Feb 04

Economic collapse is inevitable, here’s why…:

America is quickly approaching a catastrophic economic collapse. Before you dismiss this as hype or paranoia, take a few minutes to review the facts outlined on this page. The numbers don’t lie. At this point, the dollar crash is unavoidable… far from an exaggeration this is a mathematical certainty. As repelling as that sounds, it’s in your own best interest to learn just how bad the situation is.

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Feb 03

Iceland Forgives Entire Population’s Debt – Mainstream US Media Silent:

The video below shows coverage of how Iceland chose a very different way of stopping the crisis of 2008 from the rest of the European countries. The Iceland government made a conscious decision to hear the requests of the population, and to put politicians and bankers on the bench of the accused three years after their financial excesses sank one of the most prosperous economies in 2008. The result was the government of Iceland forgave the mortgage debts for much of its population.  Continue reading »

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Feb 01

Dr. Paul Craig Roberts was Assistant Secretary of the Treasury during President Reagan’s first term. He was Associate Editor of the Wall Street Journal. He has held numerous academic appointments, including the William E. Simon Chair, Center for Strategic and International Studies, Georgetown University, and Senior Research Fellow, Hoover Institution, Stanford University.

The West Is Reduced To Looting Itself — Paul Craig Roberts:

I, Michael Hudson, John Perkins, and a few others have reported the multi-pronged looting of peoples by Western economic institutions, principally the big New York Banks with the aid of the International Monetary Fund (IMF).

Third World countries were and are looted by being inticed into development plans for electrification or some such purpose. The gullible and trusting governments are told that they can make their countries rich by taking out foreign loans to implement a Western-presented development plan, with the result being sufficient tax revenues from economic development to service the foreign loan. Continue reading »

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Jan 29

Kuroda

The Disturbing Reasons Why The Bank Of Japan Stunned Everyone With Negative Rates:

“… When stocks are falling this much, it’s hard to justify not acting”

“… Davos – where he mingled with central bankers such as ECB President Mario Draghi and leading company executives – likely prompted him to pull the trigger”

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Jan 29

$5.5 Trillion In Government Bonds Now Have Negative Yields, Covering 23% Of Global GDP

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Jan 22

global-debt-bomb-bubble-money-black-hole

The Global Debt Bomb Is Set to Blow for the Next Recession:

For the better part of the last decade, you’ve probably heard the politicians and the media tell you the same thing, over and over again. “We’re on the road to recovery” or “the Great Recession is over.” You gotta love how they call it the “Great Recession,” as if it was as bad as the Great Depression, but they can’t quite bring themselves to call it that.

In a sense though they are correct. Things are marginally better now than they were in 2008. But I say ‘marginally’ with reservations. It’s a little easier to find a job, but they don’t pay as well as they used to. Gas is cheap, but only because the economy is slowing down, and pretty much everything else we need to survive including food, medicine, and shelter, is more expensive. The stock market has recovered over the years, but that has done little to alleviate the financial woes of working class Americans. etc etc. Continue reading »

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Jan 21

George Soros hand signGeorge Soros As The Fighting Uruk-hai With Jacob Rothschild As Saruman

Soros Reveals He Is Short The S&P 500: Warns China Will Have A Hard-Landing, Says “Fed Hike Was A Mistake”:

There’s been no shortage of commentary from market heavyweights this week thanks to the World Economic Forum in Davos, but for anyone who hasn’t yet gotten their fill of billionaire talking heads, George Soros gave a sweeping interview to Bloomberg TV on Thursday, touching on everything from China to Fed policy to Vladimir Putin to Europe’s worsening refugee crisis. The most important point – for markets anyway – came when Soros revealed that he is short the S&P, and long TSYs.

 

 

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Jan 18

America’s Cash Flow Negative Energy Companies Have $325 Billion In Debt Among Them

 

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Jan 16

Stock Market Down

Analyst: Here Comes the Biggest Stock Market Crash in a Generation:

You don’t have to listen very hard to hear the bears growling on Wall Street, London, or Paris these days. Indeed, the Dow Jones Industrial Average was down another 300 points on Wednesday to just under 16,200

With the U.S. stock market sagging, oil off to its worst start ever, and the China’s economy continuing to deteriorate, bearish analysts have a wealth of evidence to point to.

And they don’t come much more bearish than Albert Edwards, strategist at Société Générale. He’s not had much nice to say about the global economy in years, and recent events have only hardened his convictions that the world is headed for disaster, and will take the prices of equities down with it. How much? Edwards predicts the U.S. stock market could plunge as much as 75%. That would be worse than during the financial crisis, in which stocks from their peak to trough dropped a brutal 62%. Continue reading »

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Jan 15

S&P Enters The Latest European Scandal: Downgrades Poland From A- To BBB+:

Over the past week, Poland’s relations with Europe have gone from cordial to abysmal, when first Poland’s new Eurosceptic government compared the EU and Merkel to Nazis, with Polish weekly Wprost releasing the following cover saying “they want to supervise Poland again”…

Wprost full cover page - Poland

… only for Brussels to retaliate and launch an “unprecedented” review of Polish media laws, a move which Poland angrily responded is far beyond the EU’s domain.

Well, as so often happens, whenever there is a political spat in Europe, the rating agencies are quickly involved (thing S&P and Moody’s downgrades and upgrades of Greece depending on how well the vassal nation is “behaving”), and moments ago S&P downgraded Poland from A- to BBB+ outlook negative, precisely due to Poland’s new media law which has been the topic of so much consternation over the past week.

In other words, S&P is now nothing more than a lackey for Brussels, threatening to send Polish yields higher if Poland does not fall in line. Continue reading »

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Jan 13

FYI.


Sep 12, 2015

Ron Paul speaks on the upcoming financial collapse that will be far worse than the 2008 collapse. It’s not a matter of if but when it will happen.

Federal Reserve - Fed

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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 FX teller_0

Meanwhile In Shanghai Residents Form Lines To Sell Yuan, Buy Dollars:

Ming Pao, the most influential Chinese newspaper in Hong Kong, reports that Shanghai residents are lining up at local banks to sell Yuan for Dollars over fears of even more Yuan devaluation.

* * *

gold-currency-crisis-china-edition

This Is What Gold Does In A Currency Crisis, China Edition:

As China’s leaders figure out that pegging the yuan to the dollar while quintupling their debt in five years was a colossal mistake, they are, apparently, concluding that the only way out is a sudden, sharp currency devaluation…

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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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Dec 23

It’s Official: Over A Trillion Dollars A Year Will Be Added To The Debt During Obama’s Presidency

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Dec 22

H/t reader squodgy:

“The Western adoption of the Economic principles of James Maynard Keynes have not proved beneficicial to the majority.

In fact only the controllers, in the form of bankers, and the users, in the form of globalised corporations seem to have benefitted in any real way from Keynesian Economic Rules.

Milton Friedman & Keynes have been proved wrong……from the point of view of Social Responsibility. We now have deep divisions in the structure of society worldwide, and it can only get worse.

We need to rapidly return to a mixed economy where State owned assets are nurtured for the benefit of the population as a whole, and free enterprise is allowed and encouraged to flourish on a competitive basis, without allowing the manifestation of giant entities eliminating competition.”


consumer-debt

New economic crash fears as British families run £40bn deficit:

Exclusive: Fears UK’s economic growth based on soaring levels of debt and could easily collapse

British families are on course to spend £40bn more than they earn this year, fuelling fears that the country’s economic growth is based on soaring levels of debt and could easily collapse.

The forecast by the independent Office for Budget Responsibility (OBR) led to warnings that the UK could be heading towards a credit crunch similar to that of 2008 because of unsustainable levels of borrowing and household spending.

Continue reading »

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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 18

Waiting for the response.


Ukraine defaults on $3bn Eurobond to Russia:

Ukraine has imposed a moratorium on the $3 billion Russian debt repayment, said the country’s Prime Minister Arseny Yatsenyuk at a cabinet meeting on Friday. The announcement comes ahead of the December 20 deadline for the debt redemption.

“Considering that Russia has refused, despite our efforts, to sign an agreement on restructuring and to accept our proposals, the cabinet is imposing a moratorium on payment of the Russian debt worth $3 billion,” said Yatsenyuk.

The payment is halted “until we make restructuring proposals or a relevant court decision is made,” added the Prime Minister. Continue reading »

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Dec 18

House Passes $1.15 Trillion Spending Bill: Here Is What’s In It:

Moments ago, the House of Representatives just passed the $1.15 trillion spending bill that includes a $680 billion package of tax-break extensions, in a 316 to 113 vote, and will now move to the Senate, where its passage is likewise assured and will be signed by the president over the next few days.

ryan pelosi_0

While there was clearly no risk of the Omnibus not passing, this particular portion of pork is relevant, because as Richard Breslow notes, “fiscal policy may begin to emerge from hibernation. The spending and tax bills Congress is in the process of passing today is something that probably couldn’t have happened last year. Ryan and Pelosi working together to pass a bill that has White House support gives rise to holiday optimism. The Federal government is actually expected to boost GDP growth next year.” Continue reading »

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Dec 18

And there goes another trillion.


ryan-paul-pelosi-nancy

GOP just committed financial suicide for America… $1.1 trillion spending bill is final blowout of a fiscally insane empire built on debt:

The GOP just committed financial suicide for America, approving a 2,000 page, $1.1 trillion spending bill that gives away everything and adds hundreds of billions of dollars to the national debt. Continue reading »

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Dec 14

This Is How The Credit Crisis Spreads To Stocks:

“Yeah but it’s junk credit… who cares! I am invested in solid megacaps and even solider FANGs – what can go wrong?” Well, this…

The biggest buyer of stocks in 2016, will be, according to Goldman Sachs, the same as it was in 2015 – corporate management teams buying back their own stock in near record quantities. But there is a problem with this thesis… the cost of funding these epic buybacks is surging, making the un-economic actions of the CFO (if very economical for their own bank accounts as they sell record amounts of their own personal stock to their company) even more irrational. Continue reading »

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Dec 13

“It’s An Epic Bloodbath” – Presenting The 2015 Junk Bond Heatmap

 

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Dec 10

Guess What Happened The Last Time Junk Bonds Started Crashing Like This? Hint: Think 2008:

The extreme carnage that we are witnessing in the junk bond market right now is one of the clearest signals yet that a major U.S. stock market crash is imminent.  For those that are not familiar with “junk bonds”, please don’t get put off by the name.  They aren’t really “junk”.  They simply have a higher risk and thus a higher return than other bonds of the same type.  And yesterday, I explained why I watch them so closely.  If stocks are going to crash, you would expect to see a junk bond crash first.  This happened in 2008, and it is happening again right now.  On Monday, a high yield bond ETF known as JNK crashed through the psychologically important 35.00 barrier for the very first time since the last financial crisis.  On Tuesday, high yield bonds had their worst day in three months, and JNK plummeted all the way down to 34.44.  When I saw this I was absolutely stunned.  This is precisely the kind of junk bond crash that I have been anticipating that we would soon witness. Continue reading »

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Dec 09

The IMF has now been drawn into the U.S. Cold War orbit. On Tuesday it made a radical decision to dismantle the condition that had integrated the global financial system for the past half century… By doing so, it announced its new policy: “We only enforce debts owed in US dollars to US allies.”


French Economy Minister Christine Lagarde speaks during a news conference in Riyadh

The IMF Just Entered The Cold War, Forgives Ukraine’s Debt To Russia:

On December 8, the IMF’s Chief Spokesman Gerry Rice sent a note saying:

“The IMF’s Executive Board met today and agreed to change the current policy on non-toleration of arrears to official creditors. We will provide details on the scope and rationale for this policy change in the next day or so.”

Since 1947 when it really started operations, the World Bank has acted as a branch of the U.S. Defense Department, from its first major chairman John J. McCloy through Robert McNamara to Robert Zoellick and neocon Paul Wolfowitz. From the outset, it has promoted U.S. exports – especially farm exports – by steering Third World countries to produce plantation crops rather than feeding their own populations. (They are to import U.S. grain.) But it has felt obliged to wrap its U.S. export promotion and support for the dollar area in an ostensibly internationalist rhetoric, as if what’s good for the United States is good for the world. Continue reading »

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Dec 07

FYI.


Peter-Schiff

Peter Schiff Warns: “The Whole Economy Has Imploded… Collapse Is Coming”:

Back before 2008 Peter Schiff was harshly criticized and laughed at for his predictions about a coming economic collapse. Among other things Schiff warned that consumer spending had hit a wall, stocks were overpriced and lax credit lending practices would lead to a detonation of the banking system. Rather than heed the warnings, the biggest names in mainstream media tried to discredit him for not toeing the official narrative. Shortly thereafter, of course, Schiff was vindicated and much of the doom he had forecast came to pass.

Today, Schiff continues to argue that the economy is on a downhill trajectory and this time there’ll be no stopping it. All of the emergency measures implemented by the government following the Crash of 2008 were merely temporary stop-gaps. The light at the end of the tunnel being touted by officials as recovery, Schiff has famously said, is actually an oncoming train. And if the forecast he laid out in his latest interview is as accurate as those he shared in 2007, then the the train is about to derail.

We’re broke. We’re basically living off of debt. We’ve had a huge transformation of the American economy. Look at all the Americans now on food stamps, on disability, on unemployment.

The whole economy has imploded… the bottom hasn’t dropped out yet because we’re able to go deeper into debt. But the collapse is coming.

Fundamentally, America is worse off now than it was pre-crash. With the national debt rising unabated and money being printed out of thin air without reprieve, it is only a matter of time. Continue reading »

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Dec 04

“QE2 moved Repo rates, on average, 2.7 basis points for every $100B in QE. So, one very rough estimate moved GC 8 basis points and the other 2.7 basis points per hundred billion. In order to move GC 25 basis points higher, in a very rough estimate, the Fed needs to drain between $310B and $800B in liquidity.”


GC repo

“But It’s Just A 0.25% Rate Hike, What’s The Big Deal?” – Here Is The Stunning Answer:

After today’s market plunge, the result of what even Goldman admitted may have been a major policy error by the ECB, suddenly the Fed’s determination to hike rates in two weeks lies reeling on the ropes. After all, what the ECB did was an implicit tightening of reverse QE1 proportions  (it is no accident that the EURUSD is soaring as much as it did in March 2009 when the Fed unleashed QE). Continue reading »

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Dec 03

Junk Bond Market - The Biggest Red Flag since the Great Recession

Junk Bond Market: The Biggest Red Flag since the Great Recession:

The junk bond market continues to show signs of cracking…

For months now, we’ve pointed to the decline of junk bond values as one of the biggest red flags in the entire market. The bond market is where companies, countries, and individuals go to borrow money. It’s far larger and more important than the stock market. The U.S. bond market, for instance, is about twice as large as the U.S. stock market.

If an economy, industry, or company is in trouble, warning signs usually appear in the bond market long before they show up in the stock market. We’ve focused specifically on the bond market’s riskiest offerings, junk bonds, which are bonds issued by companies with shaky balance sheets. They’re riskier than bonds issued by strong companies, so they pay higher yields.

When the economy slows down, companies in poor financial shape feel the pain first. That’s why junk bonds often point out problems before other assets do.

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Dec 01

U.S. Total Debt Soars By $674 Billion In November:

When the US reached a debt ceiling deal in the beginning of November, it was common knowledge that there would be a debt accrual “catch up” to make up for lost time when the US was operating under emergency measures to avoid breach of the debt ceiling. And sure enough, when the accurate total debt number was released on November 2, this was indeed the case, when we learned that the US had added some $339 billion in debt during the “emergency measures” period.

However, what is unclear is how in the remaining 4 weeks of November, the US managed to add another $335 billion in total debt, bringing the total increase for the month of November to a whopping $674 billion, and total US debt to a record $18.827 trillion.

US Debt November_1_0 Continue reading »

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Dec 01

Puerto Rico Avoids $354 Million Default With Absurd Revenue “Clawback”:

 Earlier today, we noted that it was decision time for Puerto Rico.

Staring down a $354 million debt payment, Governor Alejandro Garcia Padilla had to decide between defaulting on $273 million in GO debt (the portion of the payment guaranteed by the National Public Finance Guarantee Corp.) and holding onto cash the government needs to provide public services for the island’s citizens.  Continue reading »

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Dec 01

It’s D-Day For Puerto Rico As $354 Million Payment Comes Due, Padilla Heads To Capitol Hill For Help:

Puerto Rico has a problem. The commonwealth needs to make a $354 million bond payment on Tuesday and the government is basically out of money.

We previewed this rather precarious situation twice in the last two weeks (see here and here), noting that this time is indeed “different.” Why? Because unlike August when the island paid only $628,000 of a $58 million payment (so, just about 1%), a large portion of what’s due Tuesday is GO debt guaranteed by the National Public Finance Guarantee Corp. A default on that spells litigation.

A default “would likely trigger legal action from creditors, commencing a potentially drawn-out process absent swift federal intervention,” Moody’s warned last month.

As a refresher, here’s a bullet point summary of recent developments from BofAML: Continue reading »

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