the ingredients for an almost perfect storm. But those of us living in the western world should not be too smug about what is happening in Russia, because the nightmare that is unfolding over there is just a preview of the economic chaos that will soon envelop the whole world.
So far this year, the Russian ruble has fallen nearly 50 percent against the U.S. dollar. That is a monumental shift. And as the collapse of the ruble has accelerated in recent days, we are seeing scenes in Russia that are reminiscent of the Weimar Republic. For example, just consider the following excerpt from an article that just appeared in the New York Times… Continue reading »