Jan 13

War_on_cash

The International War on Cash:

Back in 2008, I began warning of increasing capital controls that we would see in the future, as a component in the decline of Western economies (Western in the broad sense, including Japan, Australia, etc.)

Along the way, it occurred to me that, at some point, governments might collectively attempt to eliminate paper currency in favour of an electronic currency – transferred from party to party solely through licensed banks. Sound farfetched? Well, maybe, but what if the U.S. and EU agreed on an overall plan, then suggested it to other governments? On the face of it, this smacks of conspiracy theory, yet certainly, all governments would benefit from this control and would be likely to get on board. In fact, it might prove to be the only way out of their present economic problems.

So, how would it play out? Here’s roughly how I saw Phase I: Continue reading »

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Jan 12

1-Switzerland

You Know Negative Interest Rates Are Bad When…:

 

Switzerland is famous for being punctual.

The trains. The buses. The meticulously crafted, hand polished luxury watches.

The Swiss are so culturally punctual that they even tend to pay their taxes well in advance of the filing deadline.

So it was quite a shock to hear this morning that the Swiss canton of Zug is asking its citizens to delay paying their taxes for as long as possible. Continue reading »

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Jan 10

China Contagion Spills Over To Hong Kong Banks As HIBOR Explodes To Record High, Stocks Tumble:

Chinese stocks are trading at the lows of the day after Overnight HIBOR rates (Hong Kong’s interbank borrowing rate) exploded a stunning 939bps to a record high 13.4%. It is clear that banks are utterly desperate for liquidity and/or are extremely concerned about one another’s counterparty risk. This has dragged HSCEI down 5% (to its lowest since Oct 2011).

 

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Jan 08

China’s Largest Bank Is Mystery Buyer Of Massive 1,500 Ton Gold Vault In London

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Jan 08

This Is The $3.5 Trillion “Neutron Bomb” That Keeps Kyle Bass Up At Night:

“… what we are going to see next is a credit cycle, and in a credit cycle you see some losses, but if China’s banking system loses 10%, you are going to see them lose $3.5 trillion.”

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Jan 07

H/t reader squodgy:

“And you yanks can gloat, ……but look behind you…….”


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Jan 06

A Disturbing Warning From UBS: “Buy Gold” Because A 30% Bear Market Is Coming:

As Wall Street axioms (Santa rally, January effect, as goes January etc.) are rapidly falling by the wayside at the start of 2016, following a chaotic but return-less 2015, the UBS analysts who correctly forecast last year’s volatility are out with their forecast for 2016. It’s simple – Sell Stocks, Buy Gold… expect a Fed u-turn.

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Jan 06

War, Terrorism and the Global Economic Crisis in 2015: Ninety-nine Interrelated Concepts:

By Prof. Michel Chossudovsky

Everything is interrelated: war, terrorism, the police state, the global economy, economic austerity, financial fraud, corrupt governments, poverty and social inequality, police violence, Al Qaeda, ISIS, media disinformation, racism, war propaganda  weapons of mass destruction, the derogation of international law, the criminalization of politics, the CIA, the FBI, climate change,  nuclear war, Fukushima, nuclear radiation, crimes against humanity, The China-Russia alliance, Syria  Ukraine, NATO, false flags, 9/11 Truth, ….  

An overall understanding of  this Worldwide crisis is required: the last section deals briefly with reversing the tide of war, peace-making, instating social justice and real democracy.

This article includes a compendium of relevant citations (from my writings) pertaining to different dimensions of this  global crisis. Citations from other authors are indicated in italics.

The hyperlinks in each of the paragraphs indicate the original source of the quotation.     Continue reading »

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Jan 01

H/t reader squodgy:

I often wondered what happened to the predicted hyperinflation following QE.

It never happened.

OK, inflation in school fees, obamacare etc has been negated by cheap oil, and yes, food costs are indeed rising, but the expected rampant inflation across the board never happened….why?

It made the doom-mongers look daft.

Here’s why…..we never saw it, it all went to the club.

I was asked: Whatever Happened to Inflation after all this Money-Printing?

* * *

In my opinion real hyperinflation (incl. consumer price inflation) is coming and the euro, the dollar and the Japanese yen will become worthless.

It will take just a little longer.

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Dec 30

Nuclear-War

Financial Armageddon Approaches: U.S. Banks Have 247 Trillion Dollars Of Exposure To Derivatives:

Did you know that there are 5 “too big to fail” banks in the United States that each have exposure to derivatives contracts that is in excess of 30 trillion dollars?  Overall, the biggest U.S. banks collectively have more than 247 trillion dollars of exposure to derivatives contracts.  That is an amount of money that is more than 13 times the size of the U.S. national debt, and it is a ticking time bomb that could set off financial Armageddon at any moment.  Globally, the notional value of all outstanding derivatives contracts is a staggering 552.9 trillion dollars according to the Bank for International Settlements.  The bankers assure us that these financial instruments are far less risky than they sound, and that they have spread the risk around enough so that there is no way they could bring the entire system down.  But that is the thing about risk – you can try to spread it around as many ways as you can, but you can never eliminate it.  And when this derivatives bubble finally implodes, there won’t be enough money on the entire planet to fix it. Continue reading »

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Dec 29

2016

January 1, 2016: The New Bank Bail-In System Goes Into Effect In Europe:

If you have a bank account anywhere in Europe, you need to read this article.  On January 1st, 2016, a new bail-in system will go into effect for all European banks.  This new system is based on the Cyprus bank bail-ins that we witnessed a few years ago.  If you will remember, money was grabbed from anyone that had more than 100,000 euros in their bank accounts in order to bail out the banks.  Now the exact same principles that were used in Cyprus are going to apply to all of Europe.  And with the entire global financial system teetering on the brink of chaos, that is not good news for those that have large amounts of money stashed in shaky European banks.

Below, I have shared part of an announcement about this new bail-in system that comes directly from the official website of the European Parliament.  I want you to notice that they explicitly say that “unsecured depositors would be affected last”.  What they really mean is that any time a bank in Europe fails, they are going to come after private bank accounts once the shareholders and bond holders have been wiped out.  So if you have more than 100,000 euros in a European bank right now, you are potentially on the hook when that bank goes under… Continue reading »

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Dec 29

jpmorgan

JP Morgan Employees Said To Steal $400,000 From Eight Dead Clients:

In the wake of 2008, it’s probably safe to say there isn’t a person alive who completely trusts a banker.

If, however, you happen to be dead, it’s more difficult to scrutinize the activities of those conducting your finances, a fact underscored by the alleged theft of hundreds of thousands of dollars from at least eight accounts belonging to deceased clients of JP Morgan.  Continue reading »

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Dec 29

How the Ashkenazi Jews conquered the West

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Dec 27

Government Now Preying On High School Graduates

Atlas Shrugged:

A friend sent me a news item from U.S. News and World Report which reported that Louisiana’s board of education is going to implement a new policy which requires all students to fill out a Free Application for Federal Student Aid in order to receive a high school diploma.

Think about that for a moment.  In order to receive a high diploma, the State of Louisiana is requiring that high school seniors fill out an application which would enable them to go into debt the moment they receive their diploma.

This is a mind-blowing event.  Most jobs available to high school grads do not require a college degree.  But some might require a high school diploma.  I have to wonder what the motive is behind this.  A significant portion of student debt is now being used for corporate-owned “universities” which are largely worthless to everyone except the entities who own the schools.  Goldman Sachs is a big player in this space.   Student debt, backed by the Taxpayer, is just another form of wealth transfer from the public to the banks and big corporations. Continue reading »

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Dec 24

Switzerland To Vote On Ending Fractional Reserve Banking:

Today the Swiss Federal Government confirmed that it had received enough signatures and would hold a referendum as part of the so-called “Vollgeld”, or Full Money Initiative, also known as the Campaign for Monetary Reform, which seeks to ban commercial banks from creating money, and which calls for the central bank to be given sole power to create the money in the financial system. In other words, an initiative to ban fractional reserve banking, and revert to a 100% reserve.

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Dec 23

Five of world’s biggest investment banks pay no UK corporation tax

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Dec 22

FYI.


Brutus

Et Tu, Brute? (How Empires Die):

The state-owned Bank of China has been ordered by an American court to hand over customer information to the US. The bank has refused to comply, as to do so would violate China’s privacy law. The US court has subsequently ordered the Bank of China to pay a fine of $50,000 per day.

Any guess as to how this is likely to turn out?

China is a sovereign nation, halfway around the globe from the US, yet the US seems to feel that it’s somehow entitled to set the rules for China (as well as the other nations in the world). When China sees fit to develop islands in the South China Sea that it has laid claim to for centuries, it begins to hear threatening noises from the US military. A candidate for US president declares that he would buzz the islands with Air Force One, the Presidential jet, saying, “They’ll know we mean business.” Continue reading »

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Dec 21

FYI.


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Dec 21

“The Cost Is Very High”: Portugal Taxpayers Face €3 Billion Loss After Second Bank Bailout In 2 Years:

Because the Novo Banco auction process went so smoothly, Portugal has decided to throw billions more in taxpayer dollars at a failed lender. This time it’s Banif, which will be split into a “good” and “bad” bank just weeks ahead of new EU rules that would have seen uninsured depositors take a haircut as part of the wind down process.

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Dec 19

“This is a Coup” – The Story of How Greece Lost Democracy:

This morning, I started watching a mini-documentary on this past year’s Greek saga titled, “This is a Coup,” which I found to be exhilarating, disheartening, infuriating, touching and powerful.

Below you can watch all four parts:

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Dec 18

Citi “Resizes Infrastructure” Post Fed Rate Hike – Slashes 2,000 Jobs:

Perhaps in a recognition of the collapsing yield curve, and for sure in the face of the mainstream’s bullish narrative on US banks in a post-rate-hike paradigm, Citi has announced plans to cut at least 2,000 jobs starting next month. Despite exuberance over higher rates, it appears Citi’s CEO Michael Corbat wants to restructure some of the bank’s businesses.

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Dec 17

Currency Collapse – Jeff Thomas:

Cash is a scarce commodity in Greece.

In June, Greek banks declared a surprise limitation on how much could be withdrawn from an account. At present, the government still limits the cash withdrawals of its citizens.

Of course, this is just the most recent development in a series of events that make up the cash squeeze. In response, Greeks have done what all people do when they cannot get enough currency – improvise. Continue reading »

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Dec 17

Real-Estate

The Foreign Criminals Using Los Angeles Real Estate to Launder Money and the Developers Who Help Them:

Here, as in other roosting places of the superrich, the recent influx of foreign money has gone hand in hand with the rising use of shell companies — generally limited liability companies. Shell companies were used in three-quarters of purchases of over $5 million in Los Angeles over the last three years, a higher rate even than the roughly 55 percent in New York, according to a New York Times analysis of data from PropertyShark. What is more, in Los Angeles, where so many of the new palaces are spec houses — luxury magnets for global wealth — not only are the buyers shielded by shell companies, but the developers are, too.

– From the New York Times article: A Mansion, a Shell Company and Resentment in Bel Air

While New York City and London are already well known as top destinations for shady, foreign-money laundering oligarchs who often attain untold riches by thieving from their own people, the Los Angeles area has likewise morphed into a criminal real estate hub. Continue reading »

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Dec 08

canada flag 2

Canada Just Warned That Negative Interest Rates Are Coming:

Moments ago, the Bank of Canada’s chief finally said what we had been patiently waiting for over the past several months: admission that Europe’s experiment with negative rates is about to cross the Atlantic. From Market News:

  • BOC POLOZ: NOW SEES EFFECTIVE LOWER BOUND FOR POLICY RATE AROUND -0.5%
  • BOC POLOZ: CANADN FIN MKTS COULD FUNCTION IN A NEG INT RATE ENVRIONMNT
  • BOC POLOZ: ‘SHOULD THE NEED ARISE’ FOR UNCONVENTIONAL MONETARY POLICY, ‘WE’LL BE READY’

That, as they say, is “forward guidance” of what is coming.

And what is coming, is also precisely what Keith Dicker from IceCap Asset Management said in his latest monthly letter, would happen in Canada in the very near future. To wit: Continue reading »

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Dec 08

banker box

Morgan Stanley’s Holiday Present To 1,200 Of Its Best-Paid Employees: Pink Slips:

While it will hardly come as a surprise to its employees (who were warned a week ago that 25% of all fixed income workers would lose their jobs in the immediate future) most had hoped that the bailed out bank would at least have the ethics to wait with the layoffs until after the new year, now just three weeks away.

It did not. Continue reading »

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Dec 06

BIS Warns The Fed Rate Hike May Unleash The Biggest Dollar Margin Call In History:

“While funding continued to be available, such a large negative basis indicates potential market dislocations. And this may call into question how smoothly US dollar funding conditions will adjust in the event of an increase in US onshore interest rates. Similar pricing anomalies have also emerged in interest rate swap markets recently, raising related concerns.”

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Dec 03

JPMorgan’s databases hacked, financial system vulnerable:

Three people have been charged this week in connection to “the largest theft of customer data from a U.S. financial institution in history.”

Those are the words of Preet Bharara, the U.S. Attorney involved in the case involving a major cyber hack on JP Morgan in July 2014, among many others.

Despite the media initially speculating that the hack came from Russia, it turns out the men involved were all from Israel; Gery Shalon, 31, Ziv Orenstein, 40, and Joshua Samuel Aaron, 31.

The trio have been charged on 23 counts relating to the computer hacking of multiple financial institutions and financial news publishers; including the Wall Street Journal and stealing the personal data of 83 million JP Morgan customers. Continue reading »

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Nov 30

In other news:

Federal Reserve ends ‘too big to fail’ lending policy


Morgan Stanley Throws In The Permabullish Towel, Says It Is “Feeling Worse, But Not Sure Can Explain It””:

Stiffer capital rules, a slump in client transactions and a shift toward electronic trading have crimped margins in key fixed-income markets, pushing banks to pull back and eliminate staff… and amid a 42% collapse in fixed-income revenue in Q3, Morgan Stanley is taking action:

  • *MORGAN STANLEY SAID TO PLAN FIXED-INCOME JOB CUTS OF UP TO 25%

The cuts are said to be worldwide and will happen with two weeks (just in time to watch the carnage unleashed by The Fed). Continue reading »

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Nov 30

HSBC Whistleblower: The Biggest Bank Fraud in British History Carried Out on UK Shoppers and Covered Up:

“In my position, as you can imagine, I’ve got a few enemies.” An anonymous tip off has contacted the DWP to suggest that Nicholas Wilson is frauding the benefits office. “They sent a letter calling me in for a compliance interview.”

The irony is that Nicholas Wilson is a whistleblower, who has been trying to expose what would be the largest bank fraud in the history of the UK, totalling over £1bn. This is made up of illegal charges imposed by HFC Bank – previously a subsidiary of HSBC, onto unsuspecting UK customer debts on high street store cards.

“Everything I do on my campaign with HSBC, it’s all about fraud and corruption and underhand dealings. I do everything up front and transparent and that’s how I have to be. I haven’t got anything up my sleeve.” Continue reading »

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Nov 23

Zero_0

Swiss Bank “Goes There”, Applies Negative Rates To Retail Deposits:

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 »

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